Initiatives for Standard Essential Patents

What Are Standard Essential Patents?

Patents essential to the implementation of standards in fields such as wireless communications are called “standard essential patents.”¹

Growing Number of SEPs and Their Impact on Industry

In the case of mobile communication standards, the number of standard essential patents (SEPs) declared by patent holders is increasing, from approximately 3,400 for 2G to approximately 40,000 for 5G as of March 2021.2 Moreover, with further advancements in IoT, the use of standards is expected to increase not only for automobiles, but also for a range of industrial products, mainly in the electrical, electronic and information communication fields.²

JAMA’s Basic Stance Regarding SEPs

Recognizing that standards are public property and should be actively utilized, the Japan Automobile Manufacturers Association, Inc. (JAMA) believes that a stable implementation of SEPs should be achieved on the basis of the following two principles, thereby addressing a range of social issues and increasing the benefits to society as a whole:

1. Improving the transparency of rules when implementing SEPs;³
2. In supply chains spanning materials procurement to parts and finished products supply, ensuring the possibility of license acquisition premised on the payment of appropriate compensation.

Based on our stance in regard to SEPs, we participate in the following research activities and submit our views and comments to related organizations both in Japan and overseas.

1

Guide to Licensing Negotiations Involving Standard Essential Patents, Japan Patent Office (2018)

2

Interim Report of the Study Group on Transaction Environments Concerning Licenses for Standard Essential Patents, Ministry of Economy, Trade and Industry of Japan (2021)

3

I.e., explanation of licensed patents (patent list), explanation of essential requirements (claim chart), explanation of grounds for satisfying “reasonable and non-discriminatory” (FRAND) conditions for royalties, etc.