UK Government to Explore ‘Court-Anchored’ FRAND Determination Proceedings for SEP Infringement Cases
“The Government’s response… preserves the current framework for SEP licensing and avoids the introduction of significant new regulatory burdens.” – Jeremy Smith and Michael Charlton, Mathys & Squire
Today, the United Kingdom Intellectual Property Office (UKIPO) issued a press release announcing a series of measures designed to create guidelines and administrative procedures for increasing transparency and efficiency surrounding the licensing of standard-essential patents (SEPs). The long-awaited announcement brings some relief to SEP owners concerned about the prospects of proposed SEP royalty rate proceedings and mandated disclosures, though the UK government still intends to “explore the introduction of a court-anchored” proceeding for determining fair, reasonable and non-discriminatory (FRAND) licensing obligations early in patent infringement proceedings in UK courts.
No Rate Determination Track in UK Government’s Revised SEP Measures
UK courts have established themselves as a top venue for SEP disputes since 2020, when the UK Supreme Court confirmed its jurisdiction over global SEP cases and their ability to determine worldwide royalty rates subject to FRAND obligations in a series of rulings including Unwired Planet v. Huawei. In late 2021, the UKIPO issued a call for views on SEPs and issues related to perceived issues in licensing those patents, leading to a July 2025 proposal by the UKIPO to establish a Rate Determination Track and increase transparency for SEP licensing rates despite concerns that such measures could actually deter licensing of innovations within technological standards.
The “package of targeted, practical measures” announced today by the UKIPO takes steps toward securing the UK government’s authority to decide SEP disputes well beyond that nation’s borders. While licensing disclosures will not be mandated, the UK government intends to establish a voluntary process through which rightsholders can provide SEP-related info to the UKIPO, including frameworks for better identifying relevant SEPs. The UK government also aims to improve pre-litigation conduct through constructive engagement that provides for more effective information exchange between parties and provide clear signposts to alternative dispute resolution (ADR) possibilities, as well as collaboration with industry stakeholders to develop practical guidance for good-faith SEP licensing.
The previously proposed Rate Determination Track, which would have determined FRAND royalty rates for SEPs on a case-by-case basis at the Intellectual Property Enterprise Court (IPEC) within the UK’s High Court of Justice, was not included in the measures proposed today by the UKIPO. However, the UK government will work with UK courts potentially leading to the creation of a process to determine FRAND obligations early in infringement proceedings across England and Wales courts, not simply IPEC. Those efforts would include the development of guidelines for parties opting for the FRAND pathway, including any potential UKIPO-led FRAND opinion service that could result from a call for evidence on that service’s feasibility.
Revised SEP Measures Provide Mixed Outcome for Implementers, Generally Positive for Patent Owners
The UKIPO’s press release officially confirms that neither the Rate Determination Track nor the proposed essentiality checking service are planned for introduction at this time. According to the UKIPO, 93 responses by businesses, representative organizations, and other parties with SEP licensing expertise were filed during this year’s SEP consultation, which ran from July 15 to October 7. While most stakeholders broadly supported targeted reforms to increase the efficiency of the SEP licensing landscape, many responses differed on the most appropriate solutions to achieve those goals and whether there was a case for government intervention, the UKIPO’s press release noted.
Several countries have seized upon the global nature of SEP disputes as an avenue toward increasing their influence in that realm of patent litigation. While the UK courts and administrative agencies alike have turned their focus toward setting global licensing rates, threatening injunctions preventing access to one of the world’s most lucrative economies for tech companies, the increasing use of anti-suit injunctions have proved popular among tech implementers seeking to keep their infringement battles in friendly Chinese courts. For its part, the European Union (EU) also proposed SEP transparency measures in 2024 that mandated disclosures of patent assets declared essential to technological standards, although those plans were officially shelved by the EU Parliament the following year.
The UKIPO’s revised SEP measures provide a mixed outcome for tech implementers, who would ostensibly benefit from FRAND licensing guidelines and a searchable repository of SEP information. However, Jeremy Smith and Michael Charlton, respectively Partner and Associate at UK-based IP law firm Mathys & Squire, noted that the government’s changes are generally positive for SEP owners. “The Government’s response… preserves the current framework for SEP licensing and avoids the introduction of significant new regulatory burdens,” they said. While they note that the proposals specifically aim to help small- and medium-sized enterprises (SMEs) better understand their licensing obligations, they added that none of the UK government’s proposals are targeted at reducing litigation costs or otherwise balancing the position of SME licensees negotiation with large SEP owners.
