The Organization’s dispute settlement body (DSB) made the announcement on September 25. Consultations between the two sides in the dispute failed earlier this year and the US subsequently requested the WTO to set up a panel in August.

China refused the first request, but according to DSB rules cannot refuse a second.

The US first brought the IP enforcement case, along with a second related to China's alleged barriers to trade in books, music, videos and films, in April this year.

In a making the request at the DSB meeting on September 25, the US said:

"As we have said before, the United States recognizes that China has made the protection of intellectual property rights a priority, and that China has taken active steps to improve IPR protection and enforcement."

The Chinese government did not make a written statement to the WTO, but Xinhua news agency, the official Chinese news agency, quoted an official from the Chinese mission to the WTO as saying:

"By initiating the case, the United States is actually trying to change the WTO legal structure on IPR protection, with an attempt to impose extra obligations on developing members."

He added that China would not accept obligations that go beyond those set out in the TRIPs Agreement.

Japan, Mexico, the EU, Taiwan and Argentina have all reserved their third party rights. This allows them to express their views before the panel. It is still possible that other countries may join the dispute.

Once members are appointed, the panel has six months to make a decision, which is subject to appeal.

The May issue of Managing IP included an in-depth analysis of the two US-China WTO cases. Subscribers can read it here.