The European Union has formally requested dispute consultations with China at the World Trade Organization (WTO) regarding China’s measures on patent licensing terms. This request was circulated to WTO members on January 22.
The EU contends that Chinese courts, under Chinese law, have the authority to unilaterally determine binding worldwide licensing conditions, including royalty rates, for portfolios of standard essential patents (SEPs), encompassing non-Chinese SEPs, without the consent of both parties involved.
According to the EU, these provisions are inconsistent with several aspects of the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
This new request for consultations is linked to the ongoing dispute initiated by the EU in the case of “China — Enforcement of Intellectual Property Rights.”
The request for consultations marks the formal initiation of a dispute at the WTO. These consultations provide an opportunity for the parties to discuss the issue and seek a satisfactory resolution without proceeding to litigation. If the consultations fail to resolve the dispute within 60 days, the complainant may request adjudication by a panel.
