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 The petition was withdrawn after Argentina amended its patent laws to comply with the US trade organization’s wishes.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 |
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2001 |
N/A |
|
|
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|
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2002 |
Watch List |
Cable Television |
Copyrights |
|
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|
2003 |
Priority Watch List |
Cable Programs; Copyright
Legislation; Over-the -Air Broadcasts |
Copyrights |
|
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|
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 |
|
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|
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 |
|
|
|
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BELARUS |
|
|
|
|
|
|
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2001 |
Watch List |
Not Yet a Party to the Geneva Phonograms Convention |
Copyrights |
|
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|
2002 |
Watch List |
Sound Recordings; Transshipment
Point for Pirate Materials Throughout the Region; Optical Disk Production;
Border Enforcement |
Copyrights; Trademarks |
|
|
|
2003 |
Watch List |
|
Copyrights |
|
|
|
2004 |
Watch List |
Pre-Existing Works and Sound Recordings; Optical Media Piracy; No “ex officio” Raids of Seizures |
Copyrights |
|
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|
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 |
|
|
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|
|
|
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 |
|
|
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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 |
|
|
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2001 |
N/A |
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2002 |
N/A |
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2003 |
N/A |
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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 |
|
|
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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 |
|
|
|
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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 |
|