EU challenges China at the WTO to defend its high-tech sector

The European Union is filing a case against China at the World Trade Organization (WTO) for restricting EU companies from going to a foreign court to protect and use their patents. China severely restricts EU companies with rights to key technologies, such as 3G, 4G and 5G, from protecting these rights when their patents are used illegally or without appropriate compensation by, for example, Chinese mobile phone manufacturers. The patent holders that do go to court outside China often face significant fines in China, putting them under pressure to settle for licensing fees below market rates. This Chinese policy is extremely damaging to innovation and growth in Europe, effectively depriving European technology companies of the possibility to exercise and enforce the rights that give them a technological edge. Executive Vice President and Trade Commissioner Valdis Dombrovskis said: "We must protect the EU's vibrant high-tech industry, an engine for innovation that ensures our leading role in developing future innovative technologies. EU companies have a right to seek justice on fair terms when their technology is used illegally. That is why we are launching WTO consultations today.” The dispute settlement consultations that the EU has requested are the first step in WTO dispute settlement proceedings. If they do not lead to a satisfactory solution within 60 days, the EU can request the WTO to set up a panel to rule on the matter. You will find more information in this press release.

Share this article: