United States Trade Representative (USTR) Section 301 Annual Reports (2001-2007)

Section 301 of 1984 Trade & Tariff Act (which amended 1974 Trade Act) gave the US President authority to deal with states that failed to provide “adequate and effective” protection for US intellectual property rights. 

Under Section 301, punishment for a foreign country that fails to provide protection for US intellectual property:

US President can authorize withdrawal of trade benefits or impose duties on goods (or USTR can “self-initiate” a 301 Action without President).

Step 1: “Watch List”

Step 2: “Priority Watch List”

Step 3: “Priority Foreign Country” = Possible trade retaliation from US

Under “Special 301” enacted in 1988, USTR identifies countries that denied “adequate and effective protection” of US intellectual property or that denied “fair and equitable market access” to US intellectual property holders.  Any “interested person” can file a petition asking USTR to launch Section 301 investigation and deny trade benefits to a country.  Often, industry trade organizations such as the RIAA and MPAA file Special 301 Petitions and begin the process of US trade retaliation against foreign countries.

Noteworthy Early “301 Actions”:

In 1985 USTR initiated first two Section 301 Actions (against Brazil over its informatics law, and against Korea over pharmaceuticals).  Korea signed a bi-lateral agreement with the US in 1986 to change its intellectual property law to appease the US. 

In 1987 the USTR filed another 301 Action against Brazil over drug patents that resulted in US $39 million in tariffs imposed on Brazil in 1988.  The trade sanctions on Brazil were lifted in 1990 after the Brazilian president said he would seek the IPR legislation that the United States wanted.

In 1988 the Pharmaceutical Manufacturers Association filed a Special 301 Petition against Argentina for greater monopoly rights over medicine.  The petition was withdrawn after Argentina amended its patent laws to comply with the US trade organization’s wishes.

In 1991 the USTR filed a 301 Action against India, which began the process of India changing its IPR law to please US interests.

In 1994 the US imposed tariffs on China over intellectual property, but an agreement was reached between the US and China, a “Memorandum of Understanding” before the tariffs went into effect.

Its also noteworthy that nearly EVERY country in the world is on one of these USTR lists as not providing sufficient protection to US IPR interests and on the road to trade sanctions.

 

 

 USTR Section 301 Annual Reports

 

COUNTRY

YEAR

TYPE OF WATCH

USTR FOCUS

TYPE OF IPR

COMMENTS

BAHAMAS

 

 

 

 

 

 

2001

N/A

 

 

 

 

2002

Watch List

Cable Television 

Copyrights 

 

 

2003

Priority Watch List

Cable Programs; Copyright Legislation; Over-the -Air Broadcasts 

Copyrights 

 

 

2004

Priority Watch List

Cable Programs; Motion Pictures

Copyrights

 

 

2005

Watch List

Copyright Infringement of Cable Television and Motion Pictures; Absence of Implementations of the Copyright Amendments

Copyrights

 

 

2006

Watch List

Cable Television  

Copyrights

Continued failure to implement 2004 copyright amendment to agreement between US and Bahamas first reached in 2000.

 

2007

N/A

 

 

 

BELARUS

 

 

 

 

 

 

2001

Watch List

Not Yet a Party to the Geneva Phonograms Convention

Copyrights

 

 

2002

Watch List

Sound Recordings; Transshipment Point for Pirate Materials Throughout the Region; Optical Disk Production; Border Enforcement 

Copyrights; Trademarks 

 

 

2003

Watch List

Sound Recordings; Transshipment Point for Pirate Materials Throughout the Region

Copyrights 

 

 

2004

Watch List

Pre-Existing Works and Sound Recordings; Optical Media Piracy; No “ex officio” Raids of Seizures

Copyrights

 

 

2005

Watch List

Inadequate Protection for Pre-Existing Works and Sound Recordings; Weak Border Protection; Illegal Optical Media Plants; Inadequate Civil and Criminal Procedures

Copyrights

 

 

2006

Watch List

Enforcement; Piracy (optical media plants),

Copyrights

Continued failure to adhere to U.S.-Belarus Trade Agreement; No criminal code or civil law to prosecute for seized illegal products at border.

 

2007

Watch List

Piracy; Inadequate Copyright Laws; Inadequate Protection for Sound Recordings and Pre-existing Works; Software Piracy

Copyrights

 

BOLIVIA

 

 

 

 

 

 

2001

Watch List

Inadequate Laws; Pharmaceuticals; Pirated Software 

Copyrights; Patents 

 

 

2002

Watch List

Stalled Legislature 

Copyrights; Trademarks 

 

 

2003

Watch List

Enforcement Sporadic and Ineffective; Piracy of CD's, Videos and Software 

Copyrights; Trademarks 

 

 

2004

Watch List

No “ex parte” Civil Searches; IPR Enforcement Sporadic and Ineffective; Border Enforcement Weak; Piracy of Videos, Sound Recordings and Software

Copyrights; Trademarks

 

 

2005

Watch List

Border Enforcement; Music Piracy; Commercial Photocopying of Books, Unauthorized Translations of Books, Video Piracy, and Business and Entertainment Software Piracy

Copyrights; Trademarks

 

 

2006

Watch List

Enforcement

Copyrights; Trademarks

No notable improvements.

