IP Hot Topic: European Commission Suddenly Withdraws Proposed SEP Regulation

On February 11, 2025, the European Commission withdrew its longstanding, and much debated, proposal for standard essential patent (SEP) regulation. The withdrawal was met with mixed reactions, with SEP holders largely praising the withdrawal, while most implementers expressed their dismay. The withdrawal of the proposed regulation means that the existing framework for SEP licensing and enforcement within the EU remains unchanged.

How We Got Here

The now withdrawn proposal for SEP regulation was first introduced in April 2023. The stated goal for the proposed regulation was to create a more transparent and efficient SEP licensing framework within the EU. The proposed regulation sought to achieve this goal by imposing substantial obligations on SEP holders, including:

• a requirement to register their SEPs with a newly-established central electronic SEP register;
• a requirement to initiate a fair, reasonable, and non-discriminatory (FRAND) determination procedure with the European Union Intellectual Property Office (EUIPO) before bringing a lawsuit; and
• subjecting their SEPs to essentiality checks to be carried out by the EUIPO.

The proposed SEP regulation was met with harsh criticism from SEP holders due to these increased obligations, but was also lauded by implementers as bringing much-needed balance to the SEP negotiation process as well as helping foster innovation across Europe. Ultimately the backlash from SEP holders, combined with lobbying efforts, lead to the February 11 withdrawal of the proposed regulation.

In the announcement of the withdrawal (available here), the Commission stated that the proposed regulation is withdrawn because there is “No foreseeable agreement.” While the announcement also states that “the Commission will assess whether another proposal should be tabled or another type of approach should be chosen,” it is unlikely that a new policy will be proposed any time soon.

Practical Impact

The withdrawal of the proposed SEP regulation means that the existing framework for SEP licensing and enforcement within the EU—which does not include the additional proposed SEP holder obligations—remains unchanged. Maintaining the status quo is unlikely to result in a significant change in the current SEP landscape in Europe. However, we may see an uptick in SEP enforcement efforts as SEP holders’ concerns over the proposed regulation are alleviated. The continued rise of the Unified Patent Court (UPC) and recent pro-SEP holder decisions coming out of that court could further contribute to an increase in SEP enforcement efforts.

With that being said, we should not expect to see significant new SEP policy proposals from the EU in the short term. But as new political regimes come into office and settle in, we may see different policy proposals introduced down the road. In the meantime, expect Europe to continue to be a hotbed for SEP enforcement. SEP holders and implementers alike should have an SEP Management Plan in place to effectively guide their decision-making when SEP disputes arise. That plan should include strategies for handling SEP disputes not only in Europe, but also in the United States, as both jurisdictions are likely to remain significantly intertwined when it comes to SEP licensing and enforcement.

We will be monitoring these developments and will provide analysis as they occur.