A bill to improve the protection of intellectual property rights through the implementation of the Uruguay Round Agreements, and for other purposes.

SECTION 1. INTERNATIONAL INTELLECTUAL PROPERTY PROTECTION OBJECTIVES.

    The principal objectives of the United States regarding 
international protection of intellectual property rights are--
            (1) to accelerate the full implementation of parts I, II, 
        and III of the Agreement on Trade-Related Aspects of 
        Intellectual Property Rights (hereafter referred to as the 
        ``Agreement on TRIPS'');
            (2) to seek enactment and effective implementation by 
        foreign countries of standards for protection and enforcement 
        of intellectual property rights that supplement and strengthen 
        the standards and obligations contained in the Agreement on 
        TRIPS and the North American Free Trade Agreement, including, 
        but not limited to--
                    (A) supplementing and strengthening such standards 
                and obligations through bilateral and multilateral 
                agreements to assure the protection of new and emerging 
                technologies, and new methods of transmission, 
                distribution, and use, and
                    (B) eliminating discrimination, unreasonable 
                exceptions, or preconditions with respect to the 
                protection, enforcement, or commercial enjoyment of the 
                full economic benefits arising from any use or 
                exploitation of intellectual property rights;
            (3) to secure fair, equitable, and nondiscriminatory market 
        access opportunities for United States persons holding 
        intellectual property rights, including rights that are 
        currently or that may later be granted by a foreign country to 
        its own nationals with respect to the use or exploitation of 
        intellectual property;
            (4) to take an active role in the development of the 
        intellectual property regime under the World Trade Organization 
        (hereafter referred to as the ``WTO''), particularly with 
        respect to monitoring implementation of the regime by WTO 
        members and use of the WTO dispute settlement procedures;
            (5) to take an active role in the World Intellectual 
        Property Organization (hereafter referred to as the ``WIPO'') 
        and to ensure that the WIPO and the WTO work together in a 
        mutually supportive fashion;
            (6) to establish and maintain a Model Intellectual Property 
        Agreement which sets forth a high level of intellectual 
        property rights protection and to ensure that all future 
        international trade agreements entered into by the United 
        States are based on the Model Intellectual Property Agreement;
            (7) to make protection of intellectual property rights a 
        priority factor for determining eligibility to participate in 
        future free trade agreements and the generalized system of 
        preferences;
            (8) to ensure that countries or fast-growing economic 
        entities that seek to accede to the WTO agree to full and 
        effective implementation of parts I, II, and III of the 
        Agreement on TRIPS and resolve any major outstanding 
        intellectual property-related issues of concern to the United 
        States prior to accession;
            (9) to require that United States diplomatic missions 
        abroad include intellectual property rights protection as a 
        priority objective of the mission; and
            (10) to take appropriate action, including the 
        establishment of technical cooperation committees, to encourage 
        and help foreign countries improve the protection of 
        intellectual property rights.

SEC. 2. REQUIREMENTS FOR ENTRY INTO NEW FREE TRADE AGREEMENTS.

    (a) In General.--Notwithstanding any other provision of law, the 
President may not negotiate any new free trade agreement with a foreign 
country, unless the President first determines that such country--
            (1) is fully implementing parts I, II, and III of the 
        Agreement on TRIPS, and
            (2) is willing to enter into an agreement with the United 
        States to provide intellectual property rights protection in 
        line with the protection set forth in the Model Intellectual 
        Property Agreement developed pursuant to section 6.
    (b) Upgrading Existing Free Trade Agreements.--If, after the date 
of the enactment of this Act, the United States enters into a free 
trade agreement with a foreign country that provides greater protection 
of intellectual property rights than a free trade agreement previously 
negotiated with another country, the President shall seek to amend such 
previously negotiated agreement to provide for such greater protection 
of intellectual property rights.
    (c) Notice to Congressional Committees.--The President shall 
provide written notice to the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of Representatives of--
            (1) any determination made under subsection (a), and
            (2) any progress made in amending a previously negotiated 
        free trade agreement under subsection (b).

SEC. 3. IDENTIFICATION OF COUNTRIES THAT DENY ADEQUATE PROTECTION OR 
              MARKET ACCESS FOR INTELLECTUAL PROPERTY RIGHTS.

