The Bush administration, ratcheting up trade tensions with China, announced today that it was starting a formal international proceeding against that nation for failure to protect movies, music and other intellectual property.
“Piracy and counterfeiting levels in China remain unacceptably high,” said U.S. Trade Representative Susan Schwab. “Inadequate protection of intellectual property rights in China costs U.S. firms and workers billions of dollars each year, and in the case of many products, it also poses a serious risk of harm to consumers in China, the United States and around the world.”
Schwab announced that the United States would file two requests for “dispute settlement consultations” with China through the World Trade Organization. One request covers China’s inability to adequately protect copyrights and trademarks on intellectual property; the other addresses trade barriers to products being legally sold in China.
The formal WTO actions are the first by the U.S. against China involving intellectual property since China joined the international trading community in 2001. It is the first step to resolving the dispute over the flood of pirated DVDs available in Chinese cities.
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