[Federal Register Volume 63, Number 226 (Tuesday, November 24, 1998)]
[Notices]
[Page 64982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31313]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket No. 301-117]


Section 304 Determination: Intellectual Property Laws and 
Practices of the Government of Paraguay; Termination of Intellectual 
Property Review of Paraguay Under the Generalized System of Preferences 
(GSP)

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of determination, termination and monitoring.

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SUMMARY: Having concluded the investigation undertaken pursuant to 
section 302 of the Trade Act of 1974, as amended (``Trade Act''), the 
United States Trade Representative (USTR) has determined pursuant to 
section 304(a)(1)(A)(ii) that certain acts, policies and practices of 
the Government of Paraguay concerning the protection and enforcement of 
intellectual property rights are unreasonable and discriminatory and 
constitute a burden or restriction on United States commerce. On 
November 17, 1998, the United States and Paraguay signed a Memorandum 
of Understanding (MOU) in which the Government of Paraguay committed to 
take a number of near-term and longer-term actions to address the 
practices that were the subject of this investigation. In light of the 
foregoing, the USTR has determined: not to take further action at this 
time; to terminate the investigation; and to monitor Paraguay's 
implementation of the MOU. The GSP review of Paraguay's intellectual 
property practices has also been terminated.

EFFECTIVE DATE: November 17, 1998.

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 (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 
property, 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)), 
the USTR initiated an investigation of these acts, policies and 
practices on February 17, 1998. On August 4, 1998, the USTR extended 
the investigation until November 17, 1998, in light of the complex and 
complicated issues involved, pursuant to section 304(a)(3)(B) of the 
Trade Act. On October 16, 1998, the USTR proposed to determine under 
section 304(a)(1)(A)(ii) that the Government of Paraguay's acts, 
policies and practices regarding intellectual property are 
unreasonable, discriminatory and burden or restrict U.S. commerce, and 
requested public comment on what action, if any, to take in response.
    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, however, piracy and counterfeiting of U.S. products continue 
to be serious problems in Paraguay.
    On November 17, 1998, the United States and Paraguay signed an MOU 
that includes an Enforcement Action Plan to address the issues that 
were the subject of this investigation. The MOU contains specific near-
term and longer-term obligations that, when fully implemented, will 
greatly strengthen Paraguayan intellectual property law and enforcement 
procedures. For example, Paraguay has committed to implement 
institutional reforms to strengthen enforcement at its borders and to 
pursue amendments that will facilitate effective prosecution of 
copyright piracy. Paraguay also has committed to take immediate action 
against known centers of piracy and counterfeiting, and to coordinate 
the anti-piracy efforts of its customs, police, prosecutorial and tax 
authorities. In addition, Paraguay has agreed to pursue reform of its 
patent law, and to ensure that its government ministries use only 
authorized software.

Section 304 Determination

    The USTR determines pursuant to section 304(a)(1)(A)(ii) 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 discriminatory and constitute a 
burden or restriction on U.S. commerce. In light of the MOU signed by 
the Government of Paraguay on November 17, 1998, the USTR has 
determined not to take further action at this time under section 
301(b)(2) of the Trade Act and has terminated this investigation. 
Pursuant to section 306 of the Trade Act, the USTR will monitor 
Paraguay's implementation of the MOU and will determine what further 
action to take under section 301(a) of the Trade Act if Paraguay does 
not satisfactorily implement the MOU.

Termination of GSP Review

    In 1996, a review of Paraguay's protection of intellectual property 
rights was initiated in response to a petition filed by Nintendo. In 
light of the above-referenced MOU and Paraguay's recent steps to 
improve intellectual property protection, the GSP review is terminated.
Joanna K. McIntosh,
Chairman, Section 301 Committee.
[FR Doc. 98-31313 Filed 11-23-98; 8:45 am]
BILLING CODE 3190-01-M