UK Government sets out targeted reforms to standard essential patent licensing

The Government will explore early FRAND determinations, improve access to SEP information, and assess a voluntary opinion service, but has ruled out a standalone rate determination track and further restrictions on injunctions for now.

The UK Government has announced a package of targeted measures to improve transparency, support earlier dispute resolution, and make standard essential patent (SEP) licensing easier for businesses to navigate.

Published in response to its consultation on SEPs, the Government’s plans include exploring a court-anchored early determination process for fair, reasonable and non-discriminatory (FRAND) licensing disputes, developing practical licensing guidance, and assessing the feasibility of a voluntary opinion service led by the UK Intellectual Property Office (UKIPO).

However, the Government has decided against introducing a standalone rate determination track or a UKIPO-run essentiality checking service at this stage. It has also concluded that further action to limit the availability of injunctions in SEP disputes is not justified by the evidence gathered during the consultation.

Early FRAND determinations under consideration

A key element of the Government’s response is its intention to work with the judiciary to explore a court-anchored early FRAND determination process within existing court proceedings in England and Wales.

The aim is to support more efficient and less costly resolution of SEP disputes, potentially helping parties address licensing disagreements before they develop into more protracted litigation.

The Government will also develop FRAND licensing guidelines explaining how parties should engage with the proposed court pathway and any future UKIPO-led FRAND opinion service.

Separately, the UKIPO will undertake further technical assessments of a potential voluntary service that could give parties an early view on whether a proposed SEP license offer falls within a FRAND range. The Government will seek evidence on the service’s feasibility and design from businesses, professional advisers, academics, and other interested parties.

The service remains under consideration; the announcement does not establish a functioning mechanism for determining FRAND rates.

Improving transparency and licensing negotiations

The Government also plans to develop a voluntary route for rights holders to provide standard-related patent information to the UKIPO. Working with industry, it will seek to establish a practical approach that makes it easier for businesses to identify relevant SEPs and understand the patents associated with particular technical standards.

The initiative is intended to help address information barriers in SEP licensing, particularly for businesses with limited experience of negotiating licenses. However, the announcement does not introduce a mandatory disclosure regime for SEP holders.

Alongside improved access to information, the Government will develop practical guidance for good-faith SEP licensing negotiations in collaboration with industry. It will also support more constructive engagement before disputes reach court, including clearer expectations around pre-action conduct, more effective information exchange, and better signposting to existing alternative dispute resolution (ADR) services.

These measures are intended to help parties approach negotiations with a clearer understanding of the information they should exchange and the conduct expected of them.

No new restrictions on SEP injunctions

The consultation considered concerns about the impact, or threatened use, of injunctions during SEP licensing negotiations. However, the Government concluded that the evidence did not sufficiently demonstrate that the existing framework was systematically preventing market entry, discouraging innovation or causing businesses to withdraw products from the UK market.

On that basis, it does not consider further action to limit the availability of injunctions in SEP disputes appropriate at this time. The decision leaves the existing framework in place rather than introducing new restrictions through the measures announced in the consultation response.

The Government has also ruled out a UKIPO-run essentiality checking service at this stage, finding that the consultation evidence did not establish a sufficiently clear case for one. Instead, it will work with industry to improve transparency around existing essentiality assessment services, encourage better-quality information and explore nonbinding best-practice principles for essentiality assessments and reporting.

Essentiality assessments seek to establish whether a patent is essential to implementing a particular technical standard. Greater transparency in this area could help businesses evaluate licensing claims and make better-informed decisions during negotiations. The Government’s overall conclusion is that a targeted and proportionate package of measures is the appropriate next step, rather than more extensive intervention in the SEP ecosystem.

Wider support for the SEP ecosystem

Beyond dispute resolution and licensing transparency, the Government intends to expand the UKIPO’s SEP Resource Hub, improve awareness of existing ADR options and continue international collaboration to help businesses navigate SEP licensing across global markets.

The measures also support the Government’s wider Digital Standards Strategy 2026–2030, which seeks to leverage the economic potential of digital standards and strengthen the UK’s influence in international standards development.

SEPs underpin technologies used in smartphones, Wi-Fi, connected vehicles, medical technology, and advanced manufacturing. Their significance is expected to grow as standards evolve in areas including 6G, artificial intelligence, quantum technologies, and semiconductors.

The Government highlighted the importance of effective SEP licensing to UK industries, noting that telecommunications contributes more than £40 billion annually to the country’s gross domestic product.

A transparent and predictable licensing environment, it said, can help businesses access standardized technologies while ensuring innovators receive a fair return on their research and development investments.

UKIPO to seek further evidence

UKIPO CEO Adam Williams said: “Standard Essential Patents underpin an increasing number of the technologies businesses and consumers rely on every day, from the next generations of mobile connectivity to advanced manufacturing and medical technologies.”

He added that the targeted measures were intended to help the SEP ecosystem function more effectively by reducing unnecessary friction, encouraging better licensing negotiations and helping businesses access standardized technologies while ensuring innovation is rewarded.

The Government will continue engaging with stakeholders as the measures are developed and implemented. In the immediate term, the UKIPO will begin further technical work on the potential FRAND opinion service and invite views from interested parties.

The next stage will therefore focus on developing the proposed measures and assessing how they can improve licensing transparency and dispute resolution without introducing the more extensive reforms considered during the consultation.

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