US set to lose WTO criminal thresholds case against China
01 November 2008
Last month the result of the US WTO case against China for poor IP enforcement was leaked and both sides won on different points. Peter Ollier looks at the implications
How can you win 2-1 but still lose? This is not a sporting trivia question, but one that USTR officials may have been asking themselves when they received the draft version of the WTO's verdict in the IP dispute between the US and China. Although the USTR was able to put out a statement claiming victory, it lost on the crucial point dealing with criminal enforcement of trade mark infringement.
The final report will be issued to both parties this month and only then will it be officially distributed. The impact of the defeat will depend on exactly how the WTO has worded its decision. But without a victory on the issue of thresholds, a case that caused soured relations at the time it was first launched will be seen as failure, and people who want to improve China's enforcement system will need to find another way to do so.
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