U.S. takes cases against four countries to WTO

U.S. takes cases against four countries to WTO

WASHINGTON (AFP): The United States said Tuesday it would take complaints against India, Pakistan, Turkey and Portugal, accused of failing to protect intellectual property rights, to the World Trade Organization and included Indonesia in its "priority watch list".

The office of the U.S. Trade Representative (USTR) also designated China a "priority foreign country," placing it under further scrutiny on grounds that it remains "the site of extensive piracy of intellectual property."

Eight U.S. trading partners, including Indonesia, were included on a "priority watch list," signaling a "lack of adequate and effective intellectual property protection or market access."

The USTR office said Tuesday President Bill Clinton's administration was already weighing sanctions against Beijing for its alleged failure to adhere to a 1995 anti-piracy accord and would not therefore initiate a new investigation.

While China has made some progress in halting retail trade in pirated goods, "it has failed to stop illegal CD, video and CD- ROM production at some 31 plants," the USTR charged in a statement Tuesday.

Added Ira Shapiro, special counsel to the U.S. Trade Representative: "China has been given a very clear understanding of our concerns and the areas in which we believe action needs to be taken to improve the situation."

He refused to be drawn on when sanctions might be imposed but warned: "We will not hesitate to enforce our trade laws if the circumstances warrant."

The United States is to ask the WTO to initiate "dispute settlement procedures" with India, Pakistan, Turkey and Portugal in accordance with a WTO agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which took effect January 1, 1996.

Initially, consultations under WTO auspices will be held. But if the conflict persists, the Geneva-based organization will appoint resolution panels.

India and Pakistan were targeted for what Washington said had been failure to provide patent protection for pharmaceutical or agricultural chemical products.

In addition, according to the USTR, the two countries have not provided facilities for patents in these products to be filed and preserved until such time as full patent protection is available.

Turkey was accused of imposing a tax on box office revenues from the showing of foreign films while not applying the same charge to domestic films.

In Portugal, the USTR said current legislation does not comply with new WTO rules, which state that the term of an existing patent must extend from the date it was granted until 20 years from the date it was filed.

Portuguese law currently limits the 20-year term to patents granted after June 1, 1995.

Eight U.S. trading partners were included on a "priority watch list," signaling a "lack of adequate and effective intellectual property protection or market access."

The eight were Argentina, the European Union, Greece, India, Indonesia, Japan, Korea and Turkey.

The USTR statement charged that EU patent fees and those of its members were "extraordinarily expensive," while in Japan there have been problems with "uneven and overly narrow interpretation of patent claims in Japanese courts."

Twenty-six countries were placed on a "watch list," a less severe category used by the United States to monitor progress in implementing commitments to protect intellectual property.

The USTR also expressed concern about the status of intellectual property in the Dominican Republic, Lebanon, Nicaragua and Quatar.

It noted that while Hong Kong has tried to prevent pirated compact discs from entering its territory from China, "the problem is growing."

The statement urged authorities to "act decisively against the retailers, wholesalers and investors who have made Hong Kong a center for pirated goods."

In a separate report on procurement practices by foreign governments the USTR charged that Germany had failed to ensure "non-discriminatory access for U.S. firms in the German heavy electrical equipment market."

While Japan was not identified as a trading partner guilty of unfair practices in government procurement, the statement said foreign firms still had difficulty gaining access to the Japanese public works market.