Impact of European Commission’s Essential Patents Proposal on Local and Global Technological Competition: A Study

European Commission proposes regulation on essential patents to benefit local companies, but study suggests it may favor non-EU patent holders. The proposed system would disadvantage countries like Finland and Sweden while benefiting larger EU member states such as Germany and France. Critics argue that such a regulation should not originate from the EU.

The development of technology according to global standards is heavily influenced by power politics. Superpowers aim to be at the forefront of technological advancements and have their inventions meet global standards. While Chinese companies own a large share of essential patents worldwide, European companies like Nokia and Ericsson also hold a substantial number.

Companies invest a significant portion of their income into research and development, with Nokia and Ericsson alone investing billions of euros in Europe. The benefits of the proposed system are estimated to be relatively low compared to company investments. Any decrease in patent royalty income could hinder investments in technology like 5G and 6G, impacting employment and development opportunities in Europe.

Maintaining a leading position in 5G and 6G technology is crucial for Finland’s overall strategic autonomy and global competitiveness. One potential solution could be reevaluating the proposal and limiting protection to European SMEs, which was initially intended to facilitate SMEs’ access to technology protected by essential patents while restricting protection to European SMEs may help achieve this goal.