The European Commission has decided to withdraw its proposed Standard Essential Patents (SEP) Regulation, leaving no immediate plan for a replacement. The move has drawn criticism from groups representing small and medium-sized enterprises (SMEs) in the technology sector.
Mike Sax, founder and chairperson of ACT | The App Association, responded to the decision by stating: “With no regulatory clarity, no support framework, and no announced alternative process, the Commission has effectively abandoned SMEs across the European Union at a time when they are most in need of transparent, fair, and predictable access to SEP licenses.
“It’s hard to see how anyone can talk about ‘European competitiveness’ while walking away from the very companies driving digital innovation here. With this withdrawal, the Commission hasn’t removed the problems – it’s just removed the only plan to solve them.
“We’re ready to engage, ready to help, and ready to build a solution,” Sax concluded. “The App Association will continue working toward a balanced SEP framework that supports all innovators – large and small. We urge the Commission to empower, not abandon, the thousands of European SMEs building innovative products based on standards.”
The absence of new regulation means that SMEs must continue operating within an unpredictable SEP licensing environment. This situation may allow dominant licensors to maintain control over access terms for critical technologies.