[Federal Register Volume 63, Number 89 (Friday, May 8, 1998)]
[Notices]
[Page 25539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12196]



[[Page 25539]]

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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Identification of Countries That Deny Adequate Protection, or 
Market Access, for Intellectual Property Rights Under Section 182 of 
the Trade Act of 1974 (Special 301)

AGENCY: Office of the United States Trade Representative.

ACTION: Identification of countries that deny adequate protection for 
intellectual property rights or market access for persons that rely on 
intellectual property protection.

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SUMMARY: The United Sates Trade Representative (USTR) is required by 
the ``Special 301'' provisions in U.S. trade law to identify those 
foreign countries that deny adequate and effective protection of 
intellectual property rights or deny fair and equitable market access 
to United States persons that rely upon intellectual property 
protection, and those foreign countries determined to be priority 
foreign countries. These identifications are presented below.

DATES: These identifications took place on April 30, 1998.

ADDRESSES: Office of the United States Trade Representative, 600 17th 
Street, N.W., Washington, DC 20508.

FOR FURTHER INFORMATION CONTACT: Claude Burcky, Director for 
Intellectual Property, (202) 395-6864, Steve Fox, Deputy Director for 
Intellectual Property, (202) 395-6864, or Geralyn S. Ritter, Associate 
General Counsel, (202) 395-6800.

SUPPLEMENTARY INFORMATION: Section 182 of the Trade Act of 1974, as 
amended (the Trade Act) (19 U.S.C. 2242) (commonly referred to as 
Special 301) requires the USTR, within 30 days of the publication of 
the National Trade Estimates Report provided for in section 181(b) of 
the Trade Act, to identify all trading partners that deny adequate and 
effective protection of intellectual property rights or deny fair and 
equitable market acess to United States persons that rely upon 
intellectual property protection. Those countries that have the most 
onerous or egregious acts, policies, or practices that have the 
greatest adverse impact (actual or potential) on the relevant United 
States products must be identified as ``priority foreign countries,'' 
unless they are entering into good faith negotiations or are making 
significant progress in bilateral or multilateral negotiations to 
provide adequate and effective protection for intellectual property 
rights. In identifying countries in this manner, the USTR is directed 
to take into account the history of intellectual property laws and 
practices of the foreign country, including any previous 
identifications as a priority foreign country, and the history of 
efforts of the United States, and the response of the foreign country, 
to achieve adequate and effective protection and enforcement of 
intellectual property rights. In making these determinations, the USTR 
must consult with the Register of Copyrights, the Commissioner of 
Patents and Trademarks, other appropriate officials of the Federal 
Government and take into account information from other sources such as 
information submitted by interested persons.
    On April 30, 1998, the USTR identified 47 trading partners as 
failing to provide adequate and effective intellectual property 
protection and fair and equitable market access to persons that rely on 
such protection. In addition, China's implementation of the 1995 and 
1996 Bilateral IPR Agreements will remain subject to monitoring under 
section 306 of the Trade Act (19 U.S.C. 2416). As a result of these 
agreements and extensive follow-up work with Chinese officials, China 
now has a functioning system to protect intellectual property rights 
(IPR). As an integral part of this national effort, numerous laws, 
regulations and circulars were issued during 1997. There has also been 
continued progress on enforcement in China. In 1997, U.S. industry 
losses from pirated optical media exports declined very significantly 
according to industry estimates. Nevertheless, we remain concerned with 
end-user piracy of business software, continuing retail piracy, growing 
trademark counterfeiting and problems in obtaining administrative 
protection for pharmaceuticals. U.S. officials will continue to work to 
ensure that China strengthens its enforcement against illegal 
importation, distribution, reproduction and sale of all illegitimate 
IPR products.
    Fifteen other trading partners were placed on the administratively-
created ``priority watch list,'' including Argentina, Bulgaria, the 
Dominican Republic, Ecuador, Egypt, the European Union, Greece, India, 
Indonesia, Israel, Italy, Kuwait, Macao, Russia and Turkey. Bulgaria 
will be subject to review during the course of the year to maintain 
pressure for further progress. Thirty-one other countries were placed 
on the special 301 ``watch list,'' including Australia, Bahrain, 
Canada, Chile, Colombia, Costa Rica, Czech Republic, Denmark, 
Guatemala, Honduras, Hong Kong, Ireland, Jamaica, Japan, Jordan, Korea, 
Oman, Pakistan, Peru, The Philippines, Poland, Qatar, Saudi Arabia, 
Singapore, South Africa, Sweden, Thailand, Ukraine, U.A.E. (United Arab 
Emirates), Venezuela, and Vietnam. Of these, at least Colombia, Hong 
Kong, Jordan, and Vietnam will be subject to interim reviews during the 
coming year. The USTR highlighted concerns, developments and 
expectations for further progress in 17 other countries. Finally, the 
USTR announced the initiation of a WTO dispute settlement case against 
Greece and the European Communities for violations of the enforcement 
obligations of the Agreement on Trade-Related Aspects of Intellectual 
Property Rights.
Claude Burcky,
Director of Intellectual Property.
[FR Doc. 98-12196 Filed 5-7-98; 8:45 am]
BILLING CODE 3190-01-M