Brussels, 22 April 2025
Today, the EU appealed the WTO panel report in its WTO dispute with China on the Enforcement of Intellectual Property Rights (DS611).
In its report, the WTO panel upheld the EU’s case by acknowledging that China has developed a policy of limiting intellectual property rights, starting with the guidelines of the Supreme People’s Court, supported by the political level and implemented by the judiciary through several court judgments. It also found that China must be more transparent by transmitting to the EU and other WTO members information on intellectual property matters, including court judgements.
However, the panel did not follow the EU’s interpretation of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement as requiring China to refrain from adopting or maintaining measures that undermine other WTO members’ implementation of the agreement in their jurisdictions. According to the panel, the TRIPS Agreement does not contain an obligation for WTO members to abstain from adopting measures that prevent other WTO members from implementing it in their own territories.
With this appeal, the European Union intends to reverse the panel’s latter findings, thus seeking to allow European companies to defend their intellectual property in European courts. The outcome of the EU’s appeal is expected in the second half of July 2025.
Background
Case DS 611 involves standard essential patents, which are patents necessary for a product or technology to meet specific industry standards, such as those used in mobile communications.
The measures contested by the EU allow Chinese courts to set global royalty rates for standard essential patents without the patent owner’s consent. Essentially, this means China is deciding the cost of patented technology, including technology patented by EU holders. The issue of setting global royalty rates is also part of ongoing consultations in case DS632, which focuses on China’s worldwide licensing terms for standard essential patents.
The appeal is taking place in the framework of the Multi-Party Interim Appeal Arbitration Agreement (MPIA), an alternative arbitration system which allows appeals of panel reports in the absence of a fully-functioning Appellate Body.
For more information
Source – EU Commission
China — Enforcement of intellectual property rights
This summary has been prepared by the Secretariat under its own responsibility. The summary is for general information only and is not intended to affect the rights and obligations of Members.
See also:
- News items about this dispute
- The basics: how disputes are settled in WTO
- Text of the Dispute Settlement Understanding
Current status
- Panel composed on 28 March 2023
Key facts
Short title: China — IPRs Enforcement (EU)
Complainant: European Union
Respondent: China
Third Parties (original proceedings): Australia; Brazil; Canada; Colombia; India; Indonesia; Japan; Korea, Republic of; Norway; Peru; Russian Federation; Singapore; Switzerland; Chinese Taipei; Thailand; Ukraine; United Kingdom; United States; Viet Nam
Agreements cited: (as cited in request for consultations) Art. 1.1, 28.1, 28.2, 41.1, 44.1, 63.1, 63.3 Intellectual Property (TRIPS)
Section 2(A)(2) Protocol of Accession
Agreements cited: (as cited in panel request)
Art. 1.1, 28.1, 28.2, 41.1, 44.1, 63.1, 63.3 Intellectual Property (TRIPS)
Section 2(A)(2) Protocol of Accession
Consultations requested: 18 February 2022
Panel requested: 7 December 2022
Panel established: 27 January 2023
Panel composed: 28 March 2023
China – Enforcement of Intellectual Property Rights – Suspension of Panel work – Communication from the Panel
WT/DS611/10 | 4 April 2025
Summary of the dispute to date
The summary below was up-to-date at 10 January 2025
Consultations
Complaint by the European Union
On 18 February 2022, the European Union requested consultations with China with regard to measures that allegedly adversely affect the protection and enforcement of intellectual property rights.
The European Union claimed that the measures at issue appear to be inconsistent with:
- Articles 1.1, 28.1, 28.2, 41.1, and 44.1 of the TRIPS Agreement; and
- Section 2(A)(2) of China’s Accession Protocol.
The European Union also claimed that:
- by failing to publish certain judicial decisions regarding the measures at issue, China appears to have acted in a manner inconsistent with its obligations in Article 63.1 of the TRIPS Agreement; and
- by failing to supply to the European Union information about three judicial decisions related to the measures at issue that the European Union had requested, China appears to have acted in a manner inconsistent with its obligations under Article 63.3 of the TRIPS Agreement.
On 4 March 2022, Canada, Japan and the United States requested to join the consultations.
Panel and Appellate Body proceedings
On 7 December 2022, the European Union requested the establishment of a panel. At its meeting on 20 December 2022, the DSB deferred the establishment of the panel.
At its meeting on 27 January 2023, the DSB established a panel. Australia, Brazil, Canada, Colombia, India, Indonesia, Japan, Korea, Norway, Peru, the Russian Federation, Singapore, Switzerland, Chinese Taipei, Thailand, Ukraine, the United Kingdom, the United States, and Viet Nam reserved their third-party rights.
Following the agreement of the parties, the panel was composed on 28 March 2023.
On 4 July 2023, the European Union and China informed the DSB that they had agreed to Procedures for Arbitration under Article 25 of the DSU in this dispute. Such procedures were entered into by the European Union and China to give effect to the communication JOB/DSB/1/Add.12 (“Multi-Party Interim Appeal Arbitration Arrangement Pursuant to Article 25 of the DSU (MPIA)”) and with the objective of setting a framework for an Arbitrator to decide on any appeal from any final panel report issued in this dispute, if the Appellate Body is not able to hear such an appeal under Articles 16.4 and 17 of the DSU.
On 2 November 2023, the Chair of the panel informed the DSB that, in accordance with the panel’s timetable adopted following consultations with the parties, taking into account the parties’ availability due to other commitments, the panel estimated that it would issue its final report to the parties not before the second half of 2024. The Chair apprised the DSB that the report would be available to the public once it was circulated to the Members in all three official languages, and that the date of circulation depended on completion of translation.
Source – WTO