Question Period Note: Intellectual Property: United States Trade Representative's 2024 Special 301 Report

Canada is placed on the “Watch List” of the USTR Special 301 Report for 2024.

• Canada's regime for the protection and enforcement of IP rights is fully consistent with our international obligations, including under CUSMA and the WTO TRIPS Agreement.
• Canada does not recognize the validity of the Special 301 Report, which fails to employ a clear methodology and relies primarily on industry allegations rather than empirical evidence and objective analysis.
• We continue to engage bilaterally and constructively on IP issues with the United States, including under the CUSMA, which establishes an agreed regional standard for IP

The Special 301 Report is published annually by the Office of the United States Trade Representative to identify U.S. trade partners that allegedly do not provide "adequate and effective" protection of intellectual property (IP) rights or "fair and equitable market access to U.S. persons that rely upon" IP rights. It serves as a political tool to satisfy domestic U.S. stakeholders. The U.S. has strong offensive interests in the protection and enforcement of IP rights globally, and in this report places countries alleged to have inadequate IP laws in three escalating categories; "Watch List", "Priority Watch List", and "Priority Foreign Country". Canada is on the “Watch List” for 2024.

Canada does not recognize the validity of the Report, as it does not employ a clear methodology in its assessments, and the findings rely primarily on allegations from US industry stakeholders rather than on empirical evidence and objective analysis. While countries may choose to participate in the Special 301 hearing process, Canada does not provide a submission. Canada more constructively engages with the U.S. on IP issues bilaterally and in forums like the CUSMA IP Rights Committee.

To implement CUSMA, Canada amended its IP regime to provide full national treatment for copyright and related rights and ex officio border authority for counterfeit and pirated goods in transit; as well as recently extending its general term of copyright protection to “life of the author” plus 70 years and acceding to the Brussels Satellite Convention. Pursuant to its remaining transition period under CUSMA, Canada is also on track to implement commitments on patent term adjustment for “unreasonable” patent office delays by January 2025.

Despite changes to its IP regime, and being fully compliant with CUSMA, Canada is again on the “Watch List” for 2024. Concerns raised in this year's Report include: the “low” number of seizures of counterfeit goods at the border and a “lack of training” for enforcement officials; the “fail[ure]” of the Canadian courts to issue “consistent deterrent-level penalties” in respect of counterfeit goods seized in Canada; and “high” levels of online piracy.

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