EU Initiates Dispute Complaint Regarding Chinese Patent Licensing Measures
Geneva, 22 January 2025 – The European Union (EU) has initiated a dispute settlement complaint against China regarding its patent licensing measures. The EU alleges that China’s measures discriminate against foreign patent holders and are inconsistent with the provisions of the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
The specific measures at issue include:
- A requirement that foreign patent holders must license their patents to Chinese entities on a non-exclusive, non-discriminatory basis
- A provision that allows Chinese entities to obtain compulsory licenses for patents if the foreign patent holder does not comply with the licensing requirement
- A requirement that foreign patent holders disclose their licensing fees and other commercial information to Chinese authorities
The EU argues that these measures violate the national treatment principle under TRIPS, which requires WTO members to treat foreign and domestic entities equally. The EU also claims that the measures are inconsistent with the provisions on compulsory licensing, which allow members to grant compulsory licenses only in exceptional circumstances.
This is not the first time the EU has raised concerns about China’s patent licensing measures. In 2020, the EU initiated a similar dispute settlement case against China, which is still ongoing.
The initiation of a dispute settlement complaint is the first step in the WTO dispute settlement process. If the complaint is not resolved through consultations, the EU may request the establishment of a panel to adjudicate the dispute.
The WTO dispute settlement system is a key mechanism for resolving trade disputes between its members. It is based on the principle of binding arbitration, and its rulings are generally considered to be final and binding.
The European Commission, which is the EU’s executive arm, has stated that it is committed to addressing the concerns of EU businesses regarding China’s patent licensing measures. The Commission has also said that it is prepared to work with China to find a mutually acceptable solution to the dispute.
The Chinese government has not yet commented on the EU’s complaint.
EU initiates dispute complaint regarding Chinese patent licensing measures
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