USCBC COMMENDS USTR'S WTO REQUEST ON CHINA'S IPR ENFORCEMENT

WASHINGTON, DC October 26, 2005 — The US-China Business Council commended the Office of the US Trade Representative (USTR) for its request today at the World Trade Organization that China detail the specific actions it has taken to enforce intellectual property rights (IPR).

"We are pleased that USTR has taken this step to clarify the level of judicial enforcement of IPR in China," said John Frisbie, president of the US-China Business Council. "This will provide the basis for an assessment of China's implementation of its WTO commitments on IPR. It is essential that China fully implement its obligations to protect intellectual property rights, as well as all of its other WTO commitments."

The filing is known as an Article 63 request, referring to the transparency article of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Article 63.3 of TRIPS allows WTO members to request information on judicial decisions or administrative rulings related to IPR that affect members' rights under the agreement. The United States has requested that China respond to the request within three months.

The filing is the latest of USTR's efforts to follow up on its April 2005 Special 301 Out-of-Cycle Review of China's IPR practices, which resulted in USTR placing China on its Priority Watch List of countries with IPR problems. The review highlighted US concerns that China has not provided sufficiently detailed IPR enforcement information. Other actions that USTR committed to take in the Out-of-Cycle Review include pursuing additional IPR enforcement measures through the Joint Commission on Commerce and Trade (JCCT) dialogue with China and identifying specific actions that China must take to fulfill those measures.

USTR will use the data collected from the Article 63 request to evaluate China's progress implementing a key JCCT commitment: to increase criminal prosecutions of IPR violations. A failure to make progress in implementing this JCCT commitment on IPR would constitute a failure to meet its TRIPS obligations and as such could provide grounds for a WTO dispute settlement case against China.

Frisbie continued, "We hope that China's response to the Article 63 request will show it is making progress in enforcing its IPR commitments. Beijing has stated repeatedly this year that the country is making progress; the data sought in this request will indicate whether those claims have merit."

The US-China Business Council is the leading organization of US companies engaged in business with the People's Republic of China. Founded in 1973, the USCBC provides extensive China-focused information, advisory, and advocacy services, along with comprehensive events, to nearly 250 US corporations operating within the United States and throughout Asia.

Last Updated: 26-Oct-05