China and Russia Are Among the Nine Countries on Priority Watch List of 2008 Special 301 Report.　US Will Initiate Review to Assess Whether to Remove Taiwan’s Continued Placement on Watch List.

　The US Trade Representative issues 2008 Special 301 Report, placing China, Russia, and other seven countries on the Priority Watch List in consideration of these countries’ so deficient IPR protection over American movies and computer software to cause widespread piracy.  The USTR names 36 trading partners, including Canada, Korea, Spain, Greece, Norway, Malaysia, Mexico, and Taiwan, to a lower-level Watch List. 

　In addition to China and Russia, the other seven countries put on Priority Watch List are Argentina, Chile, India, Israel, Pakistan, Thailand, and Venezuela.  The USTR accused the nine countries of failing to initiate intensive raids on piracy so that they have caused the global trade to be plagued by all kinds of counterfeits, such as pirated DVDs and software, counterfeit designer bags, and counterfeit pharmaceuticals, and the US becomes a victim thereof.

　The publishers of music, films, computer software, and books in the US estimate that they have suffered at least USD30 to 35 billion in loss as a result of the rampancy of global piracy.  The Report highlights serious IPR concerns with respect to China and Russia in spite of some evidence of improvement in both countries.

　USTR also announces that it will once again retain China on the Priority Watch List and continue monitoring China under Section 306 of the 1974 Trade Act, thus maintaining pressure on China to seek to improve its IPR regime.  Meanwhile, the US continues to seek cooperative channels to work with China to build up China’s IPR enforcement and protection regime.

　TIPO regrets Taiwan’s continued placement on the Watch List.  Recognizing Taiwan’s significant positive progress on IPR protection and enforcement practices, the US will conduct out-of-cycle review on Taiwan and complete it this summer to assess whether to remove Taiwan from the List. 
 
　The Report highlights Taiwan’s achievements in IPR protection this past year, particularly the June passage by the Legislative Yuan of a new law aimed at ending illegal file-sharing over peer-to-peer platforms, creation and issuance of Action Plan for Protecting IPR on School Campuses, and future establishment of IP branch at the Taiwan High Prosecutors Office.  In addition, the USTR urges Taiwan to make the specialized IPR Court operational as soon as possible, implement the 2007 Campus Action Plan, pass pending IPR legislation regarding liability of ISP, and continue efforts to effectively combat piracy on the Internet (especially TANet) and unauthorized use of copyrighted materials on or near universities.  (2008.04)

/CCS