Why Is India On US Priority Watch List For IP Rights?

India is under scrutiny as the US Trade Representative places it on the priority watch list due to concerns over the protection and enforcement of intellectual property rights.

India is among six countries, including China and Russia, on the priority watch list in a special report released by the US Trade Representative (USTR) that deals with adequacy and effectiveness of trading partners' protection and enforcement of intellectual property (IP) rights.

The USTR's Special 301 Report on Intellectual Property Protection and Enforcement 2026, released on Thursday, lists Vietnam as the Priority Foreign Country (PFC), marking the first time in 13 years that any country is listed in that particular category.

Vietnam Designated Priority Foreign Country

"The PFC identification is reserved by statute for countries with the most egregious IP-related acts, policies, and practices with the greatest adverse impact on relevant US products," the USTR said.

It said that Vietnam is not entering into good faith negotiations or making significant progress in negotiations to provide adequate and effective IP rights protection.

The six countries on the priority watch list are China, India, Indonesia, Chile, Russia and Venezuela.

Concerns Over IP Protection Practices

Placement of a trading partner on the Priority Watch List or Watch List indicates that particular problems exist in that country with respect to IP protection, enforcement, or market access for US persons relying on IP.

There are 19 countries, including the EU, Turkiye and Pakistan, on the watch list.

"Using all the enforcement tools we have to address unfair trade practices is a top priority," said Ambassador Jamieson Greer.

"We have rigorously reviewed our trading partners' IP practices and expect to take action where needed to protect American innovators and creators globally," Greer said.

US Engagement With Vietnam

The US first approached Vietnam in 2020 with a proposal for an IP Work Plan to address issues identified in the Special 301 Report, followed by a revised proposal in 2023, the USTR said.

However, Vietnam failed to make meaningful progress on these issues in subsequent bilateral engagement, as well as in recent negotiations for an Agreement on Reciprocal, Fair, and Balanced Trade.

Vietnam's actions or inactions are causing significant damage to the industries reliant on IP in Vietnam's market, and in other markets as well, the USTR said.

Potential Investigation Into Vietnam

Within 30 days from the date of this identification, USTR will decide whether to initiate an investigation under Section 301 of the Trade Act of 1974 based on the grounds identified in this report as the basis for Vietnam's identification as a PFC.

If USTR initiates an investigation, USTR will request consultations with Vietnam and seek to resolve the issues that led to Vietnam's identification as a PFC.

The Special 301 Report is an annual assessment by the US of intellectual property protection practices in other countries.

It evaluates over 100 trading partners and identifies those that don't meet US standards for protecting intellectual property rights.

"India remains one of the world's most challenging major economies with respect to the protection and enforcement of IP," the report said.