2007 Special 301 review. The United States will continue to pursue bilateral dialogue on IPR enforcement and other IPR issues. In particular, the United States encourages Brazil to strengthen its IPR enforcement legislation, take more vigorous action to address book and Internet piracy, and consider acceding to and implementing the WIPO Internet Treaties. With regard to patent, trademark, and data protection matters, Brazil's posture of hindering IP protection in these areas remains a matter of concern, although capacity improvements at the Brazilian Industrial Property Institute do hold the prospect of streamlined processing and a reduction in the patent and trademark application backlogs. The United States will continue to engage with Brazil bilaterally on these IPR protection and enforcement issues, including through the U.S.-Brazil Bilateral Consultative Mechanism and other means.
CANADA
Canada will remain on the Watch List, subject to essential progress on key issues in the coming months. Canada embraced improving IPR protection and enforcement as a priority in the Speech from the Throne in October 2007. The United States looks to the Government of Canada to deliver on these priorities through prompt and effective action on key issues, such as copyright reform and enhanced border enforcement of intellectual property rights. The United States welcomes Canada's continued cooperation on bilateral and multilaterallPR initiatives, and notes progress in the form of Canada's issuance of measures in 2007 to criminalize camcording of copyrighted films in movie theaters. The United States notes its continuing serious concerns, however, with Canada's failure to accede to and implement the WIPO Internet Treaties. The United States also continues to urge Canada to improve its IPR enforcement system to enable authorities to take effective action against the trade in counterfeit and pirated products within Canada, as well as curb the volume of infringing products transshipped and transiting through Canada. Canada's weak border measures continue to be a serious concern for IP owners. The United States hopes that Canada will implement legislative changes to provide a stronger border enforcement system by giving its customs officers ex officio authority to seize products suspected of being pirated or counterfeit without the need for a court order. The provision of additional resources and training to customs officers and domestic law enforcement personnel would enhance IPR enforcement. The United States will continue to monitor Canada's progress in providing an adequate and effective IPR protection and enforcement regime, including improved border enforcement and near term accession to and implementation of the WIPO Internet Treaties.
CZECH REPUBLIC
The Czech Republic will remain on the Watch List, where it was placed as the result of an Out-of-Cycle Review in January 2008. The United States remains concerned about the significant amount of pirated and counterfeit goods sold in retail markets on the border between the Czech Republic and Germany and Austria, reported by the U.S. recording industry to be "the highest concentration and largest number of pirate outdoor markets in the world." Some of these markets are reportedly located on government-owned property. The United States urges the Czech Republic to implement its IPR Action Plan and to take concrete enforcement actions, including prosecutions and deterrent-level sentencing of IPR infringers to reduce substantially the sale of pirated and counterfeit goods at these border markets. The United States will continue to monitor this situation and work with the Czech Republic to make significant IPR improvements before it assumes the Presidency of the European Union in 2009.
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