The EU argues Chinese courts have, under Chinese law, the authority to determine, without the consent of both parties, binding worldwide licensing conditions, and in particular royalty rates, for portfolios of standard essential patents (SEPs), including non-Chinese SEPs.
The EU claims these provisions are inconsistent with various provisions under the WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
This new request for consultations is related to the dispute initiated by the EU in “China — Enforcement of intellectual property rights” (DS611).
Further information is available in document WT/DS632/1
What is a request for consultations?
The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.
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