SEP dispute resolution is the central theme of the seminar the World Intellectual Property Organization (WIPO) is holding in Geneva and online on 12 and 13 October 2026, with judges, policymakers, industry, practitioners and academics discussing litigation, alternative dispute resolution (ADR) and FRAND determination. For SMEs that build connected products on cellular, Wi-Fi or video standards, the practical question is simpler: how to settle a licensing dispute over standard essential patents without being drawn into litigation in several countries. This article sets out what is on the agenda and the options already available to implementers.
Key takeaways
- WIPO’s seminar, announced on 3 July 2026, dedicates its second day to jurisdiction, FRAND determination, remedies, litigation strategy and ADR in SEP disputes.
- WIPO’s Arbitration and Mediation Center reports some 95 SEP and FRAND disputes administered in recent years, with model agreements for mediation, arbitration, expedited arbitration and expert determination.
- Under the WIPO Mediation Pledge, seven SEP holders have committed to offer mediation to IoT SMEs before suing them, and to pay two thirds of the mediator’s and administration fees.
- In Europe, the UPC’s Patent Mediation and Arbitration Centre (PMAC) has offered mediation since its opening and expert determination since 30 July 2026; arbitration is announced for autumn 2026.
- For an SME, ADR works best when it is agreed before the dispute, in the licence or the negotiation correspondence.
What is the WIPO seminar on SEPs about?
The event is called “WIPO Seminar on Standard Essential Patents: Faster, Higher, Stronger – Together?” and runs in hybrid format in English, French and Spanish. According to WIPO’s announcement of 3 July 2026, the first day reviews WIPO’s own SEP initiatives and gathers feedback on them, and the second covers jurisdiction, FRAND determination, remedies, litigation strategies, ADR options and policy developments. The PCT Newsletter of July/August 2026 also presented it as open to anyone interested in global SEP dispute settlement, and WIPO lists SMEs among its target audience.
A standard essential patent (SEP) is a patent that, according to its holder, must necessarily be used to comply with a technical standard. Holders usually commit to standard-setting organisations to license on FRAND terms (fair, reasonable and non-discriminatory). Disputes arise over which patents are really essential, what a FRAND royalty is and where the dispute should be decided.
Why do SEP disputes escalate so quickly?
Three features make SEP disputes expensive for implementers. First, scale: WIPO’s PATENTSCOPE database now holds more than 450,000 records declared to ETSI, IEEE and ITU, and over 9,000 applications verified as essential by patent pool administrators, according to the PCT Newsletter. Second, valuation: a study published by the EPO Observatory on 24 June 2026 reviewed 65 court decisions from seven jurisdictions and found that comparable-licence analysis has become the main method to set FRAND rates, with considerable practical difficulties in selecting and adjusting the licences. Third, geography: holders and implementers can litigate in several countries at once, each with its own remedies.
For a company selling a connected device in Europe and Latin America, that combination can turn a royalty disagreement into parallel cases whose cost exceeds the royalty at stake. That is why the ADR part of the seminar matters.
SEP dispute resolution options compared
| Route | What it can decide | Binding? | Points for SMEs |
|---|---|---|---|
| Court litigation (national courts, UPC) | Infringement, validity, injunctions, damages; some courts have set FRAND rates | Yes, per jurisdiction | Public, slow if several countries are involved, costs multiply |
| WIPO mediation for FRAND disputes | Helps the parties agree licence terms; experts can be appointed on essentiality or valuation | Only the settlement, if reached | Can be requested unilaterally; confidential |
| WIPO arbitration or expedited arbitration | FRAND terms and related issues under model submission agreements | Yes | One forum for a global licence; requires both parties’ consent |
| WIPO expert determination | Specific technical or valuation questions | As agreed by the parties | Narrow and quick if the question is well defined |
| PMAC (UPC) mediation and expert determination | Patent disputes within the UPC’s competence and related disputes, including essentiality and FRAND terms | Mediation: settlement only; expert determination: binding unless agreed otherwise | 50% reductions for small and micro enterprises; arbitration announced for autumn 2026 |
Sources: WIPO ADR for SEP/FRAND disputes and the PMAC’s SEP/FRAND page, both consulted in October 2026.
What does the WIPO Mediation Pledge offer IoT SMEs?
The WIPO Mediation Pledge by SEP holders to IoT SMEs is the tool most directly aimed at smaller implementers. Signatory SEP holders commit to offer confidential mediation to an IoT SME before starting litigation against it, and not to sue while the mediation runs, provided the SME does the same. The holder pays two thirds of the mediator’s and WIPO’s administration fees, within a reasonable cap.
