In Unanimous Decision UK Supreme Court Safeguards Innovation & Competition

LONDON, UNITED KINGDOM – Comment from Stephen Tulip, UK Country Manager for the Association for Competitive Technology (ACT), on today’s ruling that the licensing of standard-essential patents via agents, like patent platform Avanci, are still obligated to license on fair, reasonable, and non-discriminatory (FRAND) terms.

‘This is a win for startups and SMEs. From Milton Keynes, to Nottingham, to Glasgow, small UK tech companies are building the connected devices powering our lives. While Tesla was the named claimant, the issues under consideration in this case are core to the feasibility of small tech companies building and growing in the UK.

‘This case started nearly three years ago, and it is still not done. The big guys can afford this kind of court battle and drawn-out licensing fight, but for startups relying on technical standards like 5G, which require patented technology to implement, that’s just not in the budget. SMEs cannot reasonably bilaterally negotiate with every SEP owner, and they depend on platform or pool licenses offered on FRAND terms. Without a license there is no company, and the foundation of our vibrant connected economy starts crumbling away.

‘The justices even recognised that “one sector to which the issues raised by this appeal are of particular significance is that occupied by the many micro, small and medium size enterprises which devise, make and sell what are known as internet of things (“IoT”) devices across a range of industries”. (Paragraph [11])

‘This ruling adds renewed urgency to the UK Intellectual Property Office’s consultation on how to reform the SEP licensing environment to include greater transparency, protections, and cost effectiveness for SMEs. While this case strikes a significant blow against SEP holders’ coordinated attempts to extort supra-FRAND license rates, much more remains to be done to ensure any potential licensee can utilise a standard without fear’.

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About the Association for Competitive Technology (ACT)

ACT is a global technology trade association representing startups, scaleups, and small and medium-sized enterprises (SMEs). We work directly with our members worldwide to advocate for a policy environment that takes into account their real-world challenges and supports innovation, access to capital, job creation, and the ability of small technology companies to grow and compete globally.