For Immediate Release

May 2, 2005

Contact: Judith Platt
Ph: 202-220-4551
Email: jplatt@publishers.org

Publishers React to 2005 "Special 301" Decisions by USTR; Encourage Further U.S. Government Engagement in Key Markets

The Association of American Publishers (AAP) applauded Friday's release of the annual Special 301 Report by the Office of the United States Trade Representative (USTR). The government report, detailing the adequacy and effectiveness of intellectual property protection in selected countries worldwide, highlighted book piracy among other issues ripe for action in the coming year.

The review places countries in one of several categories based on their effectiveness in fighting intellectual property theft. Priority Foreign Countries, the worst offenders, are vulnerable to immediate sanctions under the Trade Act of 1974, as amended. Countries not ripe for designation as Priority Foreign Countries are placed on one of two "watch lists." A territory's placement on the Priority Watch List or the Watch List sends a message that the U.S. government will be closely monitoring its progress in intellectual property protection.

AAP, as a member of the International Intellectual Property Alliance (IIPA), submitted specific recommendations to USTR on February 11 as part of the annual review. AAP members estimate annual losses due to piracy of more than $600 million in the countries included in those recommendations.

As a result of its review, USTR elevated the People's Republic of China to the Priority Watch List, noting "serious concerns about China's compliance with its WTO TRIPS obligations" and commitments made through its bilateral engagement with the U.S. under the auspices of the Joint Commission on Commerce and Trade (JCCT). USTR announced that, in addition to this elevation, it will continue Section 306 monitoring of China and will invoke the transparency provisions of the TRIPS agreement in order to obtain documentation of China's actions in fighting infringement.

AAP President and CEO Pat Schroeder reacted to the announcement, stating, "Book piracy in China is hurting those publishing in virtually all sectors-trade books, academic and ELT materials, professional and scholarly books and journals and a host of online materials. We sincerely hope that USTR's announcement will encourage further meaningful engagement on these issues and will result in the significant reductions in all types of piracy that the Chinese government has promised. The publishing community stands ready to assist both the Chinese and U.S. governments in finding solutions to this growing problem." Several other markets of key concern to publishers were placed on one of the Special 301 lists. Of note, the Philippines was retained on the Priority Watch List, citing book piracy among other reasons for this placement, along with concerns about a paucity of deterrent prosecutions and timely court judgments. "We are thrilled that USTR recognizes the dire situation in the Philippines and we hope to work alongside them in the coming months to call for greater action against piracy in the academic, professional and scholarly markets that would otherwise be thriving there," Mrs. Schroeder stated. USTR also announced and out-of-cycle review for the Philippines, as a means to continue to closely monitor progress made.

Mrs. Schroeder expressed concern about lowering South Korea to Watch List status, stating, "While some effort has been made to control the effects of book piracy in South Korea in recent months, including engagement by the Ministry of Education and the Ministry of Culture and Trade, more needs to be done in Korea to help book publishers diminish the impact of illegal commercial photocopying, print piracy of medical books and online peer to peer trading of books. We hope that the recognition given to the Korean government for its efforts so far will encourage further action, because clearly, the government's efforts have not yet fully solved our industry's problems."

Likewise, Mrs. Schroeder emphasized the need for continuing engagement in Thailand, which was also placed on the Watch List. "Unauthorized photocopying, especially of academic textbooks, in Thailand is out of control," she stated, "and we encourage the U.S. government to engage further, in all possible capacities, with the Thailand government to remedy this problem."

Among other countries of special interest to publishers included on the Priority Watch List were Brazil, Egypt, India, Indonesia, Lebanon, Pakistan and Turkey. USTR's Watch List included Canada, Colombia, Ecuador, Guatemala, Hungary, Italy, Malaysia, Mexico, Saudi Arabia, Taiwan, Vietnam and others.

The full report reviews the current status of intellectual property protection in 57 countries; it can be found at www.ustr.gov. AAP's February recommendations to USTR, submitted in conjunction with other copyright industries, can be accessed at www.iipa.com.

The Association of American Publishers is the national trade association of the U.S. book publishing industry. AAP's approximately 300 members include most of the major commercial book publishers in the United States, as well as smaller and non-profit publishers, university presses and scholarly societies. The protection of intellectual property rights in all media, the defense of intellectual freedom, and the promotion of reading and literacy are among the Association's primary concerns.

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