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 widespread piracy of copyrighted works of all types.

has recently taken the admirable step of enacting a modern patent law that comes into effect one year after its publication. Among other things, the new law will provide pharmaceutical patent protection and pipeline protection. As a result, the Administration is moving Brazil from the priority watch list to the watch list. Beyond the above-mentioned patent legislation, the U.S. Administration looks to Brazil to fulfill its longstanding commitments to enact outstanding legislation on computer software and semi-conductor layout designs, and to introduce much-needed amendments to its copyright law.


 * In 1995, the Government of Canada implemented the proposed 80% tax on split-run editions of U.S. magazines, specifically Sports Illustrated Canada. The Administration has initiated WTO dispute settlement procedures on this matter. Because this issue is already subject to action under the section 301 provisions of our Trade Act, initiation of an additional section 301 investigation is not warranted. See 19 U.S.C. 2242(f) and 19 U.S.C. 2412(b)(2)(A)(ii). In December 1995 the Canadian Radio-television Telecommunications Commission announced discriminatory direct-to-home satellite television licensing conditions of serious concern to U.S. industry. USTR is continuing to collect information on the new licensing system with the goal of determining whether it is actionable under article 2106 of the NAFTA and Canada's WTO obligations. On April 25, 1996, Canada introduced copyright law amendments that could discriminate against U.S. right holders. A stated objective of the reforms is to help strengthen Canadian identity and contribute to the cultural sector. The Administration wants to ensure that these amendments are not at the expense of U.S. copyright interests.


 * Chile's patent term is TRIPs-inconsistent, pipeline protection remains unavailable, and there is inadequate protection for plant varieties and animal breeds. Additional problems are computer software piracy and the absence of protection for semi-conductor mask works and encrypted satellite signals. Copyright protection for computer software and the existence of rental and importation rights remain unclear.


 * Enforcement efforts against copyright piracy have increased; however, piracy continues to be a significant problem. Colombia joined the Paris Convention and has not yet fully implemented the WTO TRIPs Agreement. Deficiencies in its patent and trademark regime include insufficiently restrictive compulsory licensing provisions, working requirements, inadequate protection of pharmaceutical patents, and lack of protection against parallel imports. Also, in the copyright area, a 1994 Broadcast Law increased restrictions on foreign content, including imposition of a complicated, burdensome system of subquotas for different hours of the day.


 * Costa Rica's patent law is deficient in several key areas. The term of patent coverage is a non-extendable 12 year term from the date of grant. In the case of products deemed to be in the "public interest", such as pharmaceuticals, chemicals and agro-chemicals, fertilizers, and beverage/food products, the term of protection is only one year from date of grant. The U.S.