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 On May 1, 2014, new SIPO examination guidelines take effect allowing the grant of design patents on graphical user interfaces (GUIs). This welcome step comes after sustained U.S. engagement, although the impact of certain provisions in the guidelines pose the potential to undermine at least some of the apparent gains.

The United States looks forward to continuing to work with China to resolve these and other issues.

India

India remains on the Priority Watch List in 2014. In making this determination, the United States recognizes not only the concerns listed below, but also the critical role that meaningful, constructive, and effective engagement between India and the United States should play in resolving these concerns. Serious difficulties in attaining constructive engagement on issues of concern to U.S. and other stakeholders have contributed to India's challenging environment for IPR protection and enforcement. In the coming months, the United States will redouble its efforts to seek opportunities for meaningful, sustained, and effective engagement on IP-related matters with the new government, including at senior levels and through technical exchanges, that will both improve IP protection and enforcement in India, and support India's efforts to achieve a "Decade of Innovation" and advance its legitimate public policy goals. These opportunities include strengthening IP-related discussions between U.S. and Indian government officials; facilitating regular exchanges among IP-intensive industries and both governments; initiating cooperative efforts to combat piracy; and working with the Government of India to encourage the private sector to establish an IP-related task force under the U.S.-India CEO Forum. To further encourage progress on IPR issues of concern, USTR will publish a Federal Register notice and initiate an Out-of-Cycle Review (OCR) of India in the fall of 2014, commencing an assessment of the progress in that engagement.

In 2013, India made some limited progress in improving its weak IPR legal framework and enforcement system. India acceded to and implemented the Madrid Protocol; continued progress toward digitization of cable networks to help efforts to combat signal theft by cable operators; and enacted rules to implement amendments to its Copyright Act. 2013 also saw more active copyright enforcement by the Delhi High Court through the issuance of Ashok Kumar and Anton Piller orders, which provide injunctive relief to rights holders.

In many areas, however, IP protection and enforcement challenges are growing, and there are serious questions regarding the future of the innovation climate in India across multiple sectors and disciplines. In fact, many of the submissions made by a wide array of stakeholders in this year's Special 301 reporting process underscored increasing challenges rights holders face in India, and a number of those submissions sought the strongest censure of India's IP environment available under Special 301. The United States urges India to take specific actions to address the concerns raised, including by means of constructive bilateral engagement. The United States also urges India to reconsider how to meet its legitimate domestic policy objectives while fostering a climate for innovation. The United States continues to encourage India to strengthen civil IPR enforcement by increasing judicial efficiency and reducing court backlogs through electronic case management, fast-track procedures, specialized judges, and similar reform measures. In addition, the United States supports India's efforts to initiate criminal investigations and launch raids at counterfeit goods markets; combat the manufacture, sale and 37