Europe floats patent overhaul, which obviously everyone's thrilled by
(2023/05/01)
- Reference: 1682928911
- News link: https://www.theregister.co.uk/2023/05/01/eu_patent_rules/
- Source link:
The European Commission late last week proposed rules governing patents on technical standards, ostensibly to ensure innovation, competition, and fair prices.
The legislative proposal covers standard essential patents (SEPs), meaning patents that protect technology relevant to common standards, like 5G telephony, Wi-Fi, and Bluetooth, as well as video and audio codecs, photo formats like JPEG, and so on. Organizations that have been granted exclusive control over essential technologies through a patent are generally obligated to offer licenses on fair, reasonable and non-discriminatory (FRAND) terms.
More than a decade ago, European countries agreed on a [1]unitary patent system to make patent protection consistent across EU member states. That system is scheduled to take effect on June 1, 2023, and the latest SEP legislative proposal is intended to complement the latest rules.
[2]
The stated goal of [3]the proposal is ensure: that EU owners of SEPs and implementers of that technology continue to innovate, manufacture, and sell products in the EU that are competitive on the global market; and that end users of said technology benefit from getting these products at a reasonable price.
[4]
[5]
"IP stands for Europe's Industrial Power," said Thierry Breton, Commissioner for Internal Market, in [6]a statement that misidentifies what IP actually stands for to emphasize the value of intellectual property.
"With patented technologies, Europe's industries are at the forefront of innovation, from automotive to IoT. Today, we are modernizing our framework for standard-essential patents, making it more transparent, SME-friendly and ready for the economy of tomorrow."
[7]
The proposed SEP licensing framework aims to provide more clarity about who owns SEPs and which are actually essential, and about FRAND royalties and other terms and conditions. It also aims to make SEP dispute resolution easier and less costly.
Er, hang on a minute
But at this stage, the would-be legislation has not been well-received.
The App Association, [8]funded largely by Apple , in [9]a statement on Thursday said that the removal of a passage from the proposal – stating that a FRAND patent owner cannot refuse a license to an implementer who agrees to the terms – risks undermining the entire concept of FRAND.
About a week ago, Fabian Gonell, chief licensing lawyer at Qualcomm, published [10]a post on LinkedIn arguing that the EU proposal would penalize patent holders making infringement claims outside of Europe by limiting access to EU courts, a practice similar to China's rules that the Commission has challenged.
[11]Rate of disruptive tech and science discoveries has slowed over the decades, claims study
[12]Disruptive innovation's like a party. It's always happening elsewhere
[13]US Supreme Court snubs that guy who wants AI recognized as patent inventors
IP Europe, a lobbying group supported by telecom companies like Ericsson, Nokia, Orange, and Qualcomm, along with groups like Dolby and research org Fraunhofer, [14]voiced broader concerns about the "harmful and unbalanced" proposal.
The group took issue with a long list of complaints: departing from existing precedent without supporting data; turning over management of SEPs to an agency with no experience in patents or standards; "creating an unpredictable and unbalanced system" that would delay negotiations and royalty payments; ignoring prior EU commitments to intellectual property rights; and capping aggregate royalties.
The Fair Standards Alliance, a similar lobbying group representing more than 50 European and other companies, also [15]challenged the current draft of the rules .
[16]
The SEP proposal still has to be discussed and agreed upon by the European Parliament and the Council of the European Union before it can be officially adopted. Those conversations can be expected to bring further changes to the specific rules under consideration. ®
Get our [17]Tech Resources
[1] https://single-market-economy.ec.europa.eu/industry/strategy/intellectual-property/patent-protection-eu/unitary-patent-system_en
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZE@NwxDPgGhY8uqpv6msNQAAAAg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://single-market-economy.ec.europa.eu/publications/com2023232-proposal-regulation-standard-essential-patents_en
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZE@NwxDPgGhY8uqpv6msNQAAAAg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZE@NwxDPgGhY8uqpv6msNQAAAAg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://ec.europa.eu/commission/presscorner/detail/en/IP_23_2454
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZE@NwxDPgGhY8uqpv6msNQAAAAg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www.bloomberg.com/news/articles/2022-09-19/apple-flexes-muscle-as-quiet-power-behind-app-developer-group
[9] https://actonline.org/2023/04/27/4-27-2023-statement-from-mike-sax-founder-and-chairperson-of-act-the-app-association-on-the-european-commission-announcement-regarding-the-licensing-of-standard-essential-patents-seps-under-fair/
[10] https://www.linkedin.com/pulse/how-does-european-commission-reconcile-its-draft-sep-wto-gonell/
[11] https://www.theregister.com/2023/01/05/disruption_what_disruption/
[12] https://www.theregister.com/2023/01/09/opinion_column_disruption/
[13] https://www.theregister.com/2023/04/24/us_supreme_court_patent_ai_inventor/
[14] https://ipeurope.org/press-release/ip-europe-regrets-european-commission-patents-proposal-calls-on-parliament-and-council-to-support-european-ip-leadership/
[15] https://fair-standards.org/2023/04/27/fair-standards-alliance-reacts-to-european-commission-proposal-for-a-regulation-on-standard-essential-patents/
[16] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZE@NwxDPgGhY8uqpv6msNQAAAAg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[17] https://whitepapers.theregister.com/
The legislative proposal covers standard essential patents (SEPs), meaning patents that protect technology relevant to common standards, like 5G telephony, Wi-Fi, and Bluetooth, as well as video and audio codecs, photo formats like JPEG, and so on. Organizations that have been granted exclusive control over essential technologies through a patent are generally obligated to offer licenses on fair, reasonable and non-discriminatory (FRAND) terms.
