WTO reverses parts of previous decision in EU-China intellectual property dispute
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In April, a
WTO panel rejected the
EU's complaint, lodged in 2022, that
China had violated the global watchdog's IP rules over patents for 3G, 4G and 5G mobile technology. However, it did say that China had failed to comply with all WTO transparency obligations.
The
EU appealed the case at the Multi-Party Appeal Arbitration Arrangement, a surrogate for the WTO's Appellate Body which was closed in 2019 after the
United States repeatedly blocked judge appointments.
On Monday, the arbitrators reversed part of the previous panel decision and found that the Chinese courts' prohibition of patent holders to enforce their patent rights in countries outside China, through the use of anti-suit injunctions, was not consistent with Trade-Related Aspects of Intellectual Property Rights rules concerning patent rights.
The arbitrators upheld the previous findings on four issues but reversed the panel's findings on three issues. It has given China 90 days to remedy its measures to comply with WTO rules.
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