- February 19, 2022
China regretted the move by the EU
The European Union has filed a lawsuit against China at the World Trade Organization (WTO), arguing that Chinese courts are preventing European companies from protecting their telecommunications patents.
The European Commission, which filed the lawsuit on behalf of the 27 EU members, said EU companies are prevented from going to court when it comes to patents that are key to standards.
The commission also consulted the United States and Japan, whose holders of key patents face similar problems and would also like to set global technology standards without regard to Beijing’s interests.
Smartphone makers must license key patents to ensure that the devices they produce meet international standards.
The commission said Chinese courts have issued “injunctions” since August 2020 that prohibit EU companies from taking their products to foreign courts under threat of hefty fines as a deterrent.
In one case, the fine allegedly amounted to 130,000 euros a day, a practice that undermined companies’ negotiations over license fees with Chinese smartphone makers.
China regretted the step taken by the EU, saying it has always supported the multilateral trade system.
The Commission said it has raised the issue with China several times, but to no avail. It believes China is in violation of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
The WTO lawsuits begin with a 60-day consultation period between the parties, after which the EU can request a decision from the WTO panel. The process, including possible appeals, could take years.
- 02:25
