The US business community has requested to continue to include China in the monitoring list of Section 306.

Some US business groups have asked the US Trade Representative Office to continue to include China in the monitoring list of Section 306 of its Trade Act. According to the provisions of this article, the United States can directly take retaliation measures for the violation of intellectual property rights in the listed countries without special investigation of Section 301.

Since 1995, the United States has consistently included China in its monitoring list of Section 306. In December 2001, the US Trade Representative Office sought the opinions of the US public on the annual special 301 clause report. Groups such as the International Intellectual Property Alliance (IIPA), the International Anti-Counterfeiting Federation (IACC), and the Pharmaceutical Research and Manufacturers Association (PhRMA) submitted written comments to the US Trade Representative Office.

According to a report submitted by the International Intellectual Property Alliance on February 15, China’s piracy rate in the fields of film, sound recordings and computer software is 85-99%, and it is thus recognized that China is still the world’s worst market for the legal software industry. one. The president of the alliance, Eric Smith, believes that piracy is a common problem in China. 90% of China’s piracy rate directly violates WTO regulations, because the WTO requires its members to take effective actions to crack down on IPR infringement.

The alliance also made specific criticisms of China’s relevant legislative measures. It accused China’s newly revised copyright law of failing to address the lack of enforcement of intellectual property rights because it did not increase administrative fines, did not provide for criminal penalties for infringement and piracy, and also accused the law of inconsistency with the relevant WIPO agreement. . Regarding the software regulations issued by China in December last year, the alliance believes that some of these regulations may violate the relevant provisions of the WTO.

According to the report submitted by the International Anti-Counterfeiting Federation on February 14, although the relevant regulations of China Customs have provided monitoring and confiscation methods for infringing products, the deterrent effect of the regulations has not been realized, and China is still exporting a large number of counterfeit products. According to the report of the Federation, China has topped the list for five consecutive years in the past six years in the countries of origin of infringement and counterfeit products confiscated by the US Customs. In 2001, the US Customs detained Chinese counterfeit products worth up to US$26.4 million.