Piracy remains a serious problem in India, as does trademark counterfeiting, including of pharmaceuticals and distilled spirits, said the report. It urged New Delhi to improve its IPR regime by providing stronger protection for copyrights, trademarks, and patents as well as protection against unfair commercial use of undisclosed test and other data generated to obtain marketing approval for pharmaceutical products.

It also encourageD India to implement the World Intellectual Property Organisation (WIPO) Internet treaties by strengthening its copyright laws, and to improve its IPR enforcement system by enacting and implementing an effective optical disc licensing scheme to combat optical disc piracy.

India's criminal IPR enforcement regime remains weak, with improvements needed in the areas of police action against pirates and counterfeiters, expeditious judicial dispositions for copyright and trademark infringement with imposition of deterrent-level sentences for IPR infringers, and stronger border enforcement against counterfeit and pirated goods, it said.

Urging India to strengthen its IPR regime, the report said the US stands ready to work with India on these issues during the coming year through the Trade Policy Forum and other bilateral mechanisms.

The report acknowledged several countries made significant positive progress on IPR protection and enforcement in 2007. For example, India has approved initiating action for accession to the Madrid Protocol.