The European Commission withdrew a proposal on Standard Essential Patents (SEPs) in a bid to reach a broader agreement on the topic, EU Industry Commissioner Stéphane Séjourné told lawmakers of the European Parliament’s Legal Affairs (JURI) committee on Wednesday. 

“The overall aim is to have an agreement and to push the Council to adopt a position on the text,” he said adding that withdrawing the paper may have been “radical” but was done “to try to move things [along]”. 

The rules on SEPs were agreed by the Parliament in February 2024 – with 454 votes for, 83 against and 78 abstentions – before the Commission signalled this year it intended to withdraw the proposal, surprising many.

In April 2023, the Commission published its plan for a regulation on SEPs, which are patents that protect the technology deemed essential in a technical standard or specification, used in the automotive, smart energy, and payment industry. 

The rules were aimed at improving transparency and predictability in SEP licensing, to ensure fairness and efficiency in the licensing process, limiting costs that can arise from disputes, and to incentivise patent holders to create products based on the latest standardised technologies that will benefit businesses and consumers. 

Several politicians including rapporteur Marion Walsmann (Germany/EPP) wrote to the Commission on the withdrawal ahead of the discussion with the Commissioner.

The EU executive has until August to formally decide whether to scrap the file. The decision fits into the broader simplification agenda of this Von der Leyen Commission which said it wants to reduce the burden on companies and cut red tape.