European Commission’s final decision to withdraw SEP Reg abandons SMEs to abusive system

Brussels, Belgium – The App Association is deeply disappointed with the European Commission’s final decision to withdraw the proposed Standard Essential Patents (SEP) Regulation without any clear plan for replacement as is being reported in the press.

Innovators need a SEP framework that ensures small and medium-sized enterprises (SMEs) can access critical technologies on fair, reasonable, and non-discriminatory (FRAND) terms. Without reform, the SEP licensing environment remains unpredictable and opaque, allowing a handful of powerful licensors to abuse the system. Mike Sax, founder and chairperson of ACT | The App Association, an international association for app developers, entrepreneurs, and SMEs in the tech sector, released the following statement:

‘With no regulatory clarity, no support framework, and no announced alternative process, the Commission has effectively abandoned SMEs across the European Union at a time when they are most in need of transparent, fair, and predictable access to SEP licenses.

‘It’s hard to see how anyone can talk about ‘European competitiveness’ while walking away from the very companies driving digital innovation here. With this withdrawal, the Commission hasn’t removed the problems – it’s just removed the only plan to solve them.

‘We’re ready to engage, ready to help, and ready to build a solution,’ Sax concluded. ‘The App Association will continue working toward a balanced SEP framework that supports all innovators – large and small. We urge the Commission to empower, not abandon, the thousands of European SMEs building innovative products based on standards.’

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