US Government Puts Countries On Trade Violation Watch List

James A. Morrissey, Washington Correspondent

Pointing out that piracy and trademark abuses in international trade are on the increase, the United States has put nine countries on its “priority watch list” for intellectual property rights (IPR) violations and has named China and Russia countries of particular concern. US textile and apparel manufacturers have long contended that many overseas manufacturers are stealing their designs and selling products with counterfeit labels and packaging. The problem is particularly prevalent with respect to home furnishings and upholstery fabrics. In a report issued earlier this year, the Department of Homeland Security said it had seized $200 million in counterfeit or pirated merchandise in 2007, an increase of 27 percent over 2006.

The US Trade Representative’s (USTR’s) annual “301 Special Report” on the state of intellectual property rights protection and enforcement names Argentina, Chile, India, Pakistan, Thailand and Venezuela as countries of “particular concern,” and cites China and Russia in particular as being weak in their IPR enforcement.

When a country is placed on the priority watch list, the US government steps up its surveillance of its trade, initiates discussions, and if such discussions fail to resolve problem, the United States can take the matter to the World Trade Organization (WTO). In fact, the United States has two IPR cases involving China pending at the WTO.

USTR Susan C. Schwab said the report spotlights one of the central challenges facing the global economy, adding that “Pirates and counterfeiters don’t just steal ideas, they steal jobs, and they often threaten our health and safety.” She said the administration is committed to stepping up the fights against IPR infringers “who seek to profit from American artists, inventors, and entrepreneurs.”

Schwab said the administration will continue to work with China, Russia and other trading partners to ensure that they deliver on their commitments to improve IPR protection and enforcement.

May 6, 2008