Beijing is accused of preventing companies with “holding rights over critical technologies, such as 5G, to use justice outside China,” when their patents are used illegally, “says the Commission European.
Le Monde with AFP
The European Union (EU) announced, Friday, February 18, having seized the World Trade Organization (WTO) against Beijing, accused of hindering the legal remedies of European companies including patents, including high-tech patents are used illegally by Chinese firms.
Beijing prevents “holding rights on critical technologies, such as 5G, to use justice outside China,” when their patents are used illegally or without appropriate compensation, for example by the Chinese smartphone manufacturers, “says the European Commission in a statement.
Four injunctions
Since August 2020, the Chinese courts can prohibit patent holders from going to a non-Chinese court to assert their rights through an “injunction against prosecution” in a third country.
Since then, four such injunctions have been pronounced in China against foreign patent holders, observes the Commission, stressing that the violation of such an injunction can be punished with a daily fine of 130 000 euros.
This policy of the second world economy is “extremely detrimental to innovation and growth in Europe”, as it prevents the EU technology companies from taking advantage of the competitive advantage of their patents and ” The pushes to accept license fees below market prices, “deplores the European executive.
According to Brussels, “Chinese manufacturers require these anti-prosecution injunctions to benefit from cheaper or free access to European technology”, what to place Western groups in an “extremely unfavorable” position.
“Companies have the right to request justice under fair conditions when their technology is used illegally,” said Vice-President of the Commission, Valdis Dombrovskis.
Iron arm
This new procedure occurs while the EU is already engaged in an IRO arm at the WTO with Beijing, accused of blocking Lithuanian imports on the background of diplomatic tensions about Taiwan.
After twenty years of accession to the WTO, United States and European regularly accuse China to circumvent the rules of the institution to protect its businesses, strictly controlling the access of its market to foreign groups and in amplifying the domination by the integer state of its economy. Criticisms judged “without foundation” by Beijing.
The “Consultations” requested by the EU are the first step in the dispute settlement procedure under the WTO. In case of failure of these consultations within sixty days, the EU may request the establishment of a group responsible for ruling on the issue.