The European Union (EU) has announced that it has appealed to the World Trade Organization (WTO) against Beijing, accusing it of obstructing the litigation of European companies whose patents, especially high-tech ones, are being used illegally by Chinese companies.
Beijing prevents companies “in possession of critical technology technologies such as 5G” from suing outside China, “when their patents are used illegally or without due compensation, for example by Chinese manufacturers smartphones “, the European Commission states in a statement.
From August 2020, Chinese courts may prohibit patent holders from going to non-Chinese courts to assert their rights.
Since then, four such bans have been issued in China against foreign patent holders, the commission said, noting that violating such a ban could be punishable by a fine of up to 130,000 euros a day.
This policy of the world’s second largest economy is “extremely detrimental to innovation and growth in Europe” because it prevents EU tech companies from taking advantage of the competitive advantage afforded by their patents and “pushes them to accept “licensing rights below market prices”, the European Commission emphasizes.
According to Brussels, “Chinese manufacturers are calling for this ban to be enforced so that they have less expensive and even free access to European technology”, which puts Western groups in an “extremely unfavorable” position.
“Businesses have the right to seek justice in a fair trial when their technology is being used illegally,” said Commission Vice-President Valdis Dobrovskis.
The new process begins as the EU is already embroiled in a WTO brawl with Beijing, which it accuses of blocking Lithuanian imports amid diplomatic tensions over Taiwan.
Source: AMPE
Source: Capital
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