Peter Ollier, Hong Kong
China's government has released draft rules on national
standards that could lead to companies having to accept royalty
rates below market value or compulsory licences.
The Standardisation Administration of China published
Provisions on the Administration of Formulating and Revising
National Standards Involving Patents (in Chinese) on November 2
and gave stakeholders until the end of the month to comment on
"The overall tone is that China is moving forward with
domestic standards and you have to play by China's rules to be
a part of the standards," said George Chan, a consultant for
Rouse in Beijing.
Concerns over the regulations focus on three main areas.
First, when a standard is being developed, companies would be
obliged to disclose all relevant patents. Article 8 states that
if they fail to do so "a royalty-free licence will be deemed to
Sven Wehser, head of...