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 initiated the domestic reform process necessary to meet these obligations. I call upon countries taking advantage of these transitions to take steps now so that they are fully prepared meet these obligations as they come due. In addition, there are countries in an advance stage of development that do not qualify for the transition and should be in compliance today."

In 1998 and 1999, the TRIPS Council will begin very important negotiations regarding intellectual property protection for biotechnology products. USTR will launch preparatory activities regarding these negotiations in 1997. The TRIPS Council must conduct a broader review of the implementation of the TRIPS Agreement in 2000.

As in the 1996 announcement, Ambassador Barshefsky once again is using the occasion of the annual Special 301 announcement to announce initiation of WTO dispute settlement against countries not meeting their obligations under the TRIPS Agreement.

Barshefsky today announced that she will, as a result of this year's Special 301 review, initiate WTO dispute settlement procedures in the near future against Denmark, Sweden, Ireland and Ecuador. Dispute settlement procedures against Greece and Luxembourg may be initiated if TRIPS obligations are not met in coming months.

These actions can be summarized as follows:

-- Denmark has not implemented the TRIPS obligation to provide provisional relief in civil enforcement proceedings. Courts must be granted the ability to order unannounced raids to determine whether infringement is taking place, and to either seize allegedly infringing products as evidence or to order that allegedly infringing activities be stopped pending the outcome of a civil infringement case. The availability of provisional relief in the context of civil proceedings is of great importance to certain industries dependent upon intellectual property protection.


 * Sweden also does not provide provisional relief in civil proceedings, although Sweden may amend its law to do so. If this occurs, the United States will terminate dispute settlement proceedings regarding this matter.


 * Developed country obligations under the TRIPS Agreement came into effect in January 1996. Ireland has not yet amended its copyright law to comply with TRIPS obligations. Examples of TRIPS inconsistencies include absence of a rental right for sound recordings, no "anti-bootlegging" provision, and very low criminal penalties which fail to deter piracy.


 * Ecuador acceded to the WTO committing to implement TRIPS obligations within 7 months of accession, by July 31, 1996. Ecuador has failed to do so in a number of areas, including patents (local working requirements, compulsory licenses, exclusions of certain products from patentability); copyright (computer programs not treated as a literary work)