European Parliament Sues EU Commission in Landmark Clash Over Tech Patent Law
In an unprecedented institutional clash, the European Parliament has voted to take the European Commission to the EU’s highest court. The decision, passed on Tuesday, initiates legal proceedings at the Court of Justice of the European Union (CJEU) over the Commission’s controversial withdrawal of a major legislative proposal on high-technology patents.
The vote saw 334 Members of the European Parliament (MEPs) in favor of the action, with 294 against and 11 abstentions. The move, largely driven by left-wing political groups, centers on a proposed law to regulate Standard-Essential Patents (SEPs)—patents for technologies fundamental to industry standards like 5G, Wi-Fi, and LTE.
The Disputed Legislation: A Shield for SMEs
The withdrawn proposal, initially tabled by the Commission in 2023, aimed to overhaul the EU’s SEP licensing system. Its core objectives were to increase transparency and reduce litigation costs, particularly for small and medium-sized enterprises (SMEs).
Key measures of the proposal included:
Granting the European Union Intellectual Property Office (EUIPO) oversight of the licensing process.
Requiring patent-holders to register their SEPs and provide clear licensing terms.
Creating a more balanced playing field for SMEs to negotiate licenses instead of facing costly legal battles against large tech corporations.
The Commission defended its decision to withdraw the proposal, citing “substantial economic implications” and a lack of foreseeable agreement among EU member states and institutions.
A Battle Over Institutional Power
For the Parliament, the issue transcends the patent law itself. Lawmakers argue that the Commission’s unilateral withdrawal of a proposal while it was still under active consideration as a co-legislator undermines the EU’s institutional balance.
German MEP Marion Walsmann, the draft-report author for the Parliament’s Legal Affairs Committee, stated the case is “crucial for the European economy” and emphasized the need to “defend Parliament’s status as an equal co-legislator.” This legal action tests whether the Executive can dismiss legislation that is still being debated by the Parliament.
High Stakes for Europe’s Digital Economy and Innovation
The outcome of this case has profound implications beyond the power struggle in Brussels. SEPs are the invisible foundation of the modern digital economy, essential for manufacturing everything from smartphones and connected cars to IoT devices.
The current SEP system is widely criticized for being opaque and favoring large patent-holders, often described as “patent trolls.” This creates significant barriers for smaller European innovators, hindering competition and the continent’s strategic technological autonomy.
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An Uncertain Legal Path Forward
The Parliament’s case is based on the claim that the Commission failed to act in compliance with its legal obligations. However, the legal pathway is uncertain. The EU court could side with the Parliament and potentially order a remedy, or it could dismiss the case, as it did with a similar Parliament challenge on visa-waivers in 2020.
In summary, the European Parliament’s decision to sue the European Commission marks a historic moment in EU politics. It is a multi-layered conflict that intertwines the future of Europe’s innovation ecosystem, the protection of SMEs, and the very balance of power between the EU’s leading institutions. The ruling from the CJEU will set a critical legal and political precedent for years to come.
