Page:Special 301 Report 1999.pdf/20

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last year. This unfortunate decision is further aggravated by the fact that New Zealand's enforcement regime does not effectively deter piracy. We commend the Government of New Zealand for actively reviewing the necessary improvements to its anti-piracy laws and urge New Zealand to take swift action to implement the full scope of measures recommended.

Oman has taken notable steps during the past year towards TRIPS compliance and stepped up enforcement against copyright piracy. However, Oman's copyright law has a number of shortcomings. Protection of foreign works not registered in Oman remains in question, protection for software is pending, and additional changes to the copyright law, including extending the terms of protection and providing a point of attachment for foreign works, need be made to bring it into full TRIPS compliance. Oman's continuing lack of patent protection for pharmaceutical products remains of particular concern. We urge Oman to continue the positive progress being made in the enforcement area and in bringing its intellectual property regime into compliance with TRIPS as part of its WTO accession process.

Pakistan took the steps necessary in 1997 to implement its patent mailbox obligations under the TRIPS Agreement; however, other problems remain. Pakistan lacks patent protection for pharmaceutical products and the term of protection under its patent law for processes is not consistent with TRIPS. Copyright piracy in Pakistan remains widespread. Business and entertainment software rates are extremely high and the reprinting of books (especially computer books, business titles and medical texts) without authorization continues to be a significant problem. The Government has taken steps to strengthen enforcement efforts regarding copyrighted works, but the fines applied to infringers have been too low to provide a credible deterrent. However, some improvement in Pakistan's anti-piracy program has been noted in 1998. For example, piracy rates for videos have declined as a result of strengthened law enforcement and some video outlets are taking steps to offer legitimate products. There are reports that three optical media production plants have recently been established in Pakistan. We look to the Government of Pakistan guard against the production of unauthorized optical media, and to take the steps necessary to fully comply with the TRIPS Agreement no later than January 1, 2000.

The Philippines: Since enactment of a comprehensive IPR code in 1997, the Philippines has taken insufficient steps to clarify ambiguities in the law and to ensure consistency with TRIPS obligations. Although implementing regulations related to the code have been promulgated in some areas, no substantive regulations pertaining to copyright protection have been issued. Other deficiencies not addressed by regulations include the absence of ex parte search and seizure authority, onerous technology licensing restrictions, and an overly broad exception for the decompilation of computer programs. Progress toward more effective policy-making and enforcement has been hampered by hiring delays and resource constraints. Nationwide enforcement efforts are inconsistent and rarely result in deterrent penalties, however the Bureau of Customs has recently undertaken an aggressive and encouraging enforcement program. The Philippines has yet to enact legislation to implement TRIPS obligations in the areas of integrated circuit design, although work is ongoing. The Philippines is also considering a proposal which would conflict with TRIPS trademark obligations by restricting the use of brand names on pharmaceutical products. Unlike other parts of Asia, optical disc production is a relatively recent