The theft of intellectual property remains a significant problem globally. That's the upshot of the "Special 301" report recently issued by the Office of the U.S. Trade Representative (USTR), which annually reviews the adequacy and effectiveness of intellectual property rights (IPR) protection by U.S. trading partners. Seventy-seven trading partners were reviewed in the 2009 report.

Among the significant developments in the 2009 Special 301 report is the inclusion of Canada, the United States' largest trading partner, to the Priority Watch list for the first time. The Priority Watch list is the most serious of three IPR monitoring lists. Countries on the priority list don't provide adequate levels of IPR protection or enforcement, or market access for persons relying on intellectual property protection, the USTR claims. "In this time of economic uncertainty, we need to redouble our efforts to work with all of our trading partners -- even our closest allies and neighbors such as Canada -- to enhance protection and enforcement of the intellectual property rights in the context of a rules-based trading system," stated USTR Ambassador Ron Kirk.

No country that appeared on the 2008 Priority Watch list fell off the 2009 version. However, Algeria and Indonesia were elevated to the Priority Watch list in this year's report, bringing to 12 the number of countries on that list. Another 33 countries appear on the lower-level watch list, while a single country -- Paraguay -- is on a special monitoring list. Highlights from the report include:

China -- Despite increased attention to intellectual property rights, enforcement remains "largely ineffective and non-deterrent." To illustrate, the report points out that 81% of IPR-infringing products seized at the U.S. borders in 2008 were of Chinese origin, and that share rose in terms of value by some 40% over 2007. Additionally, the report notes, "The United States also remains concerned by reports that officials, apparently motivated by the financial crisis and the need to maintain jobs, are urging more lenient enforcement of IPR laws."

On the plus side, the USTR noted that China launched an "unprece-dented" crackdown on unauthorized retransmissions of sporting events during the Beijing Olympics, reportedly resulting in 453 infringement cases. "This experience shows that when the Chinese government chooses to exercise its political will to deal with an IPR problem, it can yield results," the Special 301 report said. China remains on the Priority Watch list.

Source: industryweek.com