What changed

ORDINARY LEGISLATIVE procedure

SHORT JUSTIFICATION

Follow up to the European Parliament legislative on the proposal for a regulation of the European Parliament and of the Council on standard essential patents and amending Regulation (EU) 2017/1001

IMCO fully supports the objective of the draft proposal to improve the licensing of standard essential patents (SEPs). Such improvement aligns with our European goals of fostering innovation, enhancing the digital transition, and ensuring that Europe is a frontrunner in new technologies, thereby encouraging the voluntary participation of European businesses in the European standardization process and ensuring the broadest possible implementation of standardized technologies.

(First reading without prior interinstitutional negotiations)

SEPs play a pivotal role in the broader objectives of achieving a seamless single market and ensuring Europe's global competitiveness. Their central role in promoting technological innovation aligns with the emphasis on socio-economic recovery and encourages businesses to invest in the research and development of new technologies, which benefits our entire economy. At the same time we should ensure that SMEs, crucial for the Single Market, are not left behind in the technological race, that access to these technologies remains fair, and that patent holders do not abuse their power to hinder competition.

1. Rapporteur: Marion WALSMANN (EPP / DE)

Given this broader context, which underscores the importance of integrating technology, innovation, and fair competition within the European -technological landscape, it is clear that standard essential patents (SEPs) are vital in achieving these goals. The proposal's overarching objective, which is to streamline and improve the licensing of SEPs, is certainly commendable in light of these ambitions. It aligns with the larger vision of fostering a more cohesive, innovative, and competitive European Union. However, while its intentions are in the right direction, specific areas within the proposal need closer examination.

2. Reference numbers: 2023/0133 (COD) / A9-0016/2024 / P9_TA(2024)0100

First, the scope of the Regulation should include all SEPs, present and future. Without such inclusivity, the benefits of transparency and reduced litigation will not be fully realized. They will continue to be subject to the issues this regulation seeks to address, including protracted litigation over the appropriate FRAND values for these SEPs. It is, therefore, imperative to extend the scope of application to all SEPs.

3. Date of adoption of the resolution: 28 February 2024

Existing SEPs should be allowed to be registered to ensure that legacy technologies remain both accessible and competitive. The current agreement should still be enforceable even if an existing SEP is not registered. It is only upon submission to the register that all related rules should apply. Consequently, Article 24 of the proposal should be revised to eliminate penalties associated with non-registration of these SEPs.

4. Legal basis: Article 114 of the Treaty on the Functioning of the European Union

Second, both SEP holders and implementers should be able to request checks and determinations, and they should be able to do so with a lower threshold, particularly for SME implementers.

5. Competent Parliamentary Committee: Committee on Legal Affairs (JURI)

In keeping our commitment to transparency and inclusivity, the SEP information database must be accessible to all. While it is understandable to impose fees for specialized checks—like determining a patent's essentiality or FRAND value - the overarching costs for the database's upkeep should fall to the EUIPO. This ensures that a diverse group, from researchers to the general public, can access the information without bearing the financial burden. However, in case of certain type of information in the database, like non-confidential information on FRAND determinations, expert opinions referred to in Article 18 or non-confidential reports of the conciliators, access to it may be subject to the payment of a fee where justified.

6. Commission's position: takes note of the amendments proposed by the European Parliament, while reserving its detailed position on these until the opening of interinstitutional negotiations.

Lastly, the draft opinion introduces technical corrections and clarifications to the proposal. In addition to correcting the terminology, this involves clarifying that the mechanisms to determine a SEP's FRAND value and essentiality are separate from the standardization process itself.

AMENDMENTS

The Committee on the Internal Market and Consumer Protection calls on the Committee on Legal Affairs, as the committee responsible, to take the following into account:

Amendment 1

Proposal for a regulation

Recital 3

Amendment 2

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Recital 4

Amendment 3

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Recital 5

Amendment 4

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Recital 7

Amendment 5

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Recital 8

Amendment 6

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Recital 13

Amendment 7

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Recital 15

Amendment 8

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Recital 16

Amendment 9

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Recital 18

Amendment 10

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Recital 20

Amendment 11

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Recital 23

Amendment 12

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Recital 24

Amendment 13

Proposal for a regulation

Recital 25 a (new)

Amendment 14

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Recital 31

Amendment 15

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Recital 32

Amendment 16

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Recital 33

Amendment 17

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Recital 34

Amendment 18

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Recital 35

Amendment 19

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Recital 37

Amendment 20

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Recital 40

Amendment 21

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Recital 45

Amendment 22

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Recital 46

Amendment 23

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Recital 47

Amendment 24

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Recital 48

Amendment 25

Proposal for a regulation

Article 1 – paragraph 2 – introductory part

Amendment 26

Proposal for a regulation

Article 1 – paragraph 2 – point a

Amendment 27

Proposal for a regulation

Article 1 – paragraph 2 – point b

Amendment 28

Proposal for a regulation

Article 1 – paragraph 3

Amendment 29

Proposal for a regulation

Article 1 – paragraph 4

Amendment 30

Proposal for a regulation

Article 1 – paragraph 5

Amendment 31

Proposal for a regulation

Article 2 – paragraph 1 – point 1

Amendment 32

Proposal for a regulation

Article 2 – paragraph 1 – point 2

Amendment 33

Proposal for a regulation

Article 2 – paragraph 1 – point 7

Amendment 34

Proposal for a regulation

Article 2 – paragraph 1 – point 11

Amendment 35

Proposal for a regulation

Article 2 – paragraph 1 – point 18 a (new)

