Washington, May 1: The United States has once again placed India on its Priority Watch List due to concerns regarding intellectual property (IP) rights. This decision stems from ongoing enforcement deficiencies and long-standing issues related to patent protection.
The 2026 Special 301 Report, released by the Office of the United States Trade Representative (USTR), also includes China, Russia, and Indonesia alongside India.
The report acknowledges that India has taken some steps to strengthen its IP rights, such as increasing the number of examiners and raising awareness. However, it also notes that progress has not been uniform.
According to the report, “India remains one of the most challenging major economies in the world regarding the protection and enforcement of intellectual property.”
Patent-related issues continue to be a significant concern. The report highlights delays in approvals, excessive reporting requirements, and lengthy opposition processes.
The USTR pointed out that restrictions on patentable subject matter, particularly in the pharmaceutical sector, continue to affect companies adversely.
Additionally, the report expresses concern over the lack of an effective system to protect test data used for obtaining marketing approvals for drugs and agricultural chemicals.
The report states that enforcement remains weak, with deficiencies in coordination among authorities. Penalties are often ineffective in deterring violations.
It further notes, “Overall IP enforcement in India remains inadequate.”
High levels of piracy and the prevalence of counterfeit goods continue to be major issues. Illegal streaming, software usage, and counterfeit products are highlighted as persistent problems. Delays in trademark enforcement are also noted, with companies expressing concerns over long-standing opposition cases and the quality of investigations.
The report mentions the absence of dedicated laws for trade secrets in India, making it difficult for companies to protect proprietary information.
Despite these concerns, the U.S. Trade Minister highlighted some positive steps taken by India, including amendments to patent rules in 2024 aimed at improving efficiency and reducing burdens.
The U.S. has stated that it will continue discussions with India through trade talks and policy forums.
U.S. Trade Representative Jamieson Greer emphasized, “Utilizing all available enforcement tools to address unfair trade practices is our top priority.”
Ambassador Rick Switzer remarked, “American innovators, creators, and brand owners rely on strong IP protection and enforcement.”
The Special 301 Report is an annual review of IP protection among U.S. trading partners.
Countries on the Priority Watch List are closely monitored by Washington and engaged in discussions.
India’s inclusion on this list reflects ongoing differences between the two nations regarding IP policy. This issue has long been a topic of trade discussions, particularly in the pharmaceuticals and digital sectors.
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