WEB DESK: The European Union (EU) has initiated a challenge in the World Trade Organisation (WTO) against China relating to high-tech patent royalty rates. This further highlights the rising trade tensions between Brussels and Beijing.
According to the European Commission, China pressures European high-tech companies to offer relatively low royalties using China’s powerful courts to enforce global rates for such patents.
“EU’s vibrant high-tech industries must be allowed to compete fairly and on a level playing field”, stated Maros Sefcovic, the EU Trade Commissioner. “Where this is not the case, the Commission takes decisive action to protect their rights.”
“Standard Essential Patents” are patents that enable a product to meet specific technological standards. The EU accuses China of ambiguously forcing European companies to source their patented technologies at a cheaper price mode of access, especially in the telecom industry, where European firms own a significant share of patents.
The current litigation stems from a 2022 case in which Brussels accused Beijing of preventing European tech firms from acting against Chinese companies in foreign courts over intellectual property rights-related complaints.
The charges make another measure in the volley of tit-for-tat actions between the two parties over tariffs, investigations, and lawsuits regarding unfair practices in sectors like electric cars, cheese, and brandy.
The EU’s move signals a determination to defend its industries and ensure fair competition in global markets.
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