UK Government Consultation On SEPs

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The UK Government consultation on Standard Essential Patents (SEPs) is due to close shortly, on 7 October 2025.

United Kingdom Intellectual Property

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The UK Government consultation on Standard Essential Patents (SEPs) is due to close shortly, on 7 October 2025. If you would like to submit your comments before the deadline a link to the consultation is here.

The aim of the consultation is said to be to ensure the SEP ecosystem functions effectively and continues to support UK innovation and creativity. As the UK becomes more technological, the UK Government considers SEPs are of increasing importance to the UK economy.

The issues that the consultation has specifically identified centre around transparency – specifically in relation to both the pricing and essentiality of SEPs – as well as the perceived complexity of litigation. At the same time, the consultation recognises the importance of patents and the protection of innovation.

With regard to pricing transparency, the consultation notes that there can be difficulty in determining whether licence rates are fair, reasonable and non-discriminatory (FRAND) due to the confidentiality agreements arising in private negotiations. The consultation also notes that there is a lack of standardisation in the determination of FRAND rates. The result, the consultation suggests, is that licensees can overpay for licences, which small and medium-sized enterprises (SMEs) cannot readily afford to challenge in the courts.
In relation to essentiality, the consultation notes that there is an information gap between the licensor, which holds the information in relation to its SEP portfolio, and the licensee. The consultation states this makes it difficult for licensees to determine which SEPs are truly essential.
Finally, the consultation discusses what it sees are the issues of SEP litigation. Namely, the complexity and cost, which the UK Government sees as potentially reducing the speed of innovation by SMEs.

Similar issues were identified in the European Commission's proposed SEP regulation, which was shelved earlier this year (discussed in our article here). It will be interesting to see whether the UK takes legislation in this area any further, or continues to rely on the courts to deal with the rate setting process.

The potential measures proposed are as follows:

1. The "Rate Determination Track" – providing pricing transparency

The UK Government has put forward a proposal which involves potentially introducing a "Rate Determination Track" to the Intellectual Property Enterprise Court (IPEC). It suggests that this would be used where there is no dispute as to infringement, validity and essentiality. The objective of this proposal would be to improve pricing transparency and efficiency by enabling parties to obtain a licence rate in instances where they have not been able to negotiate an agreed rate. The licence rate would be independently adjudicated in a way that is efficient and cost-effective.

2. Provision of searchable standard-related patent information to the UKIPO

The UK Government is considering supplementing the information held at the UKIPO to improve access to SEP declarations, which are currently held across different standard setting organisations. The aim would be to provide increased transparency and clarity in relation to SEPs so that potential licensees have the information they need for negotiations with licensors.

3. Pre-action protocols for SEP disputes

The UK Government is seeking views as to whether the current pre-action protocols in the Civil Procedure Rules could be improved by introducing a new SEP-specific pre-action protocol. The consultation notes that other specific pre-action protocols have improved the outcomes of negotiations and reduced litigation for those specific areas.

4. Essentiality checking services

The consultation is seeking views into commercial essentiality services and how these services are performing, including whether they are both accessible and affordable for SMEs. The consultation proposes a potential IPO essentiality service and calls for views on how it could be designed to ensure that determinations of such a service would be accurate, impartial and trustworthy.

5. Remedies and dispute resolution

The consultation also seeks to obtain further evidence in relation remedies and the suitability and awareness of ADR to resolve SEP disputes. The consultation discusses the varying remedies in SEP disputes, including injunctions and FRAND determinations.

6. ADR

The consultation is seeking evidence in relation the effectiveness and use of ADR in SEP disputes. The aim would be to use the evidence gathered to promote the use of ADR. One option proposed is the expansion of existing mediation services (such as those provided by the UKIPO).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.