- Accueil
- Actualités et public…
- Publications
- Standard Essential P…
10 septembre 2024
Publication series – 55 de 86 Publications
Standard Essential Patents: A new challenge for the IoT and smart meter world
- In-depth analysis
The smart meter rollout is an example of the digital transformation of the energy sector. A digital communication network is spread over the electricity, gas, and water infrastructure. Smart meters, gateways and control devices use communication standards (such as WLAN, 5G, etc.) for system integration.
These communication standards are based on technology that is often patented. As a result, a licence market worth billions has developed for patent holders for mobile communication standards such as LTE: Large patent holders and patent exploiters have already discovered the smart grid as a source of income and have started to demand licence payments from device manufacturers and infrastructure operators.
Manufacturers and users of IoT and smart meter devices are therefore facing the challenge of defending themselves against excessive licence demands from patent holders. Right from the start of the legal tug-of-war, it is important to prevent the formation and consolidation of unfavourable licensing levels through active resistance.
Standards and a new market for patented technology
The digitalisation is transforming infrastructures of electricity, gas, and water (e.g., Internet of Things, IoT). A variety of wired and wireless communication technologies are being used for this (e.g. LTE, WLAN or M-Bus standards), some of which originate from the classic mobile communications sector and are now being rolled out to various industrial sectors.
However, the use of standards from communications technology does not eliminate the risk of this technology infringing third-party patents. On the contrary: patent holders file their patent applications during and after the standardisation process with the aim of including as much patented technology as possible as part of a standard therefore making the use of the standard dependent on the patented technical solution being used; the patent then becomes standard essential (also known as “SEP” for “standard essential patent”), meaning the standard cannot be used without using the patent. In the last decade, the number of declared SEPs has risen exponentially from 12,191 to 72,300, including many patents with effect in Germany: With regard to the 4G standard, around 57% of the SEP-declared patent families had effect in Germany in 2022; in the area of 5G, too, more than 50% of the patent families had effect in Germany.
FRAND license
Patent owners can assert a claim for injunctive relief against the users of their patented technology. In principle, a patent holder is free to choose which (and how many) participants in a commercial supply chain it acts against for patent infringement.
In the case of a smart meter, for example, the smart meter manufacturer, the radio module supplier (and sub-suppliers), the smart meter retailer and the commercial user (such as a municipal utility company) are potentially liable for patent infringement. Experience has shown that it is primarily the end device manufacturers and users who are the focus of the patent holders, because a higher licence fee can be demanded here due to the end sales price. However, it can be assumed that the patent holders will also turn to other market participants.
A patent holder’s claim for injunctive relief can cause considerable economic damage. This monopoly and exclusivity for patent proprietors are justified in cases where there is no standardisation of the patented technology and no conflict with antitrust and competition law. However, with a view to equal access to standardised technology, case law generally grants SEPs a right to a so-called compulsory licence, known as FRAND (Fair, Reasonable and Non-Discriminatory) conditions, as a defence against a claim for injunctive relief by the patent proprietor.
Whether and which licence conditions (especially which royalty) are in fact FRAND depends on the individual case. Although case law has developed basic principles and rules of conduct for both parties in this regard, this is often decided by disputes in and out of court between the patent proprietor and the implementer.
Developments at EU level
In February 2024, the European Parliament adopted a draft regulation on SEPs, on which the European Council must now decide. While this draft has been met with exceptionally clear and broad criticism, it will not ultimately shift the cornerstones of the conflict of interest outlined above.
In the meantime, patent owners are using the German legal system - which is generally considered to be more patent owner-friendly - to enforce their licence claims through lawsuits and warnings. The new Unified Patent Court (UPC) system, whose judgements (with injunctions) can be enforced in all participating states (currently 17 countries), is exacerbating the situation for implementers. SEP holders have already filed various lawsuits with this court, which was only established in 2023.
How can IoT and smart meter companies defend themselves?
In the meantime, major SEP exploiters have launched special programmes to generate licensing income in the IoT and smart meter sector. Whether the licence fees demanded by SEP holders correspond to the FRAND level owed is rarely determined by courts and usually by way of negotiation. The implementer is then faced with the decision to accept the - possibly excessive - offer of the patent holder or to negotiate lower licence fees, which may involve going to court. Judgments handed down in practice, show that the defence generally leads to lower royalty rates.
