EU sets out patent rules for smart technology to limit law suits

EU Proposes New Rules to Reduce Patent Litigation for Smart Devices

By Philip Blenkinsop

The European Commission has proposed new rules to govern patents for technologies used in smart devices such as drones, connected cars, and mobile phones. The aim is to reduce litigation and improve transparency in the system for standard-essential patents (SEPs). SEPs protect technology such as 5G, Wi-Fi, or Bluetooth that is needed by equipment producers to comply with international standards.

In the last decade, mobile technology has generated extensive patent litigation involving major companies such as Apple, Microsoft, HTC, Motorola, Samsung, and Nokia. The new proposals require patent holders in the fields of telecoms, computers, payment terminals, and other smart technology to register their essential patents with the EU Intellectual Property Office (EUIPO). EUIPO will oversee the process to determine fair, reasonable, and non-discriminatory (FRAND) royalties, which should be concluded within nine months.

• Either party in a dispute can ask a court for a provincial injunction regarding potential royalties even while the two sides negotiate.
• The EU proposal also includes a new supplementary protection certificate to extend a patent by five years for pharmaceutical or plant protection products. This would complement the EU unitary patent that will be launched on June 1.
• Another element of the proposal would allow governments to authorize the use of a patented invention without the patent holder’s consent in the case of an emergency, such as for medical technology during the COVID-19 pandemic.

The rules need to be agreed with EU countries and the European Parliament before they can become law and may be amended.

Stay tuned for updates on this developing story.

(Reporting by Philip Blenkinsop; editing by Barbara Lewis)