Changes in Chinese technology transfer law, foreign investment law and judicial practice have ushered in more liberal regime for foreigners seeking to transfer technology to China. Chinese courts have also increasingly adopted a fault-based conduct evaluation mechanism in the case of SEP licensing in China which has the potential to set normative standards for foreign licensors to China when there is a risk of litigation there. In general, the statistics show a positive trend in U.S. licensing of technology to China. However, these positive developments are counterbalanced by more restrictive U.S. export control sanctions affecting Chinese companies’ abilities to participate in standards setting, acquire U.S. technology and enter foreign markets. As SEP-rich companies like Huawei find it difficult to sell their products in foreign markets, they may turn to a range of strategies to monetize their patents in markets where they have restricted possibilities of selling their products. While the current environment presents increased opportunities for licensing to China, these agreements are also be subject to increased political and legal uncertainty.


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