The European Commission said on Friday that the European Union filed a legal complaint against China to the World Trade Organization for its restriction of European bloc companies to go to foreign courts to protect its patents..
And those affected in particular are telecommunications companies such as Ericsson Swedish and Finnish Nokia, who have rights for major mobile phone technologies such as the technologies of the fifth generation networks.
The European Commission said that China restricts European companies "from protecting these rights when their innocence is used illegally or without appropriate compensation, by Chinese manufacturer for mobile phone, for example.".
The European Commission explained that if the patent holders go to the courts outside China, they are mostly exposed to large fines, which puts pressure on them to settle the licensing fees at a price lower than the market price..
A fine can be signed by a violation of this at a value of 130 thousand euros (147 thousand and 540 dollars) per day.
The commission said, "This Chinese policy is strongly harmful to innovation and growth in Europe, and effectively prohibits European technology companies that the possibility of exploiting and activating the rights that give it a technological advantage.".
Consultations for the settlement of the conflict with China will be the first step for the actions of the World Trade Organization.If the refusal is made by China or the consultations do not lead to a "disease solution", the European Union can refer the issue to an arbitration body that can then lead to reprisal measures such as imposing punitive fees on Chinese imports.
