Special 301 report released; Taiwan remains on Priority Watch List

     The United States released on April 30 its special 301 report for this year.  Though the Legislative Yuan passed the third reading of the amendment to the Trademark Law, what concern the US most, according to a high-racking officer of the Ministry of Economic Affairs, are the amendment to the Copyright Law and the results of crackdowns on pirate optical media products.  It was therefore expected that Taiwan would remain on the Priority Watch List.  Since 2001 when Taiwan was first placed on the more warningful Priority Watch List, Taiwan has remained on the Priority Watch List for two years in a row.  This year is the third successive year if Taiwan is again named on the Priority Watch List. 

     After the US-Taiwan dialogue on IPR last October, the US Government has been quite dissatisfied with Taiwan’s results of crackdowns on piracy and the punishment on pirates which they consider is far too lenient.  Up to early this year, Taiwan still felt the pressure for fear of being designated for “Section 306 monitoring”.  “Section 306” means the US can take any immediate trade sanctions against countries on “Section 306”.  As far as Special 301 report is concerned, countries on Section 306 are the hardest pressed in face of possible trade retaliation, far worse than those on the Priority Foreign Countries and Priority Watch List.  Presently, Mainland China and Paraguay are designated Section 306.