The European Union has filed a dispute complaint against China concerning Chinese patent licensing measures. The EU contends that Chinese courts have the authority to set binding worldwide licensing conditions, including royalty rates for portfolios of standard essential patents (SEPs), without the consent of all parties involved. This includes SEPs that are not based in China.
The EU argues that these measures are inconsistent with several provisions under the World Trade Organization's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). This complaint is linked to an earlier dispute initiated by the EU titled “China — Enforcement of intellectual property rights” (DS611).
Further details can be found in document WT/DS632/1.
A request for consultations marks the formal initiation of a dispute within the WTO framework. It allows parties to discuss and potentially resolve the issue without advancing to litigation. If no resolution is reached within 60 days, the complainant may seek adjudication by a panel.