Chinese SEP Practices Under WTO Challenge

Panel Decision, Appeal, and Developments

Executive Summary

The World Trade Organisation (WTO) appeal arbitrator ruled in July 2025 that China's use of anti-suit injunctions (ASI) in standard essential patent (SEP) cases violates its obligations under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement. The ruling found that China's ASI policy restricts SEP holders' rights to enforce patents and negotiate licenses internationally, fundamentally altering their negotiating position. The arbitrator reversed earlier panel findings, requiring China to revise its judicial practices within 90 days to comply with WTO rules. This decision represents a major win for European patent holders and reaffirms their ability to defend intellectual property rights across jurisdictions, demonstrating the WTO's ongoing role in resolving global IP disputes despite the Appellate Body's dysfunction.