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28 April 2022TrademarksMuireann Bolger

USTR report places Russia, China on priority watch list

The  Office of the US Trade Representatives has placed Russia on its priority watch list alongside China and India in its annual global IP report, and has suspended its review of war-torn Ukraine.

The USTR released its 2022 Special 301 Report yesterday, April 27, which looks at the adequacy and effectiveness of US trading partners’ protection and enforcement of IP rights.

USTR reviewed more than 100 trading partners for this year’s Special 301 Report, and placed 27 of them on its priority watch list or watch List.  In a statement, the organisation confirmed that  the Special 301 review of Ukraine has been suspended due to Russia’s “premeditated and unprovoked further invasion of Ukraine” in February 2022.

In this year’s report, trading partners on the priority watch list present the most significant concerns this year regarding insufficient IP protection or enforcement or actions that otherwise limited market access for persons relying on IP protection.

Intense bilateral attention

Seven countries —Argentina, Chile, China, India, Indonesia, Russia, and Venezuela — are on the priority watch list. These countries will be the subject of particularly intense bilateral engagement during the coming year, according to USTR.

Meanwhile, the USTR placed 20 countries on its watch list, on the basis that they merit bilateral attention to address underlying IP problems.

These include Algeria, Barbados, Bolivia, Brazil, Canada, Colombia, Dominican Republic, Ecuador, Egypt, Guatemala, Mexico, Pakistan, Paraguay, Peru, Thailand, Trinidad & Tobago, Turkey, Turkmenistan, Uzbekistan, and Vietnam.

USTR also announced an out-of-cycle review of Bulgaria, which provides an opportunity to address and remedy such issues through heightened engagement and cooperation with trading partners and other stakeholders.

The report also highlights progress made by trading partners to resolve and address IP issues of concern to the US.

Kuwait, Saudi Arabia, Romania and Lebanon were all removed from the watch list this year.

Commenting on the report, USTR representative and ambassador Katherine Tai said:

“IP-intensive industries support more than 60 million jobs, from the independent inventor just starting out to the documentary filmmaker studying critical social issues. We need robust protection and enforcement in foreign countries to protect these individuals, their livelihoods, and ensure they can fairly compete in the global marketplaces,”

“Following extensive input from a broad range of stakeholders, the 2022 Special 301 Report identifies trading partners that are falling short. The Biden-Harris Administration will continue to engage with these trading partners to level the playing field for our workers and businesses.”

Concerns about China, EU

The report noted that the US continues to closely monitor China’s progress in implementing its commitments under the US-China Economic and Trade Agreement (Phase One Agreement).

In 2021, China enacted amendments to its patent law, copyright law, and criminal law, as well as other measures aimed at addressing IP protection and enforcement.

“While right holders have welcomed these developments, they continue to raise concerns about the adequacy of these measures and their effective implementation, as well as about long-standing issues like bad faith trademarks, counterfeiting, and online piracy. Also, statements by Chinese officials that tie IP rights to Chinese market dominance continue to raise strong concerns,” the USTR said in its statement.

The report also flagged concerns relating to the European Union’s “aggressive promotion”  of geographical indications (GI).

The statement noted that: “The US is…concerned about the transfer of much of the GI application review process to EU member states and the reduction of time periods for opposing registration of a GI that is part of the EU’s Common Agricultural Policy, adopted in 2021 and entering into force in 2023.”

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