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UNITED STATES

Since March 2002

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Copyright Treaty
WIPO Copyright Treaty
The US has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

UNITED STATES

Since May 2002

Pillar Intellectual Property Rights (IPRs)  |  Indicator Adoption of the WIPO Performances and Phonograms Treaty
WIPO Performances and Phonograms Treaty
The US has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal

UNITED STATES

Since May 2016

Pillar Intellectual Property Rights (IPRs)  |  Indicator Effective protection covering trade secrets
Defend Trade Secrets Act (DTSA)
The Defend Trade Secrets Act (DTSA) provides a framework for the effective protection of trade secrets by establishing a federal claim for misappropriation of trade secrets. Until the adoption of the DTSA, trade secrets had been protected at the state level, with all states, other than New York, adopting their own version of the Uniform Trade Secrets Act (UTSA). States adopting the UTSA impose liability for improper acquisition of trade secrets; use or disclosure of a trade secret is not required for liability, though additional damages may accrue. On the other hand, States (New York) adopting the Restatement of Torts (Section 757) approach require unauthorised use or disclosure for liability to accrue.
Coverage Horizontal

UNITED STATES

N/A

Pillar Telecom infrastructure & competition  |  Indicator Passive infrastructure sharing obligation
Requirement of passive infrastructure sharing
It is reported that there is an obligation for passive infrastructure sharing in the country to deliver telecom services to end users. It is practised in both the mobile and fixed sectors based on commercial agreements.
Coverage Telecommunications sector

UNITED STATES

N/A

Pillar Telecom infrastructure & competition  |  Indicator Functional/accounting separation for operators with significant market power
Lack of mandatory functional separation for dominant network operators
It is reported that the U.S. does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, accounting separation is required by law.
Coverage Telecommunications sector

UNITED STATES

Reported in 2021, last reported in 2022

Pillar Telecom infrastructure & competition  |  Indicator Licensing restrictions to operate in the telecom market
Reported impact of ownership on licensing timelines
It is reported that entities intending to offer telecommunications services between the United States and any foreign destination are required to apply for, and obtain, an international Section 214 authorisation from the Federal Communications Commission (FCC), pursuant to the Communications Act of 1934, prior to initiating service. The approval of licence assignment applications may occur as swiftly as overnight or may extend over several months, depending on various factors, including the involvement of foreign ownership. Although the FCC has established detailed licensing timelines, including a 14-day streamlined review process for the majority of international Section 214 applications, this expedited procedure is typically suspended in cases where aggregate foreign ownership exceeds 10%. In such instances, the FCC refers the application to the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (commonly referred to as Team Telecom), which conducts potentially protracted national security reviews.
Coverage Telecommunications sector

UNITED STATES

Since June 1934, last amended in February 1996

Pillar Telecom infrastructure & competition  |  Indicator Licensing restrictions to operate in the telecom market
Communications Act of 1934
Under Section 310(b) of the Communications Act, prior approval from the Federal Communications Commission, which is generally granted upon application, is needed for common carrier wireless licensees to have direct foreign ownership of no more than 20% and indirect foreign ownership of no more than 25%.
Coverage Common carrier wireless licensees

UNITED STATES

Since March 2020, last amended in September 2022

Pillar Telecom infrastructure & competition  |  Indicator Licensing restrictions to operate in the telecom market
List of Equipment and Services Covered By Section 2 of The Secure Networks Act
Section 1.50002 of the Commission's rules mandates that the Public Safety and Homeland Security Bureau publish a "Covered List" of communications equipment and services deemed to pose an unacceptable risk to U.S. national security or the safety of U.S. persons. This designation is based on specific sources of risk assessment. Telecommunications providers in the U.S. are required to remove any equipment or services from companies on this list from their networks and are prohibited from using Federal Communications Commission (FCC) funds to acquire such equipment or services. The Covered List includes several foreign companies, such as Huawei, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology, Dahua Technology, AO Kaspersky Lab, China Mobile International USA, China Telecom (Americas) Corp, Pacific Networks Corp, and China Unicom (Americas) Operations Limited.
Coverage Huawei, ZTE, Hytera Communications, Hangzhou Hikvision Digital Technology, Dahua Technology, AO Kaspersky Lab, China Mobile International USA, China Telecom (Americas) Corp, Pacific Networks Corp, China Unicom (Americas) Operations Limited

