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 deterrent for software piracy. We look to the Spanish government to take concrete steps to curb piracy of business software and to implement adequate procedures to ensure that Government ministries only use authorized software.


 * Swedish law permits official institutions such as Government Ministries and the Parliament to provide copies to the public of documents that are filed with them, even though such documents may be unpublished and protected by copyright law. As a result of the leadership demonstrated by certain concerned government officials who have attempted to address the situation in a mutually satisfactory manner, draft legislation that would ultimately correct the problem was published for public comment in early 1999. We look to the Government of Sweden to swiftly bring this legislation into force and resolve this bilateral irritant without further delay. Should Sweden to make substantial progress in the near term toward resolving this issue, Sweden's Special 301 status will be reviewed in that context. As a result of legislation that entered into force on January 1, 1999, the U.S. and Sweden announced the resolution of the WTO dispute settlement case initiated by the United States in 1997 regarding provisional relief in civil enforcement proceedings.


 * There are indications that Taiwan has begun to address the problems is has experienced regarding the protection of intellectual property rights, but serious deficiencies remain. The Taiwan Semiconductor Industry Association is to be commended for developing a computer chip marking scheme that will make it possible to trace Taiwan made chips found in pirate video games and other applications. While a serious effort has been made to increase raids on suspected pirates especially in retail-level piracy, the Taiwan enforcement system is time-consuming and cumbersome. Trials often drag on endlessly, or end with penalties that provide little deterrence. There has been little evidence to suggest that existing legal requirements and enforcement actions are reducing the extent to which Taiwan is a source of pirate optical media. Taiwan mandates the use of source identification codes (SID) to identify the producer of optical discs, but enforcement of this requirement has been lax. Pirated material from Taiwan continues to surface in the United States, Central and South America. We urge Taiwan to significantly tighten its controls on optical media production in order to intercept the infringing products at the source. Finally, we urge Taiwan to ensure that foreign companies pursuing infringement cases in the Taiwan courts get fair and expeditious hearings, as well as fair treatment from Taiwan agencies.

's IPR record over the past year has been inconsistent. While the government agreed to implement an IPR Action Plan embodying a number of priority reforms – including enactment of a world class patent law, issuance of a decree requiring government agencies to use only legitimately licensed software, and reorganization of the interagency mechanism charged with coordination of IPR policy and enforcement – copyright piracy rates continue to increase. Criminal convictions by the specialized IPR court have been handed down; however, these decisions have been overturned on appeal and no individual has ever served a criminal sentence for IPR infringement. The Thai government has also resisted prosecuting infringers for violations of customs and revenue laws, in addition to the copyright law. Thai officials are conducting more frequent retail raids at select malls. While this is a positive step, we encourage Thailand to focus enforcement efforts throughout the country and to also target production facilities including the growing number of optical disc plants. Thai proposals to institute a