The European Commission announced on Monday the launch of a new procedure against China before the World Trade Organization (WTO) to challenge “unfair and illegal commercial practices” in matters of intellectual property.
The European Union accuses China of putting “pressure” on European high-tech companies to lower patent prices, particularly in the field of 5G for mobile phones. The Commission has requested consultations before the WTO, the first step in a dispute settlement procedure.
Several ongoing commercial disputes
European companies must be able to work within the framework of “fair and equitable competition. When this is not the case, the Commission takes decisive action to protect their rights,” assured Maros Sefkovic, the European Commissioner for Trade.
-According to Brussels, China has empowered its courts to set binding tariffs for essential EU patents, without the consent of patent owners. This “allows Chinese manufacturers to access these European technologies at lower cost, in an unfair manner,” accuses the Commission. If these consultations before the WTO do not result within 60 days, the EU may move on to a contentious phase.
The European Union is in the middle of a commercial standoff with China in many areas. At the end of November, the Commission had already referred the matter to the WTO to challenge Chinese customs measures against European spirits such as cognac. China itself contacted the WTO on October 30 after Brussels’ decision deemed “protectionist” to impose customs surcharges on electric cars imported from China.
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