The document provides information about the Special 301 provisions of the US Trade Act which allows the USTR to identify countries that do not provide adequate intellectual property protection. The USTR publishes an annual Special 301 Report identifying Priority Foreign Countries, Priority Watch List, and Watch List countries. Priority Foreign Countries are subject to investigations and potential trade sanctions under Section 301 of the Trade Act. The Special 301 process is criticized for pressuring countries to adopt IP standards favored by the US.
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Special 301
1. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
SPECIAL 301
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com Jeni Varghese
WEBSITE Patent Department
www.altacit.com
2. INTRODUCTION
• Special 301 provisions of the Trade Act 1988
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
provides the Office of the United States Trade
Tel: +91 - 44 - 2498 4821
Representative (USTR) with the authority to
BANGALORE
Suite 920, Level 9,
Raheja Towers,
identify foreign countries that deny adequate and
26-27, M G Road,
Bangalore - 560 001. effective protection of Intellectual property rights
Tel: +91 - 80 - 6546 2400
COIMBATORE
(IPR).
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
• The USTR must undertake annual surveys of
Tel: +91 - 422 – 6552921
foreign countries intellectual property laws and
policies.
• The USTR by April 30th of each year must identify
countries that do not provide adequate and effective
EMAIL protection of IPR.
info@altacit.com
WEBSITE
www.altacit.com
3. CONT.
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Special 301 Report:
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821 •The Special 301 Report is a review of the
BANGALORE
Suite 920, Level 9,
Raheja Towers,
global state of IPR protection and
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
enforcement.
COIMBATORE
BB1, Park Avenue,
•Prepared annually by the USTR.
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921 •The Report identifies trade barriers to US
companies and products due to the
intellectual property laws.
•First Special 301 report was published in
EMAIL
info@altacit.com 1989.
WEBSITE
www.altacit.com
4. COUNTRY IDENTIFICATION
FACTORS
CHENNAI
3rd Floor, ‘Creative Enclave’,
• Based on the USTR’s annual trade barriers report
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
and consultations with a wide variety of sources,
including government agencies, industry groups,
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers, other private sector, foreign governments etc.
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 • History of the intellectual laws and practices of the
COIMBATORE
BB1, Park Avenue,
foreign country.
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
• Level of the foreign country’s IPR infringement
and their impact on the U.S. economy.
• The sincerity of the country’s commitment to
multilateral and bilateral trade agreements.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
5. CATEGORIES- FOREIGN
COUNTRIES
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Foreign countries are categorized into
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
(I) PRIORITY FOREIGN COUNTRIES
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
(II) PRIORITY WATCH LIST
Tel: +91 - 422 – 6552921
(III) WATCH LIST
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
6. PRIORITY FOREIGN
COUNTRY
CHENNAI
3rd Floor, ‘Creative Enclave’,
A country is a priority foreign country (PFC) if
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
(ii)It has policies and practices that (i) deny adequate
BANGALORE
and effective intellectual property rights, (ii) deny
fair and equitable market access to US persons; and
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 (iii)It does not enter into good faith negotiations or
COIMBATORE
BB1, Park Avenue, make significant progress in multilateral and
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
bilateral negotiations to provide adequate and
effective protection of intellectual property rights.
Priority Foreign Countries are subject to an
investigation by USTR under the Section 301
provisions of the Trade Act.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
7. CONT.
• Section 301 investigation: The USTR must first
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
seek consultations with the foreign government
Tel: +91 - 44 - 2498 4821
whose acts, policies, or practices are under the
BANGALORE
Suite 920, Level 9,
Raheja Towers,
subject of the investigation. If the consultations do
26-27, M G Road,
Bangalore - 560 001. not result in a settlement of the matter, certain
Tel: +91 - 80 - 6546 2400
COIMBATORE
remedial enforcement actions may be taken under
BB1, Park Avenue,
# 48, Race Course Road, Section 301 like suspending trade concessions and
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
imposing import restrictions or duties etc.
• The USTR must start investigations within 30
days of a country being identified as “priority
foreign country”.
EMAIL • Investigations must conclude within six months,
info@altacit.com
WEBSITE
with the possibility of three months extension.
www.altacit.com
8. PRIORITY WATCH LIST AND WATCH LIST
COUNTRIES
CHENNAI
3rd Floor, ‘Creative Enclave’, Priority Watch List countries: Those countries whose
148-150, Luz Church Road, acts, policies, and practices warrant concern, but do not meet all
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
of the criteria for identification as a Priority Foreign Country.
BANGALORE
Suite 920, Level 9,
Watch List countries: Those countries having intellectual
Raheja Towers,
26-27, M G Road,
property protection inadequacies that are less severe than those
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 on the Priority Watch List, but still attract U.S. attention.
COIMBATORE
A new initiative was taken by the USTR in the 2011
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
review, whereby it invited any country appearing on
the Special 301 Priority Watch List or Watch List to
negotiate a mutually agreed action plan designed to
lead to that country’s removal from the relevant list.
EMAIL
info@altacit.com Priority Watch List or Watch List countries are
WEBSITE
www.altacit.com
identified in the Special 301 report.
9. SECTION 306 MONITORING
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
• Countries identified for “Section 306” are
monitored for compliance with bilateral
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
intellectual property agreements used to
resolve investigations under Section 301.
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
• USTR may apply sanctions if a country
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
fails to satisfactorily implement the
agreement.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
10. OUT-OF-CYCLE REVIEWS
(OCR)
CHENNAI
3rd Floor, ‘Creative Enclave’,
• The USTR also launches out-of-cycle reviews on
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
countries to monitor their progress on intellectual
property issues.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
• It provides an opportunity for heightened
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 engagement with countries to address and remedy
COIMBATORE
BB1, Park Avenue,
intellectual property issues.
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
• Out-of-cycle reviews are conducted on countries
that USTR considers to require further review and
may result in status changes for the subsequent
Special 301 report.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
11. SPECIAL 301 SUB-COMMITTEE
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
• The Special 301 Sub Committee of the
Trade Policy Staff Committee (TPSC)
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
advices the USTR on which countries to
designate as “priority foreign countries” or
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
to include in the “watch lists”.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
• The Special 301 Sub Committee takes
views of US Companies, Government,
public etc.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
12. SPECIAL 301 2011 REPORT
CHENNAI
3rd Floor, ‘Creative Enclave’,
In 2011 report, 12 countries were placed under
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Priority Watch List and 28 countries on the Watch
List.
Tel: +91 - 44 - 2498 4821
BANGALORE
INDIA
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400 •India has been on the Priority Watch List since 1989
COIMBATORE
BB1, Park Avenue, and was named a Priority Foreign Country in
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
1991-1994.
•As per the Special 301 2011 Report, India is placed
in the Priority Watch List category.
•Protection of intellectual property in many areas are
EMAIL
weak due in part to inadequate laws and to ineffective
info@altacit.com enforcement.
WEBSITE
www.altacit.com
13. CONCLUSION
CHENNAI
3rd Floor, ‘Creative Enclave’,
Special 301 is often criticized as a very clear manner
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
in which the U.S. can impose its own IP agenda to
other countries, particularly developing economies.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers, Special 301 ranks countries based on vague criteria,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
mostly views of external sources are taken and it
COIMBATORE pressures countries to sign international agreements
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
that don’t currently bind them and that these countries
Tel: +91 - 422 – 6552921
possibly consider detrimental to their national interest.
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
14. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
THANK YOU
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com