China’s system of “anti-suit injunctions” on the use of standards-essential patents (SEPs) contravenes World Trade Organization (WTO) rules on intellectual property (the ‘TRIPS’ agreement), a WTO appeal arbitration ruled on Tuesday 22 July.
In 2022, the EU opened a WTO dispute against Beijing, accusing it of preventing holders of standards-essential patents from enforcing them in courts outside China, through ‘anti-suit injunctions’ (see EUROPE 12627/12). At first instance, the panel found in favour of China, which was not in breach of the ‘TRIPS’ agreement, according to the results of the investigation (see EUROPE 13079/23).
But the judges on appeal rejected this judgement, ruling that the obligations of the ‘TRIPS’ agreement do not stop at the border of a member country. These rules must be applied by countries in a way that respects the intellectual property rights of other WTO members, according to the appeal arbitration.
See the judgement: https://aeur.eu/f/hyr (Original version in French by Léa Marchal)