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United States Trade Representative Robert B. Zoellick today announced the results of the 2001 "Special 301" annual review, which examined in detail the adequacy and effectiveness of intellectual property protection in approximately 80 countries, the largest number of countries ever reviewed. In announcing the results of this year's review, Ambassador Zoellick stressed Ukraine's persistent failure to take effective action against significant levels of optical media piracy and to implement adequate and effective intellectual property laws. Ukraine was identified as a Priority Foreign Country on March 12, 2001, and an investigation was initiated under Section 301 of the Trade Act of 1974. Failure by Ukraine to adequately address the problem of pirated optical media production within three months of the initiation of the 301 investigation could lead to the imposition of trade sanctions. In addition, failure to adequately protect intellectual property rights could jeopardize Ukraine's efforts to join the World Trade Organization (WTO) and seriously undermine its efforts to attract trade and investment. The U.S. Government will remain actively engaged with Ukraine during the course of the investigation to encourage the nation to combat piracy and to enact the necessary intellectual property rights legislation.

Ambassador Zoellick announced that the focus of this year's report is highlighting the progress that has been made over the past year toward resolving outstanding bilateral concerns identified through previous Special 301 determinations or previously announced WTO dispute settlement cases, either through full utilization of the dispute settlement process or through consultations. Specific progress has occurred in a number of countries over the past year, including Italy, Turkey, Spain, Peru, Moldova, Guatemala, Macau, Hong Kong, and Ecuador. In addition, the report highlights the resolution of WTO dispute settlement procedures with Denmark, Greece and Ireland. A total of 14 intellectual property complaints have been filed by the United States in the WTO since 1996.

The Special 301 report addresses significant concerns in such trading partners as India, Hungary, Taiwan, the Dominican Republic, Korea, Lithuania, the Philippines, Costa Rica, Russia, Egypt, Israel, Saudi Arabia, UAE and Uruguay. In addition the report notes that the United States will consider all options, including but not limited to initiation of dispute settlement consultations with countries that do not appear to have implemented fully their obligations under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement). Such countries include Hungary, the Andean Community, the Dominican Republic, India, Israel and the Philippines.

In this year's review, USTR devoted special attention to reducing production of unauthorized copies of "optical media" products such as CDs, VCDs, DVDs, and CD-ROMs, in Ukraine, Malaysia and Taiwan in particular. In addition, USTR continued to focus on other critically important issues including proper implementation of the TRIPS Agreement by developing country WTO Members, as required by January 1, 2000, and full implementation of TRIPS standards by new WTO Members at the time of their accession. USTR also continued to encourage countries to ensure that government ministries use only authorized software.