US calls level of China copyright theft 'unacceptable'

WASHINGTON: The US government said on Friday that the level of theft of copyrights and patents in China "remains unacceptable" and kept Beijing on a "priority watch list" for intellectual property protection.

An annual report by the US Trade Representative's office (USTR) said that China's enforcement regime "remains largely ineffective and non-deterrent" and that US copyright industries ranging from software and movies to publishing to footwear "report severe losses due to piracy in China.

China will remain on the "priority watch list" in 2010 and will remain subject to monitoring by USTR.

The report said China's enforcement of intellectual property and implementation of a global agreement on the issue under the World Trade Organisation "remain top priorities for the United States."

"The United States is heartened by many positive steps the Chinese government took in 2009 with respect to these issues," USTR said.

"However, the overall level of IPR (intellectual property rights) theft in China remains unacceptable," it added.

"Exacerbating its enforcement difficulties, China maintains market access barriers, such as import restrictions and restrictions on wholesale and retail distribution, which can discourage and delay the introduction into China's market of a number of legitimate foreign products that rely on IPR."