According to a recent government interagency commission report, for every gain in IP enforcement, new unpredictable threats arise. And once again, rights owners are wielding the “Special 301” list as a weapon against copyright piracy worldwide.

The National IP Law Enforcement Coordination Council (NIPLECC) – made up of the Departments of Commerce, Justice and Homeland Security, the State Department and the Office of the US Trade Representative (USTR) – recently submitted a report to President George Bush and the US Congress outlining the state of intellectual property today.

The International Intellectual Property Alliance (IIPA) – comprising US film, music, television, publishing, video game and software companies – also recently submitted their recommendations to US Trade Representative Susan Schwab as to which countries should be put on a priority watch list for ineffective IP regimes.

In an article by Dougie Standeford for IP Watch, the author stated that both groups highlighted the same fact: that while the US is gaining ground in its fight against intellectual property piracy and counterfeiting, the fight is far, far from over. In its report, NIPLECC noted that there were indeed some good news. IP prosecutions were up; seizures of bogus goods increased; the US brought two IP-related disputes against China to the World Trade Organization (WTO); talks on the Anti-Counterfeiting Trade Agreement (ACTA) have begun; and the Bush administration continues to make IP enforcement a key factor in the US’s trade relationships.

But bad news is up too. For example, seizures of counterfeit goods at US borders have increased significantly. New technologies give rights owners better protection, but piracy remains on the upswing. Some countries and “activist” organizations even question the need for IP protection altogether. Health and safety risks posed by fake and substandard products continue to rear their ugly heads. Geopolitically, while developing countries fear potential disruption of cross-border trade flow due to suspicion of counterfeiting, developed-nation industries have seen their complaints of copyright and patent theft fall on deaf ears.

The Special 301 list: what is it, who’s in it and why. Industry groups like the IIPA, having seen digital and online piracy go unabated and foreign governments failing to enforce existing copyright laws or update them to WIPO treaty standards, have urged the US government to place 43 countries on Special 301 lists and to monitor eight more, according to an IIPA press release.

Special 301 is an annual review process which starts with the submission of public comments to USTR in mid-February and USTR announcing its decisions on April 30.  It is a major trade tool in fighting international copyright piracy.  According to IIPA, aggressive action under Special 301 by USTR has been essential in stemming the tidal wave of losses in U.S. jobs and competitiveness. Under the annual 301 process, nations seen as problematic are placed on various watch lists according to degrees of seriousness. Nations on the list could find themselves in a difficult political situation and could lose unilateral trade benefits granted by the US. Countries of greatest concern include the usual suspects (read China and Russia), but this year also includes nations that caught some by surprise: Canada, Germany and Sweden (home to The Pirate Bay).

This year’s recommendations reflect the copyright industries’ growing concern with the explosive growth of online and mobile piracy. To meet this challenge, IIPA members are pressing for enhanced international norms, effective and deterrent enforcement of those norms and greater law enforcement cooperation worldwide.

But Special 301 lists can’t do it alone. An effective enforcement strategy may be a combination of various tools, including a tougher stance against organized crime syndicates trafficking in stolen IP, increased cooperation with industrialized nations and international bodies, and greater help for developing countries in creating effective IP regimes.