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The Administration has decided to place six trading partners on the priority watch list because the lack of intellectual property protection or market access is especially significant for U.S. interests. USTR will devote special attention to resolving these problems, many of which are longstanding. The trading partners are:


 * the European Union
 * Japan
 * Korea
 * Saudi Arabia
 * Thailand
 * Turkey.

is retained on the "priority watch list" because the Broadcast Directive, up for review this year, restricts market access. In addition, the Private Copying Directive, likely to be proposed this year, and national levy systems already in place in France, Germany, Spain and Belgium, deny national treatment to the U.S. The European Union refused to cover the audio-visual industry at all in their GATT Uruguay Round GATS schedules. In addition, the European Telecommunications Standards Institute (ETSI) adopted an IPR and standardization policy that differs significantly from that adopted by other countries, and it is considering measures to expel or significantly reduce the membership status of ETSI members who do not accept this policy.

has been included on the "watch list" for the past five years because of inadequate intellectual property protection. Despite considerable efforts made to resolve these issues in the Framework negotiations, the problems remain and Japan has now been moved up to the "priority watch list." Problems in the patent area are of particular concern, including among other issues: an unreasonably long application processing time, especially on technology applications; pre-grant oppositions; inadequate grace period; narrow interpretation of claims in post-grant proceedings; and extensive delays in court proceedings. There is also extensive software piracy, lack of adequate enforcement mechanisms for trade secrets, and delays in trademark registration. In addition, the Japanese Government has convened a panel to consider amending its copyright law to permit decompilation of computer software. The U.S. has expressed its grave concern to Japan about any steps taken to weaken copyright protection of computer software.

has made great strides in the past year in protecting intellectual property rights, especially in the area of enforcement, but has been kept on the "priority watch list" due to a number of remaining concerns. These include inadequate intellectual property laws; funding levels and resources for enforcement raids and prosecution, especially for software; a number of trademark registration problems, which call into question Korea's compliance with a 1986 bilateral trade agreement; continued piracy of U.S. textile designs, and; the compulsory licensing provisions of Korea's semiconductor mask works law. In addition, Korean Customs regulations do not provide an adequate basis to prevent the exportation of infringing goods and the Korean trade secrets law does not adequately protect proprietary information.