WIPO Mediation Pledge by SEP holders to IoT SMEs
The WIPO Arbitration and Mediation Center (WIPO Center) offers tailored alternative dispute resolution (ADR) options for resolving SEP/FRAND disputes globally, and regularly administers SEP/FRAND-related mediations.
This WIPO IoT SME Mediation Pledge seeks to encourage the use of mediation to resolve impasses in SEP licensing negotiations involving an SME1 that manufactures or sells IoT devices (an IoT SME).
By agreeing to this IoT SME Mediation Pledge, a SEP holder commits that it will make an offer to enter into a confidential mediation, as conditioned below, with an IoT SME to seek to resolve the parties’ impasse over the terms of a license to SEPs owned by it (the “Prospective License”) before initiating against the IoT SME litigation or equivalent actions2 (if any) concerning any of the SEPs that are the subject of the Prospective License.
If the mediation offer is accepted, the SEP holder will not bring such actions against the IoT SME while the mediation is ongoing.
This commitment is subject to the IoT SME, or any entity on its behalf, having not brought litigation or equivalent actions2 against the SEP holder prior to its acceptance of the mediation offer and reciprocally agreeing not to initiate such actions during the mediation.
- The mediation will be submitted in accordance with the WIPO Mediation Rules.3
- The SEP holder will provide 30 days to the IoT SME to accept its mediation offer before the offer expires. The SEP holder may condition its offer for the mediation to be completed within 6 months from acceptance of the offer.
- The SEP holder and IoT SME commit to enable the mediator to obtain from them the information that is material to the negotiation and conclusion of the Prospective License agreement on FRAND terms, in accordance with recognized commercial practices. In the event that confidentiality obligations preclude disclosure of information in the context of the mediation directly to the mediator and/or other party, the party with the confidential information will agree to work with the mediator to try to provide the necessary information, although at no time will either party be required to breach confidentiality obligations.
- The SEP holder will pay two-thirds of the mediator’s fee and administration fees in accordance with the WIPO Mediation Schedule of Fees and Costs , capped at a reasonable and proportionate amount in line with recognized commercial practices.
The “SEP holder” includes any entity that is under the control of, controls or is under common control of the signatory.