[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1426 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1426

   To encourage beneficiary developing countries to provide adequate 
  protection of intellectual property rights, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 7, 1997

Mr. Lautenberg introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To encourage beneficiary developing countries to provide adequate 
  protection of intellectual property rights, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rights of Intellectual Property 
Owners Fairness Facilitation Act of 1997''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) United States industry loses billions of dollars each 
        year to countries that do not provide adequate protection of 
        intellectual property rights.
            (2) According to the Department of Commerce, United States 
        companies lose approximately $50,000,000,000 annually as a 
        result of violations of intellectual property rights by foreign 
        countries.
            (3) It is in the interest of the United States to leverage 
        its foreign policy to achieve certain trade policy objectives, 
        such as adequate, effective, and timely protection of 
        intellectual property rights.
            (4) Several countries that qualify under the generalized 
        system of preferences provisions have been identified under 
        section 182 of the Trade Act of 1974 (19 U.S.C. 2242) as 
        countries that do not provide adequate and effective protection 
        of patents, copyrights, and trademarks or deny fair and 
        equitable market access to United States persons that rely on 
        intellectual property rights protection.
            (5) Several countries that receive United States foreign 
        assistance also have been identified under section 182 of the 
        Trade Act of 1974 as countries that do not provide adequate and 
        effective protection of patents, copyrights, and trademarks or 
        deny fair and equitable market access to United States persons 
        that rely on intellectual property rights protection.

SEC. 3. COUNTRIES INELIGIBLE FOR GSP TREATMENT.

    (a) In General.--
            (1) Implementation of agreement on trips and other 
        agreements relating to intellectual property rights.--Section 
        502(b)(2) of the Trade Act of 1974 (19 U.S.C. 2462(b)(2)) is 
        amended--
                    (A) by inserting immediately after subparagraph (G) 
                the following new subparagraphs:
                    ``(H) Such country is not implementing parts I, II, 
                and III of the Agreement on TRIPS--
                            ``(i) beginning on the date that is 1 year 
                        after the date of enactment of the Rights of 
                        Intellectual Property Owners Fairness 
                        Facilitation Act of 1997; or
                            ``(ii) by January 1, 2000, in the case of a 
                        least-developed beneficiary developing country.
                    ``(I) Beginning on the date that is 90 days after 
                the date of enactment of the Rights of Intellectual 
                Property Owners Fairness Facilitation Act of 1997, such 
                country is not implementing--
                            ``(i) article 70(9) of part VII of the 
                        Agreement on TRIPS; or
                            ``(ii) any bilateral or multilateral 
                        agreement (other than an agreement described in 
                        subparagraph (H) or clause (i)) to protect and 
                        enforce intellectual property rights entered 
                        into with the United States.''.
                    (B) in the last sentence, by striking ``(D), (E), 
                (F), and (G)'' and inserting ``(D), (E), (F), (G), (H), 
                and (I)''.
            (2) Conforming amendment.--Section 507 of such Act (19 
        U.S.C. 2467) is amended by adding at the end the following new 
        paragraph:
            ``(6) Agreement on trips.--
                    ``(A) TRIPS.--The term `Agreement on TRIPS' means 
                the Agreement on Trade-Related Aspects of Intellectual 
                Property Rights entered into as part of the Uruguay 
                Round Agreements.
                    ``(B) Uruguay round agreements.--The term `Uruguay 
                Round Agreements' means the trade agreements resulting 
                from the Uruguay Round of multilateral trade 
                negotiations under the auspices of the General 
                Agreement on Tariffs and Trade.''.
    (b) Designation as Eligible GSP Country.--Section 502 of such Act 
(19 U.S.C. 2462) is amended by adding at the end the following new 
subsection:
    ``(g) Designation Where Country Adheres to the Agreement on TRIPS 
and Other Intellectual Property Rights Agreements; Annual Reports.--
            ``(1) Designation as beneficiary developing country.--A 
        country--
                    ``(A) which has been denied designation as a 
                beneficiary developing country on the basis of 
                subsection (b)(2)(H) or (I), or
                    ``(B) with respect to which such designation has 
                been withdrawn or suspended based on subsection (b)(2) 
                (H) or (I),
        may be designated as a beneficiary developing country under 
        this title, if the President determines that the country is 
        fully implementing parts I, II, III and article 70(9) of part 
        VII of the Agreement on TRIPS, and any other agreement entered 
        into with the United States that relates to intellectual 
        property rights, and reports the determination to Congress.
            ``(2) Reports.--
                    ``(A) Annual reports.--Not later than the date that 
                is 1 year after the date of enactment of the Rights of 
                Intellectual Property Owners Fairness Facilitation Act 
                of 1997, and annually thereafter, the President shall 
                determine whether each country designated as a 
                beneficiary developing country under this title is 
                fully implementing parts I, II, and III of the 
                Agreement on TRIPS and shall report such findings to 
                Congress.
                    ``(B) Other reports.--Not later than 90 days after 
                the date of enactment of the Rights of Intellectual 
                Property Owners Fairness Facilitation Act of 1997, and 
                annually thereafter, the President shall determine 
                whether each country designated as a beneficiary 
                developing country under this title is fully 
                implementing article 70(9) of part VII of the Agreement 
                on TRIPS and any other agreement entered into with the 
                United States that relates to intellectual property 
                rights and shall report such determination to 
                Congress.''.

