1 OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE + + + + + 2019 SPECIAL 301 PUBLIC HEARING + + + + + WEDNESDAY FEBRUARY 27, 2019 + + + + + The Hearing was convened in Conference Rooms I and II of the USTR Annex Building, 1724 F Street, NW, Washington, D.C. at 10:00 a.m., Daniel Lee, Chair, presiding. COMMITTEE MEMBERS DANIEL LEE, Chair EMILY BLEIMUND, U.S. Department of Health and Human Services SUNG CHANG, Office of the U.S. Trade Representative WON CHANG, U.S. Department of the Treasury KARIN FERRITER, U.S. Patent and Trademark Office BRAD GREENBERG, U.S. Copyright Office DAVID HENRY, U.S. Department of State OMAR KARAWA, U.S. Department of Agriculture MATTHEW LAMBERTI, U.S. Department of Justice STEVAN MITCHELL, U.S. Department of Commerce MAUREEN M. PETTIS, U.S. Department of Labor RACHEL SALZMAN, U.S. Department of Commerce ANNE SNYDER, U.S. Department of Health and Human Services Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 2 GOVERNMENT WITNESSES ALEJANDRO BILBAO LA VIEJA, Embassy of Bolivia REZA PAHLEVI CHAIRUL, Embassy of the Republic of Indonesia ALEJANDRA GASTELU-SOTOMAYOR, Ministry of International Trade and Integration, Government of Bolivia IVO KONSTANTINOV, Embassy of the Republic of Bulgaria BOKYUN NAM, Ministry of Health and Welfare, Government of the Republic of Korea SCARLEY MARINA VALERIANO BARROSO, National Service for Intellectual Property, Government of Bolivia VALERII ZHALDAK, Ministry of Economic Development and Trade, Government of Ukraine NON-GOVERNMENT WITNESSES JAIME CASTANEDA, Consortium for Common Food Names (CCFN) GUAN JIAN, China Chamber of International Commerce (CCOIC) TAN JIAN, China Chamber of International Commerce (CCOIC) MARIANA JORGE, MFJ International, LLC PAUL KILMER, Trademark Working Group MARK LAUROESCH, Intellectual Property Owners Association (IPO) JAMES LOVE, Knowledge Ecology International (KEI) PETER MAYBARDUK, Public Citizen CHRISTINA MITROPOULOS, American Apparel and Footwear Association (AAFA) CHRIS MOORE, Pharmaceutical Research and Manufacturers of America (PhRMA) ROGER MURRY, Alliance for Fair Trade with India (AFTI) RYAN ONG, National Association of Manufacturers JUSTIN PINE, Biotechnology Innovation Organization (BIO) Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 3 MATT PRIEST, Footwear Distributors and Retailers of America (FDRA) KEVIN ROSENBAUM, International Intellectual Property Alliance (IIPA) BRIAN SCARPELLI, ACT/The App Association NON-GOVERNMENT WITNESSES (cont'd) MATTHEW SCHRUERS, Computer and Communications Industry Association (CCIA) DAYAAR SINGLA, NALSAR Litigation Project (NLP) ELLEN SZYMANSKI, U.S. Chamber of Commerce JOSEPH WHITLOCK, BSA, The Software Alliance Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 4 CONTENTS Opening Remarks. 6 Government of Bolivia. .13 Government of Bulgaria . .20 Government of Indonesia. .30 Government of Korea. .39 Government of Ukraine. .46 ACT/The App Association. .55 Alliance of Fair Trade with India (AFTI) . .65 American Apparel and Footwear Association (AAFA) . .75 Biotechnology Innovation Organization (BIO). .86 BSA/The Software Alliance. .97 China Chamber of International Commerce (CCOIC). 108 Computer & Communications Industry Association (CCIA) . 115 Consortium for Common Food Names (CCFN). 125 Footwear Distributors and Retailers of America (FDRA) . 136 Intellectual Property Owners Association (IPO). 148 International Intellectual Property Alliance (IIPA). 157 Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 5 CONTENTS Knowledge Ecology International (KEI). 167 MFJ International, LLC . 178 National Association of Manufacturers (NAM). 187 NALSAR Litigation Project (NLP). 199 Pharmaceutical Research and Manufacturers of America (PhRMA) . 209 Public Citizen . 219 Trademark Working Group. 232 U.S. Chamber of Commerce . 242 U.S.-India Strategic Partnership Forum . 251 Closing Remarks - Office of the United States Trade Representative. 260 Adjourn. 261 Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 6 1 P-R-O-C-E-E-D-I-N-G-S 2 10:04 a.m. 3 CHAIR LEE: Good morning folks. Well, 4 we're going to get started. I know some people 5 are still filing in from security. 6 But, good morning. My name is Daniel 7 Lee, and I am the Acting Assistant U.S. Trade 8 Representative for Innovation and Intellectual 9 Property. 10 I would like to welcome everyone to 11 the public hearing for the annual Special 301 12 Review. The Special 301 Review is a statutorily 13 mandated exercise we undertake every year to 14 develop an overall strategy to ensure adequate 15 and effective intellectual property rights 16 protection and equitable market access in foreign 17 countries for United States persons that rely on 18 protection of intellectual property right such as 19 copyright and related rights, trademarks, 20 patents, and trade secrets. 