Nokia claims that EU patent regulations are one-sided and would weaken Europe. Nokia said EU proposed guidelines to prevent patent disputes over telecoms equipment and connected car technologies look to place the onus and expense on patent owners, which might damage Europe’s leadership in such fields.
Two days before the European Commission presented the proposed guidelines, the Finnish telecommunications equipment producer, whose standard essential patents (SEPs) generate 1.5 billion euros ($1.7 billion) in sales and over 40% of its earnings, made its remarks.
Reuter suggests that patent holders must register their patents with the EUIPO to demand fees or sue.
EUIPO will monitor the nine-month determination of fair, reasonable, and non-discriminatory (FRAND) royalties.
Nokia’s (NOKIA.HE) head of IP strategy Collette Rawnsley called the plan unbalanced and ignored patent owners’ main issue.
“The leaked draft regulation appears one-sided with additional obligations, burdens, and costs falling on SEP owners rather than implementers,” she told Reuters in an interview.
Unfortunately, the approach does not address hold-out, when bad faith implementers evade or delay licensing and paying for breakthrough technology, they use.
Under the new guidelines, Europe, which leads cellular standards, might lose its position.
EU regulatory action and SEP licensing changes threaten to make European standardizing forums less appealing. “This threatens European leadership in these critical technologies,” Rawnsley warned.
She disregarded regulators’ worries about Apple (AAPL.O), Samsung (005930. KS), Nokia, Microsoft (MSFT.O), and others’ patent disputes over the last decade.
“Most patent licensing deals are amicable. Litigation is unusual. “Regrettably, litigation is sometimes needed to get recalcitrant implementers to negotiate in good faith a FRAND license,” she stated.
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