 

2007

Watch List

Piracy; Counterfeiting; Inadequate Copyright Laws; Delays in Civil Enforcement

Copyrights; Trademarks

 

BULGARIA

 

 

 

 

 

 

2001

N/A

 

 

 

 

2002

N/A

 

 

 

 

2003

N/A

 

 

 

 

2004

Watch List

Pirated Optical Disc Media; Ineffective Prosecutions and Minimal Judicial Sentences; Weak Border Enforcement; Counterfeiting of Spirits

Copyrights; Trademarks

 

 

2005

Watch List

Ineffective Anti-Piracy and Anti-Counterfeiting Enforcement Efforts; Optical Disc Piracy; Pirated CDs and DVDs; Inadequate Criminal Code; Ineffective Sentences

Copyrights; Trademarks

 

 

2006

Watch List

Judicial Enforcement; Patent/Trademark Infringement

Patents; Trademarks

In Feb. 2006 newly formed Council of I.P. Protection approved penal code criminalizing possession of counterfeited products.

 

2007

N/A

 

 

 

CANADA

 

 

 

 

 

 

2001

Watch List

Pharmaceuticals 

Patents 

 

 

2002

Watch List

Pharmaceuticals; Border Enforcement 

Patents 

 

 

2003

Watch List

Unauthorized Patented Medicines; Weak Border Enforcement 

Patents; Copyrights; Trademarks 

 

 

2004

Watch List

Ratification of the WIPO Internet Treaties, and Implementation of Legislation on Patenting of Higher Life Formers; Judicial Procedures; Patented Medicines; Weak Border Enforcement

Trademarks; Patents; Copyrights

 

 

2005

Watch List

Inadequate Copyright Law; Ineffective Protection of Works in Digital Environment; Stop Counterfeit and Pirated Goods Being Transshipped Through Country; Pharmaceuticals

Copyrights; Trademarks; Patents

 

 

2006

Watch List

Ratification and Implementation of WIPO Internet Treaties; Border Enforcement; (Digital/Pharmaceutical)

Copyrights; Patents

Awaiting outcome of new government elected in early 2006

 

2007

Watch List

Camcording of Films in Movie Theaters; Counterfeit and Pirated Products; Pirated and Counterfeit Products Transshipped and Transited Through Canada; Weak Border Enforcement

Copyrights; Trademarks; Patents

 

CHILE

 

 

 

 

 

 

2001

Watch List

Legislation not in Compliance with TRIPS' Pending Patent Applications; Serious Piracy and Counterfeiting 

Copyrights; Patents; Trademarks 

 

 

2002

Watch List

Delays in Court; Weak Sentences; Pharmaceuticals 

Copyrights; Patents 

 

 

2003

Watch List

Pharmaceuticals 

Patents 

Chile’s Congress approved in December of 2003 legislation intended to bring the country into compliance with a number of TRIPS commitments.

 

2004

Watch List

Digital Piracy; Pharmaceuticals

Patents; Copyrights

U.S.-Chile Trade Agreement entered into in January 2004.

 

2005

Watch List

Inadequate Deterrent Penalties; Digital Piracy; Pharmaceuticals

Copyrights; Trademarks; Patents

 

 

2006

Watch List

Unfair commercial use of undisclosed tests and other data by pharmaceutical companies; Insufficient coordination between health and patent authorities; Patent-Infringing; Copyright Piracy; Trademark Counterfeiting

Patents; Copyrights; Trademarks

Has not fully implemented legislation to comply with U.S.-Chile Free Trade Agreement obligations

 

2007

Priority Watch List

Pharmaceuticals; Piracy; Counterfeiting; Digital Piracy; Ineffective Deterrent Penalties; Amendments to Legislation Needed

Patents; Copyrights; Trademarks

 

COLOMBIA

 

 

 

 

 

 

2001

Watch List

Inadequate Copyright Laws; Cable Piracy; Pharmaceuticals 

Copyrights; Patents 

 

 

2002

Priority Watch List

Pharmaceuticals; Ineffective Copyright and Trademark Laws; Cable Piracy; Rare Prosecutions 

Copyrights; Trademarks; Patents 

 

 

2003

Watch List

Pirated Sound Recordings; Flea Markets; Piracy of Business Software and Videogame Software 

 

 

 

2004

Watch List

Pharmaceutical and Agricultural Chemical Products; Piracy of Music and Motion Pictures; Photocopying Piracy; Optical Disc Piracy

Patents; Trademarks; Copyrights

Music piracy alone estimated at $51 million in Colombia in 2004.

 

2005

Watch List

Optical Disc Piracy; Illegal Photocopying of Academic Textbooks, Business Software, and Entertainment Software; Border Enforcement

Copyrights; Trademarks

 

 

2006

Watch List

Enforcement; Inadequate Judicial System; Border Enforcement; Copyright Piracy; Optical disc Piracy; Business/Entertainment Software Piracy

Copyrights; Trademarks

U.S.-Columbia Trade Promotion Agreement concluded in Feb. 2006

 

2007

Watch List

Copyright Piracy; Judicial System; Border Enforcement

Copyrights; Trademarks

Recently completed free trade agreement

COSTA RICA

 

 

 

 

 

 

2001

Priority Watch List

Deficiencies in Patent Law 

Patents