The U.S. Trade Representative’s proposed 25 percent tariffs on Chinese goods over intellectual property issues and the Trump administration’s “escalating” threats to raise tariffs higher “will not effectively advance our shared goal” of changing China’s “harmful” trade practices “in a durable, verifiable, and enforceable manner,” commented CTA, the Information Technology Industry Council, Telecommunications Industry Association and many others. “The proposed tariffs will be counterproductive and undermine” the administration’s efforts “to change China’s policies and practices” through face-to-face negotiations, the groups filed Friday in docket USTR-2018-0005. “Tariffs are taxes.” CTA said it “categorically opposes the imposition of tariffs on the products identified in USTR’s proposed list.”
The Office of the U.S. Trade Representative's annual review of countries' intellectual property practices added Canada and Columbia to a "priority watch list," as other countries remained on it including China, for 12 nations total, one more than 2017 (see 1704280059). Canada remains the only G7 country identified in the "Special 301" report and "downgrade" is amid "significant concerns" like "poor border and law enforcement with respect to counterfeit or pirated goods" and "deficient copyright protection," USTR reported. "Canada does not provide customs officials with the ability to inspect, detain, seize, and destroy in-transit counterfeit and pirated goods entering Canada destined for the United States." Canada's embassy didn't comment, nor did that of China or Colombia on Friday. Colombia should work on issues involving ISPs, USTR said. "As online piracy, particularly via mobile devices, continues to grow, Colombian law enforcement authorities with relevant jurisdiction, including the National Police and the Attorney General, have yet to conduct meaningful and sustained investigations and prosecutions against the operators of large pirate websites and mobile applications based in Colombia," it said on IP generally. China is on the priority watch list for the 14th consecutive year, USTR announced. "Longstanding and new IP concerns merit increased attention, including China’s coercive technology transfer practices, range of impediments to effective IP enforcement, and widespread infringing activity -- including trade secret theft, rampant online piracy, and counterfeit manufacturing." MPAA CEO Charles Rivkin said "American creators still face significant challenges in foreign markets protecting and enforcing their intellectual property rights, especially in the form of online piracy." The International IP Alliance noted that among 24 countries on the lower-tier "watch list" are "key markets for creators like Brazil, Mexico, Switzerland, Thailand, United Arab Emirates, and Vietnam." Added to the watch list for 2018 were the UAE, Saudi Arabia and Tajikistan, while Bulgaria was removed, a USTR representative noted. Others reacting favorably to the report were BSA|The Software Alliance and the Entertainment Software Association.
Negotiators of the North American Free Trade Agreement should include Section 230-modeled protections for online intermediaries to encourage free speech and foster startup efforts, TechFreedom said Friday of a letter it sent with many tech groups and associations. Section 230 of the Communications Decency Act provides liability protection for online hosts and moderators of user-generated content. “Without those protections, even the biggest tech companies would be discouraged from empowering their users to speak freely,” TechFreedom founder Berin Szoka said. “But for startups, the potential liability would be fatal.” Others signing the letter to U.S. Trade Representative Robert Lighthizer and leaders from Mexico and Canada include the Center for Democracy and Technology and Internet Association.
The U.S. Trade Representative’s office accepted CTA’s request for Sage Chandler, vice president-international trade, to testify at the May 15 hearing in opposition to the Trump administration’s proposed 25 percent tariffs over intellectual property disputes on certain goods imported from China (see 1804050005), a CTA spokeswoman emailed us Thursday. “U.S. imports of products from China that are on the USTR proposed tariff list" include products members import, Chandler commented, posted Wednesday in docket USTR-2018-0005.
The China Chamber of International Commerce opposes the Trump administration’s imposition of 25 percent tariffs on Chinese imports (see 1803230016) and wants to send delegates from Beijing to the U.S. Trade Representative’s May 15 hearing to testify to that effect, it commented, in a filing posted Wednesday in docket USTR-2018-0005. “None of the public comments submitted by interested parties has identified any Chinese laws or regulations that mandatorily requires technology transfer, or present any real and concrete case in which the Chinese government has in practice forced transfer of technologies.”
