Le Chen

The SEP business model is facing increasing scrutiny as the sheer volume of patents, especially those declared essential, continues to rise – often without the correct validation processes. This proliferation risks diluting the value of truly essential technologies, but also complicates licensing negotiations in a world where AI is quickly playing a part in invention. The recent decision by the European Commission to shelve its SEP proposal has created even blurrier routes and decisions: while some are relieved, others lament a missed opportunity for greater transparency and balance. With no single framework in sight, SEP stakeholders are left navigating fragmented systems, unpredictable litigation outcomes, and shifting commercial expectations. Against this backdrop, IP counsel must not only reassess how their SEP strategy aligns with business priorities but also prepare for the possibility that the traditional model may not survive in its current form.

-    Consider how SEP holders might adapt their strategies to maintain influence in a landscape saturated with competing claims and questionable “essential” declarations
-    Explore how the rise of AI-driven innovation could disrupt existing patent value chains—and how counsel can anticipate and manage this shift in their licensing and litigation strategies
-    Identify practical steps IP counsel can take now to future-proof against the erosion of the SEP business model