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Special 301 Report 2020 Special 301 Report APRIL 2020 2020 SPECIAL 301 REPORT UNITED STATES TRADE REPRESENTATIVE ROBERT E. LIGHTHIZER ACKNOWLEDGEMENTS The Office of the United States Trade Representative (USTR) is responsible for the preparation of this Report. United States Trade Representative Robert Lighthizer gratefully acknowledges the contributions of staff to the writing and production of this Report and extends his thanks to partner agencies, including the following Departments and agencies: State; Treasury; Justice; Agriculture; Commerce, including the International Trade Administration and the Patent and Trademark Office; Labor; Health and Human Services, including the Food and Drug Administration; Homeland Security, including Customs and Border Protection, Immigration and Customs Enforcement, and the National Intellectual Property Rights Coordination Center; and the United States Agency for International Development. USTR also recognizes the contributions of the Office of the Intellectual Property Enforcement Coordinator, as well as those of the United States Copyright Office. In preparing the Report, substantial information was solicited from U.S. embassies around the world, from U.S. Government agencies, and from interested stakeholders. The draft of this Report was developed through the Special 301 Subcommittee of the interagency Trade Policy Staff Committee. TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................................... 4 SECTION I: Developments in Intellectual Property Rights Protection, Enforcement, and Related Market Access ............................................................................................................ 12 SECTION II: Country Reports ................................................................................................. 39 PRIORITY WATCH LIST .................................................................................................... 39 China .................................................................................................................................... 39 Indonesia .............................................................................................................................. 48 India ..................................................................................................................................... 50 Algeria .................................................................................................................................. 53 Saudi Arabia ........................................................................................................................ 54 Russia ................................................................................................................................... 56 Ukraine ................................................................................................................................. 58 Argentina ............................................................................................................................. 60 Chile ..................................................................................................................................... 62 Venezuela ............................................................................................................................. 64 WATCH LIST ......................................................................................................................... 65 Thailand ............................................................................................................................... 65 Vietnam ................................................................................................................................ 66 Pakistan ................................................................................................................................ 67 Turkmenistan ...................................................................................................................... 68 Uzbekistan ........................................................................................................................... 69 Egypt .................................................................................................................................... 70 Kuwait .................................................................................................................................. 71 Lebanon ............................................................................................................................... 72 United Arab Emirates ......................................................................................................... 73 Romania ............................................................................................................................... 74 Turkey .................................................................................................................................. 75 Barbados .............................................................................................................................. 76 Bolivia ................................................................................................................................... 77 Brazil .................................................................................................................................... 78 Canada ................................................................................................................................. 79 Colombia .............................................................................................................................. 80 Dominican Republic ............................................................................................................ 81 Ecuador ................................................................................................................................ 82 Guatemala ............................................................................................................................ 83 Mexico .................................................................................................................................. 84 Paraguay .............................................................................................................................. 85 Peru ...................................................................................................................................... 86 Trinidad & Tobago ............................................................................................................. 87 ANNEX 1: Special 301 Statutory Basis ..................................................................................... 88 ANNEX 2: U.S. Government-Sponsored Technical Assistance and Capacity Building ........ 90 3 EXECUTIVE SUMMARY A top trade priority for the Administration is to use all possible sources of leverage to encourage other countries to open their markets to U.S. exports of goods and services and to provide adequate and effective protection and enforcement of intellectual property (IP) rights. Toward this end, a key objective of the Administration’s trade policy is ensuring that U.S. owners of IP have a full and fair opportunity to use and profit from their IP around the globe. The Special 301 Report (Report) is the result of an annual review of the state of IP protection and enforcement in U.S. trading partners around the world, which the Office of the United States Trade Representative (USTR) conducts pursuant to Section 182 of the Trade Act of 1974, as amended (the Trade Act, 19 U.S.C. § 2242). Congress amended the Trade Act in 1988 specifically “to provide for the development of an overall strategy to ensure adequate and effective protection of intellectual property rights and fair and equitable market access for United States persons that rely on protection of intellectual property rights.”1 In particular, Congress expressed its concern that “the absence of adequate and effective protection of United States intellectual property rights, and the denial of equitable market access, seriously impede the ability of the United States persons that rely on protection of intellectual property rights to export and operate overseas, thereby harming the economic interests of the United States.”2 This Report provides an opportunity to call out foreign countries and to expose the laws, policies, and practices that fail to provide adequate and effective IP protection and enforcement for U.S. inventors, creators, brands, manufacturers, and service providers. The identification of the countries and IP-related market access barriers in the Report and of steps necessary to address those barriers are a critical component of the Administration’s aggressive efforts to defend Americans from harmful IP-related trade barriers. Specifically, this Administration continues to closely monitor developments in, and to engage with, those countries that have been on the Priority Watch List for multiple years. Over the coming weeks, USTR will review the developments against the benchmarks established in the Special 301 action plans for those countries. For countries failing to address U.S. concerns, USTR will take appropriate actions, which may include enforcement actions under Section 301 of the Trade Act or pursuant to World Trade Organization (WTO) or other trade agreement dispute settlement procedures. The Report identifies foreign
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