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The Global Fight Against Piracy
by Winter Casey
Despite statements from their leaders that protecting intellectual property is important, many countries have a long way to go to effectively enforce rights, according to a private-sector coalition representing U.S. copyright-based industries.
The International Intellectual Property Alliance offered that analysis last week when submitting its suggestions about what nations should be placed on the "Special 301" report due from the Office of the U.S. Trade Representative in April. The annual list evaluates the IP enforcement of U.S. trading partners. Nations placed on the list are watched closely and can risk losing trade privileges if they fail to make enforcement progress.
The IIPA, whose members include the Business Software Alliance and Motion Picture Association of America, recommended that the following countries be placed on the "priority watch list" this year: Argentina, Canada, China, Chile, Costa Rica, the Dominican Republic, Egypt, India, Israel, Mexico, Russia, Saudi Arabia, Thailand, Turkey, Ukraine and Venezuela.
The group offered its Special 301 analysis as USTR nears the release of its latest report.
Nations In The IP Doghouse
The United States may be a world leader in promoting IP protection, but its enthusiasm has failed to influence other countries, IIPA said in arguing that even Canada and Mexico should remain on the priority watch list. "Canada remains far behind virtually all its peers in the industrialized world with respect to its efforts to bring its copyright laws up to date," IIPA concluded.
Jonathan Sauve, a spokesman for the Canadian Embassy, said the Canadian government is committed to IP protection and is working with the United States to that end. "Canada is sensitive to the concerns of the United States" and the country was disappointed to be listed on the watch list in the 2006 Special 301 report, Sauve said.
IIPA also criticized IP enforcement progress in Vietnam, which was granted admission to the World Trade Organization in January, and Russia, which is eager to join.
Last fall, the United States and Russia agreed in principle on a trade agreement that addresses IP enforcement. Russia must finalize all of its market-access agreements with individual countries before it can begin the multilateral negotiations necessary to join the WTO. Groups such as the Business Roundtable and Information Technology Industry Council favor the WTO bid.
But Russia is being carefully watched as it seeks WTO accession. The country has received heat over the Web site AllofMP3.com, which has been accused by U.S. industry and USTR of illegally distributing copyright music. Last week, MosNews reported that a Russian court for the first time found a Russian MP3 site guilty of copyright violations.
IIPA recommended that USTR keep Russia on the priority watch list but review that status later this year. Group counsel Eric Schwartz said Russia has a lot of work to do before it should be allowed to enter the WTO. IIPA also said Vietnam should remain on the USTR list.
Intellectual Property Woes In Asia
Beyond Vietnam, IIPA cited other intellectual property problems in Asia, specifically in India and Japan. The group said India has made little significant progress against piracy and should stay on the priority watch list.
The embassy of India disagreed with that assessment. "The protection of intellectual property rights in India continues to be strengthened," the embassy said. "There is a well-established statutory, administrative and judicial framework to safeguard rights, whether they relate to patents, trademarks, copyright or industrial designs. Well-known international trademarks have been protected in India even when they were not registered in India."
As for Japan, IIPA recommended attention to lagging efforts to update its copyright law. Sweden and Singapore also ranked high on the competitiveness charts but were highlighted for lacking IP protections by IIPA.
Many country leaders, including those in piracy havens like China, regularly acknowledge their struggles to fight piracy and said they are working toward better protections. For example, in 2006 Chinese President Hu Jintao said there is an urgent need to strengthen China's IP protection.
Last week, China Daily reported that Yan Xiaohong, China's vice minister of the National Copyright Administration, said online copyright violations remain a problem despite a government crackdown, but the country will look to establish a nationwide blacklisting system of illegal Web sites and operators. China Daily also reported Jan. 1 that the development of IP rights is included in the nation's planning program.
In its analysis, IIPA said China has been "extremely reluctant to bring criminal cases for copyright piracy" and recommends that the country be placed on the priority watch list.
A Closer Look At Special 301
Jason Schultz, a staff attorney with the Electronic Frontier Foundation, took issue with IIPA's methodology for gathering information on the use of business software and questioned the accuracy of the estimates for Internet piracy. "While commercial bootlegging definitely costs these industries money, exaggerated reports like this one are like Peter 'crying wolf' every year and don't help us work toward a real solution," he said.
Schultz also said the report counts all software that is used and not paid for as a loss, but "in poor and developing countries, people who use unauthorized software often do so because they cannot afford to purchase a copy under any circumstances."
Senate Finance Committee Chairman Max Baucus, D-Mont., is expected to seek a review of Special 301 among the various trade enforcement tools used in the United States. The tools were developed "at a very different time in our international economy," a Baucus aide said, and the senator wants make sure the "administration has the most effective tools possible to enforce our trade agreements and break down foreign-market access barriers."
Other lawmakers -- such as Sens. Dianne Feinstein, D-Calif., and Patrick Leahy, D-Vt. -- also have noted the need for improved global IP protection.
USTR spokesman Sean Spicer said his office will contact Baucus staff and will make sure anything USTR does is consistent with the United States' WTO obligations.
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