WTO suspends US and China dispute
The World Trade Organization (WTO) has suspended the dispute brought by the US over China’s IP practices for just over six months, following a request from the US.
In a notice published on the WTO website on Friday, June 14, the panel investigating the matter said that the US had filed a request to suspend the dispute on June 3.
The day after the US request, China submitted a letter indicating its support for a suspension of the dispute.
That request has now been granted, with the WTO panel suspending the matter until December 31.
In its original complaint, filed with the WTO in March 2018, the US accused China of enabling forced technology transfers from foreign companies.
“China deprives foreign intellectual property rights holders of the ability to protect their IP rights in China as well as freely negotiate market-based terms in licensing and other technology-related contracts,” the 2018 complaint said.
The Chinese government has consistently denied allegations that foreign companies operating in the country face forced technology transfer, and has recently passed legislation to formally outlaw the practice.
Earlier this month, on the same day the letter supporting the US request for an extension was filed, the Chinese government issued a white paper rejecting the allegations of IP theft as a “fabrication”.
In the paper, China said that its IP protection regime was consistent with international standards.
The EU filed its own complaint with the WTO about China’s IP practices in June 2018. In that complaint, the EU cited many of the issues raised by the US, such as forced technology transfer.
WIPR has contacted the office of the US Trade Representative, which filed the US complaint, for comment.
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