Page:Special 301 Report 1997.pdf/18

 : Copyright piracy is the most pressing intellectual property problem in Vietnam. Industry concerns have been expressed about the rapidly growing nature of this problem. A recently concluded copyright agreement between the United States and Vietnam establishes copyright relations between the two countries for the first time, which will give U.S. copyright holders a legal remedy for protecting their intellectual property in Vietnam. This is an important step in bringing Vietnam's copyright system into line with international standards. We look forward to continuing our work with Vietnam to further improve the protection of all forms of intellectual property, including both the grant of rights and their enforcement.

In addition, the USTR wishes to note developments in the following countries.


 * In 1996, the Government of Austria amended its copyright law. One of these amendments created a compulsory license for the public performance of films in hotels. This compulsory license may violate both the Berne Convention on the Protection of Literary and Artistic Works and TRIPs Agreement administered by the World Trade Organization (WTO). Austria is a member of both these agreements and is obligated to be in full compliance with them both. The U.S. Government will continue to consult with Austria about this matter in the expectation that Austria will amend its copyright law to remove the compulsory license provision.


 * The current patent regime in Cyprus is inadequate as well as inconsistent with TRIPs. USTR expects that the Government of Cyprus will act expeditiously to implement fully its TRIPs obligations, especially with regard to patent protection for pharmaceuticals and enforcement against piracy. USTR is troubled by recently proposed amendments which might further weaken patent protection.


 * The Czech Republic has taken action to improve its copyright laws, however, enforcement efforts have lagged and U.S. firms experience widespread copyright and trademark piracy. Unfortunately, police activity, even where it has been increased, has thus far not led to a notable increase in prosecution of IPR crimes.


 * While Germany has made notable progress in enforcement since last year's review and is credited by industry with doing an effective job in combating video and audio piracy, industry concerns are increasing regarding the role of German firms in manufacturing and/or exporting throughout Europe pirated "smart cards" and other "descrambling" devices used to steal encrypted satellite, cable and broadcast transmissions, particularly of U.S. motion pictures.


 * The United States is concerned by what appear to be persistent problems in the Hungarian judicial system which make it difficult to prevent patent infringement. U.S. interests have not been able to obtain injunctive relief prohibiting the marketing of products the courts have determined to be infringing. The United States urges the Government of Hungary to undertake the necessary reforms to address this problem.