Episode 9: The Standards “Implementer’s” Perspective on SEP Licensing

May 15, 2025

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Introduction

Episode 9 of the LexisNexis Evolving IP podcast features Alessandro Orsi, Vice President, Legal and IP Policy Lead at HP Inc.

In this episode, host Francesca Levoir and co-host Tim Pohlmann are joined by Alessandro Orsi, to explore the often contentious world of Standard Essential Patent (SEP) licensing from a product innovator’s perspective.

Alessandro challenges the conventional “implementer” label, arguing that companies like HP, which integrate standards-based components into finished products, are wrongly targeted in current licensing frameworks. He shares his belief that the FRAND licensing model is broken and how litigation threats and patent pool practices distort innovation incentives.

The conversation spans the complexity of global SEP regulation, including the EU’s policy retreat, activity in China, and the role of courts like the UK’s UPC. Tim offers insights into transparency issues and the uncertainty around royalty rate determination, while both guests discuss how AI and new data tools could transform IP management.

If you’re an IP strategist, tech investor, or policy watcher, this episode offers a deep dive into one of the most pressing issues in global IP licensing—and what needs to change to make it work for innovators and the public alike.

Podcast Host 

Expert  

Highlights from the discussion on the SEP licensing landscape with a standard’s implementer

On who is (and isn’t) an implementer?

“We buy a component that is implementing the standard. We don’t know any details on how the standard has been implemented — it’s a black box.”

“We are integrating components, and we are adding innovation in different elements. We don’t feel appropriate to be called implementers.”

“It is ironic that many of today’s most successful stakeholders gave up in developing and selling product, innovative product. Instead, they are refurbishing their priority to develop and produce new patents to tax innovation generated by operating companies.”

On challenges with patent pools

“Patent pools moved from a one-stop shop goal to maximizing royalty extraction. Their advantages are unpredictable.”

“The fact that HEVC SEPs have been licensed under three different pools… made the aggregate royalty totally unpredictable. As a result, adoption has dropped.”

“Public statements claiming that pools are not subject to any FRAND promise do not help increase confidence.”

On the role of AI and reform

“There will be more effort dedicated to testing, integrating AI tools in day-to-day activity — claim charting, translations, clearance work.”

“The biggest challenge will be to maintain teams with sufficient expertise to challenge AI suggestions… If you don’t have experts, you just follow what AI is saying, even if it’s wrong.”

Alessandro’s key takeaway  

“The current FRAND licensing model is actually broken and needs to be fixed.”

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