UK government consultation on SEPs to close on 7 October: have your say!

Background to the consultation

The UK government, via the Intellectual Property Office (UKIPO), launched the consultation in July 2025 to understand better whether the current system effectively promotes innovation and competition in the UK market. Acknowledging the central role of patents in technologies that power connectivity, there was concern that the current system may hinder development of emerging technologies such as AI and IoT. 

In particular, the government wants to obtain stakeholders' views on proposed measures to address issues it has identified with the existing framework, including "lack of transparency around SEP pricing, asymmetric information concerning SEP licensing, the essentiality of patents in technical standards, and a growing and complex litigious environment".

Although the consultation notes that issues such as lack of transparency in the licensing process, or information gaps between holders and implementers, may have a disproportionate impact on SMEs, the UKIPO is keen to hear from all stakeholders.

One of the key proposals is the introduction of a new Rate Determination Track (RDT), potentially within the Intellectual Property Enterprise Court, with the aim of providing a streamlined, specialist court route for determining licence rates that are FRAND (Fair, Reasonable and Non-Discriminatory).  Another key measure within the proposals is the possibility of a mandatory requirement for patent holders to provide information to the UKIPO on patents they have declared as essential. 

Why does this matter?

An owner of a SEP is required to agree to license that patent to any "willing licensee" on FRAND terms, and disputes frequently arise between SEP holders and SEP implementers, who need to implement the patents in order to comply with the relevant technical standard, such as 5G or Wi-Fi.  Whilst some of these disputes turn on whether a patent is "essential" in order to comply with the standard and correctly declared as a SEP, in many disputes the parties are seeking the court's determination on whether the  proposed licencing terms are FRAND.   

SEPs remain important to the telecommunications industry, with some of the most high-profile cases having focussed on 3G, 4G and 5G technology standards necessary to achieve interoperability for mobile phones. However, Victoria Bentley, a Partner in Fieldfisher's IP team who has acted for clients in many leading SEP cases, points out that these issues now impact a wide range of industries reliant on connectivity, including connected vehicles, smart energy, digital health and varied IoT devices, as well as gaming, Fintech and streaming services.

For example, she notes, "digital video/audio compression (codecs) standards are  increasingly important not just in streaming services but also in gaming due to developments in haptics. Technologies that involve interaction of devices – from smart manufacturing and electric vehicles to health monitoring solutions or contactless mobile payments – will also need to consider standards and the FRAND framework."

Commenting on the issue of transparency Victoria also noted that: "as standards move increasingly into different areas including Wi-Fi and codecs, there are not the same comparable licences as there may be in telecommunications. At the same time, as many more businesses move into the connected world, there may be an increasing need for more upfront visibility of potential royalty costs."  

Have your say before the deadline!

The SEP system is sometimes criticised as being opaque and inefficient, and the consultation suggests potential solutions to some of the perceived issues.  The consultation is an opportunity for anyone with an interest in these issues to share their views on the proposed measures for SEPs in the UK. 

The UKIPO is keen to hear from all stakeholders as part of its consultation, inviting input to inform its decision-making process. It is understood, for example, that the UKIPO does not yet have a fixed view on whether rates determined by a new RDT should be binding. This is likely to be a key area that the government will be keen to have views on, supported by examples or evidence from stakeholders. Click here if you wish to participate in the consultation, before the 7 October deadline.

If you have any questions, please feel free to get in touch by reaching out to your regular contact at Fieldfisher or by emailing our central mailbox at IP@fieldfisher.com. You can also connect directly with our team – Victoria Bentley, Tommy McKenna or Natasha Rao.