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 DESCRIPTION BY COUNTRY OF EXISTING SITUATION AND MEASURES TAKEN


 * China is currently engaged in completing the first major revision to its overall IPR regime since our bilateral IPR agreements were concluded in 1992 and 1995. China has agreed in the context of the negotiations on accession to the World Trade Organization to implement the TRIPS Agreement without recourse to any transition period. In the meantime, ensuring effective implementation of our bilateral agreements remains an important effort.

While the production of pirated copyrighted works has dropped dramatically since 1996, imports of pirated products remain a concern. U.S. companies report that retail piracy and counterfeit goods remain widespread in China, in part because of the inadequacy of deterrent sanctions, including lack of criminal penalties. The structure of IPR administration and enforcement in China still remains too opaque. Enforcement at the provincial level is sporadic, but steps in Guangdong province to increase sanctions against piracy and counterfeiting were a positive development.

In addition, four Chinese enforcement authorities have joined together to act against optical media, including DVD, pirates. Most recently, in March 2000, the State Press and Publication Administration, the National Copyright Administration of China, the Ministry of Public Security, and the State Administration of Industry and Commerce issued an urgent joint circular to urge every provincial, regional and municipal government authority to launch a special campaign against DVD piracy in China.

End-user piracy of business software (particularly in companies), trademark infringement, and problems in obtaining administrative protection for pharmaceuticals are persistent problems. Market access for products protected by IPRs needs improvement, and China has agreed to some improvements in market access for motion pictures, software and sound recordings in the context of the WTO accession negotiations.


 * On January 16, 1998, Paraguay was identified as a Priority Foreign Country (PFC) under the Special 301 provisions of the Trade Act of 1974. In November 1998, the U.S. Government and the Government of Paraguay signed a Memorandum of Understanding (MOU) on the Protection of Intellectual Property. While Paraguay initially made progress toward fulfilment of its obligations under the MOU, more recently progress has stalled. Last year, the