WTO Panel Rules On China's IP Regime
A World Trade Organization dispute settlement panel Monday found important aspects of China's intellectual property rights regime to be inconsistent with the country's obligations under a long-standing intellectual property treaty, Acting U.S. Trade Representative Peter Allgeier said. The United States brought claims against China out of concern about shortcomings in the country's legal regime for protecting and enforcing copyrights and trademarks on a range of products.
The WTO panel's ruling is an important victory, he said, because it clarifies key provisions of the IP deal that was negotiated for eight years ending in 1994. Specifically, the panel found that China's denial of copyright protection to works that do not meet its "content review" standards is impermissible. The panel clarified China's obligation to provide for criminal procedures and penalties to be applied to willful trademark counterfeiting and copyright piracy on a commercial scale. Allgeier said USTR will "engage vigorously with China on appropriate corrective actions to ensure that U.S. rights holders obtain the benefits of this decision."
Motion Picture Association of America Chairman Dan Glickman issued a statement saying the WTO decision was "welcome news for creators" but he was disappointed that the panel "did not accept the strength of the U.S. argument that China's thresholds for taking criminal action do not deter rampant piracy." Copyright Alliance Executive Director Patrick Ross also cheered the announcement but said it took too long to conclude. "The Chinese government has been passionate in its words but passive in its deeds when enforcing intellectual property rights," he said.
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