DS: China — Worldwide Licensing Terms for Standard Essential Patents

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Current status

 

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Key facts

 

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Latest document

  

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Summary of the dispute to date

The summary below was up-to-date at

Consultations

Complaint by the European Union

On 20 January 2025, the European Union requested consultations with China with respect to a measure that allegedly adversely affects the protection and enforcement of intellectual property rights with respect to worldwide licensing terms for portfolios of standard essential patents (SEPs).

The European Union claimed that the challenged measure appears to be inconsistent with:

• Article 4bis of the Paris Convention, as incorporated into the TRIPS Agreement by virtue of Article 2.1 of the TRIPS Agreement; and
   
• Articles 1.1, first sentence, 28.1, 28.2, and 44 of the TRIPS Agreement.

The European Union also claimed that:

• China's response to a request by the European Union for information about a judicial decision, allegedly in the area of intellectual property rights because it concerns patent licence terms, appears to be inconsistent with its obligations under Article 63.3, second sentence, of the TRIPS Agreement.

On 31 January 2025, the United Kingdom and Canada requested to join the consultations. On 3 February 2025, Japan requested to join the consultations.

On 12 February 2026, the European Union requested the establishment of a panel. At its meeting on 24 February 2026, the DSB deferred the establishment of the panel.

Panel and Appellate Body proceedings

At its meeting on 19 March 2026, the DSB established a panel. Australia, Brazil, Canada, Colombia, India, Indonesia, Japan, Korea, Norway, Pakistan, the Russian Federation, Singapore, Switzerland, the United Kingdom, the United States, and Viet Nam reserved their third-party rights.

On 21 May 2026, 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. The agreed procedures were entered into by the European Union and China to give effect to communication JOB/DSB/1/Add.12 (“Multi-Party Interim Appeal Arbitration Arrangement Pursuant to Article 25 of the DSU (MPIA)”) 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 July 2026, the European Union requested the Director-General to compose the panel. On 13 July 2026, the Director-General composed the panel.