Better protecting U.S. intellectual property rights should be a high priority in negotiating a new trade agreement with Japan, tech groups urged the Office of the U.S. Trade Representative in comments posted this month in docket USTR-2018-0034. USTR sought comment in late October to develop U.S. negotiating positions with the aim of addressing “both tariff and non-tariff barriers and to achieve fairer, more balanced trade.” A “flexible” and “balanced” IP “regime” is critical “for the continued growth of the digital economy,” said the Computer & Communications Industry Association. A U.S.-Japan free trade agreement “should reflect the two trading partners’ commitments to preserving limitations and exceptions in copyright law needed to further innovation,” said CCIA. U.S. trade policy “has long reflected domestic copyright principles by including necessary intermediary protections for online services in trade agreements dating back to 2003,” it said. The “single most important part” of the semiconductor manufacturing industry is its IP, said SEMI, the industry’s top supply-chain trade group. Continued technological development “requires significant resource commitments, and as such, strong global intellectual property protections are a top priority,” it said. “The ability to leverage this intellectual property means that companies in this industry can engage in trade and reinvest revenue into research.” SEMI strongly supports efforts to better protect IP, “and encourages greater enforcement of trade and investment rules,” it said. A Semiconductor Industry Association top negotiating priority is a U.S.-Japan trade deal that ensures access to encryption products, said SIA. “We recommend that all U.S. trade agreements contain specific commitments preventing parties from placing discriminatory restrictions on commercial foreign products with encryption,” said SIA. It also wants a trade agreement that bolsters protections of trade secrets, which remain “extremely vulnerable, especially in jurisdictions with weak laws and/or enforcement practices," it said. SIA warned about "misappropriation of trade secrets enabled or encouraged" by government industrial policy. Comments were due by midnight Monday. The U.S. Office of the Intellectual Property Enforcement Coordinator received comments last week as it looks to put together its next three-year joint strategic plan (see 1811260014).
From harsher criminal penalties for some streaming piracy to more engagement with U.S. trade partners, media groups, tech companies and others had suggestions for the Office of the U.S. Intellectual Property Enforcement Coordinator in docket 2018-19863 as IPEC puts together its next three-year joint strategic plan. Google said IPEC should seek feedback from rights holders on hurdles to suing rogue sites in foreign courts and a modernization of the Copyright Office by putting registration and recordation systems online. Calling streaming piracy via plug-and-play devices an "insidious" threat, NCTA said the U.S. needs to engage trading partners more on adopting and enforcing copyright protections, and IPEC needs to prioritize trying to persuade trading partners to shut illicit streaming services. It said the FCC should use RF equipment authorization powers to deter makers and importers of piracy devices from selling in the U.S. by bringing "stiff" monetary penalties. BSA sought engagement with trade partners. The Copyright Alliance and MPAA urged continued public access to Whois data (see here and here). The alliance said IPEC should back harmonization of criminal penalties for copyright infringement, so infringement of a public performance right -- typically a misdemeanor -- is treated the same as infringement of the reproduction and distribution rights, which can result in felony charges. It said the Trusted Notifier program between MPAA and some domain name registries bore fruit in fighting online infringement, and IPEC should encourage more domain registries and registrars to employ similar arrangements. The Independent Film & TV Alliance and RIAA and National Music Publishers' Association (see here and here) said Congress should classify large-scale streaming piracy as a felony. The U.S.-Mexico-Canada Agreement doesn't include a fair use standard, and IPEC should encourage U.S. trade negotiators to push for one, R Street Institute said, urging roundtable discussions on such issues as how the U.S. can encourage other nations to adopt fair use models. Public Knowledge said IPEC needs to be mindful of how enforcement schemes might affect non-infringing users. PK said enforcement should focus "on targeted bad actors." The Internet Association said the U.S. needs to defend copyright law flexibility that includes fair use and Digital Millennium Copyright Act safe harbors both domestically and internationally. Push back against curtailing intermediary liability protections, IA asked. Tech groups told the U.S. Trade Representative that bolstering IP rights should be a high priority in negotiating a new trade agreement with Japan (see 1811260011).
U.S. officials should include anti-sex trafficking language in free trade agreement negotiations with the EU, the U.K. and Japan, Rep. Mimi Walters, R-Calif., wrote U.S. Trade Representative Robert Lighthizer in a letter dated Tuesday. Walters, who introduced a key amendment added to a recently passed anti-sex trafficking law (see 1803300033), commended inclusion of the bill’s language in the U.S.-Mexico-Canada Agreement.