Amendment 36

Proposal for a regulation

Article 2 a (new)

Amendment 37

Proposal for a regulation

Article 3 – paragraph 2 – point a

Amendment 38

Proposal for a regulation

Article 3 – paragraph 2 – point c

Amendment 39

Proposal for a regulation

Article 3 – paragraph 2 – point f

Amendment 40

Proposal for a regulation

Article 3 – paragraph 2 – point h

Amendment 41

Proposal for a regulation

Article 3 – paragraph 3 a (new)

Amendment 42

Proposal for a regulation

Article 4 – paragraph 3 – point i

Amendment 43

Proposal for a regulation

Article 4 – paragraph 4 – point c

Amendment 44

Proposal for a regulation

Article 4 – paragraph 4 a (new)

Amendment 45

Proposal for a regulation

Article 5 – paragraph 1

Amendment 46

Proposal for a regulation

Article 5 – paragraph 2 – introductory part

Amendment 47

Proposal for a regulation

Article 5 – paragraph 2 – point c

Amendment 48

Proposal for a regulation

Article 5 – paragraph 2 – point d

Amendment 49

Proposal for a regulation

Article 5 – paragraph 2 – point k

Amendment 50

Proposal for a regulation

Article 5 – paragraph 3

Amendment 51

Proposal for a regulation

Article 6 – paragraph 1

Amendment 52

Proposal for a regulation

Article 7 – paragraph 1 – introductory part

Amendment 53

Proposal for a regulation

Article 7 – paragraph 1 – point a

Amendment 54

Proposal for a regulation

Article 7 – paragraph 1 – point b

Amendment 55

Proposal for a regulation

Article 7 – paragraph 1 a (new)

Amendment 56

Proposal for a regulation

Article 8 – paragraph 1 – introductory part

Amendment 57

Proposal for a regulation

Article 8 – paragraph 1 – point b

Amendment 58

Proposal for a regulation

Article 8 – paragraph 1 – point b a (new)

Amendment 59

Proposal for a regulation

Article 9 – paragraph 1 – point g

Amendment 60

Proposal for a regulation

Article 9 – paragraph 1 – point h

Amendment 61

Proposal for a regulation

Article 9 – paragraph 1 a (new)

Amendment 62

Proposal for a regulation

Article 9 – paragraph 1 b (new)

Amendment 63

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Article 11 – paragraph 1

Amendment 64

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Article 12 – paragraph 2

Amendment 65

Proposal for a regulation

Article 13 – paragraph 2 – point c a (new)

Amendment 66

Proposal for a regulation

Article 14 – paragraph 1 – introductory part

Amendment 67

Proposal for a regulation

Article 14 – paragraph 4 a (new)

Amendment 68

Proposal for a regulation

Article 14 – paragraph 5

Amendment 69

Proposal for a regulation

Article 14 – paragraph 6

Amendment 70

Proposal for a regulation

Article 17 – paragraph 1

Amendment 71

Proposal for a regulation

Article 17 – paragraph 2 a (new)

Amendment 72

Proposal for a regulation

Article 17 – paragraph 4 a (new)

Amendment 73

Proposal for a regulation

Article 17 – paragraph 5

Amendment 74

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Article 17 – paragraph 6

Amendment 75

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Article 17 – paragraph 7

Amendment 76

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Article 17 – paragraph 8

Amendment 77

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Article 18 – paragraph 1

Amendment 78

Proposal for a regulation

Article 18 – paragraph 2 – introductory part

Amendment 79

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Article 18 – paragraph 2 a (new)

Amendment 80

Proposal for a regulation

Article 18 – paragraph 3 – point d a (new)

Amendment 81

Proposal for a regulation

Article 18 – paragraph 4

Amendment 82

Proposal for a regulation

Article 18 – paragraph 5

Amendment 83

Proposal for a regulation

Article 18 – paragraph 6

Amendment 84

Proposal for a regulation

Article 18 – paragraph 8 – introductory part

Amendment 85

Proposal for a regulation

Article 18 – paragraph 8 – point b a (new)

Amendment 86

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Article 18 – paragraph 11

Amendment 87

Proposal for a regulation

Article 19 – paragraph 1 – introductory part

Amendment 88

Proposal for a regulation

Article 19 – paragraph 1 – point a

Amendment 89

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Article 19 – paragraph 2

Amendment 90

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Article 20 – paragraph 1

Amendment 91

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Article 22 – paragraph 1

Amendment 92

Proposal for a regulation

Article 22 – paragraph 4 a (new)

