Special 301 Report

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SFG FRC 2026

News- India has yet again been placed on the ‘priority watch’ list of the US Trade Representative (USTR) office’s Special 301 Report on intellectual property rights. Special 301 Report.

Special 301 Report

About Special 301 Report

  • Description: It is an annual publication by the United States Trade Representative (USTR), mandated under the Trade Act of 1974.
  • Purpose: The report identifies countries that, according to the United States, do not provide adequate and effective protection of intellectual property rights (IPRs) or fail to ensure fair and equitable market access for US IPR holders.
  • Categories: Countries are classified into three categories: Priority Foreign Country, Priority Watch List, and Watch List.
    • Designation as a Priority Foreign Country can trigger investigations and lead to trade sanctions.
    • Countries on the Priority Watch List are considered to have serious IPR-related deficiencies that warrant heightened US scrutiny.
    • Nations with IPR concerns, but not deemed urgent, are placed on the Watch List.
  • Scope: The report includes both developed and developing countries.
Key highlights from the 2025 Special 301 Report

  • Countries on Priority Watch List: India, along with China, Indonesia, Russia, and Argentina, has been placed on the Priority Watch List in the 2025 edition of the report.
  • Primary Concerns regarding India:
    • Ambiguity in the interpretation of the Indian Patents Act.
    • Inadequate enforcement measures against piracy, counterfeiting, and digital content theft.
    • Absence of a comprehensive legal framework to safeguard trade secrets.
    • Imposition of high customs duties on IPR-sensitive products such as Information and Communication Technology (ICT) equipment, solar energy components, and pharmaceuticals.
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