The WTO has reversed portions of its earlier ruling in the EU-China intellectual property dispute

The WTO has reversed portions of its earlier ruling in the EU-China intellectual property dispute

The World Trade Organization (WTO) has reversed portions of its earlier ruling in the ongoing intellectual property dispute between the European Union (EU) and China. The decision, announced on Monday, July 21, 2025, significantly impacts the global tech industry by challenging China's court practices related to patent enforcement.

The original WTO panel, in April 2025, rejected the EU's complaint, alleging that China had violated WTO rules on intellectual property (IP) regarding patents for 3G, 4G, and 5G mobile technology. However, the panel did find that China had failed to comply with certain transparency obligations [1].

The EU appealed the case to the Multi-Party Appeal Arbitration Arrangement, a surrogate for the WTO's Appellate Body, which had been shuttered since 2019 due to U.S. blocking of judge appointments [2]. On Monday, the arbitrators reversed part of the previous panel decision, concluding that China's prohibition of patent holders from enforcing their patent rights in countries outside of China, through the use of anti-suit injunctions, was not consistent with the Trade-Related Aspects of Intellectual Property Rights (TRIPS) rules concerning patent rights [3].

The arbitrators upheld the previous findings on four issues but reversed the Panel's findings on three issues, giving China 90 days to remedy its measures to comply with WTO rules. This reversal is seen as a victory for the EU, which had argued that Chinese courts were preventing European tech companies from using foreign courts to defend their patents.

The decision underscores the importance of TRIPS compliance and could set a precedent for future IP disputes. It also highlights the WTO's role in resolving complex international trade disagreements, despite the ongoing challenges with its appellate system.

References:
[1] https://www.reuters.com/sustainability/sustainable-finance-reporting/wto-reverses-parts-previous-decision-eu-china-intellectual-property-dispute-2025-07-21/
[2] https://www.scmp.com/news/china/article/3319061/wto-reverses-parts-previous-decision-eu-china-intellectual-property-dispute
[3] https://www.investing.com/news/economy-news/wto-reverses-parts-of-previous-decision-in-euchina-intellectual-property-dispute-4144492