{"id":39784,"date":"2022-07-11T12:00:44","date_gmt":"2022-07-11T16:00:44","guid":{"rendered":"https:\/\/www.iposgoode.ca\/?p=39784"},"modified":"2022-07-11T12:00:44","modified_gmt":"2022-07-11T16:00:44","slug":"the-department-of-justice-of-the-united-states-announced-the-withdrawal-of-the-2019-policy-statement-for-standard-essential-patents","status":"publish","type":"post","link":"https:\/\/www.yorku.ca\/osgoode\/iposgoode\/2022\/07\/11\/the-department-of-justice-of-the-united-states-announced-the-withdrawal-of-the-2019-policy-statement-for-standard-essential-patents\/","title":{"rendered":"The Department of Justice of the United States announced the withdrawal of the 2019 Policy Statement for Standard-Essential Patents"},"content":{"rendered":"\n<hr \/>\n<p><em><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-38276 alignleft\" src=\"https:\/\/www.iposgoode.ca\/wp-content\/uploads\/2021\/09\/Tianchu-Gao.png\" alt=\"Headshot\" width=\"75\" height=\"75\" \/>Tianchu Gao is an IPilogue Writer and a 2L JD Candidate at Osgoode Hall Law School.<\/em><\/p>\n<hr \/>\n<p>On June 8, 2022, the Department of Justice of the United States announced the official withdrawal of <a href=\"https:\/\/www.justice.gov\/atr\/page\/file\/1228016\/download\">the 2019 Policy Statement on Remedies for Standards-Essential Patents Subject to Voluntary F\/RAND Commitments<\/a> (2019 Statement). As a result, there is now no official written government policy \u00a0setting out infringement remedies for Standards-Essential Patents. Instead, c<em>ourts <\/em>are now responsible for case-by-case regulatory scrutiny.<\/p>\n<p><strong>Significance of this Withdrawal<\/strong><\/p>\n<p>\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Essential_patent#:~:text=An%20essential%20patent%20or%20standard,comply%20with%20a%20technical%20standard\">Standards-Essential Patents<\/a>, or SEPs, are patents that serve to ensure compliance with technical standards. Holders of SEPs are often required to grant licenses to their patents on fair, reasonable, and non-discriminatory (FRAND) terms. When disputes arise, SEP holders would need to do more work to demonstrate good faith and to move the negotiations forward. \u00a0According to the <a href=\"https:\/\/www.justice.gov\/opa\/pr\/justice-department-us-patent-and-trademark-office-and-national-institute-standards-and\">official announcement<\/a>, the withdrawal of the policy is intended to \u201ccreate incentives to generate more innovation\u201d and \u201cstrengthen the ability of U.S. companies to engage and influence international standards.\u201d<\/p>\n<p>The Policy Statement on Remedies for SEPs was initially launched by USPTO in <a href=\"https:\/\/www.justice.gov\/atr\/page\/file\/1118381\/download\">2013<\/a>. It was harshly <a href=\"https:\/\/www.ipwatchdog.com\/2022\/06\/08\/doj-uspto-nist-withdraw-sep-policy-statements\/id=149497\/\">criticized<\/a> by many in the IP community and thus was replaced with a more SEP-holder-friendly version in <a href=\"https:\/\/www.justice.gov\/atr\/page\/file\/1228016\/download\">2019<\/a>. The policy statement faced another transition in July 2021 when President Biden issued an <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/presidential-actions\/2021\/07\/09\/executive-order-on-promoting-competition-in-the-american-economy\/\">Executive Order<\/a> to promote a \u201cfair, open, and competitive marketplace.\u201d In response to it, the USPTO and National Institute of Standards and Technology proposed a <a href=\"https:\/\/www.justice.gov\/atr\/page\/file\/1453471\/download\">draft statement<\/a> and solicited <a href=\"https:\/\/www.regulations.gov\/docket\/ATR-2021-0001\/comments\">public comments<\/a>.<\/p>\n<p>The new draft statement strengthened restrictions on SEP remedies again. Supporters of the draft argued that it provides a more <a href=\"https:\/\/www.regulations.gov\/comment\/ATR-2021-0001-0047\">reasonable and balanced<\/a> handling of the rights of patent holders and implementers. The global corporation, Canon, <a href=\"https:\/\/www.regulations.gov\/comment\/ATR-2021-0001-0082\">commented<\/a> that the draft would improve the predictability of SEP enforcement and facilitate the participation of potential SEP holders and implementers.<\/p>\n<p>Yet, overall, criticism of the draft outnumbered the applause among the public. Many businesses and innovators found the policies unfair and disfavored the dictating role of the government. Senator Thom Tillis <a href=\"https:\/\/www.regulations.gov\/comment\/ATR-2021-0001-0045\">argues<\/a> that it \u201cdiminishes patent holders\u2019 statutory rights and undermines the judicial process by substituting the courts\u2019 judgement for its own.\u201d Another comment <a href=\"https:\/\/www.regulations.gov\/comment\/ATR-2021-0001-0037\">mentions<\/a> that the 2019 policy gave US companies an edge in 5G, artificial intelligence, biopharmaceuticals, and robotics sectors. The draft statement would subject American tech-companies to a less advantageous position in patent disputes. Apparently, these comments persuaded the US government that \u201cwithdrawal best serves the interests of innovation and competition.\u201d<\/p>\n<p>Looking into the future, the law regarding SEP injunctions inevitably becomes <a href=\"https:\/\/www.law360.com\/articles\/1501270\/feds-patent-injunction-views-murky-after-dropped-policies\">murky<\/a> in the US. IP attorneys will have to watch more closely on how the courts rule cases involving requests for injunctions based on SEPs. It will also have ripple effects on smaller businesses and institutions, in the US and across the world, whose operations relies on SEPs implementation.<\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":2140,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","footnotes":""},"categories":[60,10],"tags":[48,4568,4069,1327],"class_list":["post-39784","post","type-post","status-publish","format-standard","hentry","category-ip","category-patents","tag-patent","tag-sep","tag-tianchu-gao","tag-united-states"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Department of Justice of the United States announced the withdrawal of the 2019 Policy Statement for Standard-Essential 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