(Reuters) -World Trade Organization arbitrators on Monday reversed part of a previous panel decision that had rejected the European Union’s claims that China had violated the global watchdog’s rules on intellectual property.
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 said 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 shuttered 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 of 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.
China’s Ministry of Commerce said on Tuesday it had taken note of the situation.
While welcoming some of the conclusions, it said the arbitration tribunal had erroneously concluded that WTO members should avoid affecting a patent holder’s ability to enforce their rights in other members’ jurisdictions.
“China expresses dissatisfaction with this aspect of the ruling,” it said, adding it would carefully assess the decision and handle the matter appropriately in accordance with WTO rules.
(Additional reporting by Yukun Zhang Reporting by Kanjyik Ghosh in Bengaluru and Olivia Le Poidevin in Geneva; Writing by Friederike Heine;Editing by Tomasz Janowski and Bernadette Baum)
