UPC adopts strict German framework for standard essential patent disputes

This shift dramatically increases litigation leverage for SEP holders, particularly in the streaming and IoT sectors where standards like HEVC or Opus are critical. By adopting the strict 'willingness' standard used in German courts, the UPC effectively forces implementers to engage in licensing talks immediately or risk being barred from the entire European market. This creates a high-stakes environment for video technology companies, where tactical negotiation delays now carry the risk of a centralized injunction. Market observers should track whether the UPC Court of Appeal reinforces this conduct-based focus or reverts to the substantive rate-setting seen in UK courts.

The Unified Patent Court’s (UPC) pivot toward a conduct-driven framework follows a period of intense regulatory and jurisdictional volatility in Europe. In February 2025, the European Commission withdrew its controversial SEP Regulation proposal after failing to secure a consensus between the European Parliament and the Council of the EU, per Garrigues in December 2025. That proposal had aimed to move FRAND determinations toward a mandatory conciliation procedure at the EUIPO, potentially limiting the court’s ability to issue immediate injunctions. However, the European Parliament filed a lawsuit against the Commission in January 2026 to contest this withdrawal, signaling that political battles over SEP licensing transparency and royalty caps remain unresolved.

In the absence of a centralized EU regulation, jurisdictional conflicts have intensified. Per WilmerHale in March 2026, the UPC’s Mannheim Local Division recently upheld an 'anti-interim-license' injunction against Amazon in its dispute with InterDigital. This order prevents implementers from using U.K.-issued interim licenses as a 'safe harbor' to avoid enforcement actions within the EU. The UPC's willingness to block foreign judicial mechanisms suggests a hardening stance intended to protect the court’s own competence to enforce patents across its 17 member states. This trend toward decentralized, court-led policy is further evidenced by a 2025 CJEU ruling in BSH v. Electrolux, which potentially allows EU national courts to adjudicate the infringement of non-EU patents, including those from the United States, according to reporting from Fish & Richardson in January 2026.

Simultaneously, the European Patent Office noted in May 2025 that the number of connected Internet of Things (IoT) devices is expected to hit 30 billion by 2030. This growth is driving a surge in patent filings within the digital communication and computer technology sectors, which now lead all other categories at the EPO. As standard-essential technologies become more ubiquitous in consumer electronics and streaming hardware, the UPC’s adoption of German-style 'willingness' checks creates a standardized, albeit high-pressure, environment for global technology licensing.