More than a decade ago, European countries agreed on a [1]unitary patent system to make patent protection consistent across EU member states. That system is scheduled to take effect on June 1, 2023, and the latest SEP legislative proposal is intended to complement the latest rules.
[2]
The stated goal of [3]the proposal is ensure: that EU owners of SEPs and implementers of that technology continue to innovate, manufacture, and sell products in the EU that are competitive on the global market; and that end users of said technology benefit from getting these products at a reasonable price.
[4]
[5]
"IP stands for Europe's Industrial Power," said Thierry Breton, Commissioner for Internal Market, in [6]a statement that misidentifies what IP actually stands for to emphasize the value of intellectual property.
"With patented technologies, Europe's industries are at the forefront of innovation, from automotive to IoT. Today, we are modernizing our framework for standard-essential patents, making it more transparent, SME-friendly and ready for the economy of tomorrow."
[7]
The proposed SEP licensing framework aims to provide more clarity about who owns SEPs and which are actually essential, and about FRAND royalties and other terms and conditions. It also aims to make SEP dispute resolution easier and less costly.
Er, hang on a minute
But at this stage, the would-be legislation has not been well-received.
The App Association, [8]funded largely by Apple , in [9]a statement on Thursday said that the removal of a passage from the proposal – stating that a FRAND patent owner cannot refuse a license to an implementer who agrees to the terms – risks undermining the entire concept of FRAND.
About a week ago, Fabian Gonell, chief licensing lawyer at Qualcomm, published [10]a post on LinkedIn arguing that the EU proposal would penalize patent holders making infringement claims outside of Europe by limiting access to EU courts, a practice similar to China's rules that the Commission has challenged.
[11]Rate of disruptive tech and science discoveries has slowed over the decades, claims study
[12]Disruptive innovation's like a party. It's always happening elsewhere
[13]US Supreme Court snubs that guy who wants AI recognized as patent inventors
IP Europe, a lobbying group supported by telecom companies like Ericsson, Nokia, Orange, and Qualcomm, along with groups like Dolby and research org Fraunhofer, [14]voiced broader concerns about the "harmful and unbalanced" proposal.
The group took issue with a long list of complaints: departing from existing precedent without supporting data; turning over management of SEPs to an agency with no experience in patents or standards; "creating an unpredictable and unbalanced system" that would delay negotiations and royalty payments; ignoring prior EU commitments to intellectual property rights; and capping aggregate royalties.
The Fair Standards Alliance, a similar lobbying group representing more than 50 European and other companies, also [15]challenged the current draft of the rules .
[16]
The SEP proposal still has to be discussed and agreed upon by the European Parliament and the Council of the European Union before it can be officially adopted. Those conversations can be expected to bring further changes to the specific rules under consideration. ®
Get our [17]Tech Resources
[1] https://single-market-economy.ec.europa.eu/industry/strategy/intellectual-property/patent-protection-eu/unitary-patent-system_en
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZE@NwxDPgGhY8uqpv6msNQAAAAg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://single-market-economy.ec.europa.eu/publications/com2023232-proposal-regulation-standard-essential-patents_en
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZE@NwxDPgGhY8uqpv6msNQAAAAg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZE@NwxDPgGhY8uqpv6msNQAAAAg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://ec.europa.eu/commission/presscorner/detail/en/IP_23_2454
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZE@NwxDPgGhY8uqpv6msNQAAAAg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www.bloomberg.com/news/articles/2022-09-19/apple-flexes-muscle-as-quiet-power-behind-app-developer-group
[9] https://actonline.org/2023/04/27/4-27-2023-statement-from-mike-sax-founder-and-chairperson-of-act-the-app-association-on-the-european-commission-announcement-regarding-the-licensing-of-standard-essential-patents-seps-under-fair/
[10] https://www.linkedin.com/pulse/how-does-european-commission-reconcile-its-draft-sep-wto-gonell/
[11] https://www.theregister.com/2023/01/05/disruption_what_disruption/
[12] https://www.theregister.com/2023/01/09/opinion_column_disruption/
[13] https://www.theregister.com/2023/04/24/us_supreme_court_patent_ai_inventor/
[14] https://ipeurope.org/press-release/ip-europe-regrets-european-commission-patents-proposal-calls-on-parliament-and-council-to-support-european-ip-leadership/
[15] https://fair-standards.org/2023/04/27/fair-standards-alliance-reacts-to-european-commission-proposal-for-a-regulation-on-standard-essential-patents/
[16] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZE@NwxDPgGhY8uqpv6msNQAAAAg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[17] https://whitepapers.theregister.com/
Re: Must be not as awful as they lobbied for
Flocke Kroes
FRAND is a way of not saying UFO (uniform fee) or put another way: use patents as a barrier to free software. Pretty impressive as software is a branch of mathematics and mathematics is not patentable subject matter. (To patent software you have to call it a computer implemented invention.)
A decade ago we would have been better off if the entire patent system had been abolished. Things have not got any better in the last ten years.
Re: Must be good.
ChoHag
Go check out the list of members of this "Fair Standards Association". There's no way anything that lot want is any good.
I think you selected the wrong icon though.
Bluetooth?
NIck Hunn
Bluetooth is RANDZ, not FRAND. which means it's not part of the patent gravy train. It's a good example of how working to promote a larger, open market can be successful. It still doesn't stop the patent trolls, but that's another story, which might be a better subject for the European Commission's attention.
Must be good.
I'm in favor of this. I have no idea what the implications are but a proposal that pissed of Apple and Qualcomm has got to be a good one.