[Federal Register Volume 61, Number 87 (Friday, May 3, 1996)]
[Notices]
[Pages 19969-19970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11069]



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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

AGENCY: Office of the United States Trade Representative.


[[Page 19970]]


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

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SUMMARY: The United States Trade Representative (USTR) is directed by 
section 182 of the Trade Act of 1974, as amended (the Trade Act) (19 
U.S.C. 2242), 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 must 
be made within 30 days of the date on which the annual report is 
submitted to Congressional committees under section 181(b) of the Trade 
Act. They are presented below.

DATES: This identification took place on April 30, 1996.

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

FOR FURTHER INFORMATION CONTACT:
Joseph Papovich, Deputy Assistant USTR for Intellectual Property, (202) 
395-6864, Jo Ellen Urban, Director for Intellectual Property, (202) 
395-6864, or Thomas Robertson, Assistant General Counsel, (202) 395-
6800.

SUPPLEMENTARY INFORMATION: Section 182 of the Trade Act requires the 
USTR to identify within 30 days of the publication of the National 
Trade Estimates Report all trading partners 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. 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, 1996, having consulted with the appropriate private 
sector advisory committees, the USTR identified 34 trading partners as 
failing to provide adequate and effective intellectual property 
protection and fair and equitable market access to persons who rely on 
such protection. Of these trading partners, China was identified as a 
priority foreign country because of its failure to implement the 1995 
intellectual property enforcement agreement. Economic damage to U.S. 
industries continues to rise as a result. Although China has made some 
progress in halting the retail trade in infringing goods, it has failed 
to stop illegal CD production, to prevent the export of infringing 
goods, or to honor its promise to grant market access for legitimate 
audiovisual products. Because intellectual property enforcement 
problems in China are already the subject of an action under section 
301, a new section 30l investigation will not be initiated. See 19 
U.S.C. 2412(b)(2)(A)(ii); 59 FR 35558 (July 12, 1994); 60 FR 1829 
(January 5, 1995); 60 FR 7230 (February 7, 1995); 60 FR 12582 (March 7, 
1995). China's implementation of the 1995 agreement will remain subject 
to section 306 monitoring. Trade sanctions for noncompliance could be 
imposed pursuant to a decision by USTR that China is not satisfactorily 
implementing the 1995 agreement. 19 U.S.C. 2416.
    Eight other trading partners were placed on the administratively-
created ``priority watch lists,'' including Argentina, the European 
Union, Greece, India, Indonesia, Japan, Korea, and Turkey. Greece and 
Argentina will be subject to review during the course of the year to 
maintain pressure for further progress. Twenty-five other countries 
were placed on the special 301 ``watch list,'' including Australia, 
Bahrain, Brazil, Canada, Chile, Colombia, Costa Rica, Ecuador, Egypt, 
EL Salvador, Guatemala, Italy, Kuwait, Oman, Pakistan, Paraguay, Peru, 
the Philippines, Poland, Romania, the Russian Federation, Saudi Arabia, 
Singapore, Thailand, the UAE (United Arab Emirates), and Venezuela. The 
intellectual property protection and market access regimes of EL 
Salvador, Italy, Paraguay, the Philippines, Russia, Saudi Arabia, and 
Thailand will be subject to ``out-of-cycle'' reviews. The USTR noted 
growing concerns about IPR problems in four countries, and highlighted 
developments and expectations for further progress in 15 other 
countries. Finally, the USTR announced the impending initiation of WTO 
dispute settlement cases against Portugal, Pakistan, and India for 
patent-related violations of the Agreement on Trade-Related Aspects of 
Intellectual Property Rights and Turkey for violations of the national 
treatment obligations in the General Agreement on Tariffs and Trade 
1994. Separate Federal Register notices will be issued detailing these 
cases at the appropriate time.
Joseph Papovich,
Deputy Assistant USTR for Intellectual Property.
[FR Doc. 96-11069 Filed 5-2-96; 8:45 am]
BILLING CODE 3190-01-M