21 Ensuring that U.S. owners of 22 intellectual property or IP have a full and fair Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 7 1 opportunity to use and profit from their IP is 2 one of the top trade priorities outlined in the 3 President's annual Trade Policy Agenda. 4 This is the 31st annual Special 301 5 Review, and the 10th public hearing that USTR has 6 hosted in connection with the Review. 7 I would like to note for the record 8 that today is Wednesday, February 27th, 2019. 9 And that this hearing is taking place at the 10 Office of the U.S. Trade Representative or USTR. 11 We will make a transcript of today's 12 hearing available to the public on USTR's 13 website. Today's hearing is scheduled to go 14 until approximately 3:30. 15 And we will break for one hour between 16 12:20 and 1:20. I would like to ask for 17 everyone's cooperation with keeping the hearing 18 on track. 19 At this point I would like to ask 20 colleagues on the hearing panel, all of whom 21 represent U.S. government agencies that serve on 22 the Special 301 Subcommittee to introduce Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 8 1 themselves. Maybe we can start at the end. 2 MR. KARAWA: Good morning. My name is 3 Omar Karawa from the Department of Agriculture. 4 Thank you. 5 MS. BLEIMUND: Good morning. Emily 6 Bleimund, Department of Health and Human 7 Services. 8 MS. PETTIS: Good morning, Maureen 9 Pettis, Department of Labor. 10 MR. LAMBERTI: Good morning everyone. 11 My name is Matt Lamberti. I'm with the U.S. 12 Department of Justice. 13 MR. CHANG: Good morning. My name is 14 Sung Chang. I am with the Office of the U.S. 15 Trade Representative. 16 MR. MITCHELL: I'm Stevan Mitchell 17 with the International Trade Administration, 18 Department of Commerce. 19 MR. HENRY: I'm David Henry with the 20 Department of State. 21 MR. CHANG: I'm Won Chang, Department 22 of Treasury. Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 9 1 MR. GREENBERG: Brad Greenberg, U.S. 2 Copyright Office. 3 MS. FERRITER: Good morning, Karin 4 Ferriter, U.S. Patent and Trademark Office. 5 CHAIR LEE: Thank you. The Special 6 301 Subcommittee of the Trade Policy Staff 7 Committee is comprised of the agencies you've 8 just heard from, and chaired by USTR. It 9 conducts the annual Special 301 Review each year. 10 The Review is driven by stakeholder 11 contributions and by contributions of Washington- 12 based agencies and our embassy-based personnel 13 around the world. The Subcommittee is currently 14 in the information gathering phase. 15 On behalf of the agencies here, we 16 thank you for the views, insights, opinions, and 17 factual information that you will share with us 18 today. 19 The schedule of today's hearing is 20 comprised of interested parties from foreign 21 government officials, private sector interest, 22 and civil society, who responded to USTR's notice Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 10 1 in the Federal Register, published on December 2 28th, and voluntarily requested the opportunity 3 to appear at this public hearing. 4 As a reminder, the purpose of today's 5 hearing is to provide the Special 301 6 Subcommittee with additional information that we 7 can use in deliberations that will lead to the 8 publication of the 2019 Special 301 Report to 9 Congress on or about April 26, 2019. 10 This year we have received public 11 filings that address over 75 countries and many 12 country-specific IP protection and enforcement 13 issues that may negatively affect our bilateral 14 trading relationships. 15 Those filings are available to the 16 public at www.regulations.gov. The Docket Number 17 is USTR-2018-0037. 18 The Special 301 Report is the result 19 of a Congressionally-mandated annual review of 20 the state of intellectual property rights, 21 protection, enforcement in trading partners 22 around the world, which the United States -- or Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 11 1 which the Office of the United States Trade 2 Representative conducts pursuant to Section 182 3 of the Trade Act of 1974 as amended by the 4 Omnibus Trade and Competitive Act of 1988, and 5 the Uruguay Round Agreements Act. 6 The provisions of Section 182 are 7 commonly referred to as the Special 301 8 Provisions of the Trade Act. Hence, the Special 9 301 Report. 10 Specifically, Section 182 of the Trade 11 Act requires that the United States Trade 12 Representative identify countries that deny 13 adequate and effective protection of intellectual 14 property rights, or that deny fair and equitable 15 market access to U.S.