Along with four large SEP holders – Ericsson, Huawei, Nokia and Qualcomm – we have committed to a mechanism that offers mediation as a means to resolve SEP-related licensing impasses. Our policy lead Matteo Sabattini explains why

On 20th November, the World Intellectual Property Organization’s Mediation and Arbitration Center announced that it has launched a Mediation Pledge for SMEs operating in the IoT space. Sisvel – along with fellow high-tech leaders Ericsson, Huawei, Nokia and Qualcomm – has signed this. As a result, we are committed to making an offer of confidential mediation to SMEs to resolve impasses relating to their use of Sisvel’s IoT standards-essential patents.

Put simply, rather than taking a dispute to court, Sisvel will propose this route if an SME has not already initiated litigation itself and/or sought revocation of the relevant patents and commits to not doing so during the mediation process.

The definition of an ‘SME’ we will adhere to is that provided by the European Commission:

• a staff count of less than 250;

• a turnover of less than €50 million; or

• a balance sheet of less than €43 million.

Although we are using the commission’s definition, the pledge applies to SMEs that fall under it wherever in the world they are based.

It is important to make very clear that the pledge Sisvel has made covers the patents that Sisvel owns or may own in the future, not those held by any of the third-party patent owners that license their IP through our pools – whether the Cellular IoT pool or otherwise. On this matter, we speak for ourselves as a patent owner and for no-one else.

Furthermore, it is extremely unusual for Sisvel to reach a point where it is in active dispute with any potential licensee of our patents, let alone an SME; and we do not expect that to change. Instead, our aim is to afford peace of mind and to make clear to SMEs that should issues ever arise, we are happy to offer a route to resolution that is generally relatively quick and far less expensive and disruptive than the alternatives. In fact, through the pledge we are also committing to cover two-thirds of the mediator and administration fees related to the mediation process.

Mediation – which should not be confused with arbitration – is a great tool with which to close the information asymmetry gap that may exist between patent holders and good-faith parties with less sophisticated IP knowledge. We understand that SMEs want to ensure they are not disadvantaged compared to larger competitors. Confidential mediation, through which an independent third party can give the SME comfort that it is being treated fairly, is an important way to provide reassurance.

Together with Ericsson, Huawei, Nokia and Qualcomm, we are delighted to support this WIPO Mediation and Arbitration Center initiative. We believe it is a significant step forward in the creation of the foundations on which the IoT landscape will be built – and one that recognises the vital role that SMEs will play in this process. We hope other SEP holders will soon join us in making the pledge.

Full details about the pledge can be found at the WIPO Mediation and Arbitration Center’s website: WIPO Mediation Pledge by SEP holders to IoT SMEs