On April 25, 2008, the Office of the United States Trade Representative (USTR) published its annual “Special 301” Report on intellectual property rights protection by U.S. trading partners.  This year, it placed 46 countries on its Priority Watch List, Watch List, or Section 306 Monitoring List.  Appearance on one of these lists is considered a trade sanction, and flags certain countries as investment risks. 

This year, China appears on the Priority Watch List, and Taiwan appears on the Watch List.  The USTR will proceed with an out-of-Cycle review this summer for Taiwan to affirm the development of IP protection and related enforcement procedures in Taiwan.  Taiwan and China have generally been on one of the lists every year for the past 20 years.