BRUSSELS, The European Union Friday launched legal proceedings in the World Trade Organisation (WTO) against Chinese legislation arguing that it undermines the intellectual property rights of European companies.
EU Commissioner for Trade Cecilia Malmstrom said in a press statement that “Technological innovation and know-how is the bedrock of our knowledge-based economy.
“It’s what keeps our companies competitive in the global market and supports hundreds of thousands of jobs across Europe.” “We cannot let any country force our companies to surrender this hard-earned knowledge at its border. This is against international rules that we have all agreed upon in the WTO. If the main players don’t stick to the rulebook, the whole system might collapse,” she warned.
According to an European Commission press release, European companies coming to China are forced to grant ownership or usage rights of their technology to domestic Chinese entities and are deprived of the ability to freely negotiate market-based terms in technology transfer agreements.
This is at odds with the basic rights that companies should be enjoying under the WTO rules and disciplines, in particular under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement), it noted.
Source: Kuwait News Agency