Standard Essential Patents UK and EU reform update: where are we now?

Understanding SEPs

An SEP is a patent that protects technology essential to a technical standard, meaning any product or service complying with that standard must necessarily use the patented technology. SEPs are most prevalent in telecommunications (including 4G, 5G, and Wi-Fi), electronics, and automotive sectors, where interoperability between devices is crucial.

Holders of SEPs typically commit to licensing their patents on Fair, Reasonable, and Non-Discriminatory (FRAND) terms. However, determining what constitutes FRAND licensing has proven contentious, leading to complex disputes across multiple jurisdictions.

UK SEP Reform: The IPO Consultation

On 15 July 2025, the UKIPO launched a consultation on SEP reform, reflecting growing concerns that the current SEP ecosystem presents challenges that may hinder innovation and investment, particularly for smaller businesses.

The IPO identified several structural concerns: 

• Transparency: Businesses often lack clear information on which patents are essential and what constitutes a typical FRAND rate. Confidentiality provisions in licences compound this problem
• Cost and efficiency of disputes: Recent UK SEP litigation has run to tens of millions of pounds. The government is considering more efficient mechanisms to manage FRAND rate determination
• Knowledge imbalance: SEP holders typically have greater visibility of essentiality and patent coverage. SMEs may lack the resources or expertise to assess licensing demands confidently
• Licensing complexity: The multiplicity of standards bodies, pools and licensing structures increases transactional complexity for implementers

The consultation sought views on several potential measures:

• Specialist Rate Determination Track: A new court track to provide a faster, more affordable mechanism for determining fair SEP licence rates, particularly benefiting SMEs when licensing negotiations prove unsuccessful
• Searchable standard-related patent information: Requirements for SEP holders to disclose more information about their patents, making it easier for businesses to identify which patents are essential to a given standard
• Specialist SEP pre-action protocol: A new protocol to encourage early disclosure and negotiation, reducing the need for costly litigation
• Essentiality checking services: Market provision of services to verify whether patents are truly essential to a standard
• Alternative dispute resolution: Greater emphasis on mediation and arbitration as alternatives to court litigation

The consultation closed on 7 October 2025, with a government response expected in early 2026. If legislative changes are deemed necessary, a Bill could be introduced in Parliament in 2026.

EU SEP reform: the stalled regulation

In contrast to the UK's consultation and response process, the EU's SEP reform efforts have stalled. On 11 February 2025, the European Commission formally withdrew its proposed SEP Regulation, citing “no foreseeable agreement” among Member States.

The Commission's original proposal, approved by the European Parliament in February 2024, included:

• A central SEP register managed by the EUIPO
• Mandatory registration of SEPs within six months of a new standard being published
• A mandatory FRAND determination procedure before litigation
• Essentiality checks by independent evaluators

Despite parliamentary approval, the proposal faced strong opposition from SEP holders and several national governments. Major technology companies argued that the regulation was overly burdensome and risked undermining innovation.

Interestingly, several Member States including France, Germany, Italy, and Spain have called upon the Commission to reverse its decision, reflecting the fundamental tension between SEP holders and implementers. The Commission has indicated it may consider “another type of approach”, but no alternative has been proposed.

The withdrawal has several immediate consequences:

• Status quo maintained: SEP licensing in the EU continues under existing frameworks, including national courts and the Unified Patent Court (UPC), with no harmonised EU-wide FRAND mechanism
• Increased enforcement likely: With regulatory pressure lifted, SEP holders may pursue more aggressive enforcement strategies, particularly through the UPC
• Forum strategy: The UK remains a key jurisdiction for SEP litigation, whilst the UPC may become increasingly attractive to SEP holders seeking pan-European injunctive relief

Conclusion 

The UK and EU are now on diverging paths in SEP policy. The UK is actively exploring reforms to enhance transparency, lower costs and support SMEs, with the potential for legislative change from 2026. The UK's willingness to set global FRAND terms distinguishes it from other jurisdictions. Should the UKIPO consultation result in new mechanisms such as the proposed Rate Determination Track, the UK could further cement its position as a leading forum for resolving complex SEP disputes. In the EU, the withdrawal of the SEP Regulation maintains the existing decentralised environment, creating ongoing uncertainty for implementers but potential opportunities for SEP holders. For businesses, the immediate priority is to monitor UK policy developments and assess licensing and litigation strategies in light of both the UK’s potential reforms and the EU’s ongoing fragmentation.