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 Furthermore, the two sides agreed to actively discuss removal of these barriers that distort trade and investment. The United States will continue to discuss the implementation of these innovation-related commitments by China in bilateral meetings and dialogues with the Chinese Government in 2012

Compulsory Licensing

In 2011, China's State Intellectual Property Office (SIPO) issued "Draft Measures for Compulsory Licensing of Patents" for public comments. These measures are intended to provide greater guidance to SIPO, patent holders, and individuals and entities that seek the grant of a compulsory license under China's Patent Law. The United States appreciates that SIPO provided an opportunity for interested stakeholders to comment upon the draft. A number of companies and governments, including the United States, provided comments on these measures, raising concerns ranging from the length of time provided for certain procedural steps, to substantive concerns regarding the scope and grounds for the application of a compulsory license. On March 19, SIPO issued a slightly revised document, dated March 15, 2012, with indications that the document will go into effect on May 1, 2012. The United States is concerned that many stakeholder concerns were not reflected in the final document. The United States looks forward to working with stakeholders and the Government of China to ensure that the implementation of these measures is consistent with China's international obligations and does not unfairly disadvantage foreign patent holders, including through further amendments to the measure if necessary.

Patents Used in Chinese National Standards

China has prioritized the development of Chinese national standards, as evidenced by its Outline for the National Medium to Long-Term Science and Technology Development Plan (2006-2020), issued by the State Council in February 2006, and amplified shortly thereafter in the 11th Five Year Plan (2006-2010) for Standardization Development, issued by the Standardization Administration of China. More recently, China has announced that when it develops standards, it will rely on either non-patented technology or patented technology with prices lower than those that patent owners would otherwise seek to charge. As a result, China's treatment of patents in the standard setting process has garnered increasing attention and concern around the world, including in the United States. These concerns have been reported in depth in previous editions of this Report, as well as in USTR's 2012 Report on Technical Barriers to Trade (TBT Report).

IPR Protection for Pharmaceutical Products

The United States continues to encourage China to provide an effective system to expeditiously address patent issues in connection with applications to market pharmaceutical products. In addition, the United States continues to have concerns about the extent to which China provides effective protection against unfair commercial use, as well as unauthorized disclosure, of undisclosed test or other data generated to obtain marketing approval for pharmaceutical products. China's law, and its commitment during WTO accession, requires China to ensure that 34