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UK IPO’s proposed framework for SEPs

The regulator is seeking to improve the efficiency and transparency of the standard essential patents ecosystem, reduce costs of dispute resolution and promote innovation for UK firms

The IPO is consulting on a package of updates to the SEP framework aimed at cutting costs in dispute resolution

On 15 July 2025, the UK Intellectual Property Office (IPO) opened a consultation on the future of the standard essential patents (SEPs) policy framework. In announcing its proposed changes, the Government cited apparent inefficiencies in the existing system that have prevented SMEs in particular from implementing standardised technologies to support innovation, including:

  • Information disparities between SEP holders and standards implementers;

  • Limited transparency around the process for licensing SEPs; and

  • Costly and time consuming processes for dispute resolution in SEP licensing.

The Government cited one such recent dispute – involving 3G, 4G and 5G-related patents held by InterDigital – that reportedly cost £31.5m to resolve. In a statement that highlighted the importance of SEPs to industries including telecoms and manufacturing, Feryal Clark MP (Minister for Intellectual Property, DSIT) described the Government’s goals in reforming the SEP framework as “driving innovation, reducing costly litigation, and helping UK firms lead in developing the technologies of tomorrow”. Interested stakeholders have until 7 October 2025 to provide comments on the proposals through the public consultation.

A new court procedure would streamline rate disputes and publicise more information on prior rate decisions

To address the costly nature of disputes in rate setting for SEPs as well as the lack of public information on rate setting available to prospective implementers, the Government is proposing the introduction of a special court procedure referred to as the Rate Determination Track (RDT). Administered through the Intellectual Property Enterprise Court (IPEC), the RDT would be strictly limited to disputes over license rates and the application of fair, reasonable and non-discriminatory (FRAND) licence terms and not apply to cases where infringement, validity and essentiality may also be at issue. The RDT would involve streamlined hearings with bespoke rules regarding the presentation of relevant evidence to subject-matter experts and would ultimately result in a binding rate determination for licensing the SEP. The Government is considering the publication of outcomes from the RDT as a tool for promoting transparency in licensing terms, offering prospective implementers and SEP holders common data points from which to begin future negotiations. However, the IPO is seeking feedback on whether the disclosure of RDT-determined rates could discourage some parties from using the procedure given the concerns for the sensitive nature of commercial information involved in rate setting. The RDT presents an alternative and arguably more flexible policy solution to that offered by the EC in its now abandoned plans to reform the EU’s SEP system, which included mandatory participation in time-limited FRAND assessments and the calculation of aggregate royalties for all patents essential to a given standard.

The One IPO Search service would seek to bring together a global database of SEP holdings

Given the IPO’s concern with the current state of fragmentation and inconsistency in information regarding the patents needed to implement a standard, the Government is proposing a new standards-related functionality for the ‘One IPO Search service’. Currently, information on SEPs and determinations about their essentiality to implementing a standard are held by different standard development organisations (SDOs) around the world. Firms seeking to implement standards do not have access to a singular resource or repository where they can find easily accessible information on SEPs. To remedy this, the IPO would aim to make standards-related patents searchable through the One IPO system and provide specific information on who holds the patent and what technical standard the patent supports. In order to build out this database, the IPO would need to require patent holders to share data on their holdings, and the Government is seeking further feedback on whether that is better achieved through penalties for nondisclosure or incentives such as reduced fees for rights holders that provide timely and accurate information.

Non-regulatory interventions have included an SEP Resource Hub and deeper engagement with global stakeholders

In addition to these two specific interventions, the IPO is also seeking further information from relevant stakeholders on a number of other issues within the SEP ecosystem to assist in considering future measures. These issues include: 

  • Whether general pre-action protocols (rules and procedures to abide by before a dispute proceeds to civil litigation) are functioning well in SEP disputes and if there is a need for SEP-specific protocols;

  • How commercially-provisioned essentiality checking services are serving SMEs and whether a public essentiality service could improve affordability and accessibility; and

  • Whether existing legal remedies and alternative dispute resolution services are adequate, including whether threats of injunctions by rights holders have disadvantaged prospective implementers in negotiations.

The IPO also outlines the non-regulatory actions it has taken to date to improve the functioning of the SEP ecosystem, which have included the launch of the SEP Resource Hub, increased collaboration with international IP offices and greater engagement with SDOs. The Government also invites feedback on whether these measures have resulted in meaningful progress and if there are other non-regulatory actions the IPO could take to deliver on its objectives for a more transparent and efficient SEP framework.