US retains India on priority watch list over IP rights enforcement concerns

The US on Tuesday again placed India on its 'priority watch list' stating that New Delhi remains one of the world's most challenging major economies with respect to protection and enforcement of intellectual property (IP) rights.

The US Trade Representative's (USTR) 2025 Special 301 report 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.

It added that 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.

Despite India's justifications of limiting IP protections as a way to promote access to technologies, India maintains high customs duties directed to IP-intensive products such as information and communications technology (ICT) 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.