New European action against China’s intellectual property practices

The European Commission announced the launch of a new procedure against China at the World Trade Organization to object to “unfair and illicit trade practices” in the field of intellectual property.

The European Union accuses China of pressuring European companies for advanced technology to reduce patent prices, especially with regard to the fifth generation “5G” network for mobile phones.

The Commission called for consultations with the World Trade Organization, as a first step on a path aimed at resolving disputes.

Measures to protect the rights of companies

European Trade Commissioner Maros Sefcovic said: European companies should be able to operate within a framework of “fair and just competition, and where this is not possible, the Commission takes decisive measures to protect the rights of companies.”

According to Brussels, China has authorized its courts to impose binding tariffs on essential patents in the European Union, without the consent of patent holders, which allows Chinese manufacturers to access European technologies at a lower cost and in an unfair manner.

If deliberations before the World Trade Organization do not produce results within 60 days, the European Union can move to the dispute stage.

China denounces the measure

China denounced this new measure, and a statement issued by the Chinese Ministry of Commerce said, “China denounces the action taken by the European side, and will deal with this issue in accordance with the rules of the World Trade Organization, and resolutely safeguard its legitimate rights and interests.”

The European Union is confronting China on several issues in the field of trade.

In late November, the Commission objected to Chinese customs measures before the World Trade Organization.

China, in turn, appealed to the World Trade Organization on October 30, after Brussels’ decision to impose additional customs duties on electric vehicles imported from China, which Beijing saw as a “protectionist” measure.