World Trade Organization official announcements and rulings

EU Challenges China at WTO Over Patent Royalties Amid Concerns Over Unfair Trade Practices in Telecommunications

Jan 20, 2025, 01:02 PM

The European Union has formally initiated a challenge against China at the World Trade Organization (WTO) regarding patent royalties that affect the EU high-tech sector. The EU argues that China's practice of unilaterally setting global rates for essential patents without consent pressures European companies to accept lower royalties, thereby undermining their competitive position. This move follows concerns over unfair trade practices that disadvantage EU companies, particularly in the telecommunications industry. The EU's action is seen as a continuation of its efforts to protect intellectual property rights and follows previous cases like the anti-suit injunction case (DS611). In response, China has pledged to safeguard its interests against the EU's challenge at the WTO.