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Practice Areas

USTR Finds IPR Violations in Ukraine but Takes No Punitive Action

Thursday, March 13, 2014
Sandler, Travis & Rosenberg Trade Report

USTR has determined that certain intellectual property rights, acts, policies and practices of Ukraine are unreasonable and burden or restrict U.S. commerce and are thus actionable under section 301(b) of the Trade Act of 1974. However, in light of the current political situation in Ukraine, USTR has determined that no action under section 301 is appropriate at this time.

The acts, policies and practices subject to the USTR investigation were those that formed the basis of Ukraine’s Priority Foreign Country designation on May 1, 2013. They involve (1) the administration of Ukraine’s system for collecting societies, which are responsible for collecting and distributing royalties to U.S. and other rights holders; (2) the use of infringing software by Ukrainian government agencies; and (3) online infringement of copyright and related rights. U.S. and Ukrainian officials held constructive discussions during the investigation but U.S. concerns with the acts, policies and practices under scrutiny were not resolved. USTR notes that it remains committed to addressing the matters subject to investigation and looks forward to further engagement with the government of Ukraine at an appropriate time.

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