Dans cette série
Power Play: Renewable Energy Update
par plusieurs auteurs
THG quota 2026/2027 and beyond: What fleet operators need to know now - Focus electromobility
26 mai 2026
par Fiammetta Kremer
Integration into the EU electricity market: Switzerland and the EU agree on a wide-ranging agreement
11 mai 2026
Revision of energy efficiency requirements for data centres: an overview of the amendment to the Energy Efficiency Act
29 avril 2026
Geothermal Energy in Germany: technology, current status and the legal framework for the heat transition
24 avril 2026
par plusieurs auteurs
Industrial electricity price: Approval by the European Commission (as of April 2026)
24 avril 2026
par Johannes Schaadt-Wambach, LL.M. (Prag), Dr. Markus Böhme, LL.M. (Nottingham)
EEG 2027 – Overview of the Planned Amendment to the Renewable Energy Sources Act
10 mars 2026
par Dr. Markus Böhme, LL.M. (Nottingham), Dr. Christian Ertel
The NIS2 Directive: Challenges Renewable Energy Companies
18 février 2026
EU specifies certification of permanent CO₂ removals
11 février 2026
par Dr. Janina Pochhammer, Dr. Niels L. Lange, LL.M. (Stellenbosch)
Electricity Tax Amendment 2025/2026: New rules for BESS, charging infrastructure and renewable energies
14 janvier 2026
Battery storage systems in outdoor areas - current classification in accordance with § 35 BauGB
19 décembre 2025
HR compliance in the energy sector – customs authorities step up the fight against sham-employment
15 décembre 2025
The Current Challenges for Offshore Wind Energy in Germany
2 décembre 2025
par plusieurs auteurs
Offshore wind in Germany: from market premiums to Contracts for Difference?
28 novembre 2025
par plusieurs auteurs
Energy Sharing under Section 42 of the German Energy Industry Act (EnWG)
26 novembre 2025
Bundestag Decides on the Privileging of Battery Storage Facilities in Outdoor Areas under § 35 (1) BauGB
12 novembre 2025
Industrial electricity price: Initial assessment and opportunities for companies
21 novembre 2025
par Dr. Markus Böhme, LL.M. (Nottingham), Johannes Schaadt-Wambach, LL.M. (Prag)
FIDIC – An introduction to the FIDIC Suite 2017
22 octobre 2025
par plusieurs auteurs
The Renewable Energy Expansion Acceleration Act – a boost for the energy transition in Austria?
23 septembre 2025
par Sabine Meister
Federal Network Agency discussion paper on reforming grid fees for industry and commerce
25 septembre 2025
par plusieurs auteurs
German-Dutch Treaty on Cross-Border Energy Projects
18 septembre 2025
par plusieurs auteurs
Energy communities in Austria and the new Electricity Industry Act (ElWG)
15 septembre 2025
New amendment to the Energy Industry Act (EnWG) introduced in July and August 2025
8 septembre 2025
Clean Industrial Deal State Aid Framework (CISAF) – a new state aid framework for the green transformation of industry
8 septembre 2025
par Dr. Michael Brüggemann, Johannes Schaadt-Wambach, LL.M. (Prag)
Industrial electricity prices: initial assessment and opportunities for businesses
18 août 2025
par Johannes Schaadt-Wambach, LL.M. (Prag), Dr. Markus Böhme, LL.M. (Nottingham)
Regulatory Framework for Transmission System Operators in Germany
18 août 2025
par plusieurs auteurs
Court ruling on the effectiveness of availability guarantees for wind turbines
31 juillet 2025
New Legal Framework for the Commercial Use of Carbon Capture and Storage (CCS) and Carbon Capture and Utilisation (CCU)
11 juillet 2025
par plusieurs auteurs
Are offshore wind converter platforms a bottleneck in the energy transition? New German government wants to create production capacities at German shipyards
17 juin 2025
par plusieurs auteurs
Speeding up the energy transition - the new German government’s plans for gas and steam power plants and its quest for the right technology for renewable energy
8 mai 2025
par plusieurs auteurs
Update - Change of government opens the door to carbon capture and storage and carbon capture and utilisation
17 avril 2025
par plusieurs auteurs
The special fund for infrastructure and climate protection - what is next?
10 avril 2025
par plusieurs auteurs
Changes to CBAM through Omnibus legislative package
10 avril 2025
The role of heat probes in the energy transition: Authorisation procedures and potential
26 mars 2025
CJEU judgement on customer installations in accordance with Section 3 No. 24a Law on the Energy Industry EnWG
26 mars 2025
par Dr. Markus Böhme, LL.M. (Nottingham), Dr. Christian Ertel
Will the new German government open the door for carbon capture and storage?