SEC. 4. COORDINATION OF TRADE POLICY AND FOREIGN POLICY.

    (a) Other Efforts To Improve Protection of Intellectual Property 
Rights.--The United States Trade Representative shall notify the 
Secretary of State, the Secretary of Commerce, and the Administrator of 
the Agency for International Development on a regular basis of any 
country which is not fully implementing parts I, II, III and article 
70(9) of part VII of the Agreement on TRIPS, and any other agreement 
entered into with the United States that relates to intellectual 
property rights.
    (b) Encouraging Implementation of Agreement on TRIPS.--The 
Secretary of State, the Secretary of Commerce, and the Administrator of 
the Agency for International Development shall cooperate with the 
United States Trade Representative by encouraging any country that 
receives foreign assistance and is not fully implementing the Agreement 
on TRIPS or any other agreement entered into with the United States 
that relates to intellectual property rights to enact and enforce laws 
that will enable the country to implement the Agreement on TRIPS and 
any other intellectual property rights agreement. To further this 
objective, the Secretary of State shall instruct the head of each 
United States diplomatic mission abroad to include intellectual 
property rights protection as a priority objective of the mission.
    (c) Other Actions To Encourage Protection of Intellectual Property 
Rights.--Notwithstanding any other provision of law, the President is 
authorized to undertake the following actions, where appropriate, with 
respect to a developing country to encourage and help the country 
improve the protection of intellectual property rights:
            (1) Provide Overseas Private Investment Corporation 
        insurance for intellectual property assets.
            (2) Require foreign assistance programs to provide support 
        for the development of national intellectual property laws and 
        regulations and for the development of the infrastructure 
        necessary to protect intellectual property rights.
            (3) Establish technical cooperation committees on 
        intellectual property standards within regional organizations.
            (4) Establish, as a joint effort between the United States 
        Government and the private sector, a council to facilitate and 
        provide intellectual property-related technical assistance 
        through the Agency for International Development and the 
        Department of Commerce.
            (5) Require United States representatives to multilateral 
        lending institutions to seek the establishment of programs 
        within the institutions to support strong intellectual property 
        rights protection in recipient countries that have fully 
        implemented parts I, II, III and article 70(9) of part VII of 
        the Agreement on TRIPS, and any other agreement entered into 
        with the United States that relates to intellectual property 
        rights.
    (d) Definitions.--In this section:
            (1) Agreement on trips.--The term ``Agreement on TRIPS'' 
        means the Agreement on Trade-Related Aspects of Intellectual 
        Property Rights entered into as part of the trade agreements 
        resulting from the Uruguay Round of multilateral trade 
        negotiations under the auspices of the General Agreement on 
        Tariffs and Trade.
            (2) Developing country.--The term ``developing country'' 
        means any country which is--
                    (A) eligible to be designated a beneficiary 
                developing country pursuant to title V of the Trade Act 
                of 1974 (19 U.S.C. 2461 et seq.); or
                    (B) designated as a least-developed beneficiary 
                developing country pursuant to section 502 of such Act 
                (19 U.S.C. 2462).
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