The European Union (EU) filed a complaint on Friday with the World Trade Organization (WTO) against China, which it accuses of preventing European technology companies from resorting to foreign courts to defend their patents.
“EU companies have the right to seek justice on fair terms when their technology is used illegally. That is why we are launching consultations at the WTO today,” EU Executive Vice President Valdis Dombrovskis said in a statement.
Relations between China and the EU have become increasingly contentious. Friday’s announcement comes just weeks after the EU opened another WTO case accusing China of blocking imports from EU member Lithuania over its stance on Taiwan.
To make high-tech products, from phones to electric cars, a lot of proprietary technology is required. Chinese companies have been accused for years of violating the terms of these patents, unfairly punishing their rivals.
Since August 2020, the EU has identified that Chinese courts are threatening European companies that bring their complaints to other courts around the world with heavy fines and other pressure measures.
According to the EU, these types of legal actions are used by Chinese manufacturers seeking “cheaper or even free access to European technology.”
The harshest critics of Beijing believe that the courts are being used to benefit Chinese manufacturers, reduce the price of patents and promote China as a world leader in the use of intellectual property.
This policy of the second world economy is “extremely detrimental to innovation and growth in Europe”, since it prevents EU technology companies from benefiting from the competitive advantage of their patents and “forces them to accept license fees below of market prices”, regrets the Community Executive.
According to the complaint filed by the EU with the WTO, among the companies that have entered into conflict with China are Conversant, Ericsson, InterDigital and Sharp.
The United States and Europe regularly accuse China of circumventing the organization’s rules to protect their companies, which China denies.
The “consultations” requested by the EU are the first step in the WTO dispute settlement procedure. If these fail within 60 days, the EU can request the creation of a special group to rule on the matter.
Source: Gestion
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