26 février 2025
par plusieurs auteurs
Waste heat from data centres - new reporting obligations under the EnEfG
6 février 2025
par plusieurs auteurs
Rabigh 2 Solar Independent Power Project (IPP)
11 décembre 2024
Oman and Belgium Sign Landmark MoU on Green Hydrogen Cooperation
11 décembre 2024
Decision day: Grid fee exemption in customer systems and energy price brake put to the test
28 novembre 2024
par Dr. Christian Ertel, Dr. Markus Böhme, LL.M. (Nottingham)
BGH: Balance sheet allocation of electricity withdrawals at higher voltage levels in the event of supplier failure - recommended action for grid operators
11 novembre 2024
Hydrogen core network - The Federal Network Agency’s strategy for the energy transition
11 novembre 2024
par plusieurs auteurs
Amendment to the Energy Industry Act: changes for energy supply companies and grid and system operators
18 septembre 2024
par Dr. Christian Ertel, Dr. Markus Böhme, LL.M. (Nottingham)
Standard Essential Patents: A new challenge for the IoT and smart meter world
10 septembre 2024
Land acquisition and data protection: The importance of the GDPR when project developers request owner data
18 juillet 2024
par Dr. Patrick Vincent Zurheide, LL.M. (Aberdeen), Dr. Julia Wulff
Municipalities to share profit in wind turbines and ground-mounted photovoltaic systems
11 juillet 2024
Solar Package I - Overview of Changes to Ground-Mounted and Building-Mounted PV Systems
27 mai 2024
Mandatory special charge for open space photovoltaic systems in Brandenburg
21 février 2024
A new era for wind energy investments in Hungary
Power Play: Renewable Energy Update
26 janvier 2024
Updating the National Hydrogen Strategy
6 novembre 2023
par Dr. Niels L. Lange, LL.M. (Stellenbosch), Dr. Janina Pochhammer
The new CO2 border adjustment mechanism (Carbon Border Adjustment Mechanism - “CBAM”) - first statutory reporting obligations set for January 2024
Power Play: Renewable Energy Update
3 novembre 2023
New IT security requirements for the energy sector
Power Play: Renewable Energy Update
1 septembre 2023
par Dr. Paul Voigt, Lic. en Derecho, CIPP/E, Alexander Schmalenberger, LL.B.
Does monument protection hinder the expansion of renewable energies?
Power Play: Renewable Energy Update
16 août 2023
The amending law to strengthen digitisation in the urban land use planning process and the further expansion of renewable energies
Power Play: Renewable Energy Update
6 juillet 2023
Challenges for data center operators - The federal government’s draft bill for an energy efficiency act
Power Play: Renewable Energy Update
12 avril 2023
par plusieurs auteurs
The Energy Charter Treaty in the Light of the Electricity Price Brake: An opportunity for investors to litigate?
27 janvier 2023
Ordinance for Determining Critical Infrastructures (KritisV): Renewable energy plants as critical infrastructure and requirements for IT protection
Power Play: Renewable Energy Update
12 juillet 2022
par Dr. Paul Voigt, Lic. en Derecho, CIPP/E, Dr. Markus Böhme, LL.M. (Nottingham)
Liquefied Natural Gas Projects in Germany: The LNG Acceleration Act
Q&A series: Energy & Infrastructure
10 juin 2022
Participation of local municipalities in the context of wind and photovoltaic projects
Power Play: Renewable Energy Update
5 mai 2022
Renewable Energy Wrap-Up – France
Power Play: Renewable Energy Update
27 avril 2022
Renewable Energy Wrap-Up - United Kingdom
Power Play: Renewable Energy Update
15 mars 2022
Building energy performance: the revised Energy Performance of Buildings Directive
Power Play: Renewable Energy Update
14 février 2022
Fit for 55 – Hydrogen and the Reform of the European Gas Market
Power Play: Renewable Energy Update
11 janvier 2022
Renewable Energy Wrap-Up – Netherlands
Power Play: Renewable Energy Update
2 décembre 2021
Renewable Energy Wrap-Up – Poland
Power Play: Renewable Energy Update
21 septembre 2021
par Olav Nemling
Renewable Energy Wrap-Up – Austria
Power Play: Renewable Energy Update
18 août 2021
Renewable Energy Wrap-Up - Germany
Power Play: Renewable Energy Update
12 juillet 2021
par Carsten Bartholl
Floating Foundations for Offshore Wind Farms
Power Play: Renewable Energy Update
8 juin 2021
Species protection exemption: Significance for wind energy
Power Play: Renewable Energy Update
25 mai 2021
Power-to-Hydrogen
Power Play: Renewable Energy Update
6 avril 2021
Focus PV – Floating Solar and Agrivoltaics
Power Play: Renewable Energy Update
23 mars 2021
Related Insights
THG quota 2026/2027 and beyond: What fleet operators need to know now - Focus electromobility
par Fiammetta Kremer
Contract structuring for battery storage projects: managing risks and addressing gaps in split-contract structures
par Dr. Niels L. Lange, LL.M. (Stellenbosch) et Dr. Janina Pochhammer