The Biden Administration has designated India as one of the major economies facing significant challenges in the protection and enforcement of intellectual property (IP) rights. This decision was announced on Thursday as part of the 2024 Special 301 Report released by the US Trade Representative (USTR).

Joining India on the Priority Watch List are Argentina, Chile, China, Indonesia, Russia, and Venezuela. These countries will undergo heightened bilateral engagement over the next year to address concerns regarding IP protection and enforcement.

The annual "Special 301" Report evaluates the adequacy and effectiveness of US trading partners' IP rights protection and enforcement. This year, the Dominican Republic was removed from the Watch List.

While acknowledging progress in certain areas through initiatives like the US-India Trade Policy Forum, the USTR report underscores persistent challenges. These include inadequate IP enforcement, particularly concerning online piracy, trademark opposition backlog, and insufficient measures to safeguard trade secrets.

Specifically, the report calls for India's full implementation of the WIPO Internet Treaties and the prevention of copyright statutory licenses extending to interactive transmissions.

US Trade Representative Katherine Tai emphasized the need for collaborative efforts to address IP violations, especially those involving counterfeit goods with health and safety risks. Tai also noted the administration's stance on TRIPS flexibilities, maintaining consistency with TRIPS obligations.

The report highlighted ongoing concerns about patent issues in India, including potential patent revocations, prolonged waiting periods for patent grants, and ambiguity in the interpretation of the Indian Patents Act. Additionally, high customs duties on IP-intensive products remain a point of contention, impacting sectors such as information technology, solar energy, medical devices, pharmaceuticals, and capital goods.

Despite India's efforts to strengthen its IP regime and engage in dialogue with the US on IP issues, the report concludes that India remains one of the most challenging major economies concerning IP protection and enforcement.

Stakeholders continue to express concerns over the impact of these challenges on innovation, investment, and the overall business environment in India. Collaborative efforts and ongoing dialogue between the US and India will be crucial in addressing these complex IP issues in the coming year.