Contribution to the Debate on SEPs

Abstract

Report of the Expert Group of the European Commission on licensing and valuation of standard essential patents (SEPs).

The report provides an analysis of the current SEP licensing landscape and identifies a number of issues important to the future of SEP licensing. The report includes proposals by different experts directed to (i) increasing the transparency of the SEP landscape and SEP licensing process, (ii) supporting licensing in the value chain, (iii) determining fair, reasonable and non-discriminatory (FRAND) licensing terms and conditions, (iv) facilitating SEP licensing negotiations and the handling of SEP disputes and (v) encouraging the formation of patent pools. The group of experts was installed by the European Commission to deepen the expertise on existing and evolving industry practices related to the licensing of SEPs in the context of the digitalisation of the economy, the sound valuation of intellectual property and the assessment of FRAND licensing terms and conditions.

Keywords: Intellectual Property, Licensing, FRAND, Royalty Base and Rate, Standard Essential Patents, Valuation, Patent Pools, Value Chain, Internet of Things

JEL Classification: L15, L24, K21, O31, O34