USTR Seeks Comment on WTO Dispute Panel on Deficiencies in China's IPR Regime
The Office of the U.S. Trade Representative has issued a notice announcing that at the request of the U.S., the World Trade Organization has established a dispute settlement panel (DSP) to review U.S. claims concerning the protection and enforcement of intellectual property rights in China.
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The USTR states that it invites written comments from the public concerning the issues raised in this dispute. To be assured of timely consideration, comments should be submitted on or before November 16, 2007.
WTO Panel to Consider Three Aspects of China's IPR Regime
The major issues raised by the U.S. include alleged violations of various provisions of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) related to three aspects of China's IPR regime.
High threshold for criminal liability. The first matter concerns the thresholds that must be met in order for certain acts of trademark counterfeiting and copyright piracy to be subject to criminal procedures and penalties. The USTR states that it appears that certain acts of trademark counterfeiting and copyright piracy occurring on a commercial scale in China are not subject to criminal procedures and penalties in China.
Release of infringing goods into commerce. The second matter concerns IPR-infringing goods that are confiscated by Chinese customs authorities, and in particular, the disposal of such goods following removal of their infringing features. The USTR states that because of certain specified measures in Chinese regulations, customs authorities appear to be required to give priority to options for disposal of IPR-infringing goods that would allow such goods to enter the channels of commerce (for instance, through auctioning the goods after removing their infringing features).
Denial of copyright protection for unapproved/prohibited works. The third matter concerns China's denial of the protection of its Copyright Law to creative works of authorship (and, to the extent that the Copyright Law applies to them, sound recordings and performances) that have not been authorized for, or are otherwise prohibited from, publication or distribution within China, the USTR lists various laws and regulations at issue in this regard.
In addition, the USTR notes that it appears that the measures at issue provide different predistribution and pre-authorization review processes for foreign and Chinese nationals' works, performances (or their fixations) and sound recordings.
Panel Expected to Issue Report Within 9 Months
According to the USTR, the DSP would be expected to issue a report on its findings and recommendations within approximately nine months after it is established.
See ITT's Online Archives or 08/15/07, 04/12/07 and 04/25/07 news, 07081500, 07041220 and 07042520, for BP summaries of the U.S. request for the WTO DSP, the U.S. request for WTO consultations, and the USTR's request for comments on these consultations, respectively.)
USTR contact - Steven Fabry (202) 395-3150
USTR notice (D/N WTO/DS-362, FR Pub 10/10/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-5000.pdf
WTO U.S.-China IPR dispute summary (DS362, up-to-date as of 08/20/07) available at http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds362_e.htm