The European Union launched a legal challenge against China at the World Trade Organization on Friday, arguing that Chinese courts are preventing European companies from protecting telecommunications technology patents. their information.
The European Commissionwhich filed the challenge on behalf of the 27 EU members, said EU companies are being prevented from going to foreign courts to protect their standard essential patents (SEPs).
The Commission also consulted with the United States and Japan, whose essential standards patents face similar challenges and who want to establish global technology standards, rather than hand this over to Beijing.
Cell phone manufacturers need to obtain an SEP license in order for their products to meet certain international standards.
The Commission said that Chinese courts, since August 2020, have issued “anti-suit orders”, banning EU companies from going to foreign courts, with the threat of heavy fines as a deterrent.
In one case, the fine was EUR 130,000 (about Rs 1.09) a day, and the practice undermined the companies’ negotiations over license fees with Chinese smartphone manufacturers. , the EU executive said.
China says it regrets the EU’s challenge and that it has always maintained the multilateral trading system.
The European Commission did not specify the companies involved. China’s largest smartphone manufacturers are Oppo, Vivo, Xiaomiand Respectformerly owned by Huawei. European SEP holders include Nokia and Ericsson.
The commission said it has raised the issue with China several times, but has not been resolved.
The bloc believes that China is violating of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
WTO challenges begin with a 60-day formal consultation period between the parties, after which the EU can request a WTO panel decision. This process, including possible appeals, can take years.
© Thomson Reuters 2022
