The World Trade Organization (WTO) will investigate how China suppresses the counterfeiting of intellectual property and trademarks based on a request from the United States, according to documents from the international organization released on Friday.
The agenda for the WTO Dispute Settlement Body meeting scheduled for September 25 shows that the U.S. is asking the international organization to form a panel to examine China’s protection and enforcement measures under intellectual property rights. Beijing blocked the initial request to establish such a body at the last meeting held on August 31, and under WTO rules, a second request automatically leads to its formation unless Washington withdraws it in the meantime.
The dispute initiated by the U.S. concerns the counterfeiting of goods and services such as films and software and is just the latest in a series of disputes that strain U.S.-China relations. Washington acknowledges that China has improved its intellectual property protection mechanisms in recent years but wants individuals who violate intellectual property rights or counterfeit trademarks to be punished more aggressively. The American side also seeks stricter regulations regarding the treatment of seized counterfeit materials. Foreign companies claim they lose billions of dollars annually due to Chinese counterfeits. (H)