In May 2025, Washington DC (the United States of America, USA)-based Office of the United States Trade Representative (USTR) released its ‘2025 Special 301 Report’. The report has once again placed India on its ‘Priority Watch List’ for not providing adequate protection to Intellectual Property Rights (IPR).
- Besides India, 7 other countries have been placed in this year’s ‘Priority Watch List’: Argentina, Chile, China, Indonesia, Mexico, Russia, and Venezuela.
- The report cited India remains one of the world’s most challenging major economies with respect to protection and enforcement of IP.
About USTR Special 301 Report:
i.It is an annual review of Intellectual Property (IP) protection, enforcement, and related market access issues among USA trading partners.
ii.This report has been mandated by Section 182 of the Trade Act of 1974. Also, Under Section 301 of the Trade Act 1974, the USA has power to take stringent actions against countries that engage in unfair or discriminatory trade practices that burden or restrict USA trade and commerce.
iii.This latest edition of the report has evaluated more than 100 trading partners and has identified countries that don’t meet the standards set by the USA for protecting IPR.
iv.The countries which are found in violation of IPR have been categorised to two main lists i.e. the ‘Priority Watch List’ and ‘Watch List’ based on the severity of the issues.
Key Concerns Related to India:
i.The report highlighted that Patent issues continue to be of particular concern in India. The report has further cautioned about the potential threat of patent revocations and the procedural and discretionary invocation of patentability criteria under the Indian Patents Act, 1970, impact across various sectors.
ii.The report underscored that India maintains high custom duties directed to IP-intensive products like: Information and Communications Technology (ICT) products, solar energy equipment, medical devices, among others.
iii.As per the report, India along with China and Turkey has been classified as a source country for counterfeit goods, including semiconductors and other electronics, chemicals, medicines, automotive and aircraft parts, among others.
Other Key Findings:
i.The report has placed a total of 18 countries including Algeria, Barbados, Belarus, Bolivia, Brazil, Bulgaria, Canada, Colombia, Ecuador, Egypt, Guatemala, Pakistan, Paraguay, Peru, Thailand, Trinidad and Tobago, Turkey and Vietnam on ‘Watch List’. These countries face major IP concerns requiring ongoing bilateral engagement.
ii.The report has removed Turkmenistan from the Watch List due to efforts which are in alignment with the World Trade Organisation (WTO) Trade-related Aspects of Intellectual Property Rights (TRIPS) Agreement.
- However, Mexico placed on the Priority Watch List due to USA long-standing concerns over Mexico implementation of IP commitments under the United States-Mexico-Canada Agreement (USMCA).
iii.Countries which were found to be origin for counterfeit pharmaceuticals seized at the USA border in 2024: India, China, Hong Kong, the United Arab Emirates (UAE) and Singapore.
About Office of the United States Trade Representative (USTR):
USTR- Jamieson Lee Greer
Headquarters- Washington DC, the United States of America(USA)
Established- 1963
