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China to set its own standards

China's government has released draft rules on national standards. Peter Ollier reports

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 document.

"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 have granted".

Sven Wehser, head of...

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