WORLD TRADE  
ORGANIZATION  WT/DS362/15 
13 April 2010 
 
 (10-1889) 
 Original:   English 
  
 
CHINA – MEASURES AFFECTING THE PROTECTION AND 
ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS 
 
Understanding between China and the United States
 
Regarding Procedures under Articles 21 and 22 of the DSU  
 
  The following communication, dated 8 April 2010, from the delegation of China and the delegation of the United States to the Chairman of th e Dispute Settlement Body, is circulated at the 
request of these delegations. 
 
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  The United States and China would like to inform the Dispute Settlement Body of the 
attached "Agreed Procedures under Articles 21 an d 22 of the Dispute Settlement Understanding" 
between the United States and Chin a with respect to the dispute China – Measures Affecting the 
Proctection and Enforcement of Intellectual Property Rights (WT/DS362). 
  We request that you please circulate the attc hed agreement to the Members of the Dispute 
Settlement Body. 
 
  
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 WT/DS362/15 
Page 2  
 
   
Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding 
China – Measures Affecting the Protection a nd Enforcement of Intellectual Property Rights 
(WT/DS362) 
 
 The Dispute Settlement Body ("DSB") adopted  its recommendations and rulings in the 
dispute China – Measures Affecting the Protection and Enforcement of Intellectual Property Rights  
(WT/DS362) on 20 March 2009. 
 Pursuant to Article 21.3(b) of the Unde rstanding on Rules and Procedures Governing the 
Settlement of Disputes ("DSU") the United States of America ("United Stat es") and the People's 
Republic of China ("China") agreed that the reasonable period of time to implement the DSB 
recommendations and rulings would be twelve  (12) months, expiring on 20 March 2010 
(WT/DS362/13). 
 The United States and China ("the parties to the dispute") have agreed on the following 
procedures for the exclusive purposes of this dispute.  They are designed to facilitate the resolution of 
the dispute and reduce the scope for procedural di sputes and are without prejudice to either party's 
views on the correct interpretation of the DSU: 
1. Should the United States consider that the s ituation described in Article 21.5 of the DSU 
exists, the United States will request consultations, wh ich the parties to the dispute will hold within 18 
days from the date of circulation of such request.  The parties to the dispute agree that at the end of 
such 18 day period for consultations, should either party so state, the parties to the dispute will 
immediately and jointly consider that such cons ultations have failed to settle the dispute.  
Consequently, the United States may at any time foll owing the failure of cons ultations to settle the 
dispute request the establishment of a pane l pursuant to Article 21.5 of the DSU. 
2. At the first DSB meeting at which the U.S. request for the establishment of an Article 21.5 
panel appears on the agenda, China shall accept the establishment of that panel. 
3. The parties to the dispute shall cooperate to en able the Article 21.5 panel to circulate its report 
within 90 days of the panel's establishment, ex cluding such time during which the panel's work may 
be suspended pursuant to Article 12.12 of the DSU. 
4. Either party to the dispute may request the DS B to adopt the report of the Article 21.5 panel at 
a DSB meeting held at least 20 days after the circulation of the report to the Members unless either party appeals the report.  
5. In the event of an appeal of the Article 21. 5 panel report, the parties to the dispute shall 
cooperate to enable the Appellate Body to circulat e its report to the Members within 90 days from the 
date of notification of the appeal to the DSB.  Furt her, either party to the dispute may request the DSB 
to adopt its recommendations and rulings at a DSB m eeting held within 30 days of the circulation of 
the Appellate Body report to the Members. 
6. The United States may request authorization to suspend concessions or other obligations 
pursuant to DSU Article 22.2 in the event that the DSB rules that a measure taken to comply does not 
exist or is inconsistent with a covered agreement.  China shall not assert that the United States is 
precluded from obtaining such DSB authorization because its request was made outside the time period specified in Article 22.6 of the DSU.  This is without prejudice to China's right to have the 
matter referred to arbitration in accord ance with Article 22.6 of the DSU.  WT/DS362/15 
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  7. If the United States requests authorization to suspend concessions or other obligations 
pursuant to Article 22.2 of the DSU, China shall ha ve the right to object under Article 22.6 of the 
DSU to the level of suspension of concessions or othe r obligations and/or claim that the principles and 
procedures set forth in Article 22.3 of the DSU have not been followed, and the matter will be 
referred to arbitration pursuant to Article 22.6 of the DSU. 
8. The parties to the dispute will cooperate to en able the arbitrator under Article 22.6 of the DSU 
to circulate its decision within 60 days of the referral to arbitration.  
9. In the event the DSB rul es that China has taken a measure to comply with the 
recommendations and rulings of the DSB and each such  measure is not inconsis tent with the covered 
agreements, the United States shall not request authorization to suspend concessions or other 
obligations pursuant to DSU Article 22.2.   
10. If any of the original panelists is not availa ble for either the Article 21.5 compliance panel or 
the Article 22.6 arbitration (or both), the parties to the dispute  will promptly consult on a replacement, 
and either party may request the Director-General of  the WTO to appoint, within ten days of being so 
requested, a replacement for the proceeding or proceed ings in which a replacement is required.  If an 
original panelist is unavailable to serve in either of the proceedings, the parties to the dispute will 
further request that, in making this appointment, the Director-General seek a person who will be 
available to act in both proceedings. 
11. The parties to this dispute  will continue to cooperate in a ll matters related to these agreed 
procedures  and agree not to raise any procedural objecti on to any of the steps set out herein.  If, 
during the application of these procedures, the parties to the dispute consider that a procedural aspect 
has not been properly addressed in th ese procedures, they will endeavor  to find a solution within the 
shortest time possible that will not affect the other aspects and steps agreed herein.  
 
 Signed in Geneva, 8 April 2010  
 
For the United States For China 
    
David P. Shark 
Chargé d'affaires, a.i.  
   
H.E. Mr. SUN Zhenyu 
Ambassador 
 
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