Senate Judiciary Committee members and Patent and Trademark Office Director Andrei Iancu expressed willingness Wednesday to explore legislative proposals on patent eligibility issues for artificial intelligence. Two Supreme Court decisions -- Alice Corp. v. CLS Bank International and Mayo v. Prometheus -- created “significant confusion” for applying traditional patent protections to AI algorithms, Iancu said during an oversight hearing. PTO can issue certain guidance and better clarity surrounding AI patent application, but “it’s not easy” since the office has those two cases for context. “If there is an interest in this committee or elsewhere, we would be very happy to work with you toward a solution,” Iancu said.
Mastercard hires former U.S. Trade Representative Michael Froman as vice chairman and president-Strategic Growth ... Register of Copyrights promotes Catherine Zaller Rowland to associate register of copyrights and director-public information and education ... AI finance platform maker Kasisto names Rich Ciapala, ex-Microsoft, senior vice president-engineering ... European streamer Qobuz names Yann Miossec, ex-Warner Music France, CEO ... Lobbyist registrations: ASCAP, Venable, effective April 5 ... AT&T, PJM Strategies, effective April 1 ... Disney, PJM Strategies, effective April 1 ... NAB, Becker & Poliakoff, effective April 1 ... Crown Castle International, Hogan Lovells, effective March 23 ... Microsoft, 10-Square Solutions, effective March 19 ... CTIA, Empire Consulting Group, effective March 1 ... Lobbyist registrations: ASCAP, Venable, effective April 5 ... AT&T, PJM Strategies, effective April 1 ... Disney, PJM Strategies, effective April 1 ... NAB, Becker & Poliakoff, effective April 1 ... Crown Castle International, Hogan Lovells, effective March 23 ... Microsoft, 10-Square Solutions, effective March 19 ... CTIA, Empire Consulting Group, effective March 1.
U.S. Trade Representative Robert Lighthizer should focus on securing “strong copyright provisions” in U.S. trade agreements because “robust” intellectual property protections are “essential to American innovation and economic growth,” Sens. Orrin Hatch, R-Utah, and Bill Nelson, D-Fla., wrote Lighthizer Friday. “Without adequate global safeguards to combat the growing international incidence of counterfeit goods and intellectual property theft, the strength and vitality of America’s most creative and innovative sectors diminishes.” USTR didn't comment.
It’s “time for quick action” for companies that want to sway the U.S. Trade Representative’s office against imposing Trade Act Section 301 tariffs of 25 percent on 1,200 classifications of goods imported from China in the list released Tuesday (see 1804040054 or 1804040023), said DLA Piper in an "international trade alert." Companies “have the opportunity to present their views on specific products listed under the proposal for higher tariffs before the list is finalized and the tariffs become effective, in an effort to seek the removal of a product from the final list,” said the law firm Wednesday. Written comments are due May 11, with an April 23 deadline for requesting to appear at a May 15 public hearing, it said. May 22 is the deadline for written comments to “rebut statements made at the hearing,” it noted. The USTR notice spells out how someone who wants a product removed from the list should file comments and what those comments should say, said the alert: Commenters “should explain why the inclusion of the specific product will not be effective in curbing China's actions that are targeted by this Section 301 action, and also how the tariff would negatively impact US persons (including the affected company and its customers)." USTR didn't comment Thursday on whether the May 15 public hearing at the International Trade Commission building will be streamed live. The agency's recent history has been to hold hearings "off-camera." U.S.-threatened sanctions and the Chinese response to "reciprocate" are likely stage setting for future negotiations, Merrill Lynch analysts emailed investors. "Despite the exchange of tariff threats, we believe there is still room for negotiation between the US and China," said Helen Qiao and Sylvia Sheng Tuesday. "We maintain our view that China will continue its 'carrot and stick approach,' threatening retaliation but also proposing to expand its imports of US products, cut the auto duty, and ease restrictions for US companies investing and selling in China," they said. "We expect the final version of both the US and China trade measures to be more toned down."
TVs imported from China would bear an especially heavy burden under the U.S. Trade Representative’s list of products targeted for 25 percent tariffs under President Donald Trump’s March 22 memorandum accusing the Chinese of unfair intellectual property practices (see 1803220043). CTA President Gary Shapiro called the administration wrong for having “singled out TVs as one of the largest proposed categories for a 25 percent tariff.” He urged "companies and consumers to take action, make their voices heard and tell the administration just how much damage this would do." Other industry players reacted negatively, and China plans to retaliate.