Page:Special 301 Report 1999.pdf/24

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voluntary regulatory system to dissuade OD piracy lacks an effective enforcement mechanism and will not address the growing problem of copyright piracy. The inability of enforcement authorities to conduct retail or plant raids during off-hours and weekends further undermines the government's ability to combat the problem. The United States calls on the Thai government to make the priorities outlined in the Action Plan -- including TRIPS implementation, creation of a comprehensive plant and retail enforcement strategy, and effective regulation of OD plants -- its top priorities.

The UAE has made major progress in substantially reducing copyright piracy rates across the board and particularly with regard to reducing software piracy. However, there has only been limited progress toward amending the 1992 patent law which does not provide protection for pharmaceutical products. Moreover, the need for "pipeline" protection of new products in the research and development cycle is critical. This concern is heightened by reports that UAE authorities continue to allow the copying of European and American patented pharmaceutical products. While decisions in several recent court cases have created uncertainty regarding the applicability of copyright protection for foreign works, UAE authorities are addressing these concerns and moving forward with copyright amendments to correct the situation and bring the UAE into compliance with TRIPS. We urge the UAE to provide patent protection for pharmaceutical products and to ensure that its intellectual property regime is TRIPS compliant before the January 1, 2000 TRIPS deadline.

Uruguay: Reform of outdated patent and copyright legislation, needed to bring these laws into compliance with Uruguay's international obligations, has been underway for years. Notably, the current copyright law fails to explicitly extend copyright protection to computer software as required by TRIPS. The draft patent law before the Uruguayan Parliament contains critical flaws, such as: establishing an overly broad compulsory licensing regime, omitting protection for test data, and a lack of pipeline patent protection. We strongly urge the Uruguayan Government to address these shortcomings and to accelerate its efforts to enact TRIPS-consistent legislation prior to January 1, 2000. Further, we are concerned that Uruguay may not be in full compliance with its existing TRIPS obligations with respect to Article 70.9 regarding exclusive marketing rights. The Government of Uruguay has committed to provide us with additional information regarding its implementation of this article in early May, at which time we will assess whether to proceed with a case at the WTO.

Venezuela: While Venezuela has made some progress toward effective protection of intellectual property rights, significant problems remain. The Venezuelan Government has made some noteworthy efforts at enforcement, but has not devoted the resources commensurate with the problem. In some recent cases U.S. holders of prominent patents and trademarks have had to challenge marketing approvals and registrations by imitators. On the whole, piracy levels have not improved significantly. Therefore, Venezuela will remain on the Watch List this year.

Vietnam: The Government is still in the formative stages of drafting, enacting and enforcing intellectual property laws. Copyright piracy is the most pressing problem, though there is also some unchecked trademark counterfeiting. Vietnam provides protection for pharmaceutical and agricultural chemical products, but its law is not fully consistent with international standards. On December 27, 1998, the bilateral copyright agreement between the United States and Vietnam