UKIPO launches consultation on Standard Essential Patents (SEPs) and proposes new framework

On 15 July 2025, the UK Intellectual Property Office (UKIPO) launched a public consultation to help shape the future framework for Standard Essential Patents (SEPs), with the aim of supporting innovation and driving economic growth. The proposals aim to strike a balance between incentivising innovation and ensuring fair access to essential technologies.

Background

Standard Essential Patents (SEPs) are patents that protect inventions considered essential for implementing specific technical standards, for example the 5G standard used in the telecommunications industry. SEPs are vital for enabling device interoperability and play a key role in advancing the UK’s connected economy. The telecoms sector alone, an industry heavily reliant on SEPs, contributes over £40 billion annually to UK GDP. To ensure fair access, SEPs are licensed on fair, reasonable, and non-discriminatory (FRAND) terms.

Problems identified

The UKIPO has identified that several issues may be affecting the efficient functioning of the SEP ecosystem. These include a lack of transparency in SEP pricing, asymmetries in information around licensing practices, uncertainty over the essentiality of patents to technical standards, and an increasingly complex and costly litigious environment.

The UKIPO considers that without intervention, there could be a risk that innovation will be stifled in emerging industries that depend on technical standards, such as connected vehicles and green technology.

Following the UKIPO’s initial call for views in 2022 and the launch of the UKIPO’s SEP resource hub in July 2024 (accessible here), the newly launched consultation marks a critical step toward shaping effective policy reform for SEPs. The UKIPO is seeking the comprehensive feedback of industry on a variety of proposed measures aimed at addressing ongoing challenges within the SEP ecosystem.

Key proposals

In a nutshell, the consultation includes a range of potential measures to create a balanced framework that both encourages innovation and guarantees transparent, and fair access to essential technologies, including:

• Creating a Publicly Accessible SEP Register: To enhance transparency, the UKIPO is considering the development of a publicly accessible register that would list declared SEPs along with relevant licensing information.
• Introducing a Rate Determination Track: The government is considering the introduction of a ‘Rate Determination Track’ (RDT) to the Intellectual Property Enterprise Court (IPEC) limited to cases where infringement, validity and essentiality are not in dispute.  This would supplement the existing Small Claims and Multi Claims Track, to ensure cost effective access for businesses.
• Clarifying FRAND Licensing Frameworks: Guidance or legislation may be introduced to define more clearly what constitutes a FRAND offer, particularly in the context of cross-border or multi-party licensing negotiations.
• Encouraging Global Harmonisation: The UKIPO is also seeking views on how the UK can take a leadership role in aligning its SEP policies with international best practices, particularly with the EU, U.S., and Asia-Pacific jurisdictions.

In addition, the UKIPO is gathering views on the effectiveness of pre-action protocols in SEP negotiations, the adequacy of current remedies for SEP disputes, and the use and accessibility of ADR, especially for smaller businesses.

Next steps

The consultation invites input from a broad range of stakeholders - including patent holders, implementers, legal professionals, and start-ups - and will remain open until 11.59pm on 7 October 2025. Following the consultation period, the UKIPO will review the responses and consider potential legislative or policy reforms.

Conclusion

This consultation marks a significant step in reshaping the UK’s SEP landscape, with potentially far-reaching implications for patent holders, implementers, and innovators across key industries. The consultation is timely given that the European Commission has withdrawn its proposal for a regulation on SEPs (the previous draft regulation text can be found here). Proposals such as the introduction of a Rate Determination Track and greater regulatory oversight could significantly influence licensing dynamics and commercial strategies. Against the backdrop of a growing digital economy and increasing reliance on interoperability standards, these measures are intended to foster a more transparent, predictable, and accessible SEP licensing environment.

The UPC has now launched its own public consultation on its draft Mediation Rules, which also includes special provisions for SEPs and FRAND licensing terms. The UPC’s consultation on the draft Mediation Rules closes on Monday 21 July 2025. Its press release can be found here.

How we can help

CMS’ experienced team of patent specialists is well positioned to assist companies and stakeholders in engaging with the consultation and advising on any future changes to the SEP framework. Please reach out to your usual CMS contact or one of the authors if you require assistance. We will continue to monitor this area and report on future developments.

The UKIPO’s press release can be read here, and the full consultation document here. The online consultation survey can be completed here.

Article co-authored by Shaina Haria, Trainee Solicitor at CMS.