30 April 2007
Intellectual Property Violations Expanding Globally, U.S. Says
12 nations lacking adequate copyright, patent protections
Washington – Violations of intellectual property rights (IPR) continue to plague world markets and pose a major challenge to innovators and artists worldwide despite clear improvements by several U.S. trading partners, according to a new U.S. government report.
In the report, released April 30, the Office of the U.S. Trade Representative (USTR) placed 12 countries on its “priority watch list” for failing to protect adequately producers of copyrighted, patented and trademarked materials, such as movies, music and pharmaceuticals.
The list is issued annually as part of USTR’s “Special 301” report to Congress highlighting intellectual property problems facing U.S. companies worldwide.
The “Special 301” report also includes a more extensive watch list of countries where such protection needs further improvement.
As in previous years, Russia and China were at the top of the priority list despite some evidence of improvement in both countries.
Others included in that list were Argentina, Chile, Egypt, India, Israel, Lebanon, Thailand, Turkey, Ukraine and Venezuela.
Another 31 countries were placed on the lower-level watch list that does not subject them to the same level of scrutiny as those on the priority list.
“Innovation is the lifeblood of a dynamic economy here in the United States, and around the world. We must defend ideas, inventions and creativity from rip off artists and thieves,” U.S. Trade Representative Susan Schwab said in a press statement. (See related article.)
USTR cited Russia’s intellectual property problems as related to large-scale production and distribution of optical media and widespread Internet piracy.
Schwab said that in coming months the United States carefully will review whether Russia is meeting its commitments made as part of its accession to the World Trade Organization.
“I know that our Russian colleagues see the value of intellectual property to Russia’s economy and are working hard to deliver on their commitments,” Schwab said. “I urge them to make the most of the coming weeks and months.” (See related article.)
Russia, along with Brazil, the Czech Republic and Pakistan, will be subject to an out-of-cycle review, which may result in a change in their Special 301 status before the next annual review in 2008.
With respect to China, the report cites persistently high levels of copyright and trademark violations and mentions the recent U.S. decision to seek consultations under the WTO dispute settlement rules on China’s IPR protection regime. For the first time, the report also includes a special section assessing IPR protection and enforcement at the level of China’s provinces. (See related article.)
Schwab said the United States hopes “to remain constructively engaged with China, building on the recognition of many Chinese officials that their country has its own huge stake in effective IPR protection.”
USTR said Thailand was elevated from the lower level list to the priority list due to “an overall deterioration in the protection and enforcement of IPR.” It cited that country’s weak legislation on optical disc media, book piracy, cable and signal theft, software piracy and apparel trademark violations as issues that have not been addressed in a meaningful way.
The report recognizes progress achieved by several U.S. trading partners. For example, Brazil and Belize have been moved from the priority list to the watch list. Five U.S. trading partners – Bahamas, Bulgaria, Croatia, the European Union and Latvia – are being removed from the watch lists altogether.
Free trade agreements (FTAs) with the United States are one of the main factors leading to visible improvements in IPR protection, according to the report. The document cited such improvements in the Central American and the Dominican Republic trade agreement (CAFTA) area. It said high IPR protection standards also are part of the most recent and pending FTAs with Colombia, South Korea, Panama and Peru. (See related article.)
The full text (PDF, 180KB) of the “Special 301 Report” is available on the USTR Web site.
For more information, see Protecting Intellectual Property Rights.
