EU Takes WTO Action Against China Over Patent Royalty Disputes in Technology

The European Commission has requested WTO consultations over China’s alleged unfair royalty-setting practices for standard essential patents. The dispute centres on protecting European high-tech innovation and ensuring compliance with global intellectual property rules under the TRIPS agreement.

EU Takes WTO Action Against China Over Patent Royalty Disputes in Technology

EU Challenges China's Approach to Royalties on Standard Essential Patents

The European Commission has taken a decisive step to safeguard the interests of European high-tech companies by requesting consultations at the World Trade Organization (WTO) on 20 January 2025.

The dispute centres on China’s practice of allowing its courts to set global royalty rates for Standard Essential Patents (SEPs) held by European firms, allegedly without patent holders’ consent.

SEPs are integral to technologies like 5G that underpin a broad spectrum of high-tech products, including mobile phones and IoT devices.

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