UNITED STATES

N/A

Pillar Public procurement of ICT goods and online services  |  Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of coverage of CPC 754, CPC 752, and CPC 84 in the WTO Government Procurement Agreement (GPA)
Although the US is a signatory to the WTO Government Procurement Agreement (GPA), its coverage schedules do not fully cover the three most relevant service sectors (CPC 752, 754, 84). While value-added telecommunications services are covered, the agreement does not cover procurement of public utility services, including telecommunications and automatic data processing (ADP)-related telecommunications services.
Coverage Enhanced (i.e., value-added) telecommunications services

UNITED STATES


Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
n/f

UNITED STATES

Since April 2020

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Screening of investment and acquisitions
Executive Order 13913 Establishing the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector
Section 3 of Executive Order 13913 formally establishes the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector, commonly known as Team Telecom, which assists the Federal Communications Commission (FCC) in reviewing national security and law enforcement concerns related to foreign involvement in the U.S. telecommunications sector. Under Section 5, the Committee is authorised to conduct a 120-day review of certain applications referred by the FCC, with the possibility of a 90-day extension if a secondary assessment is required. Section 9 empowers the Committee to recommend a range of actions to the FCC, including approval without objection, approval subject to mitigation measures, denial, or modification or revocation of a licence. It has been reported that, following procedures initiated prior to the issuance of the Executive Order, the FCC revoked the licences of four foreign common carrier wireless providers.
Coverage Telecommunications sector

UNITED STATES

Reported in 2024

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Screening of investment and acquisitions
Reported screening of foreign investment for national security
It is reported that the Committee on Foreign Investment in the United States (CFIUS) led by the Department of the Treasury is an interagency body responsible for reviewing foreign investments to safeguard U.S. national security. Its authority includes blocking, unwinding, or imposing conditions on transactions deemed harmful to national interests. A major legislative development, the Foreign Investment Risk Review Modernization Act (FIRRMA) of 2018, significantly broadened CFIUS’s scope. While the committee initially focused on transactions involving foreign control of U.S. businesses, FIRRMA extended its jurisdiction to certain non-controlling investments, particularly in sectors involving critical technologies, infrastructure, and sensitive personal data. It also introduced mandatory filing requirements for specific transactions, especially those related to critical technologies. Under the Biden administration, CFIUS’s scrutiny has intensified. A recent executive order directs the committee to consider additional factors such as the resilience of critical supply chains, technological leadership in fields like artificial intelligence and biotechnology, investment trends, cybersecurity threats, and data privacy. Between 2017 and 2021, CFIUS reviewed 1,156 notices, with notable interventions in the semiconductor sector, and particularly involving Chinese entities. Prominent cases include the blocked acquisition of Qualcomm by Broadcom (2018), the forced divestment of Grindr by Chinese firm Kunlun (2019), and the review of ByteDance’s acquisition of Musical.ly (2020) due to concerns over data privacy and national security.
Coverage Horizontal

UNITED STATES

Since September 2012

Pillar Intellectual Property Rights (IPRs)  |  Indicator Practical or legal restrictions related to the application process for patents
Code of Federal Regulations, Title 37- Patents, Trademarks, and Copyrights
Pursuant to Section 1.31 of Title 37 of the Code of Federal Regulations (CFR), an applicant that qualifies as a juristic entity must be represented by a registered patent attorney or agent. In effect, this provision precludes companies and other organisational entities from representing themselves in proceedings before the United States Patent and Trademark Office (USPTO), thereby requiring them to engage a qualified practitioner to act on their behalf.
Coverage Horizontal

UNITED STATES

Since April 2021, until April 2026

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Antidumping, countervailing duties, and safeguard measures on ICT goods
Countervailing Duty
In July 2020, the United States initiated an anti-subsidy investigation on imports of silicon metal (HS Code: 280469) from Kazakhstan, which is also used for producing silicon compounds as well as silicon wafers used as electronic semiconductors. In April 2021, the United States imposed a definitive countervailing duty with a rate of 160%.
Coverage Product: Silicon Metal (HS Code: 280469)

Country: Kazakhstan

UNITED STATES

Since 2006

Pillar Public procurement of ICT goods and online services  |  Indicator Exclusion from public procurement
Exclusion of company from public procurement
The US Department of State has decided not to use Lenovo Group Ltd. computers on a classified network, under fears that hardware-level backdoors could exist in these products. Lenovo hardware is also reportedly banned by the US Central Intelligence Agency (CIA), although no evidence of any wrongdoing on Lenovo's part has been presented.
Coverage Lenovo

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