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WASHINGTON, DC – To help curb piracy, the U.S. has filed two World Trade Organization cases against China: one regarding deficiencies in China's legal body to protect and enforce copyrights and trademarks on various products, and the second on the country's distribution barriers to trade in books, music, videos and movies. According to the Office of the U.S. Trade Representative, the U.S. consultation request on IPR protection and enforcement seeks to eliminate structural barriers that grant pirates and counterfeiters in China safe harbor to avoid criminal liability. It also aims to reduce the volume of counterfeit goods crossing the border into China and to provide copyright owners more tools to prevent unauthorized copies in the country. According to a Xinhua report, China has recently ordered that anyone caught with 500 pirated discs will face criminal penalties, compared to the previous penalty for owning 1,000 pirated discs. In addition, fines for piracy were raised to up to 15 times a pirate's illegal gains, the report said. Fines for smaller offenders were also increased. However, the USTR statement held that wholesalers and distributors would continue to be able to operate below high thresholds without fear of criminal liability.
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