WTO Issues Split Ruling in U.S. Piracy Dispute With China

Authored by Mark Hefflinger on March 20, 2009 - 11:40am.

Washington - The U.S. Trade Representative claimed victory over China in a dispute over piracy and counterfeiting of U.S. goods at the World Trade Organization (WTO), although the split ruling also China declaring itself the victor.

The WTO agreed with the U.S. that China was in violation of trade agreements when it prohibits distribution of U.S. movies, music and books that have not be approved by government censors.

It also said that China may not allow public auctions of counterfeit goods seized by customs authorities with fake labels intact.

"I look forward to China's prompt compliance with the WTO's rulings in this dispute as a positive step toward addressing the continuing challenges of counterfeiting and piracy in China," said U.S. Trade Representative Ron Kirk.

However, the U.S. did not persuade the WTO to find that China's threshold for prosecuting pirates and counterfeiters was set too low.

"The expert group report rebutted the great majority of the U.S. side's claims and broadly vindicated China's intellectual property system," Yao Jian, a spokesman for China's Commerce Ministry, said in a statement.

Related Links:
http://snipurl.com/e88gk (PDF: USTR statement)

http://www.reuters.com/article/technologyNews/idUSTRE52J3T920090320

http://online.wsj.com/article/BT-CO-20090320-709765.html