WIPO launched an initiative this year aimed at having major standard essential patent (SEP) holders commit to small and medium-sized enterprises (SMEs) selling and manufacturing IoT devices that they will use mediation to resolve deadlocks in SEP licensing negotiations. By agreeing to this commitment, an SEP holder pledges that before initiating litigation or equivalent actions against an IoT SME concerning SEPs covered by a proposed license, it will offer the IoT SME confidential mediation to resolve the deadlock over licensing terms for its SEPs. Nokia, Qualcomm, Ericsson, and Huawei, as the first signatories, signed the commitment on November 20, 2025.

If the mediation offer is accepted, the SEP holder will not initiate litigation against the IoT SME during the mediation period. This commitment is contingent upon the IoT SME or any of its representative entities not having initiated litigation or equivalent actions against the SEP holder prior to accepting the mediation offer, and accordingly agreeing not to initiate such actions during the mediation period.

This marks the first outcome of the SEP meeting hosted by WIPO in September. Several signatories issued statements, including Nokia. Nokia expressed hope that the commitment would help reassure stakeholders concerned about IoT SMEs potentially becoming entangled in SEP litigation. Meanwhile, Qualcomm noted the commitment represents a “common-sense pledge” reflecting the company's commitment to fairness and supporting sustained innovation growth.

Similar to the now-defunct EU SEP regulation, the UK government's FRAND rate-setting initiative also emphasized the role of SMEs. However, major SEP holders are attempting to demonstrate to policymakers through this new WIPO mechanism that the market does not require additional regulatory intervention.

The WIPO commitment specifies that SEP holders' mediation offers will comply with the following conditions unless otherwise agreed by the parties:

1. Mediation will proceed under the WIPO Mediation Rules.

2. The SEP holder will grant IoT SMEs 30 days to accept its mediation offer, after which the offer expires. The SEP holder may impose conditions requiring mediation to be completed within six months of acceptance.

3. The SEP holder and IoT SME commit to enabling the mediator to obtain from them information essential to negotiating and reaching a proposed license agreement on FRAND terms, consistent with recognized commercial practices. If confidentiality obligations prevent direct disclosure of information to the mediator and/or the other party during mediation, the party holding the confidential information will cooperate with the mediator to attempt to provide the necessary information, without requiring either party to breach confidentiality obligations at any time.

4. The SEP holder shall pay two-thirds of the mediator's fees and administrative costs in accordance with the WIPO Mediation Fee Schedule, subject to a cap that is consistent with recognized commercial practices and is reasonable and proportionate.