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Joint Strategic Plan on Intellectual Property Enforcement<br />

SECTION 4<br />

developing countries, as well. 24<br />

Low- and middle-income countries, and those<br />

in areas of conflict or civil unrest, face considerable<br />

difficulties in securing their supply chains from illicit<br />

trade in counterfeit and pirated goods, and as a<br />

result, criminal networks target, corrupt, and work to<br />

actively undermine such markets. By way of example,<br />

an enforcement operation organized by the World<br />

Customs Organization in partnership with the Institute<br />

of Research against Counterfeit Medicines (IRACM)<br />

(Operation Vice Grips 2) was conducted simultaneously<br />

at 16 major African seaports in July 2012, with 110<br />

maritime containers being inspected. Of these, 84<br />

containers (or 76 percent) “were found to contain<br />

counterfeit or illicit products,” resulting in “the seizure<br />

of more than 100 million counterfeit products of<br />

all categories.” 25 These and other disproportionate<br />

effects in vulnerable markets must be addressed<br />

collaboratively by the international community, and<br />

trade policy must bridge regulatory and enforcement<br />

gaps between developed and developing economies.<br />

The Office of the U.S. Trade Representative, in<br />

coordination with the U.S. interagency, uses U.S. trade<br />

policy tools to support U.S. exports, integrity in the<br />

global marketplace, and effective enforcement of U.S.<br />

intellectual property rights including: (1) the promotion<br />

of strong IP standards, consistent with U.S. law, in the<br />

drafting, negotiation, monitoring, and enforcement<br />

of international trade agreements and in bilateral and<br />

multilateral dialogues with U.S. trading partners; (2)<br />

the annual “Special 301” review of the global state of<br />

intellectual property rights protection and enforcement<br />

to encourage and maintain enabling environments<br />

for innovation and investment; and (3) the “Out-of-<br />

Cycle Reviews of Notorious Markets” to increase<br />

public awareness of and guide related trade and other<br />

enforcement actions in physical and online markets that<br />

exemplify global counterfeiting and piracy concerns.<br />

To combat the intellectual property crimes and<br />

enforcement shortcomings in the international<br />

marketplace, the USTR annually assesses the state of IP<br />

protection and enforcement abroad in the Special 301<br />

Review pursuant to Section 182 of the Trade Act of 1974,<br />

as amended (19 U.S.C. § 2242). 26 This review allows for<br />

various designations of countries, including as a “Priority<br />

Watch List” country or a “Watch List” country. The USTR<br />

works proactively with various trading partners to address<br />

the concerns raised in the Special 301 report.<br />

Trade agreements and strong enforcement tools are<br />

necessary in order to set high standards that support the<br />

rule of law. Through such effective trade policy tools and<br />

agreements, we work to ensure that our workers, our<br />

businesses, and our values are shaping globalization and<br />

the 21st century economy.<br />

ACTION NO. 4.7: Use Special 301 tools to<br />

address international IP and trade challenges.<br />

USTR, in collaboration with Federal agencies, will<br />

continue to review IP protection and enforcement<br />

frameworks of our trading partners and identify<br />

challenges to effective protection and enforcement<br />

of IPR, and obstacles to market access for U.S.<br />

persons that rely on IP protection.<br />

132

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