Clifford Chance

An overview of recent FRAND remedies in China

7 April 2022

The authors summarise all the FRAND remedies imposed under the merger context in China since 2020 with an analysis of the prevailing practice of the State Administration for Market Regulation ("SAMR "). They conclude that there is a trend of expansive use of FRAND remedies. Moreover, there is a tendency that SAMR is pursuing standardized language for FRAND remedies while preserving the option to consider innovative FRAND commitments.

The authors also present a brief comparative study of the FRAND remedies of SAMR and of its global peers that reveals some key conceptual difference in the benchmarks and scope of FRAND remedies. Further, they discuss the divergence between the mechanisms to monitor compliance of FRAND commitments between China and EU.

The authors are Yong Bai, Partner, Dayu Man, Counsel and Michael Yan, Associate at Clifford Chance.

The article was first published in CPI Columns Asia on 31/03/2022.

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