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 piracy of motion pictures and computer programs have been reduced compared to 1996 and 1995 levels. Nevertheless, piracy rates are still high, and enforcement activity to date has failed to provide sufficient deterrence. The fines imposed are generally too low to be effective. Hungary also needs to comply with its TRIPs obligations by providing full retroactive protection for sound recordings and by providing for civil  search procedures. Hungary also needs to refine the law on pipeline protection for patents. In the next year, we look to Hungary to increase the effectiveness of its prosecution of intellectual property offenses, meet the above-noted TRIPs obligations, and address our concerns on pipeline protection.

has several remaining steps to take to fulfill the IPR commitments under our bilateral trade agreement. It needs to adhere to the Berne Convention for the Protection of Literary and Artistic Works and the Geneva Phonograms Convention, provide full-term retroactive protection for U.S. copyrights, specify protection for sound recordings under the copyright law, license television broadcasting stations, and increase copyright enforcement. Piracy of all copyrighted products is reportedly widespread and there have been no known enforcement measures to date. We look to Kazakhstan to begin significant enforcement measures to reduce piracy rates, to complete its bilateral IPR obligations, and to move toward making its IPR regime consistent with the TRIPs Agreement before it accedes to the WTO.

has widespread copyright piracy and an inadequate copyright law. A new law is under consideration, with the Government hoping for passage soon. The Government has actively opposed amendments to allow compulsory licensing of software in educational institutions because they are inconsistent with internationally-accepted standards. Unauthorized use of software is pervasive among private firms and government ministries. There also are concerns that Lebanon is considering allowing the registration of generic copies of drugs still protected by patents. During the next year, we look to the Government of Lebanon to pass a TRIPS-consistent copyright law, to take effective measures to eliminate use of unauthorized copies of software in Government offices, and reduce the rate of video piracy.


 * Mexico has committed to implement and enforce high levels of intellectual property rights protection consistent with its international obligations. Nevertheless, piracy and counterfeiting remain major problems, with U.S. industry losses increasing annually. Only a small percentage of raids and seizures have resulted in court decisions and the levels of penalties assessed when court decisions are made are inadequate to deter future piracy. As a result, manufacturers and distributors of pirated products continue to operate largely unfettered. In 1996, the Government of Mexico passed a new Copyright Law which was a step forward; problems and ambiguities in the law remain to be resolved. To address these concerns in the near term, the United States and Mexico have recently agreed to engage in intensive bilateral consultations which will take place over the next several months.


 * The United States has repeatedly expressed concern that the Government of the Netherlands fails to provide protection for proprietary data submitted to the Government for gaining marketing approval of pharmaceuticals in a manner consistent with its obligations under