India stays on USTR Priority Watch List over IP concerns

THe power of the United States merchandise Representative has maintained republic of india on its precedence Watch List for intellectual property, highlighting ongoing American concerns about India’s enforcement of IP laws.The USTR’s 2026 Special 301 Report—which assesses the effectiveness and enforcement of IP protection —also placed Chile, China, Indonesia, Russia, and Venezuela on the priority watch list. India was also placed on the list in 2025.“India remains one of the world’s most challenging major economies with respect to the protection and enforcement of IP,” the report notes.HT reached out to the Indian government but did not get a response till the time of print.Long delays in receiving patents, IP enforcement in sectors like pharma, the proliferation of counterfeit goods and online piracy remain key US concerns with India.“While India continued to take actions against websites with pirated content during the last year, and took steps to improve IP Office operations and procedures, India’s overall IP enforcement remains inadequate. Weak enforcement of IP by law enforcement, a lack of familiarity with IP-specific investigation techniques, the continued absence of coordination among India’s many national and state-level law enforcement agencies, and the lack of meaningful deterrent penalties continue to hamper enforcement and prosecution efforts,” the report argues.However, India’s place on watch list does not carry any legally binding actions.“The Special 301 process is not legally binding; it is an administrative review used by the U.S. As a pressure tool. It does not impose immediate penalties but can lead to negotiations, investigations, and sometimes trade action if issues escalate,” according to analysis by the Global Trade Research Institute.The lack of criminal or civil law that specifically addresses the protection of trade secrets is also a key concern highlighted by USTR. Earlier in March, the agency also designated specific physical markets in India and an e-commerce firm on its list of Notorious Markets, which engage in violations of intellectual property and the sale of counterfeit goods. E-commerce firm IndiaMart, Mumbai’s Musafir Khana Market, Bengaluru’s SP Road Market and Delhi’s Tank Road were designated.The report also notes India’s efforts to improve IP regulation and enforcement, including the establishment of additional Intellectual Property Divisions at Indian High Courts in 2024 and the Indian government’s notification of Geographical Indication rules in 2025.“The United States intends to continue to engage with India on IP matters, including through U.S.-India Bilateral Trade Agreement negotiations and the TPF’s Intellectual Property Working Group,” the report adds, while adding that Washington will press India to strengthen enforcement by joining international treaties like the Singapore Treaty on trademarks.The USTR’s report also adds that it will encourage India to move forward with reform efforts that will reduce patent pendency times.