The reports are based on a leaked draft interim report that was circulated to the US and China and is part of the WTO’s dispute resolution process.
Although the details of the interim report are confidential, a USTR official told Managing IP: “In response to published press reports, we can confirm that the panel agreed with the United States on two out of three US claims. We are, of course, still reviewing the report, but so far are very pleased that the Panel has found that China has violated its WTO obligations.”
In April 2007 the USTR brought two cases against China at the WTO. The first case (DS-362) makes three complaints: that China’s system of thresholds for criminal enforcement of trade mark infringement is inadequate; that its practice of removing the infringing part of counterfeit goods and reintroducing them into channels of commerce is against WTO rules; and that China is denying copyright protection to books and films that have not been authorised by the censors.
The second case (DS-363) concerns China’s alleged barriers to trade in books, music, videos and films.
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