Washington: The United States has again placed India on its Priority Watch List for intellectual property concerns, citing continued gaps in enforcement and long-standing issues in patent protection.
The designation came in the 2026 Special 301 Report released by the Office of the US Trade Representative (USTR), which reviews how trading partners protect and enforce intellectual property rights.
India remains among six countries on the Priority Watch List, alongside China, Russia and Indonesia.
The report said India has taken some steps to strengthen its IP regime. These include adding more examiners and improving awareness. But it said progress remains uneven.
“India remains one of the world’s most challenging major economies with respect to the protection and enforcement of IP,” the report said.
Patent issues remain a key concern. The report pointed to long delays in approvals. It also cited “excessive reporting requirements” and prolonged opposition procedures.
The USTR said restrictions on patentable subject matter, especially in the pharmaceutical sector, continue to affect companies.
The report also flagged concerns over the lack of an effective system to protect test data used to obtain marketing approval for drugs and agricultural chemicals.
Enforcement remains weak, it said. Authorities face coordination gaps. Penalties often do not deter violations.
“India’s overall IP enforcement remains inadequate,” the report said.
High levels of piracy and counterfeiting continue. The report cited illegal streaming, software use and counterfeit goods as persistent problems. Trademark enforcement also faces delays. Companies report long backlogs in opposition cases and concerns over examination quality.
The report said India lacks a dedicated law on trade secrets. Companies face difficulty protecting proprietary information.
Despite the concerns, the USTR noted some positive steps. India amended patent rules in 2024. The changes aim to improve efficiency and reduce burdens.
The US said it will continue to engage India through trade talks and the Trade Policy Forum.
“Using all the enforcement tools we have to address unfair trade practices is a top priority,” US Trade Representative Jamieson Greer said.
“American innovators, creators, and brand owners rely on robust IP protection and enforcement,” Ambassador Rick Switzer said.
The Special 301 Report is an annual review of intellectual property protection among US trading partners.
Countries on the Priority Watch List face closer scrutiny and engagement from Washington.
India’s inclusion reflects continuing differences between the two countries on intellectual property policy. The issue has long featured in trade discussions, especially in pharmaceuticals and digital sectors.
