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WASHINGTON, Feb 10 (Reuters): US music, movie and software industries called for the first time yesterday for the United States to begin legal action against China at the World Trade Organisation to stop widespread piracy they said cost them at least $2.5 billion in 2004.
In a formal filing to the US Trade Representative's Office, the International Intellectual Property Alliance said the Bush administration should ask China for immediate consultations on the issue at the WTO. That would be a first step toward asking for a WTO panel to rule on whether China was meeting its commitments to stamp out piracy.
USTR spokesman Richard Mills said the Bush administration would "carefully review" the copyright industry's request.
"As part of a comprehensive enforcement strategy of bilateral negotiations and international efforts to stop trade in fakes, USTR is now conducting a systematic legal review of China's entire IPR (intellectual property rights) enforcement system," he said.
The industry move reflects growing frustration that promises made by Chinese Vice Premier Wu Yi and other top officials have not made a significant dent in piracy. US industry estimates that about 90 per cent of US-produced music, movies and software sold in China is pirated.
"Our objective is to persuade the Chinese government that they must take real, not rhetorical, deterrent enforcement action that ... significantly reduces the rampant piracy that afflicts their entire country," IIPA President Eric Smith said in statement that also urged Japan and Europe to join WTO consultations with China.
A WTO complaint against China for piracy would be the second filed by the United States since Beijing joined the WTO in December 2001. The first complaint involved obstacles to imports of US-made semiconductors. Many US companies doing business in China have been reluctant to push for a case at the WTO because of concern how the Chinese government would respond.
The Bush administration will release final trade figures for 2004 Thursday that are expected to show the US trade deficit with China exceeded $160 billion, up sharply from the record of $124 billion in 2003.
In a reflection of congressional anger on that issue, 57 lawmakers in the House of Representatives introduced legislation Wednesday that would repeal "permanent normal trade relations" with China so the United States could impose an average tariff of 45 per cent on Chinese goods.
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