Reference Message Network reported on May 9 that the Center for Strategic and International Studies (CSIS) website published an article titled "New Standard Essential Patent Powerhouse: How Is China Affecting Global Patent Disputes?" on May 7. The article was co-authored by Kirti Gupta, senior advisor of CSIS's Reinvigorating American Innovation project, and Mark Cohen, senior research fellow at the University of Akron School of Law. The following is a translation:

As the 5G communication standard continues to serve billions of smartphones, cars, and IoT devices, licensing standard essential patents (SEPs) under fair, reasonable, and non-discriminatory terms has become a focal point for global businesses and policymakers. SEPs represent billions of dollars in economic value, and the standards they contain are crucial for enabling next-generation key emerging technologies such as 6G communications and autonomous vehicles.

China is becoming an increasingly significant jurisdiction for resolving domestic and global SEP disputes. Notably, the ruling by the First Intermediate People's Court of Chongqing Municipality in the OPPO v. Nokia case in 2023 holds great significance; it was the first time a Chinese court had ruled on the global licensing rate for an SEP. Additionally, the Supreme People's Court of China has recognized that Chinese courts have jurisdiction to rule on the global licensing rates for SEP pools.

As Chinese companies invest heavily in R&D and expand their SEP portfolios, their legal strategies also reflect greater ambitions: shifting from being purely licensees in the global technology ecosystem to becoming pure licensors.

In recent years, China has begun using "anti-suit injunctions" as strategic tools in patent disputes, particularly in cases involving SEPs. These anti-suit injunctions are issued by Chinese courts, prohibiting parties from initiating or enforcing litigation or injunctions in foreign jurisdictions that may interfere with ongoing proceedings in China.

The use of anti-suit injunctions in SEP cases reflects China's growing influence in the global intellectual property litigation arena and its willingness to assert jurisdiction in cross-border disputes.

Some commentators note that China's attitude toward SEP litigation and its claims to global jurisdiction may reflect broader industrial policy goals and evolving commercial landscapes. Historically, China has been a pure licensee of SEPs, but this balance may be shifting.

Major Chinese tech giants like Huawei and ZTE have been heavily investing in R&D, significantly expanding their patent portfolios in 5G and other next-generation standards. These companies are not only increasing their contributions to global standard-setting but also actively monetizing their intellectual property through international licensing. This evolving dynamic may impact how China continues to shape its legal and policy frameworks for SEPs.

China's growing influence in global SEP disputes marks a major shift in the international patent law landscape. With landmark rulings in recent cases such as OPPO v. Nokia and TCL v. "Guide Advanced," Chinese courts are asserting jurisdiction over setting global fair, reasonable, and non-discriminatory licensing rates.

Furthermore, China's resolute and confident legal strategies, including the use of anti-suit injunctions, and its transformation into a pure licensor and developing R&D hub indicate strategic efforts to rebalance the global patent system. As Chinese tech giants like Huawei and ZTE expand their SEP portfolios, their growing influence will continue to shape the future of global technology standards and patent licensing, prompting other jurisdictions to adjust their policies and legal frameworks accordingly.

Given the evolving judicial practices of courts around the world, the stance of the United States, and other factors, responding to China's evolving judicial positions has become more complex. Countries leading in SEP disputes might consider strengthening consultations with China and third countries to promote coordination in jurisdiction and rate setting, thereby reducing global forum shopping phenomena.

(Translated by Liu Baiyun)

On December 20, 2024, the site of the 2024 Hainan International Intellectual Property Exchange Conference was captured. The conference was themed "Protecting Innovation, Linking Creativity." The exhibition area totaled 38,000 square meters, featuring four thematic sections and exhibition areas: patents and intellectual property, copyright, geographical indications, and cultural creativity.

(Xinhua News Agency)

Original source: https://www.toutiao.com/article/7502270398244651547/

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