China on US Priority Watch List for 14th consecutive year
China has been featured on the Office of the US Trade Representative’s (USTR) Priority Watch List for IP failures for the 14th year in a row.
The USTR released the “2018 Special 301 Report” on Friday, April 27.
The annual report, which identifies countries failing to protect IP rights, placed China on its Priority Watch List for the 14th consecutive year. Of particular concern are China’s “coercive technology transfer practices, range of impediments to effective IP enforcement, and widespread infringing activity—including trade secret theft, rampant online piracy, and counterfeit manufacturing”.
China’s placing on the Priority Watch List comes shortly after President Donald Trump announced tariffs of up to $60 billion on China in response to the country’s alleged IP violations and “economic aggression”.
The day after President Trump’s tariff announcement, Robert Lighthizer, US trade representative, filed a complaint at the World Trade Organization which claimed that China denies US companies “basic patent rights” in the country.
A total of 36 countries have been named on the “2018 Special 301 Report’s” Priority Watch List and Watch List.
The 12 countries on the Priority Watch List “present the most significant concerns this year regarding inadequate or ineffective IP protection or enforcement or actions that otherwise limit market access,” the release explained.
It said countries on the Priority Watch List—Algeria, Argentina, Canada, Chile, China, Colombia, India, Indonesia, Kuwait, Russia, Ukraine, and Venezuela—will be the focus of “intense bilateral engagement” this year.
Canada was featured on the Watch List last year. It has now been given priority status due to poor border enforcement and concerns related to pharmaceutical IP protection, among other things.
In a separate press release, the USTR said US IP owners need fair opportunities to use and profit from their rights in order to promote affordable healthcare and preserve access to cures and therapies.
The “2018 Special 301 Report” said IP-intensive industries support 45.5 million American jobs, equating to about 30% of US employment. It calls on US trade partners to address IP challenges, particularly in relation to the countries identified on the Watch List and Priority Watch List.
Lighthizer said: “The ideas and creativity of American entrepreneurs fuel economic growth and employ millions of hardworking Americans. This report sends a clear signal to our trading partners that the protection of Americans’ intellectual property rights is a top priority of the Trump Administration.”
Earlier this month China’s State Intellectual Property Office announced plans to introduce punitive damages for IP infringements in an effort to create “inclusive, balanced, and effective” rules to protect IP.
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