As a result of this agreement, the U.S. Government has revoked Paraguay's designation as a Priority Foreign Country and terminated the Special 301 investigation. Implementation of the MOU is being monitored under Section 306 of the U.S. Trade Act. Congress is currently considering comprehensive patent legislation. Domestic industry has lobbied heavily to weaken the law. The law prohibits the registration of a trademark by parties with no legitimate interests.
Provisions provide specific protection for well-known trademarks.
The law also includes stronger enforcement measures and penalties for infractions. In practical terms, trademark violation is still rampant in Paraguay, and resolution in the courts is slow and non-transparent. The new law provides an important first step, but must be followed by increased enforcement and modernization of the judicial system to become fully effective. Software programs receive the same treatment as literary works under the law. The law contains norms that regulate contracts related to copyrights.