EU asks WTO panel over China SEP royalties

Key development

The EU has launched a formal request for the establishment of a WTO panel in its dispute with China over Chinese courts setting binding worldwide licensing conditions, including royalty rates, for portfolios of standard essential patents.

Context

The measure follows failed WTO consultations in April 2025 and rests on the EU view that China’s practice of allowing courts to fix worldwide SEP royalties without patent holders’ consent is inconsistent with the TRIPS Agreement.

Who is affected

EU high‑tech companies holding standard essential patents and Chinese manufacturers using that technology are directly affected, along with licensing and patent management teams at EU firms concerned about worldwide royalty terms.

What to expect

The EU will request panel establishment at the WTO Dispute Settlement Body meeting on 24 February 2026; the likely commercial effect is renewed scrutiny of worldwide SEP licensing terms, with implications for royalty revenues and the relative cost of access to European technology.

Sources

Official Documents

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