US Requests Second WTO Panel On China’s IP Protection

By David Cronin for Intellectual Property Watch
The United States has decided to step up its challenge to China’s restrictions on copyright-protected books, music and films by asking the World Trade Organization to establish a dispute settlement panel.

During June and July, the US and China held formal talks over trade restrictions applied by the Beijing authorities. “Those discussions have not led to a resolution of our concerns and so we are taking the next step in this case,” Sean Spicer, a spokesman for the US Trade Representative, said in a release. USTR announced it would seek a dispute panel on 11 October.

The US contends that laws and regulations in China hinder American firms from selling films, books, newspapers, magazines and CDs there and that this constitutes discrimination.

The case reflects American frustration with Chinese rules stating that new films and books cannot be copyright protected while they are being reviewed by censors. The US alleges, too, that censorship laws in China are biased against foreign film-makers and artists. And it is dissatisfied by how the distribution of movies and other cultural products is controlled by state-owned companies.

According to the US, China’s import restrictions breach the terms under which it joined the WTO in 2001, as well as such cornerstones of the international commercial system such as the General Agreement on Tariffs and Trade (GATT) and the WTO General Agreement on Trade in Services (GATS).

The US had originally launched dispute settlement proceedings with China in April. Its request that its complaint should be taken further is due to be discussed at an October 22 meeting of the WTO Dispute Settlement Body.

A panel can take up to 18 months before concluding its enquiry.

This is the fourth case which the US has brought against China in the WTO and the second directly relating to intellectual property issues.

In August, the US asked that a separate panel should be formed to examine its claim that China’s IP enforcement regime is deficient under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) (IPW, US Policy, 27 September 2007; IPW, US Policy, 13 August 2007).

The US contends that the lack of robust copyright protection in China has triggered the growth of a trade in pirated material including clothes, sports goods, CDs and medicines.

The Chinese government could not be reached for comment at press time.

David Cronin may be reached at info@ip-watch.ch.