EU Challenges China at WTO Over High-Tech Patent Royalty Policies

The European Commission has filed a complaint with the WTO, accusing China of unfairly setting global royalty rates for EU standard-essential patents (SEPs) without patent owners' consent. The Commission claims Chinese courts pressure European tech firms, particularly in telecoms, to lower royalty rates, benefiting Chinese manufacturers.

China’s commerce ministry expressed regret over the complaint, stating it would address the issue under WTO rules. The dispute involves SEPs, vital for technologies like 5G, held by companies such as Nokia and Ericsson.

The EU has requested consultations with China, the first step in WTO dispute resolution. If unresolved within 60 days, a panel may be formed to adjudicate, with proceedings typically taking a year. This case also ties to a 2022 EU complaint about Chinese anti-suit injunctions restricting global patent enforcement.