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 enforcement of intellectual property rights. While significant improvements in intellectual property laws are either in pending legislation or under review, Taiwan has made little progress in enacting and implementing these improvements. Chronic enforcement problems appear to be the result of the failure to apply penalties that deter further infringement and inadequate levels of enforcement.

has been identified as a Priority Foreign Country in 1991, and continues to be so identified because the patent problems which led to the 1991 decision have not been addressed. India has made substantial commitments to address piracy of copyrighted materials including books, videos, sound recordings, and computer software, as well as with respect to market access for motion pictures. In February, the USTR determined that India's denial of adequate and effective patent protection is unreasonable. Because of that determination, no new investigation will be initiated in 1992.

was identified as a Priority Foreign Country in 1991, and continues to be so identified because of problems with respect to enforcement of copyrights and deficiencies in patent protection despite the enactment of amendments to the Thai patent law. In the area of copyright, ineffective enforcement has led to significant losses for the U.S. motion picture, sound recording and computer software industries. Since the issues with Thailand are already subject to action under the section 301 chapter of the trade law, the USTR will not initiate a new investigation of Thailand's copyright enforcement and patent protection. We will be meeting with the new Thai government shortly to develop specific solutions for these matters.

Countries whose acts, policies and practices meet some, but not all, of the criteria for priority foreign country identification have been placed on the Priority Watch List. Their lack of adequate and effective intellectual property protection and/or their denial of market access for U.S. goods relying on this protection are of great concern to the Administration.

Accordingly, the Administration will work actively to resolve these problems and will monitor closely the situations in these countries to determine if any further action under Special 301 is warranted.

The following countries have been placed or retained on the priority watch list: