U.S. Trade Representative Issues 2016 Special 301 Report

On April 27th, Ambassador Michael B.G. Froman, U.S. Trade Representative (USTR), issued the 2016 Special 301 Report. According to the USTR website, "[i]ntellectual property is a critical source of economic growth and high-quality jobs for the United States, and it is more important than ever to prevent foreign governments and competitors from ripping off United States innovators who are trying to support high-paying jobs by exporting their goods and services to consumers around the world," language much more assertive and less conciliatory than the USTR has used in recent years. Noting that this is the final Special 301 Report of the Obama Administration, Ambassador Froman states that this Report "underlines the great value that unique American creativity and innovation have for millions of families -- ranging from small businesses owners to medical researchers to employees of the recording and motion picture industries -- as well as the efforts of the executive branch, our bipartisan partners in Congress, and the United States business community to vigilantly monitor abuses of American intellectual property rights anywhere they exist in the world." As it did last year, the Report highlights China as a country that, although still on the Priority Watch List has made "wide-ranging intellectual property law reform efforts" as well as "certain positive enforcement initiatives" but notes that there are both "new and longstanding concerns about IPR protection and enforcement," especially with regard to "trade secret theft, rampant online piracy and counterfeiting, continued high levels of physical pirated and counterfeit goods, and localization requirements that condition market access on use of IPR developed in or transferred to China."