[Federal Register Volume 61, Number 208 (Friday, October 25, 1996)]
[Notices]
[Pages 55351-55352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27409]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket Number 301-103]


Termination of Section 302 Investigation Regarding Portugal's 
Implementation of the Patent Protection Provisions of the Agreement on 
Trade-Related Aspects of Intellectual Property Rights

agency: Office of the United States Trade Representative.


[[Page 55352]]


action: Notice of termination and monitoring.

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summary: On April 30, 1996, the United States Trade Representative 
(USTR) initiated an investigation under section 302(b)(1) of the Trade 
Act of 1974, as amended (the Trade Act) (19 U.S.C. 2412(b)(1)), with 
respect to certain acts, policies and practices of the Government of 
Portugal relating to the term of existing patents. Following 
consultations with the United States under the auspices of the World 
Trade Organization (WTO), Portugal issued a decree-law to implement 
properly its patent term-related obligations under the Agreement on 
Trade-Related Aspects of Intellectual Property Rights (TRIPS 
Agreement). Having reached a satisfactory resolution of the issues 
under investigation, the USTR has determined this section 302 
investigation and monitor implementation of the agreement under section 
306 of the Trade Act.

effective date: The effective date of the termination of the 
investigation is October 21, 1996.

addresses: Section 301 Committee, Office of the United States Trade 
Representative, Room 223, 600 17th Street, N.W., Washington, D.C. 
20506.

for further information contact: Joseph Papovich, Deputy Assistant USTR 
for Intellectual Property (202) 395-6864, or Thomas Robertson, 
Associate General Counsel (202) 395-6800.

supplementary information: On April 30, 1996, the USTR initiated an 
investigation under section 302(b)(1) of the Trade Act with respect to 
certain acts, policies and practices of the Government of Portugal 
relating to the term of existing patents. The United States alleged 
that these acts, policies and practices result in patents owned by U.S. 
individuals and firms receiving shorter terms than those required by 
the TRIPs Agreement. The United States also requested consultations 
with Portugal under the procedures of the WTO Dispute Settlement 
Understanding (DSU). 61 FR 19970 (May 3, 1996).
    At issue in this investigation was whether developed-country 
Members of the WTO are obligated under Article 70(2) of the TRIPS 
Agreement to apply the provisions of Article 33 of the TRIPS Agreement 
to all patents that were in force on January 1, 1996, and to all 
patents that are granted based on applications that were pending on 
January 1, 1996. Article 33 of the TRIPS Agreement requires Members to 
grant a patent term that lasts not less than 20 years from earliest 
effective filing date claimed. Portugal had declined to apply the 
Article 33-mandated term to pending patents, and claimed that the TRIPS 
Agreement did not require it to do so.
    On May 30, 1996, the United States and Portugal (with 
representatives of the European Commission present at Portugal's 
request) held formal consultations on this matter under the WTO DSU 
procedures. In those consultations, Portugal formally agreed to the 
United States' interpretation of the obligations in the TRIPS Agreement 
and announced that it would make a series of changes to its system to 
implement these obligations. On August 23, 1996, Portugal issued 
Decree-Law 141/96 confirming that all patents that were in force on 
January 1, 1996, and all patents granted after this date based on 
applications that were pending on January 1, 1996, will receive a term 
of protection that lasts either 15 years from the date of grant of the 
patent or 20 years from the effective filing date of the patent, 
whichever term is longer.
    Based on these consultations and the measures that Portugal has 
undertaken to implement its obligations under the TRIPS Agreement, 
Portugal and the United States notified the WTO Dispute Settlement Body 
on October 3, 1996, that they have agreed to terminate consultations on 
this matter and that the United States has formally withdrawn this 
matter from further attention under the provisions of the DSU. On the 
basis of the measures Portugal has undertaken to provide a satisfactory 
resolution to the matter under investigation, the USTR has decided to 
terminate this section 302 investigation. Pursuant to section 306 of 
the Trade Act, the USTR will monitor Portugal's implementation of its 
TRIPS Agreement obligations with respect to the term of protection 
granted to patents in force on or after January 1, 1996.
Irving A. Williamson,
Chairman, Section 301 Committee.
[FR Doc. 96-27409 Filed 10-24-96; 8:45 am]
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