By Li Zhongsheng Lei Peng King&Wood Mallesons’ Intellectual Property Group
The nature and products of some industries, like wireless telecommunications, necessitate the incorporation of all essential patents related to the products into standards created by standardization setting organizations (“SSOs”). If they are to find buyers, manufacturers whether licensed or not must make products in accordance with the standards, therefore using standard essential patents (“SEPs”). Because of this, SEP licensing has become a focus of attention from anti-monopoly enforcement authorities around the world.
Before asserting their SEPs against infringers in China, aside from the usual risk of losing in court, multi-national companies (“MNCs”) with strong SEP portfolios, should evaluate the restrictions on patent rights arising from the P.R.C. Anti-monopoly Law (“AML”).
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