US again places India on ‘priority watch list’ over alleged gaps in patent enforcement, IP rights violations

NEW DELHI: The US on Tuesday once again placed India on its 'priority watch list', stating that New Delhi remains one of the world's most challenging major economies for the protection and enforcement of intellectual property rights (IPRs).

The US Trade Representative's (USTR) 2025 Special 301 report, an annual review of the global state of IPR protection and enforcement, said that over the past year, India has remained inconsistent in its progress on intellectual property protection and enforcement.

It said that although India has worked to strengthen its IP regime, including raising public awareness about the importance of the subject, and engagement with the US on IP issues has increased, there continues to be a lack of progress on many long-standing IP concerns.

"India remains one of the world's most challenging major economies with respect to protection and enforcement of IP... India remains on the Priority Watch List in 2025," it said.

The country had earlier stated that this report is a unilateral measure taken by the US under their Trade Act, 1974 to create pressure on countries to increase IPR protection beyond the TRIPS agreement. Besides, India has maintained that its IPR regime is fully compliant with global trade norms.

The report comes in the backdrop of India-US negotiating a bilateral trade agreement to boost two-way commerce to USD 500 billion by 2030. The US is looking at bridging its trade deficit with India, which was USD 41.18 billion in 2024-25, through this pact.

A trade expert said India has a well established legislative, administrative and judicial framework to safeguard IPR that meets its obligations under the WTO's Agreement on Trade Related IPRs (TRIPS).

The concerns identified in the report are based on the inputs provided by the American industry on their perception of the level of protection provided by India to Intellectual Property.

The report also said patent issues continue to be of particular concern in India.

"Among other concerns, the potential threat of patent revocations and the procedural and discretionary invocation of patentability criteria under the Indian Patents Act impact companies across different sectors. Moreover, patent applicants generally continue to confront long waiting periods to receive patent grants and excessive reporting requirements," the report said.

Stakeholders continue to express concerns over vagueness in the interpretation of the Indian Patents Act, it alleged.

It added that India maintains high customs duties directed to IP-intensive products such as information and communications technology products, solar energy equipment, medical devices, pharmaceuticals, and capital goods.

"While steps to improve IP Office operations and procedures are to be commended, India's overall IP enforcement remains inadequate," it said.

It added that the US intends to continue to engage with India on IP matters, including through the trade policy forum's intellectual property working group.

The report has listed eight countries, including India in its 'priority watch list'. China, Indonesia, Russia, Argentina, and Venezuela are among others on the list.

It has also placed 25 countries, including Pakistan and Turkey, on the list.

US Trade Representative (USTR) Jamieson Greer said the USA's trading partners must address the concerns identified in the report and stop those stealing the intellectual property of hard-working businesses and individuals.

This annual report details USTR's findings of more than 100 trading partners after research and engagement with stakeholders.

Other issues that have been flagged in the report include, concerns over the provision of Section 3(d) of the Patent Act, and pharmaceutical patent disputes.