EU Requests WTO Consultations Over Chinese Restrictions on Patent-Protection Measures

The EU filed a case at the World Trade Organization over China's restrictions on EU companies seeking redress in foreign courts over patent infringements, the European Commission said. The commission alleged egregious violations of EU patent protections on key technologies such as 5G by Chinese mobile phone manufacturers. If a company goes to a foreign court seeking to stop this patent infringement, the firm will face "significant fines in China," putting pressure on the company to settle for artificially low licensing fees, the commission said. The EU said China also uses "anti-suit injunctions" to prevent EU firms from protecting their patents.

"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 Trade Commissioner Valdis Dombrovskis said. "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 commission said it previously raised this issue with China, though no solution was found. China's actions aren't consistent with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights, the EU alleges. If the dispute settlement proceedings don't lead to a resolution within 60 days, the EU can request a panel to issue a decision on the matter. In response, China's Ministry of Commerce said that China strictly follows WTO rules and that it regrets the EU's decision, according to an unofficial translation.