    Section 182 of the Trade Act of 1974 (19 U.S.C. 2242) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``or'' at the end of subparagraph 
                (A),
                    (B) by striking ``and'' at the end of subparagraph 
                (B) and inserting ``or'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) deny the opportunity to enjoy on a 
                nondiscriminatory basis full commercial benefits 
                associated with exercising rights in protected works, 
                fixations, or products embodying protected works, 
                and'';
            (2) in subsection (b), by adding at the end the following 
        new paragraph:
            ``(4) In identifying a priority foreign country under 
        subsection (a) (1) and (2), the Trade Representative shall take 
        into account--
                    ``(A) the history of intellectual property 
                protection laws and practices of the foreign country, 
                including any past identification of the country under 
                such paragraphs (1) and (2), and
                    ``(B) the history of the efforts of the United 
                States and the responses of the foreign country to 
                achieve adequate and effective protection of 
                intellectual property rights.''; and
            (3) in subsection (d)--
                    (A) by amending paragraph (2) to read as follows:
            ``(2) A foreign country denies adequate and effective 
        protection of intellectual property rights, if--
                    ``(A) the foreign country is not implementing parts 
                I, II, and III of the Agreement on TRIPS, or
                    ``(B) in the case of a foreign country that is 
                implementing parts I, II, and III of the Agreement on 
                TRIPS, or has entered into any other bilateral, 
                regional, or multilateral agreement with respect to the 
                United States, the foreign country--
                            ``(i) continues to deny adequate and 
                        effective opportunity for persons who are not 
                        citizens or nationals of such foreign country 
                        to secure, exercise, and enjoy full commercial 
                        benefits with respect to intellectual property 
                        rights, or
                            ``(ii) does not enforce rights relating to 
                        patents, process patents, registered 
                        trademarks, copyrights and related rights, 
                        trade secrets, and mask works.'';
                    (B) by amending so much of paragraph (3) as 
                precedes subparagraph (A) to read as follows:
            ``(3) A foreign country denies fair and equitable market 
        access if the foreign country effectively denies access to a 
        market for a product protected by a patent, process patent, 
        registered trademark, copyright or related right, trade secret, 
        or mask work through the use of laws, procedures, or 
        regulations which--''; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(4) A foreign country denies the opportunity to enjoy the 
        commercial benefits associated with exercising rights in 
        protected works, fixations, or products embodying protected 
        rights, if the foreign country grants access to methods of 
        distribution or collection of revenues generated from the use 
        or fixation of a product embodying protected rights, or any 
        other benefit relating to such works, fixations, or products 
        embodying protected rights, on terms more advantageous to its 
        own nationals than to nationals of another country.
            ``(5) The term `Agreement on TRIPS' means the Agreement on 
        Trade-Related Aspects of Intellectual Property Rights entered 
        into as part of the Uruguay Round Agreements resulting from the 
        multilateral trade negotiations conducted under the auspices of 
        the General Agreement on Tariffs and Trade.''.

SEC. 4. EXPANSION OF TRADE SANCTIONS.

    (a) In General.--Section 301(c) of the Trade Act of 1974 (19 U.S.C. 
2411(c)) is amended by adding at the end the following new paragraph:
            ``(7) The President is authorized to take such other action 
        with respect to the United States relations with a foreign 
        country as is necessary and appropriate to enforce the rights 
        of the United States under any trade agreement or to eliminate 
        an act, policy, or practice described in subsection (a) or 
        (b).''.
    (b) Unreasonable Acts, Policies, or Practices.--Section 
301(d)(3)(B)(i)(II) of such Act (19 U.S.C. 2411(d)(3)(B)(i)(II)) is 
amended to read as follows:
                                    ``(II) provision of adequate and 
                                effective protection of intellectual 
                                property rights, without regard to 
                                whether the country is fully 
                                implementing parts I, II, and III of 
                                the Agreement on TRIPS or the 
                                obligations of any other bilateral, 
                                regional, or multilateral agreement, 
                                or''.
    (c) Conforming Amendment.--Section 301(d) of such Act (19 U.S.C. 
2411(d)) is amended by adding at the end the following new paragraph:
            ``(10) The term `Agreement on TRIPS' means the Agreement on 
        Trade-Related Aspects of Intellectual Property Rights entered 
        into as part of the Uruguay Round Agreements resulting from the 
        multilateral trade negotiations conducted under the auspices of 
        the General Agreement on Tariffs and Trade.''.

SEC. 5. ELIGIBILITY FOR GSP TREATMENT.

    Section 504(b) of the Trade Act of 1974 (19 U.S.C. 2464(b)) is 
amended to read as follows:
    ``(b) Changed Circumstances and Identification Under Section 
182(a).--
            ``(1) In general.--The President shall, after complying 
        with the requirements of section 502(a)(2), withdraw or suspend 
        the designation of any country as a beneficiary developing 
        country if, after such designation, the President determines--
                    ``(A) that as the result of changed circumstances 
                such country would be barred from designation as a 
                beneficiary developing country under section 502(b), or
                    ``(B) such country has been identified under 
                section 182(a) and, after completion of an 
                investigation under title III, such country has not 
                implemented measures to eliminate the reason for such 
                country's identification under section 182(a)(1).
        Such country shall cease to be a beneficiary developing country 
        on the day on which the President issues an Executive order or 
        Presidential proclamation revoking his designation of such 
        country under section 502.
            ``(2) Redesignation.--Subject to the provisions of section 
        501, the President may redesignate a country as a beneficiary 
        developing country if--
                    ``(A) such country's designation was withdrawn or 
                suspended pursuant to paragraph (1)(B), and
                    ``(B) such country is taking action to eliminate 
                the reasons for which it was identified under section 
                182(a)(1).''.

