[Federal Register Volume 63, Number 226 (Tuesday, November 24, 1998)]
[Notices]
[Page 64982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31313]
=======================================================================
-----------------------------------------------------------------------
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket No. 301-117]
Section 304 Determination: Intellectual Property Laws and
Practices of the Government of Paraguay; Termination of Intellectual
Property Review of Paraguay Under the Generalized System of Preferences
(GSP)
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of determination, termination and monitoring.
-----------------------------------------------------------------------
SUMMARY: Having concluded the investigation undertaken pursuant to
section 302 of the Trade Act of 1974, as amended (``Trade Act''), the
United States Trade Representative (USTR) has determined pursuant to
section 304(a)(1)(A)(ii) that certain acts, policies and practices of
the Government of Paraguay concerning the protection and enforcement of
intellectual property rights are unreasonable and discriminatory and
constitute a burden or restriction on United States commerce. On
November 17, 1998, the United States and Paraguay signed a Memorandum
of Understanding (MOU) in which the Government of Paraguay committed to
take a number of near-term and longer-term actions to address the
practices that were the subject of this investigation. In light of the
foregoing, the USTR has determined: not to take further action at this
time; to terminate the investigation; and to monitor Paraguay's
implementation of the MOU. The GSP review of Paraguay's intellectual
property practices has also been terminated.
EFFECTIVE DATE: November 17, 1998.
FOR FURTHER INFORMATION CONTACT:
Claude Burcky, Director for Intellectual Property, (202) 395-6864;
Kellie Meiman, Director for Mercosur and the Southern Cone, (202) 395-
5190; or Geralyn S. Ritter, Assistant General Counsel, (202) 395-6800.
SUPPLEMENTARY INFORMATION: On January 16, 1998, the USTR identified
Paraguay as a ``priority foreign country'' under the ``Special 301''
provisions of the Trade Act (19 U.S.C. 2242). In identifying Paraguay
as a ``priority foreign country,'' the USTR noted deficiencies in
Paraguay's acts, policies, and practices regarding intellectual
property, including a lack of effective action to enforce intellectual
property rights. The USTR also observed that the Government of Paraguay
had failed to enact adequate and effective intellectual property
legislation covering patents, copyrights and trademarks. As required
under Section 302(b)(2)(A) of the Trade Act, (19 U.S.C. 2412(b)(2)(A)),
the USTR initiated an investigation of these acts, policies and
practices on February 17, 1998. On August 4, 1998, the USTR extended
the investigation until November 17, 1998, in light of the complex and
complicated issues involved, pursuant to section 304(a)(3)(B) of the
Trade Act. On October 16, 1998, the USTR proposed to determine under
section 304(a)(1)(A)(ii) that the Government of Paraguay's acts,
policies and practices regarding intellectual property are
unreasonable, discriminatory and burden or restrict U.S. commerce, and
requested public comment on what action, if any, to take in response.
During bilateral negotiations held to resolve these issues, the
Government of Paraguay indicated that it has undertaken and will
undertake a number of actions to improve the protection of intellectual
property rights in Paraguay. For example, since this investigation was
initiated, Paraguay has passed new copyright and trademark laws, and
has undertaken efforts to legalize government use of software. The
Government of Paraguay also has made efforts to improve enforcement of
intellectual property rights, including conducting a number of notable
recent seizures of counterfeit and pirated products. Despite these
efforts, however, piracy and counterfeiting of U.S. products continue
to be serious problems in Paraguay.
On November 17, 1998, the United States and Paraguay signed an MOU
that includes an Enforcement Action Plan to address the issues that
were the subject of this investigation. The MOU contains specific near-
term and longer-term obligations that, when fully implemented, will
greatly strengthen Paraguayan intellectual property law and enforcement
procedures. For example, Paraguay has committed to implement
institutional reforms to strengthen enforcement at its borders and to
pursue amendments that will facilitate effective prosecution of
copyright piracy. Paraguay also has committed to take immediate action
against known centers of piracy and counterfeiting, and to coordinate
the anti-piracy efforts of its customs, police, prosecutorial and tax
authorities. In addition, Paraguay has agreed to pursue reform of its
patent law, and to ensure that its government ministries use only
authorized software.
Section 304 Determination
The USTR determines pursuant to section 304(a)(1)(A)(ii) of the
Trade Act that acts, policies, and practices of the Government of
Paraguay with respect to the protection and enforcement of intellectual
property rights are unreasonable and discriminatory and constitute a
burden or restriction on U.S. commerce. In light of the MOU signed by
the Government of Paraguay on November 17, 1998, the USTR has
determined not to take further action at this time under section
301(b)(2) of the Trade Act and has terminated this investigation.
Pursuant to section 306 of the Trade Act, the USTR will monitor
Paraguay's implementation of the MOU and will determine what further
action to take under section 301(a) of the Trade Act if Paraguay does
not satisfactorily implement the MOU.
Termination of GSP Review
In 1996, a review of Paraguay's protection of intellectual property
rights was initiated in response to a petition filed by Nintendo. In
light of the above-referenced MOU and Paraguay's recent steps to
improve intellectual property protection, the GSP review is terminated.
Joanna K. McIntosh,
Chairman, Section 301 Committee.
[FR Doc. 98-31313 Filed 11-23-98; 8:45 am]
BILLING CODE 3190-01-M
