India is among eight countries including China and Mexico on the priority watch list in the U.S. Special 301 report 2025 released on Tuesday, “indicating that serious problems exist in that country with respect to IP protection, enforcement, or market access for U.S. persons relying on IP.”
According to a press release from the office of the United States Trade Representative (USTR), the report details findings of more than 100 trading partners on their “adequacy and effectiveness” in protection and enforcement of intellectual property rights.
Trading partners on the Priority Watch List present “the most significant concerns regarding insufficient IP protection or enforcement or actions that otherwise limited market access for persons relying on intellectual property protection.”
These countries will be the subject of particularly intense bilateral engagement during the coming year, the release said.
According to the report, patent issues continue to be of particular concern in India. “Among other concerns, the potential threat of patent revocations and the procedural and discretionary invocation of patentability criteria under the Indian Patents Act impact companies across different sectors.”
India maintains high customs duties directed to IP-intensive products such as information and communications technology (ICT) products, solar energy equipment, medical devices, pharmaceuticals, and capital goods.
Furthermore, stakeholders have reported continuing problems with unauthorised file sharing of video games, signal theft by cable operators, commercial-scale photocopying and unauthorised reprints of academic books, and circumvention of technological protection measures. Companies also continue to face uncertainty due to insufficient legal means to protect trade secrets in India. Currently, no civil or criminal laws in India specifically address the protection of trade secrets.
“Stakeholders are also concerned about new burdensome requirements that only apply to foreign entities contained in the Biological Diversity Rules, 2024 that came into force in December 2024.”
The U.S. will continue to engage with India on IP matters, including through the TPF’s Intellectual Property Working Group, it said.
According to the report, IP enforcement remains weak across India. The country struggles with high customs duties on IP-intensive products and inadequate protection for pharmaceutical data. Trademark counterfeiting persists alongside excessive delays in opposition proceedings. Copyright holders face rampant online piracy. Law enforcement lacks coordination and proper IP investigation techniques, it said.
The concerns could factor into the Trump administration’s negotiations with many countries over tariffs and non-tariff barriers, giving the report greater significance this year.
Published - April 29, 2025 03:48 pm IST
