From Bloomberg (link)
The Bush administration’s dispute with China over its movie piracy and other copyright infringement may escalate into litigation as early as this month unless Chinese leaders offer an acceptable solution during summits with the U.S. that start next week, people briefed on the matter said.
The U.S. is preparing to file a lawsuit with the World Trade Organization alleging Chinese intellectual property laws fall short of the global requirements China agreed to when it joined the WTO in 2001, the people said. The administration has been discussing the legal strategy with the film, music and software industries and congressional staff members, they said.
Administration officials have said in those strategy meetings that they intend to file the suit if the summits in Washington fail to resolve the issue, the people said.