A patent that protects technology which is essential to implementing a technical standard (such as 5G) is known as a Standard Essential Patent (SEP). SEPs help our devices to communicate seamlessly – from smartphones to electric vehicles, smart manufacturing to innovations in healthcare. They are the building blocks of our connected future and help deliver real technological change.

However, available evidence points to inefficiencies in the UK's SEP ecosystem that may create barriers to innovation – particularly for smaller businesses when seeking to implement standardised technologies.

These challenges include knowledge and information gaps between SEP holders and implementers, a lack of transparency in the SEPs licencing process, and a costly and often complex dispute resolution environment. Resolving disputes can be costly and time-consuming – one recently reported case cost £31.5 million.

The Government is consulting on policy options to ensure the UK's SEP framework operates more efficiently, supporting both patent holders and technology implementers. The proposals aim to reduce frictions in licencing, achieve greater efficiency in dispute resolution, and more effectively deal with knowledge and information gaps between parties.

The proposed measures aim to enable businesses of all sizes, including startups and scaleups, to navigate the SEP framework more confidently.

Proposed measures include:

Specialist rate determination track – introducing a specialist track to provide licence rates for SEP portfolios on a case-by-case basis. This could increase consistency and transparency in SEP pricing. It could give businesses of all sizes a more efficient and cost-effective route to obtain a SEP licence rate.

Mandatory provision of searchable information – requiring patent holders to disclose standard-related patent information to the IPO. This would help address the current lack of transparency around SEPs and licencing obligations.

Evidence is also being gathered regarding:

The use of pre-action protocols – seeking further evidence on pre-action protocols to establish if they work well in SEPs negotiations, by encouraging early disclosure of relevant information. This will help establish if a specialist SEP pre-action protocol may be needed in cases where negotiations are less likely to reach agreement and may move towards litigation.

Essentiality checking solutions – conducting a landscape review of essentiality checking solutions, to establish whether they are accessible for all parties, and establish if there is a case for government to introduce an essentiality determination opinion service.

SEP remedies – seeking to better understand whether the patent framework provides adequate remedies for SEP disputes.

Alternative Dispute Resolution (ADR) measures – we are also looking to understand the current provision of ADR services that can resolve SEP disputes, and the extent to which they are used and accessible for all businesses, especially smaller businesses.

Minister for Intellectual Property Feryal Clark MP said: "Intellectual property is central to the Government’s growth mission and underpins the technologies that power our connected future, from 5G and electric vehicles to smart manufacturing and healthcare.

“This consultation will help make the licensing of these technologies more straight forward and accessible – driving innovation, reducing costly litigation, and helping UK firms lead in developing the technologies of tomorrow."

President of the IP Federation Sarah Vaughan said: “The IP Federation welcomes the Government’s open and evidence-based approach in launching this consultation on standard essential patents (SEPs). As long-standing advocates for a balanced and effective IP framework, we support measures that enhance transparency, facilitate timely and fair licensing negotiations, and promote efficient dispute resolution.”

President of the Chartered Institute of Patent Attorneys (CIPA) Bobby Mukherjee said: “The UK patent profession is one of the most skilled and experienced in the world in the SEP arena and we welcome the IPO’s energy and vision in initiating activity in a vital support area for our market leading offering. CIPA members welcome the opportunity to participate in this evidence-led consultation openly, reflecting the spectrum of views from SEP rights holders to implementers.”

Chief Executive of the Intellectual Property Office Adam Williams said: "This consultation is a critical opportunity for all stakeholders to help build a SEP ecosystem that works for everyone. We particularly want to hear from businesses developing or using standardised technologies about how proposed measures could affect their innovation, investment and growth plans.

"The proposals outlined seek to address the diverse needs within our innovation ecosystem and take a balanced approach. By combining possible regulatory interventions with market-driven solutions, we want to create a framework that enhances the UK's competitiveness while ensuring fairness and transparency across the technology value chain."

The Government is encouraging responses from interested parties across the SEP ecosystem. These include patent holders and innovators who develop standard-essential technologies, technology implementers who incorporate SEPs into their products, legal services and academia. We are also encouraging views from start-ups and scale-ups who may face particular challenges with the current licencing system.

Industry bodies and standards organisations, intellectual property experts and research institutions involved in standardised technologies, and consumer groups representing end-users of SEP-enabled technologies are also encouraged to share their views.

The evidence and insights gathered will help ensure our proposed measures address a broad set of needs across the innovation ecosystem and support balanced growth across the UK economy.

The consultation is open until 7th October 2025. Full details and response information are available at GOV.UK.

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