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 deficiencies has been pending since 1996. However, we note that operation of Chile's Department of Industrial Property has improved and look forward to progress in 1998 on processing patent applications regarding pharmaceutical products.

needs to take an active role in the Andean Community to bring Decisions 344, 345 and 351 into conformity with TRIPS before the January 1, 2000 deadline. The lack of adequate pharmaceutical patent protection costs the U.S. industry substantial sums each year. The Government of Colombia also needs to license cable TV operators. It currently prohibits U.S. program owners from selling to unlicensed stations, but has not approved the licenses needed to meet demand. The Colombian Government has increased copyright enforcement in recent years, but more stringent border controls are needed to bring importation of pirate CD's under control. We will conduct an out-of-cycle review of Colombia's progress toward addressing these problems in December 1998.

improved its copyright laws in 1994, but enforcement is inconsistent. While piracy of satellite transmissions by the domestic cable television industry had been somewhat curtailed, hotels continue to pirate signals. Piracy of video recordings and software is also widespread, although some limited progress has been made in reducing such practices. Patent protection does not comply with a number of Paris Convention and TRIPS requirements. Costa Rica must offer full protection for all products, including pharmaceuticals, chemicals, and agricultural chemicals, by January 1, 2000. We encourage Costa Rica to continue efforts to improve enforcement, and to bring its laws into conformity with TRIPS. As part of those efforts, the government needs to take measures to ensure that its own ministries use only legitimate software.

In the, laws have been brought substantially in line with U.S.-Czech bilateral obligations and with the Czech Republic's TRIPS obligations (the Czech Republic waived the developing country transition for implementation of TRIPS). Enforcement, while improving, remains weak. Czech enforcement efforts through 1997 lagged, with a notable lack of success in securing effective deterrent penalties from the judiciary. The Czech authorities undertook structural reforms that had some effect against "retail" pirates, but were much less effective in combating more sophisticated forms of piracy. Unauthorized retransmission of encrypted satellite and broadcast signals by Czech cable companies are significant problems. The three CD plants in the Czech Republic reportedly produce far more than could be required to meet domestic demand. Much of the excess output allegedly is exported to the EU and former Soviet Union. Industry in 1997 noted the alarming spread of unauthorized "smart cards" and other anti-piracy technology-defeating devices. We urge the Czech Republic to explore, in cooperation with industry as appropriate, regulatory methods to stop production of pirate optical media, and to work with police, customs, and judicial authorities to improve the effectiveness of the enforcement system.


 * In 1997, the United States initiated WTO dispute settlement proceedings against Denmark because of concern that Denmark had not implemented the TRIPS obligation requiring provisional remedies, including ex parte procedures in civil enforcement proceedings. Courts