India features yet again on U.S. ‘Priority Watch List’ 

News Excerpt:

The United States Trade Representative (USTR) again placed India on the ‘Priority Watch List’ because of a lack of adequate intellectual property rights protection and enforcement.

2024 Special 301 Report:

  • The Office of the United States Trade Representative (USTR) released its 2024 Special 301 Report on the adequacy and effectiveness of U.S. trading partners’ protection and enforcement of intellectual property (IP) rights.
  • It is an annual review of the global state of IP protection and enforcement. 
  • USTR conducts this review pursuant to Section 182 of the Trade Act of 1974, as amended by the Omnibus Trade and Competitiveness Act of 1988 and the Uruguay Round Agreements Act.
  • USTR reviewed more than 100 trading partners for this year’s Special 301 Report and placed 27 of them on the Priority Watch List or Watch List.
  • Seven trading partners on the Priority Watch List present the most significant concerns regarding insufficient IP protection, enforcement, or actions that otherwise limited market access for persons relying on intellectual property protection.  
    • Argentina, Chile, China, India, Indonesia, Russia, and Venezuela.
      • These countries will be the subject of particularly intense bilateral engagement during the coming year.
  • Twenty trading partners are on the Watch List and merit bilateral attention to address underlying IP problems: Algeria, Barbados, Belarus, Bolivia, Brazil, Bulgaria, Canada, Colombia, Ecuador, Egypt, Guatemala, Mexico, Pakistan, Paraguay, Peru, Thailand, Trinidad and Tobago, Türkiye, Turkmenistan, and Vietnam.

More about News:

  • There has been progress under the US-India Trade Policy Forum in addressing issues with trademark infringement investigations and pre-grant opposition proceedings. Still, numerous long-standing concerns remain, per the US Trade Representative’s 2024 Special 301 Report.
  • The US continues to urge India to join the Singapore Treaty on the Law of Trademarks, which expands protectable subject matter to include non-traditional marks such as sensory marks, colour, position, and movement marks.
  • No action is threatened by the US against countries on the ‘priority watch list’, but if a country slips further and is categorised as a ‘priority country’, the US may impose ‘retaliatory’ measures.

Key challenges and concerns raised by the USTR regarding India:

  • Patent Issues:
    • Potential threat of patent revocations.
    • Lack of presumption of patent validity.
    • Narrow patentability criteria under the Indian Patents Act impact companies across different sectors.
    • Costly and time-consuming pre- and post-grant oppositions.
    • Long waiting periods to receive patent grants.
    • Excessive reporting requirements.
  • Trademark Issues:
    • High levels of trademark counterfeiting remain problematic.
    • Excessive delays in trademark opposition proceedings.
    • Lack of quality in trademark examination.
  • Trade Secrets and Copyright:
    • Insufficient legal means to protect trade secrets in India.
    • High levels of piracy, particularly online, faced by copyright holders.
  • India still needs to fully implement the WIPO Internet Treaties and ensure that copyright statutory licences do not extend to interactive transmissions.

India’s stance: 

  • India maintains that its intellectual property (IP) laws strictly adhere to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) under the World Trade Organization (WTO).
  • India asserts that it is not bound by any global rules to change its IP laws, implying that it believes its existing legal framework complies with international obligations.

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