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UKIPO Initiates Consultation on Standard Essential Patents to Enhance Innovation Framework

UKIPO Initiates Consultation on Standard Essential Patents to Enhance Innovation Framework

Industry news News 21/07/2025

The UK Intellectual Property Office (UKIPO) has commenced a significant public consultation concerning the framework governing Standard Essential Patents (SEPs). This initiative, which began on July 15, 2025, and is scheduled to conclude on October 7, 2025, seeks to gather diverse perspectives on potential adjustments to the SEP ecosystem, with the overarching aim of fostering a more conducive environment for innovation and economic growth within the United Kingdom.

 

The Role and Challenges of Standard Essential Patents

Standard Essential Patents (SEPs) represent intellectual property that protects technology integral to the implementation of technical standards, such as those underpinning 5G connectivity, Wi-Fi, and advanced automotive systems. These patents are fundamental to ensuring interoperability across various technologies and are therefore critical enablers of modern technological development and widespread adoption.

However, the current landscape for SEP licensing has presented several complexities. Identified issues include a perceived lack of transparency in licensing rate determination, information asymmetries between patent holders and technology implementers, challenges in verifying patent essentiality, and the significant costs and duration often associated with SEP litigation. Evidence gathered by the IPO since 2021 indicates that these systemic issues may impede innovation, particularly for Small and Medium-sized Enterprises (SMEs) that may face greater difficulty in navigating the existing licensing and dispute resolution mechanisms.

 

Proposed Avenues for System Enhancement

The consultation document outlines several key proposals intended to address these challenges:

-  Establishment of a Specialist Rate Determination Track at IPEC: A central proposal involves introducing a dedicated "Rate Determination Track" within the Intellectual Property Enterprise Court (IPEC). The objective of this track would be to provide a more efficient and cost-effective mechanism for the judicial determination of Fair, Reasonable, and Non-Discriminatory (FRAND) licensing rates for SEP portfolios on a case-by-case basis. This initiative aims to enhance consistency and predictability in SEP pricing

-  Enhancing Disclosure of Standard-Related Patent Information: To mitigate information asymmetry, the consultation considers requiring patent holders to provide the IPO with more comprehensive information regarding their standard-related patent declarations. This measure is intended to improve the accessibility of information, assisting businesses in identifying relevant essential patents and understanding their associated licensing obligations.

-  Refinement of Pre-Action Protocols and Alternative Dispute Resolution (ADR): The IPO is seeking further input on the efficacy of existing pre-action protocols in SEP licensing negotiations and is exploring whether a specialized SEP pre-action protocol would be beneficial. Additionally, the consultation aims to assess the current provision and accessibility of ADR services, promoting more efficient and less adversarial avenues for dispute resolution.

-  Review of Essentiality Checking Solutions and Remedies: The consultation will include a review of available essentiality checking solutions to ascertain their accessibility and whether the government should introduce an essentiality determination opinion service. Furthermore, it will examine whether the existing patent framework provides adequate remedies for disputes pertaining to SEPs.

 

Strategic Importance for UK Innovation

Minister for Intellectual Property Feryal Clark has underscored the significance of intellectual property to the government's economic growth agenda, highlighting its foundational role in technologies that define the connected future. Adam Williams, Chief Executive of the UKIPO, has stated that the consultation's approach, which combines potential regulatory interventions with market-driven solutions, is designed to enhance the UK's competitiveness while ensuring equity and transparency across the technology value chain.

With the UK's telecommunications sector contributing substantially to the national GDP, and with many emerging industries relying on technical standards, the effective functioning of the SEP framework is considered vital. This consultation represents a strategic effort to ensure that the UK's IP system continues to stimulate investment in innovation and creativity, particularly within burgeoning technological sectors.

 

Invitation for Stakeholder Engagement

The UKIPO actively encourages responses from all relevant stakeholders within the SEP ecosystem, including patent holders, technology implementers, legal practitioners, and academic institutions. Broad participation is viewed as essential to ensure that any forthcoming measures are well-informed and capable of supporting balanced growth across the diverse elements of the UK economy.

All interested parties are encouraged to review the consultation document and submit their views by the deadline of October 7, 2025. This consultation provides a critical opportunity to contribute to the evolution of the SEP licensing framework in the UK, supporting a robust and innovative intellectual property environment.