Government consultation on Standard Essential Patents

The Intellectual Property Office (IPO) has initiated a consultation aimed at addressing the challenges surrounding Standard Essential Patents (SEPs) in the UK. SEPs are critical for the implementation of technological standards such as 5G, allowing devices to communicate efficiently across various sectors, from healthcare to smart manufacturing. Despite their significance, the current landscape poses various barriers, particularly for smaller enterprises striving to adopt standardised technologies.

Available evidence indicates that the UK's SEP ecosystem faces inefficiencies that hinder innovation, including gaps in knowledge and transparency. Many businesses encounter difficulties navigating the SEPs licensing process, which can lead to complex and costly disputes. Recently, a notable case was reported with a staggering £31.5 million legal cost, highlighting the pressing need for reform. In response, the Government is considering policy options to streamline the SEP framework, aiming to promote efficient licensing and alleviate disputes.

The proposed measures include the introduction of a specialist rate determination track, which could offer structured licence rates for SEP portfolios. This initiative is designed to provide greater consistency and transparency in pricing, making it easier and more affordable for all businesses, particularly start-ups and scale-ups, to obtain SEP licences. Additionally, patent holders may be required to disclose standard-related patent information, meaning a more transparent licensing process for all parties involved.

The consultation also invites further evidence on various topics, such as the effectiveness of pre-action protocols in SEP negotiations and the adequacy of current remedies for SEP disputes. Alternative Dispute Resolution (ADR) measures will also be examined to ensure their accessibility, particularly for smaller companies.

Minister for Intellectual Property Feryal Clark MP emphasised the importance of intellectual property in driving technological advancements, stating, "This consultation will help make the licensing of these technologies more straight forward and accessible - driving innovation, reducing costly litigation, and helping UK firms lead in developing the technologies of tomorrow."

Industry stakeholders, including the President of the IP Federation, Sarah Vaughan, and CIPA President Bobby Mukherjee, have expressed support for the consultation's balanced approach to transparency and dispute resolution. The Chief Executive of the Intellectual Property Office, Adam Williams, underscored the importance of stakeholder engagement, noting this consultation as a "critical opportunity for all stakeholders to help build a SEP ecosystem that works for everyone."

As businesses and industry experts prepare to submit their responses by 7 October 2025, the insights gathered are expected to inform proposals that cater to a diverse range of needs within the innovation ecosystem, fostering balanced growth across the UK economy.

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