2012 Special 301 Report Ambassador Ronald Kirk Office of the United States Trade Representative ACKNOWLEDGEMENTS The Office of the United States Trade Representative (USTR) is responsible for the preparation of this report. U.S. Trade Representative Ron Kirk gratefully acknowledges in particular the contributions of Deputy U.S. Trade Representatives Demetrios Marantis, Michael Punke, and Miriam Sapiro; USTR General Counsel Timothy Reif; Chief of Staff Lisa Garcia; and Assistant USTR for Public/Media Affairs Carol Guthrie, Assistant USTR for Intergovernmental Affairs and Public Engagement Christine Turner, Assistant USTR for Congressional Affairs Mac Campbell, Executive Secretary William Mack, Senior Policy Advisor Holly Smith, Senior Advisor David Roth, Assistant USTR for Intellectual Property and Innovation Stan McCoy, Director for Intellectual Property and Innovation Paula Karol Pinha, and numerous other staff of the Office of Intellectual Property and Innovation, the Office of General Counsel, and other USTR offices. Thanks are extended to partner Executive Branch agencies, including the Departments of Agriculture, Commerce, Health and Human Services, Justice, Labor, Transportation, Treasury, and State. In preparing the report, substantial information was solicited from U.S. Embassies around the world and from interested stakeholders. The draft of this report was developed through the Special 301 Subcommittee of the interagency Trade Policy Staff Committee. April 2012 1 Table of Contents EXECUTIVE SUMMARY........................................................................................................................... 4 SECTION I. DEVELOPMENTS IN INTELLECTUAL PROPERTY RIGHTS PROTECTION AND ENFORCEMENT ......................................................................................................................................... 8 Positive Developments.............................................................................................................................. 8 Initiatives to Strengthen IPR Protection and Enforcement Internationally............................................. 10 Best IPR Practices by Trading Partners .................................................................................................. 11 Capacity Building Efforts........................................................................................................................ 12 Trends in Trademark Counterfeiting and Copyright Piracy.................................................................... 14 Piracy over the Internet and Digital Piracy ............................................................................................. 16 Trade Secrets and Forced Technology Transfer...................................................................................... 17 Trademarks and Domain Name Disputes................................................................................................ 19 Government Use of Software.................................................................................................................. 19 Intellectual Property and Health Policy................................................................................................... 19 Supporting Pharmaceutical and Medical Device Innovation through Improved Market Access ........... 20 Implementation of the WTO TRIPS Agreement..................................................................................... 22 WTO Dispute Settlement ........................................................................................................................ 22 Interagency Trade Enforcement Center .................................................................................................. 24 SECTION II. COUNTRY REPORTS ........................................................................................................ 25 Priority Watch List.................................................................................................................................. 25 Algeria................................................................................................................................................. 25 Argentina............................................................................................................................................. 25 Canada................................................................................................................................................. 25 Chile .................................................................................................................................................... 26 China ................................................................................................................................................... 26 India..................................................................................................................................................... 35 Indonesia ............................................................................................................................................. 36 Israel.................................................................................................................................................... 36 Pakistan ............................................................................................................................................... 37 Russia .................................................................................................................................................. 37 Thailand............................................................................................................................................... 39 Ukraine................................................................................................................................................ 40 Venezuela............................................................................................................................................ 40 Watch List ............................................................................................................................................... 41 Belarus................................................................................................................................................. 41 Bolivia................................................................................................................................................. 41 Brazil................................................................................................................................................... 41 Brunei Darussalam.............................................................................................................................. 42 Colombia............................................................................................................................................. 42 Costa Rica ........................................................................................................................................... 43 Dominican Republic............................................................................................................................ 43 Ecuador................................................................................................................................................ 43 Egypt ................................................................................................................................................... 44 Finland................................................................................................................................................. 44 2 Greece.................................................................................................................................................. 45 Guatemala............................................................................................................................................ 45 Italy...................................................................................................................................................... 45 Jamaica................................................................................................................................................ 46 Kuwait ................................................................................................................................................. 46 Lebanon............................................................................................................................................... 46 Mexico................................................................................................................................................. 47 Norway................................................................................................................................................ 47 Peru...................................................................................................................................................... 48 Philippines........................................................................................................................................... 48 Romania .............................................................................................................................................. 49 Tajikistan............................................................................................................................................