Monday, October 13, 2008

Who Won The IPR Dispute At The WTO Between China and the US?

Remember April 10, 2007, when the US brought claims against China at the World Trade Organisation (WTO) for allegedly violating the TRIPs Agreement because of unsufficient IPR enforcement (DS 362) and lack of market access (DS 363)? Read here.
Mr Jonathan Lynn reports about DS 362 for Reuters that sources at the WTO have said that China won the dispute on two counts against one brought against it by the US for its allegedly ineffective enforcement of intellectual property rights.
The interim ruling by the WTO Dispute Pannel about the US claims was as follows:
  • China has not done enough to tackle counterfeiting and piracy on a commercial scale, was acknowledged by the WTO Dispute Panel;
  • China's criminal code does not protect IP sufficiently, was rejected by the WTO Dispute Panel;
  • Chinese customs rules allow goods that infringe IP rights to be sold rather than destroyed, the WTO Dispute Panel found on some points that the TRIPs Agreement did not apply, and on other points that the US had not established that the Chinese rules infringed the TRIPs Agreement, so it rejected this claim as well.
Read Mr Lynn's article here.
However, Reuters also reports about an anonymous US official that said exactly the opposite, read here.

So who is right? At this moment the report remains confidential. You can, however, predict who is going to win by reading the following:
The final ruling is expected in November. To be continued ...


Anonymous said...

Nice Post. Thanks for sharing.

Gilman Grundy said...

Nobody 'wins' a WTO case, they are almost always split between the two parties. I went to a talk on this earlier this year by Justin Hughes of the Cardozo school of law, one thing he said that I thought was pretty funny - any future WTO case should have at least one point that you'll let the other side win, just to give the other side a bit of face. I guess it would also have been better if we had had this kind of case earlier and with parties other than the US and China. Just seeing the words "US v China" has a weird effect on people.

Anonymous said...

Conceit is the quicksand of success.

Warsaw University