The European Union has filed a lawsuit against China with the World Trade Organization (WTO), arguing that Chinese courts prevent European companies from protecting their telecommunications technology patents.

The European Commission, which filed the lawsuit on behalf of the EU's 27 members, said EU companies are prevented from suing for patents key to standards.

The commission also consulted with the United States and Japan, whose key patent holders face similar challenges and would also like to set global technology standards regardless of Beijing's interests.

Smartphone manufacturers must obtain licenses for key patents to ensure that their devices comply with international standards.

The commission said Chinese courts have been issuing "injunctions" since August 2020 to prevent EU companies from taking foreign courts under the threat of hefty fines as a deterrent.

In one case, the fine was allegedly 130,000 euros a day, a practice that undermined the companies' negotiations over licensing fees with Chinese smartphone makers.

China deplored the move taken by the EU, saying it has always supported the multilateral trading system.

The Commission said it had repeatedly raised the issue with China, but to no avail. She believes that China is violating the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

Consideration of claims in the WTO begins with a 60-day consultation period between the parties, after which the EU can request a decision of the WTO commission. The process, including possible appeals, could take years.

bbabo.Net