We last reported on the European Commission's proposal relating to regulation of FRAND litigation and licensing in the EU in November 2024. At that time, we noted that the legislation had faced a number of significant setbacks – both from a legislative perspective and in terms of the criticism it had received (which we reported on in more detail here).
The Commission has now withdrawn its proposed SEP regulation, stating in an annex to its work programme for 2025 that the reason for the withdrawal was "[n]o foreseeable agreement - the Commission will assess whether another proposal should be tabled or another type of approach should be chosen."
David Webb, senior associate, commented:
"It is not entirely surprising that the Commission has pulled back from its planned regulation. However, it does leave the question open as to what is next for FRAND regulation in Europe, if indeed regulation is required at all. Countries such as the UK do not appear to have any plans to legislate in this area and that may remain the case in Europe for some time to come as well."
In the absence of legislation, Europe's approach to SEPs will continue to be driven by the courts. The UPC is increasingly taking a central role in resolving FRAND disputes alongside the German national courts, with the first full FRAND judgment issued in November 2024. Europe looks set to continue to be an active centre for resolving multi-jurisdictional FRAND disputes.
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Andrew Moir
Partner, Intellectual Property and Global Head of Cyber & Data Security, London
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