The Commission proposed a regulation on essential patents in the spring of 2023, with the intention of benefiting European companies. However, an impartial study revealed that this system would actually benefit non-EU patent holders, particularly Chinese companies such as Huawei. This regulation could harm countries like Finland and Sweden while benefiting larger EU members like Germany and France. Many argue that this type of regulation should not come from the EU.
The landscape of essential patents is shaped by global power politics, with superpowers competing to be leaders in technology development and ensuring their country’s inventions meet standards. Currently, Chinese companies hold about a third of all essential patents worldwide, with European companies holding around 15 percent. Nokia and Ericsson are major players in the European market, investing billions in research and development to maintain their positions.
The proposed regulation could have negative consequences for Finland, Sweden, and European companies as a whole if it decreases patent royalty income and inhibits investment in 5G and 6G technologies. It is crucial for Europe to maintain its position as a leader in these technologies for strategic autonomy and global competitiveness. The current proposal should be reassessed, and one potential solution could be to limit the protection of essential patents to European SMEs. This would allow SMEs access to necessary technology while safeguarding European companies from increased difficulties in operation.
