US says China has slowed cooperation on thwarting piracy

China has slowed cooperation with the US on fighting product piracy since Washington complained to the WTO on the issue earlier this year, US officials said yesterday.

"We've seen increased cooperation in some areas but we've seen cooperation in other areas slow. We don't think that's the right way forward," said US Undersecretary of Commerce Jon Dudas, in Beijing for a US forum on intellectual property.

The April complaint to the WTO accused Beijing of failing to do enough to stop rampant copying of music, movies and other goods, and added to strain between the two nations over China's swollen trade surplus and recalls and warnings of tainted or faulty Chinese goods.

Since then, China's Commerce Ministry has postponed bilateral anti-piracy events with Washington, saying contacts should go through the WTO, according to Dudas. The Commerce Ministry did not immediately respond to a request for comment.

Among events that Beijing postponed indefinitely was an anti-counterfeiting trade fair scheduled for last April, according to Susan Tong, an analyst on Dudas' staff.

China is the world's leading source of pirated products. Despite repeated crackdowns by Beijing, companies say a flood of illicit copies is costing them billions of US dollars a year in lost potential sales.

Commerce Minister Bo Xilai (薄熙來) has said protecting intellectual property is in China's own interest, but he has criticized Washington's decision to file WTO complaints over trade disputes.

US officials still work with China's State Intellectual Property Office and Trademark Office, said Dudas. He said he has met with leaders of those two agencies this week.

Dudas, who also is commissioner of the US Patent Office, said China is making progress at stopping piracy, citing growing use of legitimate software and increased seizures of copied goods.

But he said piracy is growing faster than enforcement, with violations rising "across the board" in areas including movies and music. Last year, 81 percent of counterfeit goods seized at US ports originated in China, he said.

Washington is pressing Beijing to eliminate rules that require pirates to be caught with a minimum amount of goods before they can be prosecuted, and to impose jail time for more offenses instead of fines.

US officials say many penalties are so small that offenders consider them a cost of business rather than a deterrent.

Dudas said he could not say when the problem might be brought under control.

"Most would be pleased just to see a reduction in counterfeiting," he said. "When will there be a perfect solution? I don't know the answer to that."