Webinar Summary: National Security, Innovation and Telecoms – A New Era

Our webinar, hosted on December 4, titled “National Security, Innovation and Telecoms – A New Era,” brought together experts to discuss the intersection of innovation policy, intellectual property (IP) frameworks, and the evolving challenges in the telecoms industry, focusing on the EU and US perspectives. The event, moderated by ECIPE Director Matthias Bauer, highlighted Europe’s struggles with telecom market fragmentation, regulatory pressures, and 5G deployment delays, alongside the need for transatlantic alignment to foster innovation and address geopolitical security concerns.

Jonathan Barnett, Torrey H Webb Professor of Law at the USC Gould School of Law, opened the discussion by emphasising the dual role of intellectual property rights: their exclusionary nature and, crucially, their enabling function. He explained that IP rights form the backbone of innovation ecosystems by creating a “property envelope” that fosters collaboration and contract-based market interactions. This structure has enabled the global wireless ecosystem’s success by encouraging specialisation and secure licensing practices. Barnett argued, “Strong IP rights lower entry costs into the design and production segments of the wireless sector,” while weakening them would increase barriers and stifle competition.

Andrei Iancu, former Director of the US Patent and Trademark Office and Undersecretary of Commerce for intellectual property, expanded on this by stressing the risks inherent in innovation and the unique challenges posed by standard-setting technologies. He identified the free market as central to the West’s capacity to maintain technological leadership, stating, “Intellectual property rights are the currency of innovation. Without them, large-scale collaboration and market penetration would falter.” Iancu also warned against regulatory overreach, which could depress investment and hinder the dynamism necessary for critical technologies like AI and quantum computing.

Fredrik Erixon, Director and Co-founder of ECIPE, highlighted Europe’s dual challenge of outdated regulatory frameworks and the growing influence of national security concerns. He noted that Europe’s telecom operators face profitability challenges partly due to stringent regulations that constrain investment. Erixon remarked, “We want to have a lot of innovation and investment, but for some reason, we regulate against companies charging for it.” He advocated for policies that protect the ecosystem’s market-driven dynamics rather than pursuing politically motivated redistributions of value along the telecom supply chain.

The discussion underscored a shared view among the panellists: Europe’s regulatory environment must avoid excessive state intervention that disrupts market mechanisms. Instead, robust IP enforcement and judicial recourse were identified as essential to sustaining innovation and balancing interests between upstream innovators and downstream implementers.

Overall, the webinar concluded with a call for policymakers to ensure that regulations support long-term innovation objectives and strengthen the transatlantic alliance in the face of mounting competition from autocratic regimes, particularly China. Erixon summarised the stakes, warning, “Europe must be cautious not to adopt policies that inadvertently encourage firms to relocate or weaken the rules and institutions that underpin the telecoms market.” The panellists agreed that fostering vibrant ecosystems in ICT and telecommunications requires a balanced, market-oriented approach that aligns with broader security and economic goals.

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You can watch the full event below: