Why We Need Regulation
FSA members’ innovation potential relies on open access to standard essential technologies.
Unpredictable, chaotic, unfair
The current system for licensing SEPs is chaotic, unpredictable, opaque and unfair. SEP holders regularly exploit information asymmetries and threaten injunctions to exclude potential licensees from the market in order to force them to agree to license terms that may not be FRAND.
SEP disputes and licensing uncertainty discourage investments into next generation technologies driving digitalisation and green technologies. Internet of Things (IoT) markets are particularly sensitive to SEP abuse.
SEP licensing practices from the telecoms industry are ill-suited for IoT markets characterised by low-margin, large-volume products where a few cents on each product can mean the difference between profitability and failure.
To ensure that we can provide the most innovative products to European consumers at the best prices, we need to fix the status quo.