Practice And Challenges Surrounding SEPs (Standard Essential Patents) In Japan

With the aim of promoting innovation, standardizing technologies have often been implemented in the information and telecommunication technology (ICT) industry, for example, DVDs and smartphones. Standard essential patents (SEPs) are patents indispensable to realize certain functions and efficacies set in a standard specification. SEPs are bound to be used when a product adopted to a standard specification is manufactured. Under general SEP agreements, an implementer is allowed to use an SEP owned by a patent right holder participating in a same standard setting organization (SSO). Since the 2010's, there has been a growing number of SEP licensing cases between different types of business entities beyond the ICT industry. An SEP licensing between the ICT and automobile industries is one such example. Technical complexity and wide spread use of standard specifications help boost SEP utilization. According to a study by the Ministry of Economy, Technology, and Industry