The European Commission announced on Monday that it is appealing to the World Trade Organisation (WTO) to counter China’s intellectual property practices in the high technology sector.
The Commission stated that China has empowered its courts to set global royalty rates for EU Standard Essential Patents (SEPs) without the patent holder’s consent.
This practice forces innovative European companies to lower their royalty demands worldwide.
The request for consultations is the first step in the WTO’s dispute resolution process. Based in Swtizerland, the WTO regulates and facilitates international trade.
The Commission noted that it had attempted to negotiate a solution with Chinese authorities, but no satisfactory resolution was reached.
