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  • Oct 27th, 2005
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The United States has asked China to provide evidence of what it is doing to stop the "rampant" piracy and counterfeiting of American goods ranging from movie, music and software to auto parts, medicine and shampoo, US trade officials said on Wednesday.

"The United States is deeply concerned by the violations of intellectual property rights in China," US Trade Representative Rob Portman said in a statement that the United States was invoking a rarely used World Trade Organisation article to request the information.

"Based on all available information, piracy and counterfeiting remain rampant in China despite years of engagement on this issue. If China believes that it is doing enough to protect intellectual property, then it should view this process as a chance to prove its case," Portman added.

US movie, software and other copyright industries estimates they lose more than $2.5 billion annually in China due to piracy. Losses from counterfeiting of American manufacturing and consumers goods could reach into tens of billions of dollars annually, industry officials say.

A second US trade official, speaking to reporters on condition he not be identified, said the United States decided for several reasons not to pursue a formal WTO complaint against China at this time.

"This is an opportunity for us to work co-operatively with China before taking any further steps in the WTO, the official said. But if the effort does not lead to a significant drop in Chinese piracy and counterfeiting levels, "all available options are clearly on the table," the official added.

Japan and Switzerland have joined the United States in making the request at the WTO. Washington has asked Beijing to provide the requested information by January 23.

China has known for several months the request was coming, but they have only recently received it and not said yet if they would cooperate, the second US official said.

Copyright Reuters, 2005


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