A Perspective on the Challenges Faced by Patent Holders in the Software Engineering Practices (SEP) Licensing Ecosystem
DOI:
https://doi.org/10.18256/2238-0604.2026.v22i.5354Keywords:
Essential Standards Patents; FRAND; licensing of ESPs; competition law; innovation incentives.Abstract
This article examines the licensing ecosystem of Essential Standards Patents (ESPs) from the perspective of technology developers and patent holders. It addresses the fundamental challenges faced by companies investing in research and development to create the technologies underlying modern standards such as Wi-Fi, 5G, USB, and LTE. The article argues that the licensing of ESPs is fundamentally a private and contractual matter, best resolved through bilateral negotiation, and that competition law intervention should be reserved for exceptional circumstances. Based on case law from the European Union, the United Kingdom, Germany, China and Brazil, the article demonstrates that hold-outs by implementers represent an equal or greater threat to innovation compared to hold-ups by patent holders. It concludes with recommendations for maintaining a balanced framework that protects incentives for innovation while ensuring access to standardized technologies.
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Copyright (c) 2026 Bruno De Luca Drago, Mariana Llamazalez Ou

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