USTR Has IP Concerns on China, Russia, Asia, Latin America

Despite changes to patent, copyright and criminal law, China remains one of the top countries the U.S. is targeting for weak intellectual property protections, said the Office of the U.S. Trade Representative Friday in its annual special 301 report (see 2004290059). China needs to strengthen such protection and enforcement, fully implement IP measures, stop forcing technology transfers to Chinese companies, open its market to foreign investment, and “allow the market a decisive role in allocating resources,” USTR said. “Severe challenges persist because of excessive regulatory requirements and informal pressure and coercion to transfer technology to Chinese companies, continued gaps in the scope of IP protection, incomplete legal reforms, weak enforcement channels, and lack of administrative and judicial transparency and independence.”

China remains on the priority watch list with Argentina, Chile, India, Indonesia, Russia, Saudi Arabia, Ukraine and Venezuela. The Chinese Embassy in Washington didn’t comment.

Other countries continue to have issues with online piracy, including Brazil, Canada, Thailand, Romania, Peru, Mexico, Guatemala, Egypt, Ecuador, Dominican Republic and Colombia, the report said. USTR reviewed more than 100 countries and placed 32 on its priority watch list and watch list. MPA said USTR Katherine Tai and staff spotlighted global online piracy.

“The laws, policies and practices that protect those rights must appropriately balance the interests of creators with those seeking to use their creations,” Tai said. “Failing to adequately and effectively protect those rights in foreign markets hurts the U.S. economy.”

Russia IP protection and enforcement challenges include copyright infringement, trademark counterfeiting and “nontransparent procedures governing the operation of collective management organizations,” USTR said. The U.S. remains concerned about “reports that IP enforcement remains inadequate and that Russian authorities continue to lack sufficient staffing, expertise, and the political will to effectively combat IP violations and criminal enterprises,” said the report, calling Russia a thriving market for counterfeit Chinese goods. The Russian Embassy in Washington didn’t comment.

The document raised concerns about EU “aggressive promotion” of exclusionary geographical indications policies. GIs usually include product origin terms, helping to identify product quality or reputation. EU’s agenda remains “highly concerning” because “it significantly undermines the scope of trademarks held by U.S. producers and imposes barriers on market access for U.S.-made goods that rely on the use of common names,” the report said. Offices for the European Commission and the Delegation of the EU to the U.S. didn’t comment.

The U.S. Chamber of Commerce had identified systemic and market-specific IP issues in Brazil, India, Colombia, Vietnam, China, Mexico and several other countries. Insufficient patent protection, compulsory licensing, inadequate response to counterfeiting and piracy, and localization requirements were among the issues included in the concerns.

“Sustained attention to these issues is critical," said BSA|The Software Alliance Policy Director Joseph Whitlock. He added that R&D, IP generation, and other creative and scientific endeavors "are increasingly cross-border in nature.”