EU Commission Requests WTO Consultation On Chinaآ's Unfair Trade Practices
Date
1/21/2025 1:05:35 AM
(MENAFN- Kuwait News Agency (KUNA))
BRUSSELS, Jan 20 (KUNA) -- The European Commission announced on Monday that it has submitted a request to the World Trade Organization (WTO) in order to initiate consultations regarding Chinaآ's "unfair and illegal" trade practices in the field of intellectual property rights.
In a press release, the Commission accused China of granting its national courts the authority to set binding worldwide royalty rates for European standard essential patents without the consent of the patent owners.
The Eu Commission explained that the Chinese decision puts pressure on innovative European high-tech companies to lower their rates globally, thereby giving Chinese manufacturers unfair access to these European technologies at lower prices.
The Commission added hat these practices "unjustifiably" interfere with the jurisdiction of EU courts on European patent matters. It emphasized that such practices are inconsistent with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
The statement clarified that the European Union was compelled to request consultations as a first step in the WTO dispute resolution process, aiming to ensure the protection of its high-tech industriesآ' patent rights, particularly in the telecommunications sector, and to safeguard their investments in innovation effectively.
The consultations requested by the EU are the first step in WTO dispute settlement procedures. If they do not result in a satisfactory solution within 60 days, the EU may move to the litigation phase and request the establishment of a panel to address the issue.
A WTO panel is expected to issue a report on this matter in the first quarter of 2025. (end)
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