By Dax Anderson
The US's IP blacklist, released May 2005, added Israel and China to the Priority Watch List, the second highest ranking on the list. This embarrassing and potentially investment deterring designation came after both countries denied adequate and effective protection for intellectual property rights, or fair and equitable market access for those that rely on intellectual property protection. Twelve other US trading parties were given the same ranking.
Israel was named to the list because it failed to pass legislation forbidding generic drug companies from relying on the clinical trials conducted by the for profit drug companies. (See iiBulletin, Volume III, December 2004).
China was named to the list because of its rampant piracy, counterfeiting and failure to criminally prosecute infringers. Two-thirds of the counterfeits confiscated by the US government were made in China, representing $134 million. By placing China on the Priority Watch List, the US also prepares to follow through with its threat to initiate a complaint with the WTO, if China does not improve its record.
For more information, please contact Dax Anderson at danderson@kmclaw.com.