The SME must meet the EU definition of an SME, make or sell IoT devices, not be controlled by a larger company and not be a mobile handset maker. At the time of writing, Ericsson, Huawei, InterDigital, Nokia, Qualcomm, Sisvel and ZTE had signed. If you receive a licensing demand from one of them, it is worth checking whether the pledge applies before answering.
What this means for your business
- Map the standards in your products and the main licensors or pools behind them; PATENTSCOPE’s SEP collection is a free starting point.
- Answer licensing approaches in writing and keep a record of offers and counter-offers. Courts and neutrals look at how each side negotiated.
- Propose ADR early. If the holder has signed the WIPO pledge, invoke it; otherwise, suggest WIPO or PMAC mediation, or expert determination on essentiality.
- Put an ADR clause in every licence, specifying the institution, the procedure and the scope of any FRAND determination.
- Follow the policy debate. The PMAC opened a public consultation on draft FRAND guidelines on 25 September 2026, with comments due by 26 October 2026.
Our patent team for licensing and SEP strategy can review a licensing demand, assess the portfolio asserted and prepare the ADR route, and our IP licensing and dispute team can support negotiation and, where needed, litigation coordinated with local counsel.
Where implementers get SEP disputes wrong
- Ignoring the first letter. Silence is often read as unwillingness to license, which weakens the implementer’s position in court.
- Accepting a portfolio rate without checking essentiality. Declared SEPs are not always essential; a sample assessment can change the negotiation.
- Signing licences without a dispute clause. Once a dispute arises, agreeing on mediation or arbitration is much harder.
- Negotiating country by country. Holders often license globally; fragmented answers from local subsidiaries undermine the implementer’s position.
Frequently asked questions
What is SEP dispute resolution through ADR?
It means settling disagreements over standard essential patents, such as essentiality or the FRAND royalty, through mediation, arbitration or expert determination instead of court proceedings. WIPO and the UPC’s PMAC both offer procedures designed for FRAND disputes, which can be agreed in a licence or after the dispute arises.
Can an SME use WIPO mediation if the SEP holder has not agreed in advance?
Yes, WIPO accepts a unilateral request for mediation in FRAND disputes and then invites the other party to take part, although mediation itself requires both to participate. If the holder has signed the WIPO Mediation Pledge for IoT SMEs, it has committed to offer mediation before suing a qualifying SME.
Is PMAC arbitration available for FRAND disputes?
The PMAC’s arbitration rules, adopted on 24 April 2026, include specific provisions to define the scope of FRAND disputes. The Centre announced arbitration services for autumn 2026; mediation and expert determination are already available, and expert determination can cover essentiality and FRAND terms.
Can IP Global Guard help my company respond to a SEP licensing demand?
Yes. We review the patents asserted and the standards involved, prepare the response and propose the most suitable ADR route at WIPO or the PMAC, coordinating European patent attorneys and local counsel where proceedings are needed. You keep one point of contact across Europe, Latin America and Africa.
How IP Global Guard supports implementers
IP Global Guard, the intellectual property services line of META Channel Corporation Limited, advises on patents, licensing and IP disputes across more than 25 jurisdictions in Europe, Latin America and Africa. For SEP matters we combine portfolio review, negotiation support and ADR preparation, and coordinate qualified representatives before the WIPO Center, the PMAC and national courts. See our coverage across the corridor.
If you have received a licensing demand or are about to launch a connected product, send us the standards involved, the markets and any correspondence. We will tell you where you stand and which route makes sense. Get in touch with our team.
This article is general information, not legal advice, and reflects the information available before the seminar’s conclusions were published.
Sources
- WIPO, Level Playing Field: Upcoming WIPO Seminar Explores SEPs and Global Dispute Settlement (3 July 2026)
- WIPO, PCT Newsletter No. 07-08/2026 (July/August 2026)
- WIPO Arbitration and Mediation Center, WIPO ADR for SEP/FRAND disputes
- WIPO, Mediation Pledge by SEP holders to IoT SMEs
- EPO, New EPO Observatory study on determination of FRAND licensing rates (24 June 2026)
- PMAC, SEPs/FRAND disputes
- PMAC, PMAC expands its ADR offering with Expert Determination (30 July 2026)
- PMAC, Launch of public consultation on the Draft FRAND Guidelines Discussion Paper (25 September 2026)
