Startups and small and medium-sized enterprises (SMEs) are crucial to Europe’s green transition, creating internet of things (IoT) devices like smart sensors and carbon footprint trackers to enhance energy efficiency. These businesses need fair licensing of standard technologies to thrive. As the European Parliament deliberates on the proposed EU Regulation on Standard-Essential Patents (SEPs), our members urge lawmakers to vote for this vital regulation.
Dear Honourable Members of the European Parliament,
We, the undersigned members of ACT | The App Association, represent the interests of small and medium-sized enterprises (SMEs) and startups in Europe and write to share our concerns regarding the impact of standard-essential patent (SEP) licensing abuses on small businesses in green technology. The challenges posed by the current SEP licensing environment, for which EU laws presently inadequately address well-documented abusive and anticompetitive licensing practices by some SEP licensors, now represent a significant barrier for SMEs to build and deploy innovative solutions needed to power Europe’s green transition.
The development of green tech by small businesses is key to Europe’s green transition. App Association members develop vital internet of things (IoT) devices, such as smart meters, carbon footprint tracking, and sensors that improve our use of power infrastructures, helping to improve efficient energy and resource management. Standardised technologies, which provide a baseline for interoperability and scaling, are integral to SMEs’ development and implementation of these technologies – and fair, reasonable, and non-discriminatory (FRAND) licenses for SEPs in those standards is therefore necessary for continued innovation in the green tech domain.
Small businesses are uniquely positioned to drive innovation and create significant green technology solutions by addressing the unmet needs of markets. With their agility, flexibility, entrepreneurial spirit, and proximity to local communities, SMEs can swiftly identify gaps in the market and respond with innovative, sustainable solutions, contributing to the realisation of a more environmentally-conscious future for Europe. Yet SMEs, especially startups, face immense difficulties in navigating the complexities of SEP licensing. With limited resources and fewer product lines to distribute risk across, it is exceptionally challenging for SMEs to attain FRAND licenses from SEP holders that routinely abuse their gatekeeper status in spite of voluntary commitments made to provide licenses to all on FRAND terms. The issues surrounding SEP licensing have reached a critical point, posing existential threats to startups striving to introduce ground-breaking green tech solutions.
Your support is critical to ensure that there is a fair and transparent SEP licensing landscape in the EU. We ask for your help in improving and passing the EU SEP Regulation, offering SMEs guidance and opportunities for reliable SEP negotiations. This will ensure a sustainable, inclusive innovation ecosystem, empowering small businesses to thrive in green tech.
Thank you for your attention. We look forward to your support in creating a more fair, reasonable, and non-discriminatory SEP landscape.
Sincerely,
| AIZEND | Brain+ |
| Donny Wals | Extasy |
| Factoree | Greenly |
| Lucid Circus | Manulytica |
| Smartia | Wello |