In News:

India has once again been placed on the Priority Watch List(PWL) in the United States Trade Representative (USTR) Special 301 Report, alongside countries such as China, Russia, and Venezuela. The report has raised concerns over India's Intellectual Property Rights (IPR) regime, prompting debates on the implications for India's trade and innovation environment.

What is the USTR Special 301 Report?

• Mandate & Purpose: The Special 301 Report is an annual review mandated under Section 182 of the US Trade Act of 1974, identifying countries that the US believes do not offer "adequate and effective" protection of IPR or deny fair and equitable market access to US IPR holders.
• Designations:
  • Priority Foreign Country (PFC): Most severe classification; can trigger investigations and trade sanctions.
  • Priority Watch List (PWL): Countries with serious IPR concerns requiring close monitoring and bilateral engagement.
  • Watch List: Countries with moderate IPR issues.
• Historical Context: India has been consistently listed under the Priority Watch List in the report, including in the years 2020, 2021, and 2024.

Concerns Raised by the USTR Regarding India

• IP Enforcement Deficiencies:
  • Weak enforcement mechanisms against online piracy.
  • Backlogs in trademark opposition proceedings.
  • Lack of a strong legal framework for protecting trade secrets.
• Pharmaceutical Patents:
  • Alleged lack of transparency and delays in resolving pre-grant patent disputes.
  • Absence of effective mechanisms for early resolution of disputes in the pharmaceutical sector.
• Copyright Issues:The report criticizes India for not fully aligning with WIPO Internet Treaties, especially regarding the protection of content in interactive transmissions like streaming and downloads.
• Market Access Concerns:The US claims that India imposes high tariffs on IP-intensive products and creates procedural barriers for foreign firms seeking patent protection.

India’s Response and Position

• India maintains that its IPR laws fully comply with the WTO’s TRIPS Agreement, which sets minimum standards for IP protection globally.
• India rejects unilateral pressure to conform to IP standards beyond TRIPS, asserting its right to balance IP protection with public health, access to medicines, and developmental needs.
• Progress has been acknowledged in areas like trademark investigation reforms and IP policy transparency through bilateral platforms such as the US-India Trade Policy Forum.

US Measures to Push IPR Standards

• The USTR uses a mix of bilateral negotiations, WTO forums, and technical assistance to persuade countries to adopt stricter IP regimes.
• It also undertakes anti-counterfeiting initiatives, capacity-building programs, and trade diplomacy to influence global IPR enforcement.