The European Commission has lodged a complaint against China with the World Trade Organization (WTO) with the aim of eliminating trade practices it deems “unfair and illegal” in the field of intellectual property. A move that China said it “deplores”, ensuring that it “strictly adheres” to WTO rules.
Brussels accuses Beijing of exerting “pressure” on European high-tech companies to lower patent prices in the country. “China has authorized its courts to set binding global royalty rates for EU standard essential patents, without the consent of the patent holder. This forces the most innovative European high-tech companies to reduce their rates on a global scale , thus giving Chinese producers cheaper access to these European technologies in an unfair way”, reads a note from the EU executive.
Fair competition
“The EU’s vibrant high-tech industries must be able to compete fairly and on a level playing field. Where this is not the case, the Commission takes decisive action to protect their rights,” said Maros Sefcovic, Commissioner for Trade and Industry. Economic security.
The case concerns standard essential patents (SEPs), which protect technologies essential for the production of goods that meet a certain standard, such as 5G for mobile phones. European SEP holders include Nokia and Ericsson. The Commission has called for consultations with China, the first step in resolving WTO disputes. If a satisfactory solution is not found within 60 days, the EU executive can request the establishment of a panel of arbitrators, with proceedings lasting 12 months on average.
The other case
The Commission said the case is linked to another dispute the EU brought to the WTO in 2022, over China’s anti-suit injunctions, which limit the ability of telecommunications patent holders to enforce property rights intellectual in non-Chinese courts, with the threat of heavy fines in case of violation. The expert group handling the case is expected to publish its final report in the first quarter of this year.