WASHINGTON (April 23, 2026) — The European Commission recently opted not to include a proposed “soft safe harbour” for licensing negotiation groups (LNGs) in its revised technology transfer guidelines, underscoring ongoing concerns about the competition risks these arrangements pose for standard-essential patent (SEP) licensing.
In response, Frank Cullen, Executive Director of the Council for Innovation Promotion, issued the following statement:
“The European Commission’s decision to step back from a ‘soft safe harbour’ for licensing negotiation groups (LNGs) is an important acknowledgment that these arrangements raise competition concerns and should not be afforded special treatment under the law. It also appropriately safeguards the integrity of the standard-essential patent (SEP) licensing frameworks that underpin technological collaboration.
The global innovation economy depends on strong, predictable intellectual property (IP) rights and the ability of parties to negotiate licenses on fair, reasonable, and non-discriminatory (FRAND) terms. While LNGs may be framed as tools for efficiency, in practice, they risk promoting below-FRAND licensing terms and weakening the rights of innovators who rely on robust IP protections to sustain high-risk research and development in cutting-edge sectors.
Policymakers around the world should continue to reject efforts that undermine these principles and instead reinforce frameworks that support both innovation and competition.”
About the Council for Innovation Promotion: The Council for Innovation Promotion is a bipartisan coalition dedicated to promoting strong and effective intellectual property rights that drive innovation, boost economic competitiveness, and improve lives everywhere.