The European Union (EU) opened a case against China before the World Trade Organization (WTO) on February 18. Europe accuses Beijing of restricting ” strongly » the possibility for companies on the continent to seize foreign courts to defend their patents, mainly related to 3G, 4G, 5G technologies.
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It all starts in August 2020, when the Chinese Supreme Court decides that the country’s courts will be able to issue “anti-suit injunctions” or “anti-prosecution injunctions”. If the European patent holder decides to seize a non-Chinese jurisdiction in the event of fraudulent use of his technologies, he risks a daily fine of up to 130,000 euros.
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According to the EU, this provision deprives ” European technology companies the opportunity to exercise and enforce the rights that give them a technological lead “.
It also generates a perverse effect favorable to Chinese smartphone manufacturers using European technologies: companies from the Old Continent tend to grant them licensing rights at lower prices than those on the market, or even free of charge in some cases.
For the EU, Chinese measures are inconsistent with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) “. After several attempts to negotiate with China, the EU decided to take the matter to the WTO.
The Vice-President of the European Commission, in charge of trade, Valdis Dombrovskis believes that “ We must preserve the dynamism of the EU’s high-tech industry, as it is a vector of innovation which guarantees our leading role in the development of future innovative technologies “.
We will have to be patient at the WTO
The WTO settlement procedure, launched on February 18, must open with a consultation of the various parties. Without a satisfactory solution after 60 days, the EU may request the creation of a panel to settle the dispute.
The Register recalls that such procedures can take several years to complete. Faced with similar charges in the past, China has so far consistently rejected accusations against it at the WTO, insisting on the integrity of its smartphone makers. There is no apparent reason for the Middle Kingdom to behave differently in this matter.