USTR Issues Special 301 IPR Report for 2011
The Office of the U.S. Trade Representative has released its 2011 “Special 301” annual report on the adequacy and effectiveness of U.S. trading partners’ protection of intellectual property rights (IPR). This year, for the first time, USTR has issued an open invitation to all trading partners listed in the report to cooperatively develop action plans to resolve IPR issues of concern.
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USTR reviewed 77 trading partners for this year’s report, and placed 42 countries on the Priority Watch List, Watch List, or the Section 306 monitoring list (list details provided below).
USTR to Conduct Out-of-Cycle Review for Italy
In the report, USTR announced that in 2011 it will conduct an out-of-cycle review of Italy to monitor progress on IPR protection and enforcement, in particular in the area of piracy over the Internet.
Mexico, Others Making Progress on IPR, No Countries Removed from Lists
The report also recognizes important examples of progress made by several countries, including through the enactment of significant IPR legislation in Mexico, the Philippines, Russia, and Spain.
However, no trading partners are being removed from the two main categories in the report, the Priority Watch List and the Watch List.
2 Largest U.S. Trading Partners Remain on Priority Watch List
The U.S.’ two largest trading partners, Canada and China, remain on the Priority Watch List. The report notes the failure of Canadian efforts in 2010 to enact long-awaited copyright legislation and to strengthen border enforcement. It highlights ongoing concerns about the prevalence of piracy and counterfeiting in China, and China’s implementation of “indigenous innovation” and other industrial policies that discriminate against or otherwise disadvantage U.S. exports and U.S. investors.
Russia remains on the Priority Watch List as well. While Russia has taken significant steps to improve IPR protection by enacting important legislation, the report urges Russia to take additional steps to address Internet piracy concerns and enforcement more generally.
A Total of 12 Trading Partners Are on Priority Watch List
Trading partners on the Priority Watch List present the most significant concerns regarding insufficient IPR protection or enforcement, or otherwise limited market access for persons relying on intellectual property protection. 12 countries -- China, Russia, Algeria, Argentina, Canada, Chile, India, Indonesia, Israel, Pakistan, Thailand, and Venezuela -- are on the Priority Watch List. These countries will be the subject of particularly intense bilateral engagement during the coming year.
29 Trading Partners Are on Watch List
29 trading partners are on the Watch List, also meriting bilateral attention to address underlying IPR problems: Belarus, Bolivia, Brazil, Brunei, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, Finland, Greece, Guatemala, Italy, Jamaica, Kuwait, Lebanon, Malaysia, Mexico, Norway, Peru, Philippines, Romania, Spain, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan, and Vietnam.
Paraguay Is on Section 306 Monitoring List
One trading partner, Paraguay, is on the Section 306 Monitoring List. The U.S. continues to monitor Paraguay under Section 306, focusing on Paraguay’s implementation of the Memorandum of Understanding on Intellectual Property Rights with the U.S. That Memorandum will expire on December 31, 2011, and the U.S. will work with Paraguay on its renewal.
USTR Invites Comments on Countries Appearing on Lists to Negotiate Action Plans
USTR states that it invites any country appearing on the Special 301 Priority Watch List or Watch List to negotiate a mutually agreed action plan designed to lead to that country’s removal from the relevant list.
Agreement on such a plan will not by itself change a trading partner’s status. However, in the past, successful completion of action plans has led to the removal of trading partners such as Saudi Arabia, Taiwan, and many others from Special 301 lists.
(The U.S. develops action plans and similar programs to address IPR issues in various contexts, including the Special 301 process. These plans and programs establish benchmarks, such as legislative, policy, or regulatory action by which to measure progress. Additionally, these plans can serve as tools to encourage trading partners to make improvements to their IPR regimes, thereby increasing the likelihood that they may be removed from the Special 301 Watch or Priority Watch lists.
The Administration’s 2010 Joint Strategic Plan on IPR Enforcement called for USTR, in coordination with the Office of the U.S. Intellectual Property Enforcement Coordinator (IPEC), to initiate an interagency process focused on improving the effectiveness and implementation of Special 301 action plans.)
(See ITT’s Online Archives or 05/03/11 news, 10050304, for BP summary of the 2010 Special 301 report.)
USTR press release is available here.
Special 301 report is available here.