Ukraine was recently flagged by the Office of the United States Trade Representative as the worst abuser of U.S. intellectual property (IP) rights. The designation was part of the agency’s annual report on the adequacy and effectiveness of U.S. trading partners’ protection and enforcement of IP rights.
As explained by the U.S. Trade Representative, the agency designated Ukraine a Priority Foreign Country (PFC) due to severe deterioration of IP enforcement. Specifically referenced areas of concern included “government use of pirated software and piracy over the Internet, as well as denial of fair and equitable market access through the authorization and operation of copyright collecting societies.”
This was the first time in seven years that a country earned this designation. The PFC designation is reserved by statute for countries with the most egregious IP rights violations, policies and practices with the greatest adverse impact on relevant U.S. products, and that are not entering into good faith negotiations or making significant progress in negotiations to provide adequate and effective IPR protection. Under Section 301 of the 1974 Trade Act, the United States is authorized to seek sanctions directly or through the World Trade Organization (WTO).
Ten countries – Algeria, Argentina, Chile, China, India, Indonesia, Pakistan, Russia, Thailand, and Venezuela – are on the Priority Watch List, the U.S. Trade Representative’s second most egregious ranking. With regard to China, the report cites troubling “indigenous innovation” policies that may unfairly disadvantage U.S. rights holders and the growing problem of misappropriation of trade secrets.
As the report highlights, “Thefts may arise in a variety of circumstances, including those involving departing employees, failed joint ventures, cyber intrusion and hacking, and misuse of information submitted to government entities for purposes of complying with regulatory obligations.” The report also notes that “public reports have further indicated that actors affiliated with the Chinese military and Chinese Government have systematically infiltrated the computer systems of over one hundred U.S. companies and stolen hundreds of terabytes of data, including all forms of trade secrets, such as proprietary technology, manufacturing processes, and confidential business information.”
At Sheldon Mak & Anderson, we recognize that innovation is your competitive edge – and it needs protection. Recognized as one of the country’s “Best Law Firms” by U.S. News and Best Lawyers, our attorneys possess more than two decades of experience. Our full-service IP firm provides local, regional, national, and international legal services in the following areas: patents, trademarks, copyrights, trade secrets, IP litigation, international patent and trademark prosecution, licensing, alternative dispute resolution, and green technology.
Contact our knowledgeable intellectual property attorneys today TOLL FREE at 1-855-UR IDEAS (1-855-874-3327) or email us at tri@usip.com to find out how we can provide powerful protection for your unique ideas.
We have offices conveniently located in Pasadena (626-796-4000, 100 Corson Street Third Floor, Pasadena, CA 91103-3842); Ventura County (805-988-0876, 300 East Esplanade Drive, Suite 1200, Oxnard, CA 93030-1247; Riverside (951-787-7770, 5885 Brockton Avenue, Riverside, CA 92506-1863); Upland (909-946-3939, 222 N. Mountain Avenue, Suite 210, Upland, CA 91786-5714); and Orange County (855-874-3327, 2102 Business Center Drive, Suite 130, Irvine, CA 92612-1001).
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