The article discusses the challenges related to standard essential patents (SEPs) and the ambiguity surrounding fair, reasonable, and non-discriminatory (FRAND) licensing terms. It explains how companies collaborate to create standards like Bluetooth and WiFi while committing to license their patents. Disputes over FRAND terms have led to uncertainty in the European market, particularly following the Huawei v ZTE ruling, which requires SEP holders to offer FRAND licenses. The proposed EU Framework aims to normalize and clarify these licensing conditions to enhance predictability for stakeholders in SEP licensing.
The proposed EU Framework will fill this gap in the European SEP landscape and eliminate uncertainty by providing a FRAND determination of a fair rate (and conditions) for licensing SEPs.
Currently, the European landscape for resolving SEP licensing disputes is shaped by the Huawei v ZTE decision, which obliges SEP holders to offer licenses under FRAND conditions.
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