The newly revised Anti-Unfair Competition Law in 2025 further strengthens the principle of "Good faith and Fair Dealing", which has a direct and indirect compliance impact on patent licensing behavior.

1. The 2025 Anti-Unfair Competition Law further strengthens the principle of "Good faith and Fair Dealing"
1). Explicitly stipulated as a legal obligation (Article 2 of the General Provisions)
On the basis of the guiding principles of "voluntariness, equality, fairness, and good faith", the new Anti-Unfair Competition Law has added a provision on "fair participation in market competition" in Article 2 of the General Provisions.
The above revision is manifestations of China’s guarantee for all business operators to use production factors equally and participate in market competition fairly in accordance with the law, which means that all business activities (including technology licensing and patent transactions) must accept "fairness and good faith" as the bottom line requirements.

2). Strengthen the implementation of specific provisions
Article 15 (Anti-abuse of dominant position), Article 21 (Platform governance obligations), Article 8 (Commercial bribery behavior), etc., all reflect the normative extension of "transaction reciprocity, fair conditions, and good faith", and have inherent relevance to common unequal clauses in patent licensing agreements.

2. How does this principle affect patent licensing behavior?
Although patent licensing falls within the scope of adjustment of the Patent Law, it will fall within the scope of application of the Anti-Unfair Competition Law when it involves unfair transactions, exclusive constraints, exclusion of competitors, or violation of business ethics.

Impact 1: Preventing using patent rights to impose unfair trading terms
(1) Abuse of patent status to force the licensee to accept unreasonable considerations (too high or too low), or demand binding of non-essential patents;
(2) Forcibly setting unequal terms (such as prohibition clauses, permanent recall clauses, and restrictions on the transfer/research rights of licensees); and
(3) The cooperative party's technological improvement is forced to obtain a free counter license.
Under the principle of “fairness and good faith”, these may be considered as behaviors that violate the obligations of fairness and good faith in transactions, constituting unfair competition.

Impact 2: Abuse of advantages by platform-based enterprises or large technology suppliers
If large enterprises use patents as a means of controlling small and medium-sized enterprises (such as requiring full licensing before cooperation), in accordance with Article 15, where the licensing conditions are clearly unfavorable to the small and medium-sized companies and pressure is exerted based on the other party's financial or technological disadvantages, it will constitute an abuse of advantageous position and be held accountable.

Impact 3: "Falsehood and Misguidance" in Patent License Negotiation Process
If there is malicious concealment of ownership issues, fictitious scope of application, or other behaviors during the licensing process, it is easy to deceive and mislead the relevant public, infringing on the interests of other companies with competitive relationships in the industry, and may be deemed as a violation of the principle of good faith, constituting "false advertising".

3. Key Points to Note in Patent Licensing Behavior under the Context of the 2025 New Law

4. Extension suggestion: How to better reflect the principle of fairness and good faith in patent licensing agreements
(1) Provide a complete list: Attach patent numbers, grant status, and technical application description without vague or false promises;
(2) Attach a FRAND statement (especially for SEP patents);
(3) Allow questioning rights and reasonable exit mechanisms;
(4) Setting upper limits on consideration, annuity, and renewal terms, and ensure transparent disclosure;
(5) Accept third-party examination or mediation mechanisms and reflect the principle of good faith in resolving disputes.

5. Conclusion
The newly revised Anti-Unfair Competition Law in 2025 strengthens the principle of "fairness and good faith" in following aspects.
1) On the basis of a principle guidance, it is further reflected as a substantive normative constraint;
2) Put forward higher compliance requirements for the design of terms, bargaining methods, and behavioral processes in patent licensing; and
3) Prohibiting or regulating large enterprises and platform providers from using their advantageous positions in licensing to disrupt market competition order.

Therefore, under the new legal framework, patent licensing behavior not only involves issues of private law autonomy, but also needs to balance legal regulation and market ethics. It is recommended to comprehensively examine fairness, transparency, and equivalence in contract design, negotiation practices, and execution.