SEC. 6. MODEL INTELLECTUAL PROPERTY AGREEMENT.

    (a) In General.--The United States Trade Representative, in 
consultation with appropriate United States Government agencies and the 
private sector, shall--
            (1) develop and maintain a Model Intellectual Property 
        Agreement which contains provisions for a high level of 
        protection of intellectual property rights that supplement and 
        strengthen the standards and obligations contained in the 
        Agreement on TRIPS and the North American Free Trade Agreement, 
        and
            (2) review periodically the Model Intellectual Property 
        Agreement to ensure that it reflects adequate protection for 
        new and emerging technologies.
    (b) Use of Model.--The Model Intellectual Property Agreement shall 
represent the negotiating objectives of the United States in all 
international negotiations involving the protection of intellectual 
property rights.

SEC. 7. ANNUAL INTERNATIONAL INTELLECTUAL PROPERTY PROTECTION REPORT.

    Section 163(a)(2) of the Trade Act of 1974 (19 U.S.C. 2213(a)(2)) 
is amended--
            (1) by striking ``and'' at the end of subparagraph (J), and
            (2) by striking the period at the end of subparagraph (K) 
        and inserting: ``, and
                    ``(L) a review of the efforts undertaken during the 
                preceding calendar year by each agency of the United 
                States in support of international protection of 
                intellectual property rights.''.

SEC. 8. PRIVATE SECTOR INVOLVEMENT IN INTERNATIONAL DISPUTE SETTLEMENT.

    Not later than 90 days after the date of the enactment of this Act, 
the United States Trade Representative shall develop and implement a 
procedure for interested persons from the private sector to participate 
in the preparation for dispute settlement proceedings which involve 
intellectual property rights and with respect to which the United 
States is a party.

Summary: Sets forth US objectives with respect to the international protection of intellectual property rights. Prohibits the President from negotiating any new free trade agreement with a foreign country, unless it is determined that such country: (1) is fully implementing the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). And (2) is willing to enter into an agreement with the United States to provide intellectual property rights protection in line with that set forth in the Model Intellectual Property Agreement. Requires the President to amend existing free trade agreements to provide greater protection of such rights. Amends the Trade Act of 1974 to require the United States Trade Representative (USTR), among other things, to identify those foreign countries that deny the opportunity to enjoy on a nondiscriminatory basis full commercial benefits associated with exercising rights in protected works, fixations, or products embodying protected works. Sets forth additional factors the USTR must take into account in identifying a priority foreign country. Revises provisions regarding a foreign country's denial of: (1) adequate protection of intellectual property rights. And (2) fair market access. Specifies when a foreign country denies the opportunity to enjoy the commercial benefits associated with exercising rights in protected works, fixations, or products embodying protected rights. Authorizes the President, in addition to other specified sanctions, to take other necessary action to enforce US rights under a trade agreement or to eliminate any foreign country act, policy, or practice which violates such agreement, or burdens or restricts US commerce. Revises the definition of when an act, policy, or practice is unreasonable to include any act, policy, or practice which denies fair and equitable provision of adequate protection of intellectual property rights, without regard to whether the country is fully implementing TRIPS, or the obligations of any other bilateral, regional, or multilateral agreement. Requires the President, after complying with certain requirements, to withdraw or suspend the designation of a country as a beneficiary developing country that is eligible to receive benefits under the General System of Preferences, if it is determined that such country has been identified as a foreign priority country that denies fair and equitable protection of intellectual property rights and has failed to eliminate such practice. Provides for the redesignation of a country as a beneficiary developing country. Requires the USTR to: (1) develop a Model Intellectual Property Agreement which contains provisions for the protection of intellectual property rights that supplement the standards contained in TRIPS and the North American Free Trade Agreement (NAFTA). And (2) review periodically the Model Intellectual Property Agreement to ensure it reflects adequate protection for new technologies. Requires the President's annual international intellectual property protection report to include a review of the efforts undertaken during the preceding calendar year by each US agency in support of international protection of intellectual property rights. Requires the USTR to develop a procedure for interested private sector persons to participate in the preparation for dispute settlement proceedings which involve the United States with respect to intellectual property rights.