UK SEP reform drops FRAND rate determination track and leaves injunctions untouched

The government’s stated ambition is to ensure that the UK’s SEP framework supports innovation and enables businesses of all sizes to participate in standardised technologies ranging from smartphones and connected vehicles to medical technology, streaming services and the Internet of Things. The reforms are intended to improve transparency around SEP information, encourage earlier and more effective licensing negotiations and reduce unnecessary escalation to litigation.

The package comprises seven workstreams, including a court-anchored early FRAND determination mechanism, a voluntary FRAND opinion service at the Intellectual Property Office (IPO), FRAND licensing guidelines, voluntary disclosure of standard-related patent information at the IPO, enhanced pre-action information exchange, negotiation best-practice guidance, and expanded non-regulatory support.

Several of the measures will require legislation and are therefore likely to be implemented over a longer timeframe, with further consultations, feasibility assessments and judicial engagement still to come. The government has indicated that measures requiring legislation will depend on the availability of a suitable legislative vehicle, with no fixed timeline.

The reform package is the direct outcome of the government’s SEP consultation, which ran from 15 July to 7 October 2025. The UKIPO received 93 responses from rights holders, implementers, SMEs, legal professionals, and trade associations in the UK, the US, Europe, and Asia. The government has now set out how it intends to address systemic issues in the ecosystem, particularly around transparency and the cost and complexity of dispute resolution.

One of the most notable outcomes is the government’s decision not to introduce the previously proposed rate determination track (RDT) within the Intellectual Property Enterprise Court (IPEC). In a recently published summary, the government instead proposes an alternative package centred on three complementary measures.

Court-anchored FRAND determination

First, it will work with the judiciary to explore a court-anchored early neutral evaluation (ENE) mechanism within existing England and Wales court proceedings. This would build on the courts’ existing case management powers and could take the form of a pilot Practice Direction. The pathway could include an automatic stay in FRAND cases to enable parties to engage in ENE or other forms of alternative dispute resolution, with potential cost consequences for parties failing to engage constructively.

Second, the IPO will engage with stakeholders this autumn to assess the feasibility of a voluntary, non-binding “FRAND opinion” service. If feasibility is established, the service would give parties an early indicative view on whether a proposed SEP licence offer falls within a plausible FRAND range.

Third, the government announced, it will develop FRAND licensing guidelines setting out how parties should engage with the new measures as a whole. These guidelines are distinct from narrower good-faith negotiation guidance and are intended to encourage consistent use of existing processes without altering the FRAND legal framework.

Transparency through voluntary disclosure

On transparency, the government wants to introduce a measure for voluntary disclosure of standard-related patent information at the IPO, accessible through its One IPO search service. Rights holders will be asked to provide information at grant, and for European patents validated in the UK at the renewal stage. The provision will not be retrospective and will relate to future standards only, with no verification or validation of essentiality by the IPO.

This voluntary provision shall not compete with declarations made to standard development organisations but will apply at a later stage, when standards are more likely to be finalised. The IPO will continue to work with the WIPO, EPO, and SDOs to ensure the UK provision complements international offerings such as WIPO’s Patentscope and the EPO’s Patent Standards Explorer. If future evaluation shows significant non-compliance, the government has indicated it will consider whether mandatory disclosure or sanctions are justified.

No essentiality service, no changes to injunctions

On pre-litigation conduct, the IPO and relevant government departments will examine ways to encourage more effective pre-action information exchange within the existing civil procedure framework. This work will be developed with the judiciary and considered alongside the planned FRAND licensing guidelines, with the possibility of an SEP-specific pre-action protocol remaining open.

The government has decided against establishing an IPO-run essentiality checking service at this stage, citing concerns over feasibility and the risk of drawing government into a quasi-judicial role. Instead, it will focus on improving transparency, encouraging better-quality information from commercial providers and supporting more informed use of existing services through tools such as the SEP Resource Hub.

On remedies, the government concluded that the current framework remains broadly adequate and will not pursue legislative changes to the availability of injunctions. To address concerns about bad-faith negotiation conduct, it will instead develop best-practice negotiation guidance with industry, with a particular focus on supporting SMEs new to SEP licensing.

On alternative dispute resolution, no new standalone ADR services will be created and the IPO’s existing mediation service will not be expanded to cover SEPs. The government will instead focus on clearer practical guidance and better signposting to existing ADR options, potentially by expanding the SEP Resource Hub.

Finally, the government will continue its non-regulatory and international efforts, building on existing measures, maintaining its leadership role in the Intergovernmental SEP Network (ISN) and engaging with SDOs. The SEP Resource Hub will be further developed as an educational tool, particularly for SMEs, with the aim of reducing fragmentation in the global SEP ecosystem.

Mixed reception from industry

The Fair Standards Alliance (FSA), which represents implementer interests, welcomed the IPO’s progress but said the proposals fall short of the fundamental reform the industry needs. “Yes, the UK court system is generally balanced. But that only favours companies who can afford to litigate cases which can take years and cost millions of pounds. Most SMEs simply cannot compete at that level,” said Alexander Prenter, Policy Director of the FSA.

The FSA described the proposed measures, including the specialist SEP pre-action protocol, FRAND licensing guidelines and non-binding FRAND rate opinion, as “a constructive first step toward improving conduct before disputes escalate to court”. It also welcomed the government’s willingness to consider legislation. However, it warned that without bolder implementation the measures would do little to rebalance negotiating power between licensors and licensees, and urged the government to build on the announcement with comprehensive reform delivering transparency, predictability and accessibility for all market participants.

The government has indicated it will undertake further design and implementation work on the measures requiring it, working with stakeholders, judiciary, and relevant experts. A suitable legislative vehicle will be required for measures needing legislation.