Official: WTO faults China in piracy dispute

GENEVA (AP) -- Officials say the World Trade Organization has partly sided with the United States in a dispute with China over product piracy.

A trade diplomat who has reviewed the interim ruling says the WTO faults China for not prosecuting pirates who copy CDs and DVDs before they are passed by censors.

But the official says Washington suffered a setback as the panel found Chinese thresholds for prosecuting piracy do not break WTO rules.

The U.S. claims the thresholds allow those who pirate everything from designer clothes to medicines to tailor their operations to avoid prosecution.

A U.S. trade official said Thursday that Washington won on two of three issues in the case.

The officials spoke on condition of anonymity because of WTO rules.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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