EU Requests Consultations at WTO Over Chinese IP Practices
The EU has requested consultations at the World Trade Organization as the first step in contesting Chinese practices pertaining to intellectual property rights, the European Commission announced on Jan. 19. The commission alleged that China has "empowered its courts to set binding worldwide royalty rates for EU standard essential patents, without the consent of the patent owner."
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The EU said the practices pressure European companies into lowering their rates globally, giving cheaper access for Chinese companies to the European technologies "unfairly." The practices also unfairly interfere with the "competence of EU courts for European patent issues," the commission said.
The EU said the measures violate the WTO Agreement on Trade Related Aspects of Intellectual Property Rights. Should consultations fail to end in a solution within 60 days, the bloc can request a dispute settlement panel.