Korea convenes industry meeting on China-EU standard patent dispute

The Korea Intellectual Property Office said Tuesday it held a joint meeting with the trade ministry and industry representatives in Seoul to discuss a World Trade Organization dispute between the European Union and China over the licensing of standard essential patents, a case that could shape the terms Korean companies negotiate worldwide.

The meeting brought together the Korea Intellectual Property Office, the Ministry of Trade, Industry and Energy and companies and institutions that hold or use such patents. The two government bodies had already collected written comments from industry, and the session was called to hear companies' specific views and the difficulties they face.

At issue is the EU's contention that Chinese courts deciding the licensing terms and royalty rates for global standard essential patents, including patents held outside China, without the consent of the patent holder violates the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights.

Korea has both companies that own global standard essential patents and companies that use them, so the outcome bears on how Korean firms enforce their patent rights and negotiate international licences. Tuesday's meeting covered the main issues in the dispute and its progress, along with the expected impact of Chinese court-set global royalty rates and the industry's response.

"Standard essential patents are closely tied to the technological competitiveness of a wide range of industries, including telecommunications, automobiles and electronics," said Yoon Chang-hyun, director-general for multilateral trade legal affairs at the trade ministry. "The ministry will continue to work closely with relevant government bodies and industry to respond actively in the WTO dispute so that our companies' legitimate rights and interests are protected."

The WTO's dispute settlement system has been without a functioning Appellate Body, its second-instance organ, though panels of first instance continue to operate.

"As this dispute bears directly on international standards for determining licensing conditions and royalty rates for global standard essential patents, we will actively cooperate in responding to the WTO case so as to safeguard our companies' interests and help create a stable international licensing environment," said Park Jin-hwan, head of the intellectual property dispute response bureau at the Korea Intellectual Property Office.