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 obligation to provide for the effective enforcement of intellectual property rights.


 * Enforcement efforts by the Government of Kuwait to combat piracy of software and audiovisual products have improved following an April 1995 decree issued by the Ministry of Information. However, unauthorized duplication of software, especially in government agencies continues to be a major problem. Kuwait has been slow to move ahead on adopting copyright legislation. Pharmaceutical patents are not protected under the existing 1962 law, which is deficient in numerous other regards as well.


 * Modernization of Oman's intellectual property regime is lagging with review of draft patent and copyright legislation extending to over a year. Legal protection for pharmaceutical product patents is also absent. Because its protection of intellectual property remains minimal and stagnant, while neighbors strengthen their regimes, Oman increasingly appears to be a haven for pirates. The United States will continue to monitor levels of piracy in Oman and efforts to improve intellectual property protection, including the status of draft legislation to update copyright and patent regimes.


 * Pakistan's patent law provides process but not product protection for pharmaceutical and agricultural chemicals. Proving infringement of a process patent is difficult and such patents are easily circumvented. The United States seeks the prompt revision of this law. Of a more immediate nature, Pakistan has failed to implement its obligations under Articles 70.8 and 70.9 of TRIPs Agreement. These articles require developing countries not yet providing patent protection for pharmaceutical and agricultural chemical products to provide a "mailbox" in which to file patent applications, and the possibility of up to five years of exclusive marketing rights for these products until patent protection is provided. Pakistan's cabinet on April 8 approved an amendment to its patent law that includes a "mailbox" provision to take effect upon passage and other broadened patent protections to take effect in 2005. The amendment must now go to the National Assembly before becoming law. To encourage quick passage, the Administration will initiate formal consultations with Pakistan under WTO dispute settlement procedures.

increasingly has become a piracy center in South America, particularly in production of sound recordings and entertainment software. Pirate production centers have been built on the Brazilian and Argentine borders. Paraguay also has become a transshipment center for pirate goods originating in China bound for larger South American markets. Enforcement actions against these activities are urgently needed in Paraguay. In addition, Paraguay's patent, trademark and copyright laws are in need of significant revision to bring them into conformity with international obligations. An out-of-cycle review will be conducted in September to evaluate whether sufficient progress toward addressing these problems has occurred.


 * INDECOPI's actions and decisions over the last year have demonstrated progress in the protection of intellectual property rights in Peru. However, while enforcement efforts against copyright piracy have increased, piracy continues to be a significant problem. The Peruvian