At a recent policy dinner in the European Parliament, hosted by The Parliament magazine and connectivity giant Ericsson, MEPs, and mobile tech experts explored how the power of strong intellectual property rights (IPR) can support innovation.
Open standards have led to the explosion of mobile technology use, allowing a wide range of companies, including competitors, to build on shared discoveries. This system has created over 13 billion global connections, therefore increasing competition and reducing costs for consumers.
Since the 1980s, and as far back as the birth of the 1G networks, open standards have been a foundation for connectivity and technological progress. Yet for Europe to maintain its leadership in the digital age, mobile tech leaders argue it must reinforce its commitment to IPR, improve efficient licensing, and support businesses, especially SMEs, in navigating the complexities of standard-essential patent (SEP) licensing.
MEP Axel Voss, the EPP Coordinator for the Committee on Legal Affairs (JURI), opened the debate by saying it was vital to complete the digital single market to unlock scale and innovation, and give European companies the tools and environment they need to grow. “Businesses still face inconsistent rules, regulatory overlaps and high compliance costs when trying to operate across borders,” he said, with core areas like intellectual property, data governance and copyright still governed by diverging national laws. “The result is a patchwork that stifles growth,” Voss said. He called on policy-makers to harmonize these frameworks and simplify compliance. “This matters especially for start-ups and SMEs, the backbone of Europe's digital future,” he said, adding: “Europe has the talent. We have the ideas, we have the technical expertise. But what is missing is a consistent regulatory environment that allows this potential to flourish.”
Why is SEP licensing crucial for innovation?
Standard-essential patents (SEPs) are at the heart of technological collaboration. They ensure that companies contributing to global standards receive fair compensation for their innovations.
In 2024 alone, mobile tech firm Ericsson generated nearly €1.3 billion in licensing revenue from SEPs, accounting for a significant portion of its overall earnings. This revenue is reinvested in future technologies like 6G and AI, ensuring Europe remains at the forefront of innovation. In fact, over 90% of its licensing income comes from companies outside Europe, making IP protection a strategic economic asset for the continent.
We need to maintain strong IP frameworks that fairly pay innovators, so that they will continue to participate in global standardization efforts
In recent years the European Commission has sought to modify the legal framework governing Standard Essential Patents, and in 2023 unveiled plans for a SEP regulation, that set out mandatory requirements for the registration of SEPs. The plans – which were subsequently dropped from the Commission’s work programme – were backed by some industry stakeholders, while others argued they would have introduced unnecessary bureaucracy without improving the licensing process.
Speaking at the policy dinner, Ericsson’s Chief IP Officer Christina Petersson argued that instead of adding red tape, Europe should focus on making SEP licensing more efficient and promote initiatives to support SMEs and new market entrants who may be unfamiliar with the system. Petersson said this must start with “better education, to ensure SMEs are well equipped to negotiate fair licences in a commercially reasonable way, without unnecessary burden.”
Petersson argued that for the EU to remain competitive in the global tech race, policy-makers and industry should focus on improving transparency by setting clear guidelines built upon industry-wide best practices that enable companies to navigate SEP licensing agreements effectively.
These could include mediation mechanisms tailored for SMEs to ensure fair outcomes without unnecessary litigation, she added. “We need to expand initiatives like the European Commission’s IP Helpdesk to provide SMEs with the knowledge and resources needed to negotiate licensing agreements confidently. At the same time, we need to maintain strong IP frameworks that fairly pay innovators, so that they will continue to participate in global standardization efforts.”
European tech sovereignty
As the global economy enters a new era of uncertainty, the event focused on the increasing importance of Europe developing its own sovereign digital infrastructure. In creating a set of harmonised rules the EU can complete the digital single market by simplifying regulations, eliminating inconsistencies, and reducing barriers for businesses, particularly startups and SMEs.
Ericsson’s Vice President Mikael Bäck said that the aim must be to promote standardisation on a large scale, telling MEPs that in the digital and connectivity sectors, scale is crucial. While challenges such as national spectrum regulations and local permits persist, he said, their downsides can be reigned in at a European level. Europe has shown its potential for a strong IPR framework given the recent launch of the Unified Patent Court, he added.
If we lose the edge on standards, we lose everything
Kathi Vidal, Former US Under-Secretary of Commerce for Intellectual Property and Former Director of the US Patent & Trademark Office, said that Europe and the US must continue to work together to protect intellectual property, foster innovation, and ensure their continued leadership in global technological advancements.
She argued that strengthening these alliances will ensure that global standards are shaped by democratic nations rather than being dictated by competitors with different values and priorities, and acknowledged concerns from some EU tech firms that the SEP regulation as previously proposed by the Commission would be damaging to Europe’s tech sovereignty and leave the continent reliant on China.
“In Europe and in the United States, we're very, very aligned on this. It’s so critical that when standards are being set across the globe, that they're being set in a way that Europe and the United States have a chance to lead. If you think about things like semiconductors and other technology - yes, we need to make sure that we're self-sufficient there. But if we lose the edge on standards, we lose everything.”
MEP Brando Benifei, who chairs the European Parliament’s Delegation to the US, said the transatlantic relationship remained “crucial” for European prosperity. “We need to accelerate innovation, increase investment and close the innovation gap,” he said, but added that digital sovereignty had to go hand in hand with interoperability and an openness to global markets. “We need to find the right balance.”
Petersson argued that to remain competitive in the era of 6G and beyond, the EU must reinforce its role in the global standardization process, support businesses of all sizes with fair licensing agreements and safeguard its IP framework against policies that could weaken its global influence.
By following this mantra, she argued, Europe can continue to shape the future of connectivity and innovation while ensuring that its companies remain key players in the evolving digital economy.
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