CTA and the National Retail Federation praised Monday’s announcement of a preliminary bilateral trade deal between the U.S. and Mexico (see 1808280010) as an encouraging first step, stopping short of endorsement pending details. “A deal that encourages free trade between our countries certainly is welcome,” said Michael Petricone, CTA senior vice president-government and regulatory affairs. If President Donald Trump “really wants a better deal” than the North American Free Trade Agreement, any pact “must support our country's technology leadership,” said Petricone. “We look forward to learning more about the details." NRF thinks “coming to terms with Mexico is an encouraging sign, but threatening to pull out of the existing agreement is not,” said CEO Matthew Shay. “NAFTA supports millions of U.S. jobs and provides hardworking American families access to more products at lower prices. To preserve these benefits and protect complex, sophisticated and efficient supply chains, the administration must bring Canada, an essential trading partner, back to the bargaining table and deliver a trilateral deal.”

Marketers of low-cost electronics for cars and other applications will be especially vulnerable if the Trump administration imposes a third tranche of 25 percent tariffs on Chinese imports, they commented Monday in docket USTR-2018-0026. Digital Products International (here) and car audio supplier Dual Electronics said their businesses are too profit-poor to absorb higher duties, worrying about increasing prices. Most Dual products sell for less than $100, for “people with older cars to not only have an affordable radio, but also basic connectivity features like Bluetooth,” wrote CEO Jim Braun. “Demand will surely drop for our industry” amid levies, he said. “Supply will be cut back as a result. Jobs will be lost as we, and others, adapt to a smaller business."

A preliminary deal between the U.S. and Mexico amending the North American Free Trade Agreement would extend the minimum copyright term to 75 years beyond the life of the work’s creator, the Office of the U.S. Trade Representative said Monday. The current copyright term for most music, movies and books extends 70 years. Public Knowledge Global Policy Director Gus Rossi called the proposal "a staggeringly brazen attempt by the entertainment industries to launder unpopular policies through international agreements" that won't survive domestic debate and violates congressional instruction.

Comments are due Monday on a complaint from Sipco requesting a Trade Act Section 337 import ban of wireless mesh networking products that allegedly infringe its patents. Its Aug. 6 complaint to the International Trade Commission alleged Emerson Electric and subsidiaries and Analog Devices and its Linear Technology are among those manufacturing or importing the infringing products, used for monitoring or controlling wireless remote devices in industrial environments by way of a self-healing network. Sipco requests limited exclusion orders and cease and desist orders banning import and sale of Emerson Electric and Analog wireless mesh networking products. Sipco’s petition is "unfounded" and Emerson can't "comment as there is related litigation pending" in U.S District Court in Atlanta, said a spokesperson. Analog didn't comment Friday.

The Office of the U.S. Trade Representative seeks comment by Oct. 1, rebuttals by Oct. 15 on "notorious markets" for intellectual property theft for its annual list, USTR said in Thursday's Federal Register on docket USTR-2018-0027.

A group of music labels is seeking to have ISP Grande Communications' Digital Millennium Copyright Act (DMCA) safe harbor defense claims thrown out. In a docket 17-cv-00365-LY motion (in Pacer) for partial summary judgment filed Wednesday in U.S. District Court in Austin, the music labels said that DMCA safe harbor requires ISPs to adopt and reasonably implement a policy for terminating repeat copyright infringers' accounts, but that Grande acknowledged it had no such policy for the relevant time period. They said Grande never terminated a repeat infringer until June 2017, after the suit was brought. They said a ruling that Grande isn't entitled to a DMCA safe harbor defense would "significantly streamline" the case and promote a speedier resolution. Grande outside counsel didn't comment Thursday.

Strategies for reducing exposure to U.S. tariffs on Chinese imports (see 1808030028) were discussed on Universal Electronics and GoPro Q2 earnings calls Thursday. Universal is developing plans to "mitigate" such costs by "gradually" shifting production of its "highest-priority or highest-volume" goods "out of China and into existing facilities that we have in Mexico or Brazil,” said CEO Paul Arling. The “vast majority” of Universal’s remote controls are manufactured in its Chinese factories, Arling testified against the tariffs at a July 24 Office of U.S. Trade Representative hearing. Shifting production “will take months to complete, which means that we may incur additional costs during the transition as we expect some of these additional tariffs to be implemented somewhere in late September or probably into October,” said Arling now. GoPro has escaped the tariffs, said CEO Nicholas Woodman. If that changes, Woodman thinks GoPro would be able to shift production easily to “two locations” without tariff exposure. Friday, GoPro closed up 18 percent at $7.05 and Universal gained 26 percent to end the day at $44.95.

China should continue to strengthen antitrust enforcement agencies, improve pro-innovation structures like intellectual property rights, and challenge government-created barriers to competition, said FTC Commissioner Maureen Ohlhausen Tuesday in Beijing. “Negative effects of government intervention in markets can be even more problematic than the actions of private actors.” She recommended Chinese antitrust enforcers follow the FTC's and DOJ’s example of focusing efforts on consumer welfare, not impacts to corporate competition. She warned Chinese authorities against using antitrust enforcement tools as a means for protecting domestic companies and industries against foreign competition. China started enforcing a new antitrust law in 2008, the same year its three anti-monopoly law agencies signed a memorandum of understanding with the FTC and DOJ. Ohlhausen credited China for continuing a joint dialogue with U.S. regulators, including Assistant Attorney General Makan Delrahim. She commended the China State Council’s June 2016 decision to establish a fair competition review system to prevent “excessive and inappropriate government intervention.” She emphasized China’s need to strengthen IP rights, as U.S. businesses accuse the Chinese of stealing IP information from American companies. “The countries that protect IP rights within their borders tend to foster innovation, those that fail to create the necessary predicates to investments in innovation lag behind,” said Ohlhausen.

Fitbit continues to worry about tariffs, its finance chief said shortly after the Trump administration said it might impose 25 percent (up from 10 percent) tariffs on $200 billion of Chinese products over intellectual property disagreements (see 1808010078). The company is “navigating a number of different paths” to reduce or eliminate such exposure, said Chief Financial Officer Ron Kisling on a Wednesday evening earnings call. Fitbit uses Chinese contract manufacturers to produce its devices, and tariffs would increase the bill of materials costs of goods it imports to the U.S., said Kisling. There’s no certainty whether the tariffs “will ultimately go into effect,” or if wearable devices can qualify for tariff “exemptions,” or “how much, if any, of the potential increase in cost can be mitigated,” said Kisling. The full-year forecast “excludes the potential impact,” he said. “We support open markets and free trade where everyone plays by the rules.” One proposed tariff line “covers a wide variety of wireless products, including fitness trackers and smartwatches, which comprise nearly all of Fitbit's products,” said the company in comments July 27 asking to testify against the duties. Also, following Q2 results, the company's stock closed down 7.9 percent Thursday at $5.45.

The Senate should pass the Music Modernization Act without a controversial amendment floated (see 1807250037) by Texas GOP Sens. Ted Cruz and John Cornyn, said broadcaster associations from all states, Washington, D.C., and Puerto Rico Wednesday. The bill, which passed the House and the Senate Judiciary Committee unanimously, “reflects historic consensus” by every group from songwriters to record labels, streaming services and broadcasters, they wrote Majority Leader Mitch McConnell, R-Ky., and Minority Leader Chuck Schumer, D-N.Y.