The Office of the United States Trade Representative (USTR) has released its 2025 Special 301 Report, providing a comprehensive analysis of the protection and enforcement of intellectual property (IP) rights among U.S. trading partners.
During the announcement, Ambassador Jamieson Greer emphasized the pride Americans take in being the world’s leading innovators and creators.
“Our trading partners must address the concerns identified in the Special 301 Report and stop those stealing the intellectual property of hard-working businesses and individuals,” Greer stated.
This extensive report serves as a foundation for the United States to take necessary trade enforcement actions against countries that are perceived to be acting unfairly.
The report includes findings from a review of over 100 trading partners, highlighting the current landscape of intellectual property rights globally.
One notable change is Mexico’s shift from the Watch List to the Priority Watch List, reflecting significant, unresolved long-standing IP issues.
Many of these concerns relate to Mexico’s compliance with the United States-Mexico-Canada Agreement (USMCA), including enforcement against trademark counterfeiting and copyright piracy, as well as protections for pharmaceutical-related IP.
Additionally, pre-established damages for copyright infringement and trademark counterfeiting, along with plant variety protection, remain major issues.
In contrast, Turkmenistan has been removed from the Watch List; stakeholders have not raised significant concerns about IP protection or enforcement over the years.
The Priority Watch List now includes eight countries, indicating severe IP protection and enforcement challenges as well as market access problems for U.S. entities relying on IP.
China continues to face scrutiny due to persistent issues like technology transfer, trade secrets, counterfeiting, and online piracy, with USTR noting that China has either failed to implement or has only partially implemented many of its Phase One Agreement commitments related to intellectual property.
Concerns have also been raised regarding Indonesia, which struggles with widespread piracy and counterfeiting alongside significant local manufacturing of counterfeit goods shifting to online sales.
USTR highlighted urgent issues in areas such as border enforcement, exceptions to copyright, pharmaceutical-related IP, and patent law implementation in Indonesia.
The report recognizes Vietnam’s efforts to bolster criminal enforcement; however, it remains a notable source of online piracy with little progress on other significant IP concerns, including counterfeit goods and geographical indications.
Brazil similarly lacks effective enforcement against widespread counterfeiting and has not adopted international treaties that would modernize copyright protection for the digital realm, resulting in longer patent approval processes compared to many other countries.
Several cross-cutting issues affecting various countries were also highlighted in the report.
Online piracy remains a significant challenge for copyright enforcement in numerous foreign markets, as stakeholders in creative sectors emphasize its critical impact on their livelihoods.
The ongoing issue of counterfeit products, often originating from countries like China, continues to worry consumers and legitimate producers alike.
The concern regarding forced technology transfer is particularly pertinent in locations like China, where government measures can coerce businesses into transferring IP development or providing access to technologies as a condition for market access or regulatory approvals.
Moreover, concerns persist surrounding the European Union’s promotion of exclusionary geographical indications policies, which continue to restrict access for U.S. exporters who rely on common names or previously registered trademarks.
The report also details a range of issues in pharmaceuticals and medical devices, noting ongoing concerns across multiple trading partners regarding IP protection, enforcement, and market access.
The Special 301 Report is an annual examination of global IP protection and enforcement, in compliance with Section 182 of the Trade Act of 1974, revised by subsequent acts including the Omnibus Trade and Competitiveness Act of 1988.
This year, the report categorized a total of 26 trading partners on either the Priority Watch List or the Watch List, which merits focused bilateral engagement to resolve IP problems.
Countries listed on the Priority Watch List include Argentina, Chile, China, India, Indonesia, Mexico, Russia, and Venezuela, all facing serious IP issues.
The 18 countries on the Watch List warrant bilateral discussions to address their IP challenges.
These nations are Algeria, Barbados, Belarus, Bolivia, Brazil, Bulgaria, Canada, Colombia, Ecuador, Egypt, Guatemala, Pakistan, Paraguay, Peru, Thailand, Trinidad and Tobago, Türkiye, and Vietnam.
Although the Special 301 review of Ukraine has been suspended due to the ongoing war, the USTR aims to tackle pertinent concerns and improve collaboration in the realm of intellectual property.
Public engagement continued to play a role in this year’s Special 301 process, with USTR seeking written submissions from stakeholders and hosting a public hearing on February 19, 2025.
USTR received feedback from 45 non-government stakeholders and 19 foreign governments, which contributed valuable insights to the prevailing discourse on intellectual property enforcement.
The submissions generated during the Federal Register notice are accessible online for public review.
As the USTR invests further in enhancing the landscape for IP protection and enforcement, the 2025 Special 301 Report underscores the commitment to securing fair trading practices and ensuring the safety of American intellectual property rights in foreign markets.
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