The European Commission has proposed new rules to govern patents for standard-essential technology in smart devices, such as drones, connected cars, and mobile phones, with the aim of reducing litigation.
The current system lacks transparency, is fragmented and often results in lengthy disputes, according to the Commission. The proposed rules will require patent holders to register their essential patents with the EU Intellectual Property Office, which will then determine fair, reasonable and non-discriminatory royalties.
Parties involved in a dispute can ask a court for a provincial injunction regarding potential royalties while the two sides negotiate. The proposed system has been welcomed by carmakers Mercedes and Volkswagen but lobby group IP Europe, which includes Nokia and Qualcomm, argues that it puts obstacles before patent holders. The proposal, which also includes a supplementary protection certificate for pharmaceutical or plant protection products, needs to be agreed with EU countries and the European Parliament before it can become law.