On Thursday, April 25th, the Office of the United States Trade Representative (USTR) released the 2024 “Special 301 Report” on intellectual property protection and enforcement. The report highlights serious issues with China’s intellectual property protection and enforcement due to Chinese officials linking intellectual property rights with market access. As a result, the U.S. continues to prioritize China in its watch list.
In a statement, Trade Representative Dai Qiqi emphasized that addressing many of the issues outlined in the “Special 301 Report” requires joint efforts from allies and partners.
She noted that one of the most dangerous types of intellectual property infringement is counterfeit goods, which pose health and safety risks.
The 2024 “Special 301 Report” assesses the intellectual property protection and enforcement situations of over 100 trading partners of the United States.
Furthermore, USTR has placed seven countries on the priority watch list, identifying serious issues related to intellectual property protection, enforcement, or market access.
These countries include China, India, Indonesia, Russia, Argentina, Chile, and Venezuela, aligning with the 2023 priority watch list.
On the other hand, some countries have been removed from the watch list due to improvements in intellectual property protection. For instance, the Dominican Republic was removed for cracking down on piracy and counterfeit drugs. Additionally, Uzbekistan was delisted for progress in intellectual property protection and enforcement.
Due to the conflict situation, USTR has temporarily suspended the review of Ukraine for this year.
According to the USTR report, the People’s Republic of China’s intellectual property protection and enforcement still face many serious issues. Despite some reforms in Beijing, progress remains slow. China has been on the priority watch list for years.
Concerns persist among stakeholders regarding the implementation of revised Chinese patent law, copyright law, criminal law, as well as issues such as technology transfer, trade secrets, malicious trademarks, counterfeiting, online piracy, and geographical indications.
The report highlights strong concerns over Chinese officials linking intellectual property with China’s market dominance. Statements from Chinese officials suggesting serving the Chinese Communist Party and industrial policy goals raise concerns.
The report also emphasizes that Beijing should provide a fair competitive environment for intellectual property protection and enforcement. It calls for prohibiting Chinese authorities at all levels from pressuring foreign companies to transfer technology to Chinese firms and urges openness to foreign investment in the Chinese market and the implementation of market-oriented policies.
The U.S. continues to closely monitor China’s progress in fulfilling commitments under the U.S.-China Economic and Trade Agreement (Phase One Agreement).
At the time of the report’s release, U.S. Secretary of State Blinken was on a three-day visit to China, where he raised concerns about American trade practices with China.
Moreover, USTR has placed 20 countries on the watch list, including Vietnam and Mexico.
Vietnam has increasingly become a major source of online piracy. Some of the world’s most popular piracy websites and services targeting global audiences are currently based in Vietnam. Despite laws against copyright and trademark infringement, there are hardly any criminal investigations or prosecutions.
The report highlights the need for Mexico to fully implement the United States-Mexico-Canada Agreement (USMCA), including obligations relating to intellectual property, as the transition period is set to end in 2024 and 2025.
Apart from counterfeit goods, the report also underscores cross-cutting issues such as intellectual property and public health, as well as issues related to online and broadcast piracy.
The “Special 301 Report” is an annual review by USTR on the global status of intellectual property protection and enforcement, mandated by Section 182 of the Trade Act of 1974 and subsequently revised by the Omnibus Trade and Competitiveness Act of 1988 and the Uruguay Round Agreements Act. This marks the 36th issuance of the “Special 301 Report” by USTR.