The Japanese government will soon point the way for companies to avoid a major risk in developing connected cars patent lawsuits. New guidelines issued by Japan’s Ministry of Economy, Trade, and Industry on Thursday will set out a four-step process for companies to negotiate “standard-essential patent” (SEP) fees.
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Based on the principle that patent holders provide evidence of infringement, the Nikkei Asian Review reported. While the guidelines are not legally binding, they are intended for companies that lack experience dealing with patent disputes.
Moreover, connected cars are understood to require technology involving patents on 4G and other telecommunications standards, creating pitfalls for developers after 48 companies, including Nokia and NTT, have called on Japanese automakers to pay royalties.
At the root of the SEP controversy is the question of what is “necessary”. In practice, patent holders can declare themselves. One study estimates that of the nearly 41,000 5G wireless communications standard-essential patent families filed, only 33 percent are truly necessary for the standard.
A lawyer with experience in international intellectual property disputes said of Japan’s Ministry of Economy, Trade and Industry’s initiative, “By offering a different approach than civil litigation or intervention by antitrust authorities, there will be more options for resolving conflicts.”
