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ARTICLE · 04 JULY 2024

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Chinese Antitrust Enforcement Agency Issues Warning Letter To Patent Pool

Jones Day
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Recent action by China's State Administration for Market Regulation ("SAMR") demonstrates renewed Chinese antitrust focus on standard essential patents ("SEPs").

ChinaAntitrust/Competition Law
Tony Chen
Tony Chen
Haifeng Huang
Haifeng Huang
Peter Wang
Peter Wang
Qiang Xue
Qiang Xue
Yizhe Zhang
Yizhe Zhang
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Recent action by China's State Administration for Market Regulation ("SAMR") demonstrates renewed Chinese antitrust focus on standard essential patents ("SEPs").

In an official press release dated June 27, 2024, SAMR warned Avanci, a patent pool, of potential antitrust risks in its licensing of SEPs for automotive wireless communication. Although SAMR apparently has not yet launched a formal enforcement action or reached a binding penalty decision, the warning letter urged Avanci to review and strengthen its antitrust compliance and prevent or rectify antitrust issues relating to its licensing practices. 

SAMR's warning letter to Avanci is a reminder that patent licensing practices, especially for SEPs, remain a focus of Chinese antitrust enforcement. This is not the first time China's antitrust enforcers have turned their attention to SEPs; previous high-profile enforcement actions involving SEPs include InterDigital (2014) and Qualcomm (2015).

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