The bill’s withdrawal was part of a larger pruning of red tape within the bloc. Unlike some other proposals that have failed to inch toward agreement, however, its inclusion on the Commission’s kill list late on Tuesday was a surprise. The European Parliament has already voted on it and EU governments were due to discuss it later this month.

Fierce lobbying had surrounded the bill, which aimed to set guardrails for legal fights over how the patents used in critical technology like the 4G mobile phone standard and wireless internet should be licensed to cars and fridges.

Patents can be cash cows, generating huge revenues from licensing technology that becomes an industry standard. Patent owners such as Sweden’s Ericsson and U.S.-based chip designer Qualcomm get paid by companies that use their technology in a growing range of smart devices.

Slap in the face

German center-right lawmaker Marion Walsmann, who steered the file through the Parliament, said the Commission had made “a complete mistake” in dropping a proposal that could have cut costs and litigation risk for smaller businesses.

“This is not just a missed opportunity, but a real slap in the face for European companies,” she said. Walsmann blamed “pressure from a small number of very influential companies, mostly from third countries,” which “has brought the Commission to its knees.”

The Fair Standards Alliance — which represents patent users such as Amazon, Apple, BMW and Ford — was “stunned by the Commission’s decision to abruptly scrap” the proposal, warning that it “sends a terrible signal to innovative businesses that depend on predictable and fair SEP licensing,” according to its secretary general, Evelina Kurgonaite.