Licensing of standard-essential patents: EU Commission presents balanced proposal

In the automotive industry, the high investments in research and development, especially for digitization, require a balanced and transparent framework for the licensing of standard-essential patents. Against this background, the German Association of the Automotive Industry (VDA) welcomes the regulation on the licensing of standard-essential patents (SEP-VO) proposed by the EU Commission today, because it represents a stable and clear set of rules for the licensing of standard-essential patents and forms a good basis for the necessary balanced and proportionate regulation.

Standard-essential patents are a substantial part in the development and implementation of technological standards. However, the current licensing system for these patents can be very cumbersome and insecure, as well as hampering innovation and fair competition. The SEP-VO is a step forward here. For the German automotive industry - manufacturers and suppliers alike - it is of great importance and benefit in terms of competition, because it ensures that the license conditions are fair, reasonable and non-discriminatory (FRAND principle) and thus promote competition and innovation. The SEP-VO will support companies - from start-ups to industrial companies - across Europe by offering them more transparency, predictability, security and efficiency in the licensing of standard-essential patents in the supply chain.

In addition, the SEP-VO will promote Europe's technological sovereignty, ensuring that European companies have access to essential technologies on a fair basis. It also means strengthening Europe's tech industry and will help the EU maintain its leadership position in key sectors such as transport. In addition, the SEP-VO facilitates the green and digital transformation of the EU by promoting the application and further development of new technologies that aim for sustainability and energy efficiency.