USTR Issues 2010 Special 301 IPR Report
The Office of the U.S. Trade Representative has released its 2010 “Special 301” annual report on the adequacy and effectiveness of intellectual property rights (IPR) protection by U.S. trading partners.
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USTR reviewed 77 trading partners for this year’s Special 301 Report and placed 41 of them on the Priority Watch List, Watch List, or the Section 306 monitoring list.
Highlights of the 2010 Special 301 Annual Report
The following are highlights of this year’s Special 301 Report:
China. Again this year, USTR’s Special 301 Report highlights the prominence of IPR concerns with respect to China. USTR notes that it is concerned about China’s implementation of ‘indigenous innovation’ policies that may unfairly disadvantage U.S. IPR holders. Procurement preferences and other measures favoring ‘indigenous innovation’ could severely restrict market access for U.S. technology and products. (See ITT’s Online Archives or 04/16/10 news, (Ref: 10041615), for BP summary announcing China’s revised draft rules on ‘indigenous innovation.’)
Czech Republic. The Czech Republic is being removed from the Special 301 Watch List because of significant progress made over the past two years to control effectively its border markets. Moreover, a new criminal code raising the maximum penalties for IPR related crimes from 2 to 8 years imprisonment and criminalizing the manufacture and storage of counterfeit items came into effect January 1, 2010. The U.S. will continue to monitor whether the new law results in the imposition of deterrent penalties.
Hungary. Hungary is being removed from the Special 301 Watch List in recognition of the significant improvements on enforcement and other actions taken during the past year. Hungary has taken proactive steps to address the growing threat of Internet piracy, and its customs and police officials have developed their ability to effectively identify infringing products. The U.S. will continue to monitor Hungary’s progress to ensure that IPR protection and enforcement improvements are ongoing.
Poland. Poland is being removed from the Special 301 Watch list in recognition of a significant reduction in the availability of pirated and counterfeit goods at border markets, increased and improved enforcement efforts, and strong cooperation between rights holders and enforcement officials. The government has also taken initial steps to address Internet piracy concerns. The U.S. will continue to monitor Poland’s progress to ensure that IPR protection and enforcement improvements are ongoing.
Canada and other countries on Priority Watch List. There are 11 countries on this year’s Priority Watch List: China, Russia, Algeria, Argentina, Canada, Chile, India, Indonesia, Pakistan, Thailand, and Venezuela.
(Trading partners on the Priority Watch List do not provide an adequate level of IPR protection or enforcement, or market access for persons relying on intellectual property protection. Priority Watch List countries will be the subject of particularly intense engagement through bilateral discussion during the coming year.)
29 countries on Watch List. There are 29 trading partners are on the lower level Watch List: Belarus, Bolivia, Brazil, Brunei, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, Finland, Greece, Guatemala, Italy, Jamaica, Kuwait, Lebanon, Malaysia, Mexico, Norway, Peru, Philippines, Romania, Saudi Arabia, Spain, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan, and Vietnam. (Trading partners on the Watch List merit bilateral attention to address the underlying IPR problems.)
Paraguay will remain subject to Section 306 monitoring. Paraguay will continue to be monitored under Section 306 of the Trade Act of 1974 under a bilateral Memorandum of Understanding (MOU) that establishes objectives and actions for addressing IPR concerns in Paraguay.
Out of cycle reviews. USTR will conduct Out-of-Cycle Reviews for the Philippines and Thailand to monitor progress on specific IPR issues, which will allow USTR to deepen its IPR dialogue and cooperation with two key trading partners.
(See ITT’s Online Archives or 02/16/10 news, (Ref: 10021625), for BP summary of USTR adjusting its deadlines for the 301 review.
See ITT’s Online Archives or 01/15/10 news, (Ref: 10011525), for BP summary of USTR’s request for comments on the 301 review.)
USTR press release (dated 04/30/10) available at http://www.ustr.gov/about-us/press-office/press-releases/2010/april/ustr-releases-2010-special-301-report-intellectual-p
USTR 2009 Special 301 Report (dated 04/30/09) available at http://www.ustr.gov/webfm_send/1906