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EU challenges China at WTO over tech patents
High-tech products requires a huge amount of patented technology, and Chinese companies have for years been accused of violating patent terms, unfairly punishing rivals.
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A logo is pictured on the headquarters of the World Trade Organization (WTO) in Geneva, Switzerland, on June 2, 2020. (Reuters/Denis Balibouse)
T
he European Union (EU) challenged China at the World Trade Organization (WTO) on Friday by accusing Beijing of preventing European tech companies from using foreign courts to defend their patents, opening a new chapter in their trade feud.
"EU companies have a right to seek justice on fair terms when their technology is used illegally. That is why we are launching WTO consultations today," EU executive vice president Valdis Dombrovskis said in a statement.
EU-China ties have become increasingly fractious and the latest salvo comes just weeks after Brussels opened a separate case at the WTO over accusations that Beijing was illegally punishing EU member state Lithuania over its stance on Taiwan.
The manufacturing of high-tech products from phones to electric cars requires a huge amount of patented technology and Chinese companies have for years been accused of violating patent terms, unfairly punishing rivals.
The EU said that since 2020, courts in China were using threats of heavy fines and other legal decisions against EU companies that took their grievances to other courts around the world.
These court actions were lodged by Chinese manufacturers that were seeking "cheaper or even free access to European technology," the EU said.
The EU's WTO case said companies that have run afoul of the Chinese tactics included Conversant, Ericsson, InterDigital, and Sharp.
South Korean giant Samsung has also used a Chinese court to stop patent-related litigation from Swedish rival Ericsson in countries such as Germany.
Beijing's harshest critics believe the courts are being instrumentalised to benefit Chinese manufacturers, cut the price of patents and promote China as a global standard-setter in the use of intellectual property.
The "consultations" opened by the EU are the first step in the WTO dispute settlement procedure.
If these consultations fail within 60 days, the EU may request the establishment of a panel to rule on the matter.
