Politicisation of the Chinese judiciary in connection with royalties for the use of standard essential patents
7.4.2021
Question for written answer E-001869/2021
to the Commission
Rule 138
Raphaël Glucksmann (S&D)
On 25 December 2020, the intermediate court in Wuhan (Hubei, China) prohibited Ericsson from bringing or continuing actions against Samsung relating to the 4G and 5G standard essential patents (SEP) involved in the litigation before the Chinese court until it itself has ruled.
This decision follows on from other ‘anti-suit injunction’ (ASI) decisions which prohibit companies from acting and give the Chinese courts exclusive jurisdiction to, inter alia, determine the royalty rates due for the use of patents. It reveals a politicisation of the Chinese justice system that has major consequences for European businesses, which are subject to extremely low royalty rates for the use of their technologies and are prohibited from challenging such decisions by the possibility of incurring high fines. This behaviour by the Chinese judicial authorities ultimately favours Chinese companies. It risks extending beyond SEPs and has consequences for the EU’s industrial strategy.
- 1.What is the Commission’s analysis of the recent decisions by Chinese courts on SEPs, determining erga omnes the amount of royalties and/or handing down ASI?
- 2.How does it intend to ensure that the use of European patents is fairly remunerated?