[Congressional Record Volume 144, Number 146 (Wednesday, October 14, 1998)]
[Senate]
[Pages S12466-S12467]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 DENIAL OF BENEFITS TO DEVELOPING COUNTRIES THAT VIOLATE INTELLECTUAL 
                            PROPERTY RIGHTS

  Mr. CRAIG. Mr. President, I ask unanimous consent that the Finance 
Committee be discharged from further consideration of S. Con. Res. 124, 
and the Senate then proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report.
  The assistant legislative clerk read as follows:


[[Page S12467]]


       A concurrent resolution (S. Con. Res. 124) expressing the 
     sense of Congress regarding the denial of benefits under the 
     Generalized System of Preferences to developing countries 
     that violate the intellectual property rights of U.S. 
     persons, particularly those that have not implemented their 
     obligations under the Agreement on Trade-related aspects of 
     intellectual property.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the resolution?
  There being no objection, the Senate proceeded to consider the 
resolution.


                           Amendment No. 3823

  Mr. CRAIG. Mr. President, Senator Lautenberg has an amendment at the 
desk to the resolution, and I ask for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Idaho [Mr. Craig], for Mr. Lautenberg, 
     proposes an amendment numbered 3823.

  The amendment is as follows:

       On page 3, line 5, strike all in the line after ``that'' 
     and insert: ``is not making substantial progress towards 
     adequately and effectively protecting''.

  Mr. CRAIG. Mr. President, I ask unanimous consent that the amendment 
be agreed to, that the concurrent resolution, as amended, be agreed to, 
the preamble be agreed to, and the motion to reconsider be laid upon 
the table without intervening action.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3823) was agreed to.
  The concurrent resolution (S. Con. Res. 124) was agreed to.
  The preamble was agreed to.
  The resolution, with its preamble, reads as follows:

                            S. Con. Res. 124

       Whereas intellectual property-dependent industries include 
     businesses that depend on protection of trademarks, trade 
     secrets, trade names, copyrights, and patents;
       Whereas intellectual property-dependent industries have 
     become primary drivers of the United States economy, 
     contributing over $500,000,000,000 to the United States 
     economy in 1997;
       Whereas the foreign sales and exports of United States 
     intellectual property-dependent goods totaled at least 
     $100,000,000,000 in 1997, exceeded sales of every other 
     industrial sector, and helped the United States balance of 
     trade;
       Whereas international piracy of United States intellectual 
     property, which the Department of Commerce estimates costs 
     United States companies nearly $50,000,000,000 annually, 
     poses the greatest threat to the continued success of United 
     States intellectual property-dependent industries;
       Whereas goods from many developing countries receive 
     preferential duty treatment under the Generalized System of 
     Preferences even though those countries do not protect 
     intellectual property rights of United States persons;
       Whereas piracy of United States intellectual property is so 
     rampant in some developing countries that receive benefits 
     under the Generalized System of Preferences that it 
     effectively prevents United States intellectual property-
     dependent industries from selling products in those 
     countries;
       Whereas the Agreement on Trade-Related Aspects of 
     Intellectual Property Rights requires its signatories to 
     provide a minimum of essential protections to the 
     intellectual property of citizens from all signatory nations;
       Whereas the United States has fully implemented its 
     obligations under the Agreement on Trade-Related Aspects of 
     Intellectual Property Rights, and in fact in many cases 
     offers stronger protection of intellectual property rights 
     than required in the Agreement;
       Whereas it appears that at the current rate many developing 
     countries that receive benefits under the Generalized System 
     of Preferences may not be in compliance with their 
     obligations under the Agreement on Trade-Related Aspects of 
     Intellectual Property Rights on January 1, 2000, as required; 
     and
       Whereas many of the developing countries that receive 
     benefits under the Generalized System of Preferences and that 
     are not on track in complying with their obligations under 
     the Agreement on Trade-Related Aspects of Intellectual 
     Property Rights are responsible for substantial trade losses 
     suffered by United States intellectual property-dependent 
     industries: Now, therefore, be it
       Resolved by the Senate (the House of Representatives 
     concurring), That it is the sense of Congress that--
       (1) the United States should not give special trade 
     preferences to goods originating from a country that is not 
     making substantial progress towards adequately and 
     effectively protecting United States intellectual property 
     rights, particularly a developing country that has not met 
     its obligations under the Agreement on Trade-Related Aspects 
     of Intellectual Property Rights by January 1, 2000;
       (2) Congress should monitor the progress of developing 
     countries in meeting their obligations under the Agreement on 
     Trade-Related Aspects of Intellectual Property Rights by 
     January 1, 2000; and
       (3) Congress should consider legislation that would deny 
     the benefits of the Generalized System of Preferences to 
     developing countries that are not in compliance with their 
     obligations under the Agreement on Trade-Related Aspects of 
     Intellectual Property Rights beginning on January 1, 2000.

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