In a significant ruling issued on April 24, 2025, the World Trade Organization (WTO) dismissed the European Union's (EU) complaint against China regarding alleged violations of intellectual property rights tied to telecom technology patents, including those essential to 3G, 4G, and 5G.

The core of the intellectual property dispute lies in China’s courts issuing anti-suit injunctions (ASIs)—legal orders that prohibit companies from pursuing IP litigation in foreign jurisdictions. The EU claimed these ASIs infringed upon its patent holders’ ability to enforce rights globally, thereby breaching the WTO's TRIPS (Trade-Related Aspects of Intellectual Property Rights) Agreement.

 

WTO Panel Findings: China’s Practices Not in Violation of TRIPS

While the WTO acknowledged that China's approach to ASIs was “concerning,” the panel ruled that it did not constitute a violation of international intellectual property rules under the TRIPS framework.

However, the WTO panel did find that China breached transparency obligations:

• Failing to publish a ruling involving a Chinese smartphone company and a U.S. patent holder

• Not responding adequately to several EU requests for information

This partial breach does not override the broader finding that China's ASI strategy is not explicitly illegal under WTO rules.

 

EU's Reaction: Appeal Filed Through Alternative WTO Process

Dissatisfied with the ruling, the European Union is moving forward with an appeal through the Multi-Party Interim Appeal Arbitration Arrangement (MPIA)—a substitute system used due to the WTO Appellate Body being non-functional since 2019.

The EU argues the panel misinterpreted the TRIPS Agreement, and that global telecom patent holders must be able to enforce their rights without judicial suppression in foreign courts.

 

China’s Response: Compliance and Commitment to WTO Process

China, in turn, welcomed the WTO's dismissal of the core charges. The Ministry of Commerce affirmed its support for the multilateral trading system and committed to working with all parties through the arbitration mechanism.

China maintains that its use of ASIs is within its judicial sovereignty and that it remains compliant with its international IP obligations.

 

Global Implications: IP Rights, Telecom Patents & Jurisdiction

This dispute highlights a growing international concern over jurisdiction in intellectual property disputes, especially for standard-essential patents (SEPs) in telecom technology.
Legal analysts believe the ruling could:

• Influence future IP litigation in cross-border telecom disputes

• Shape how countries handle ASIs

• Encourage more structured international guidelines for SEP enforcement

“This case underlines the urgent need for clearer frameworks on ASIs and how they impact global IP enforcement,” noted a senior IP lawyer from NYK Law Firm. “For telecom innovators, ensuring patent enforceability across borders is now not just a legal matter, but a strategic one.”

 

 

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