EU sues China for crimes against tech companies

EU sues China for crimes against tech companies

The European Union is filing charges against China with the World Trade Organization (WTO). The European Commission says that Chinese organizations stealing European technologies are being protected by the state.

According to the Commission, Chinese organizations illegally use patented European technology on a large scale. The Chinese state is said to impose ‘anti-suit injunctions’ on European organizations file lawsuits to protect patents. An anti-suit injunction stops a lawsuit, after which the plaintiff — in this case a patent holder — is out on the street without compensation.

Some European organizations try to circumvent anti-suit injunctions by suing Chinese organizations through a foreign court. According to the European Commission, the Chinese state intimidates these organizations with the threat of heavy fines.

‘Anti-suit injunctions’ are seldomly used in Western-European courts. There’s a good reason for this: the measure allows a government to take away someone’s right to justice. As far as we’re concerned, the procedure has no place in a democracy.

What’s next?

According to the Commission, the EU made several attempts to discuss the problem with China, but to no avail. Today, the Commission announced that the EU will drag China to the World Trade Organization. China has sixty days to start negotiations with the EU. If China fails to do so, the WTO can appoint a panel to rule on the matter.

Tip: Ericsson sues Apple for infringing upon multiple 5G patents