India Remains on U.S. Priority Watch List Over Intellectual Property Concerns

WASHINGTON — The United States has again placed India on its Priority Watch List for intellectual property concerns, citing persistent enforcement gaps, patent delays and long-running disputes over protections for pharmaceutical and digital products.

The designation was included in the 2026 Special 301 Report released by the Office of the U.S. Trade Representative, which reviews how U.S. trading partners protect and enforce intellectual property rights.

India remains one of six countries on the Priority Watch List, along with China, Russia and Indonesia.

The report said India has taken some steps to strengthen its intellectual property system, including hiring more examiners and improving public awareness. But U.S. officials said progress remains uneven.

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

Patent protection remains a major concern for Washington. The report cited long delays in approvals, “excessive reporting requirements” and prolonged opposition procedures. It also said limits on patentable subject matter, particularly in the pharmaceutical sector, continue to affect companies.

The USTR also raised concerns about the lack of an effective system to protect test data submitted for marketing approval of drugs and agricultural chemicals.

Enforcement remains another weak point, according to the report. U.S. officials said authorities face coordination gaps and that penalties often fail to deter violations.

“India’s overall IP enforcement remains inadequate,” the report said.

The report also cited high levels of piracy and counterfeiting, including illegal streaming, unlicensed software use and counterfeit goods. Trademark enforcement remains slow, with companies reporting long backlogs in opposition cases and concerns about the quality of examinations.

Trade secrets were also flagged as an area of concern. The USTR said India does not have a dedicated trade secrets law, making it harder for companies to protect proprietary information.

Despite those criticisms, the report noted some positive changes, including India’s 2024 amendments to patent rules aimed at improving efficiency and reducing regulatory burdens.

U.S. officials said they will continue to engage India through trade discussions and the U.S.-India Trade Policy Forum.

“Using all the enforcement tools we have to address unfair trade practices is a top priority,” U.S. Trade Representative Jamieson Greer said.

“American innovators, creators, and brand owners rely on robust IP protection and enforcement,” Ambassador Rick Switzer said.

The Special 301 Report is an annual review of intellectual property protection among U.S. trading partners. Countries on the Priority Watch List face closer scrutiny and continued engagement from Washington.

India’s inclusion reflects continuing differences between New Delhi and Washington over intellectual property policy, an issue that has long been central to trade discussions involving pharmaceuticals, technology and digital markets. (Source: IANS)