The US has grouped India along with China and Russia on a priority watchlist of nations against which it might take action for inadequate protection to intellectual property (IP) of American companies.
This year’s Special 301 Report on the adequacy and effectiveness of U.S. trading partners’ protection and enforcement of intellectual property (IP) rights by the US Trade Representative (USTR) has again put India on the ‘Priority Watch List’ that also includes Argentina, Chile, Indonesia, Mexico and Venezuela.
“India remains one of the world’s most challenging major economies with respect to protection and enforcement of IP,” the report said.
For countries failing to address U.S. concerns, USTR will take appropriate actions, which may include enforcement actions under Section 301 of the Trade Act or pursuant to World Trade Organization (WTO) or other trade agreement dispute settlement procedures, the USTR said.
Section 301 of the Trade Act of 1974 allows the US to take actions against countries that engage in unfair or discriminatory trade practices that burden or restrict U.S. commerce. These actions can include imposing tariffs, investigative trade practices and even retaliatory measures.
The concerns identified in the report are based on the inputs provided by the American industry on their perception of the level of protection provided by India to Intellectual Property.
Patent issues continue to be of particular concern in India, the report said. Among other concerns, the potential threat of patent revocations and the procedural and discretionary invocation of patentability criteria under the Indian Patents Act impact companies across different sectors.
“Moreover, patent applicants generally continue to confront long waiting periods to receive patent grants and excessive reporting requirements. Stakeholders continue to express concerns over vagueness in the interpretation of the Indian Patents Act,” the report said.
It did acknowledge the actions taken by India to promote IP protection and enforcement in some areas and steps taken to partially address long-standing issue with patent pre-grant opposition proceedings and cumbersome reporting requirements.
Among other issues highlighted against India in the report are problems of trademark counterfeiting. India along with China and Turkiye has been identified as a source country for counterfeit goods, including semiconductors and other electronics, chemicals, medicines, automotive and aircraft parts, food and beverages, household consumer products, personal care products, apparel and footwear, toys, and sporting goods.
The top countries of origin for counterfeit pharmaceuticals seized at the US border in 2024 were India, China, including Hong Kong, the United Arab Emirates, and Singapore, the report said. Another issue highlighted against India in the report is the high levels of online piracy and lack of effective enforcement.
High tariffs on pharma and medical devices also find a mention in the report and delays in dealing with infringement of copyright also have been highlighted. “Companies also continue to face uncertainty due to insufficient legal means to protect trade secrets in India,” the USTR said.