CHINA – MEASURES AFFECTING THE PROTECTION AND ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS
Document: Understanding between China and the United States Regarding Procedures under Articles 21 and 22 of the DSU
Date: 13 April 2010
Document codes: WT/DS362/15
Complainant: U.S.
Respondent: China
Third parties: Argentina, Australia, Brazil, Canada, EU, India, Japan, South Korea, Mexico, Taiwan, Thailand, Turkey
Dispute stage: Panel
Agreements cited: Art. 61, 41.1, 46, 59, 9.1, 14, 3.1  Intellectual Property (TRIPS)

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.

 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.

Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding

(WT/DS362)

 The Dispute Settlement Body ("DSB") adopted its recommendations and rulings in the
dispute
(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

 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, which 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 panel 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. Further, 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 accordance with Article 22.6 of the DSU.

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 other 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