Amendment 93

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Article 24 – paragraph 2

Amendment 94

Proposal for a regulation

Article 24 – paragraph 2 a (new)

Amendment 95

Proposal for a regulation

Article 24 – paragraph 3

Amendment 96

Proposal for a regulation

Article 25 – paragraph 3

Amendment 97

Proposal for a regulation

Article 26 – paragraph 4

Amendment 98

Proposal for a regulation

Article 26 – paragraph 5 – introductory part

Amendment 99

Proposal for a regulation

Article 26 – paragraph 5 – point a

Amendment 100

Proposal for a regulation

Article 27 – paragraph 1

Amendment 101

Proposal for a regulation

Article 27 – paragraph 2

Amendment 102

Proposal for a regulation

Article 28 – paragraph 2

Amendment 103

Proposal for a regulation

Article 29 – paragraph 1

Amendment 104

Proposal for a regulation

Article 29 – paragraph 2

Amendment 105

Proposal for a regulation

Article 29 – paragraph 4

Amendment 106

Proposal for a regulation

Article 29 – paragraph 4 a (new)

Amendment 107

Proposal for a regulation

Article 31 – paragraph 2

Amendment 108

Proposal for a regulation

Article 32 – paragraph 6

Amendment 109

Proposal for a regulation

Article 33 – paragraph 1

Amendment 110

Proposal for a regulation

Article 34 – paragraph 1 – introductory part

Amendment 111

Proposal for a regulation

Article 34 – paragraph 4

Amendment 112

Proposal for a regulation

Article 37 – paragraph 1

Amendment 113

Proposal for a regulation

Article 38 – paragraph 2

Amendment 114

Proposal for a regulation

Article 38 – paragraph 3 – introductory part

Amendment 115

Proposal for a regulation

Article 38 – paragraph 3 – point a

Amendment 116

Proposal for a regulation

Article 38 – paragraph 3 – point b

Amendment 117

Proposal for a regulation

Article 38 – paragraph 4 – introductory part

Amendment 118

Proposal for a regulation

Article 38 – paragraph 4 – point a

Amendment 119

Proposal for a regulation

Article 38 – paragraph 4 – point b

Amendment 120

Proposal for a regulation

Article 38 – paragraph 4 – point c

Amendment 121

Proposal for a regulation

Article 38 – paragraph 4 a (new)

Amendment 122

Proposal for a regulation

Article 38 – paragraph 5

Amendment 123

Proposal for a regulation

Article 38 – paragraph 6

Amendment 124

Proposal for a regulation

Article 39 – paragraph 1

Amendment 125

Proposal for a regulation

Article 42 – paragraph 2

Amendment 126

Proposal for a regulation

Article 44 – paragraph 1

Amendment 127

Proposal for a regulation

Article 45 – paragraph 2

Amendment 128

Proposal for a regulation

Article 45 – paragraph 3

Amendment 129

Proposal for a regulation

Article 45 – paragraph 4

Amendment 130

Proposal for a regulation

Article 45 – paragraph 5

Amendment 131

Proposal for a regulation

Article 46 – paragraph 1 – point b

Amendment 132

Proposal for a regulation

Article 46 – paragraph 3

Amendment 133

Proposal for a regulation

Article 47 – paragraph 2

Amendment 134

Proposal for a regulation

Article 48 – paragraph 2

Amendment 135

Proposal for a regulation

Article 55 – paragraph 2

Amendment 136

Proposal for a regulation

Article 56 – paragraph 1 – introductory part

Amendment 137

Proposal for a regulation

Article 56 – paragraph 4

Amendment 138

Proposal for a regulation

Article 60 – paragraph 1 a (new)

Amendment 139

Proposal for a regulation

Article 61 – paragraph 1

Amendment 140

Proposal for a regulation

Article 61 – paragraph 2

Amendment 141

Proposal for a regulation

Article 61 – paragraph 3 a (new)

Amendment 142

Proposal for a regulation

Article 61 – paragraph 3 b (new)

Amendment 143

Proposal for a regulation

Article 62 – paragraph 1

Amendment 144

Proposal for a regulation

Article 62 – paragraph 3

Amendment 145

Proposal for a regulation

Article 62 – paragraph 3 a (new)

Amendment 146

Proposal for a regulation

Article 63 – paragraph 3 – point b

Amendment 147

Proposal for a regulation

Article 66

Amendment 148

Proposal for a regulation

Article 67 – paragraph 2

Amendment 149

Proposal for a regulation

Article 67 – paragraph 3

Amendment 150

Proposal for a regulation

Article 67 – paragraph 6

Amendment 151

Proposal for a regulation

Article 70 – paragraph 1

Amendment 152

Proposal for a regulation

Article 70 – paragraph 2

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR FOR THE OPINION HAS RECEIVED INPUT

The rapporteur has received input from the following entities or persons in the preparation of the opinion:

The list above is drawn up under the exclusive responsibility of the rapporteur.

PROCEDURE – COMMITTEE ASKED FOR OPINION

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION