[Federal Register Volume 63, Number 205 (Friday, October 23, 1998)]
[Notices]
[Pages 56963-56964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28441]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE


Request for Public Comment: Proposed Determination in Section 301 
Investigation Concerning Intellectual Property Laws and Practices of 
the Government of Paraguay

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of proposed determination and request for written 
comments.

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SUMMARY: The United States Trade Representative (USTR) is seeking 
public comment on a proposed determination that certain acts, policies 
and practices of the Government of Paraguay concerning the protection 
and enforcement of intellectual property rights are unreasonable and 
constitute a burden or restriction on United States commerce.

DATES: This action was taken October 16, 1998. Written comments of 
interested persons are due by noon on November 16, 1998.

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

FOR FURTHER INFORMATION CONTACT:
Claude Burcky, Director for Intellectual Property, (202) 395-6864; 
Kellie Meiman, Director for Mercosur and the Southern Cone, (202) 395-
5190; or Geralyn S. Ritter, Assistant General Counsel, (202) 395-6800.

SUPPLEMENTARY INFORMATION: On January 16, 1998, the USTR identified 
Paraguay as a ``priority foreign country'' under the ``Special 301'' 
provisions of the Trade Act of 1974, as amended (19 U.S.C. 2242). In 
identifying Paraguay as a ``priority foreign country,'' the USTR noted 
deficiencies in Paraguay's acts, policies and practices regarding 
intellectual proprerty, including a lack of effective action to enforce 
intellectual property rights. The USTR also observed that the 
Government of Paraguay had failed to enact adequate and effective 
intellectual property legislation covering patents, copyrights and 
trademarks. As required under Section 302(b)(2)(A) of the Trade Act (19 
U.S.C. 2412(b)(2)(A)), an investigation of these acts, policies and 
practices was initiated on February 17, 1998. On August 4, 1998, the 
investigation was extended until November 17, 1998, in light of the 
complex and complicated issues involved. Thus, pursuant to section 
304(a)(3)(B) of the Trade Act, the USTR must determine on or before 
November 17, 1998, whether the Government of Paraguay's acts, policies 
and practices regarding intellectual property are unreasonable and 
burden or restrict U.S. commerce.
    During bilateral negotiations held to resolve these issues, the 
Government of Paraguay indicated that it has undertaken and will 
undertake a number of actions to improve the protection of intellectual 
property rights in Paraguay. For example, since this investigation was 
initiated, Paraguay has passed new copyright and trademark laws, and 
has undertaken efforts to legalize government use of software. The 
Government of Paraguay also has made efforts to improve enforcement of 
intellectual property rights, including conducting a number of notable 
recent seizures of counterfeit and pirated products.
    Despite these efforts, significant issues remain unresolved. Piracy 
and counterfeiting of U.S. products continue to be serious problems in 
Paraguay. Paraguay remains a major transshipment point from which 
pirated and counterfeit products are distributed to markets throughout 
Latin America. Pirated and counterfeit products continue to be widely 
available in retail outlets, particularly in Cuidad del Este. Moreover, 
the Paraguayan judicial system fails to provide effective relief for 
violations of intellectual property rights. There are frequent reports 
that infringers are not prosecuted, that seized products are not 
destroyed, that cases are often mishandled, and that judges lack 
sufficient understanding of intellectual property issues. In addition, 
the recently-passed copyright law fails to provide that copyright 
piracy is a ``public'' criminal offense, and therefore public 
prosecutors will not enforce its provisions. Finally, Paraguay appears 
to have made little progress toward enacting legislation to provide 
adequate and effective patent protection.

Proposed Determination

    If the issues that are the basis for this investigation are not 
addressed, the USTR proposes to determine pursuant to section 304(a)(1) 
of the Trade Act that acts, policies, and practices of the Government 
of Paraguay with respect to the protection and enforcement of 
intellectual property rights are unreasonable and constitute a burden 
or restriction on U.S. commerce. In the event the USTR makes such a 
determination, the USTR also must determine pursuant to section 
304(a)(1)(B) what action, if any, to take in response.

Public Comment

    In accordance with section 304(b)(1)(A) of the Trade Act, USTR 
invites the presentation of views of interested persons concerning the 
determinations required under section 304(a)(1). In particular, written 
comments should address: (1) The USTR's proposed determination that the 
Government of Paraguay's acts, policies or practices concerning the 
protection and enforcement of intellectual property rights are 
unreasonable and constitute a burden or restriction on U.S. commerce; 
and (2) what actions, if any, would be appropriate to take in response.
    Comments must be filed in accordance with the requirements set 
forth in 15 CFR 2006.8(b) (55 FR 20,593) and must be filed on or before 
noon on Monday, November 16, 1998. Comments must be in English and 
provided in twenty copies to: Sybia Harrison, Staff Assistant to the 
Section 301 Committee, Room 416, Office of the U.S. Trade 
Representative, 600 17th Street, NW, Washington, DC 20508.
    Comments will be placed in a file (Docket 301-117) open to public 
inspection pursuant to 15 CFR 2006.13, except confidential business 
information exempt from public inspection in accordance with 15 CFR 
2006.15. Confidential business information submitted in accordance with 
15 CFR 2006.15 must be clearly marked ``BUSINESS CONFIDENTIAL'' in a 
contrasting color ink at the top of each page on each of 20 copies, and 
must be accompanied by a nonconfidential summary of the confidential 
information. The nonconfidential summary shall be placed in the file 
that is open to public inspection. An appointment to review the docket 
(Docket No. 301-117) may be made by calling Brenda Webb (202) 395-6186. 
The USTR Reading Room is open to the public from 9:30 a.m. to 12

[[Page 56964]]

noon and 1 p.m. to 4 p.m., Monday through Friday, and is located in 
Room 101.
Joanna K. McIntosh,
Chairperson, Section 301 Committee.
[FR Doc. 98-28441 Filed 10-22-98; 8:45 am]
BILLING CODE 3190-01-M