Economy & Politics
U.S., China spar over WTO ruling in piracy dispute
By Tom Barkley and Min Zeng
444 words
23 March 2009







WASHINGTON -- The U.S. and China sparred Friday over a World Trade Organization ruling in a dispute about piracy of DVDs, music, books and other copyright products.

The WTO ratified an earlier decision that faulted some, but not all, of China's protections for intellectual property.

The case was brought by the Bush administration, but President Barack Obama has pledged to take an even tougher line on trade with China.

Mr. Obama's newly confirmed trade representative, Ron Kirk, said Friday he looks "forward to China's prompt compliance with the WTO's rulings in this dispute as a positive step toward addressing the continuing challenges of counterfeiting and piracy in China."

China interpreted the ruling differently. Yao Jian, spokesman for China's Ministry of Commerce, said in a statement that the WTO rebutted most of the U.S. claims.

Mr. Yao defended China's intellectual-property system, saying the country has "consistently proposed that strengthening dialogue and cooperation should become the trend for global efforts to protect intellectual-property rights."

Neither side appealed the earlier finding, which was issued in January, even though it was a split decision.

"The significance of today is that nobody appealed, said Simon Lester, chief administrator for Washington-based WorldTradeLaw.net LLC, a consultancy.

An official from the European Union, which was an observer and not a complainant in the dispute, said, "We obviously welcome any enforcement of intellectual-property rights."

The U.S. filed the claim in 2007, citing three structural problems in China's enforcement laws. The panel, and now the WTO members, sided with the U.S. on two of these, according to the USTR.

The WTO found that Chinese copyright law doesn't provide adequate protection for works that don't meet the country's "content review" standards. On another area, the WTO group said China's customs rules for disposing of goods that violate intellectual-property rights laws were insufficient.

Mr. Yao said "the panel has emphasized in their findings that their decisions won't affect China's rights to censor content."

Meanwhile, the WTO said it needed more evidence to determine whether China's criminal enforcement standards for piracy and counterfeiting aren't stringent enough, according to the USTR.

The U.S. has long complained about piracy of DVDs, music, books and other copyright products in China, which the International Intellectual Property Alliance estimates exceeds $3.5 billion a year.

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