Repeated complaints of loss of billions of dollars due to piracy in China has the US mulling a counterfeiting dispute with China at the World Trade Organisation (WTO).
Other US firms claim they are also hurt by Chinese sales of counterfeit drugs, car parts and other goods.
Earlier this month, the US has referred its complained against China's industrial subsidies for consultation to the WTO, saying that it denied a level playing field to US companies.(See: US takes China to WTO over industrial subsidies)
The US has been threatening a WTO complaint against China since 2005 for failing to safeguard intellectual property rights.
According to deputy US trade representative Karan Bhatia, despite being given time to comply on copyright issues, there has not been sufficient action from China.
"Last October, we informed China we would be filing such a case, but then agreed to hold off, with the support of US industry, when China asked for further bilateral discussion," said Bhatia, adding, five months later no settlement has been reached.
"If it becomes clear that negotiations will not be successful, then we will proceed with WTO dispute settlement," the US trade official warned.
In June 2006, European Union trade commissioner Peter Mandelson made a fresh call for China to improve market access and cut down on piracy. He warned China would face a backlash in Europe unless it did more to "apply rather than circumvent the rules".
also see : US
takes China to WTO over industrial subsidies