WTO backs U.S. in clash over piracy

The World Trade Organization has largely sided with the United States in a dispute with China over product piracy, according to official documents released Monday.

The ruling, which confirms an interim decision in October, takes Washington one step closer to being able to seek compensation from China for the billions of dollars that U.S. companies say they lose through piracy each year.

The WTO found China breached trade rules by turning a blind eye to the piracy of CDs and DVDs that haven’t been passed by state censors.

It also faulted Beijing for allowing seized goods to be reintroduced into the market if the infringing material is removed.

But the panel failed to uphold Washington’s complaint that Chinese thresholds for prosecuting piracy break WTO rules.

The U.S. brought the case in 2007, after negotiations with China failed. Beijing heavily criticized Washington for taking the issue to the WTO’s dispute settlement panel.