The U.S. trade representative shouldn't designate WeChat a notorious market (see 1810040053) because its policies combat copyright infringement, the owner of the mobile app commented, filed Tuesday. Tencent acknowledged “some bad actors may seek to use the WeChat instant messaging platform to promote infringing goods,” but its terms of service prohibit such activity. Thailand argued its online and offline markets shouldn't receive the designation, either, citing widespread enforcement. January-August, Thai authorities did 4,800 raids on physical markets and seized 10.5 million items, officials said. January-July, Thai authorities did 117 raids in online markets and seized 4,878 products. Like entertainment industry groups, the International Intellectual Property Alliance cited The Pirate Bay as a bad actor, plus Rapidgator.net and Uploaded.net.
ThePirateBay.org, an illicit torrent indexing service, remains a prominent target for the music, film and video game industries, show comments to the Office of the U.S. Trade Representative posted this week. USTR collected comments through Monday for its Special 301 report on countries and groups that infringe U.S. intellectual property.
Congress needs to “instruct” U.S. Trade Representative Robert Lighthizer to bring a World Trade Organization case for violating WTO rules against unfair trade practices, testified Information Technology and Innovation Foundation President Rob Atkinson Wednesday before the House IT Oversight Subcommittee. Congress should “take a hard line on limiting most Chinese investment” in the U.S., including in Chinese-backed “tech accelerators,” said Atkinson. He urged limiting “ongoing science and technology cooperation” with China, "especially considering that much of that cooperation is lopsided,” he said. The Trump administration placed Trade Act Section 301 tariffs “on a wide array of Chinese exports in an effort to bring the Chinese government to the negotiating table,” said Atkinson. “It is not clear if this approach will succeed.” The “most important step” the U.S. can take is develop a “joint campaign with our allies” to curb bad Chinese behavior, he said, to make "it more likely that China feels like it has no choice but to play more by the rules.”
Tariffs took effect on $200 billion worth of Chinese imports, including duties the tech industry fought unsuccessfully (see 1809120049). China retaliated later Monday with tariffs on $60 billion in imports from the U.S. President Donald Trump has threated to “immediately pursue” a fourth installment of tariffs on $267 billion worth of additional Chinese imports as a countermeasure. Micron and Voxx (see 1809210002) are among those accepting tariffs as a fact of life and increasingly turning their sights toward mitigation strategies. “Product-specific” exclusion requests are another option, emailed David Cohen, customs law expert with Sandler Travis. The Office of the U.S. Trade Representative had sought exclusions on the first two rounds of tariffs that took effect July 6 and Aug. 23. “No decisions have been made on the thousands of requests,” Cohen said.
That U.S. tariffs on $200 billion worth of Chinese imports take effect Monday gives potential challengers, including from the tech and telecom industry, little time to weigh a court challenge blocking the duties before they take effect. The quick turnaround, published in a notice U.S. Trade Representative Robert Lighthizer released Monday (see 1809170053), bore out CTA member companies’ worries the Trump administration would release its order imposing the tariffs soon after the comment period expired Sept. 6. The new tariffs "run afoul of the carefully tailored provisions” of the 1974 Trade Act, “which require any action to be within the scope [an] investigation," said CTA President Gary Shapiro Monday.
Joining tech, telecom and other heavyweights, Logitech opposed Part III of tariffs (see 1809130056) on Chinese goods imported to the U.S. over intellectual property disagreements between the superpowers. The manufacturer also was in the company of hundreds of others opposing tariffs on connected devices under two subheadings, commenting in docket USTR-2018-0026. If the Trump administration doesn't spare those goods, Logitech wants the U.S. Trade Representative to exempt tariffs on what's from “wholly foreign-owned enterprises” (WFOEs) in China. The company imported more than $250 million worth of such goods from China last year. Logitech’s IP and proprietary technology “is better protected at its WFOE in China” than it would be if entrusted to “a third-party manufacturer in any other country,” said the company. “Logitech’s intellectual property and proprietary technology actually would arguably be less protected if it were to source computer mice, video conference cams and webcams from unrelated third parties outside of China.” Attention now turns to how long the administration will take to publish its determination on which items on the proposed list will stay and which will go, when they will take effect and whether they will be assessed at 10 percent or 25 percent.
21st Century Fox General Counsel Gerson Zweifach stepping down following anticipated early 2019 close of asset sale to Disney, returning to Williams & Connolly ... Kaya Singleton, ex-Information Technology and Innovation Foundation, joins Entertainment Software Association as associate director-federal government affairs ... Ofcom names Mansoor Hanif, ex-BT, chief technology officer ... Denielle Pemberton-Heard leaves PBS for Diversified Search as general counsel-managing director.