Intellectual property right infringement has emerged as a prominent issue in the ever-expanding realm of international trade. American companies lose millions worldwide each year due to copyright infringement and piracy, particularly in emerging markets. The Business Software Alliance, a trade group representing American software creators, placed the value of pirated software worldwide in 2010 at $59 billion. It is in response to this issue that President Barack Obama promised to shore up copyright enforcement during the 2008 election.
In an effort to combat this problem, on October 1, 2011, the United States and seven other nations signed the Anti-Counterfeiting Trade Agreement (ACTA). The other seven are Australia, Canada, Japan, Morocco, New Zealand, South Korea, and Singapore. The European Union, Mexico, and Switzerland are also expected to sign the agreement.
The compact essentially brings the copyright enforcement mechanisms that the U.S. uses domestically to the international stage. The agreement mimics the U.S. Digital Millennium Copyright Act in that it moves to ban the sale of devices used to copy DVDs and other media. The agreement also requires that each country's legal system provide a forum for intellectual property right holders to be awarded damages in court.
Film studios and software developers support the trade agreement but are still pushing Congress to enact legislation. Given the intransigence of the current Congress over passing almost any legislation, this may be awhile. In fact, the agreement has created some controversy, as the Obama administration insists that it does not require confirmation, while other groups contend that it does.
While more substantive action could be taken, we feel that the Anti-Counterfeiting Trade Agreement meets the standards that Obama outlined in his promise. It works "to ensure intellectual property is protected in foreign markets" and "promote greater cooperation on international standards." As a result, we rate this Promise Kept.