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 amending certain articles of Regulation 2081/92 by May 2001. The United States looks forward to reviewing the adequacy of these amendments with respect to the EU's TRIPS obligations, and will consider the next steps of this dispute accordingly.

 Hungary does not adequately protect confidential test data submitted by pharmaceutical companies seeking marketing approval, which raises concerns about its compliance with its international obligations. Specifically, Hungary does not have an express requirement that governmental authorities must protect undisclosed test data submitted as a condition for obtaining marketing approval from unfair commercial use. In fact, rival pharmaceutical firms have sometimes been allowed to rely on data generated and filed by the original applicant without its consent shortly after the original filing. Despite extensive negotiations, Hungary still has not fixed this major shortcoming, which has left U.S. pharmaceutical products vulnerable to exploitation by aggressive Hungarian generic pharmaceutical producers. Hungary recently introduced a decree that would protect test data starting on January 1, 2003. However, such a decree would still not provide protection for the test data submitted prior to that date. We look to Hungary to address this deficiency immediately. On the enforcement front, Hungary has made only modest progress in reducing the substantial levels of piracy. In fact, prosecutors and judicial authorities have thus far not demonstrated much vigor in protecting intellectual property rights.

 India's patent system and protection of exclusive test data are far from compliant with its obligations under the TRIPS Agreement. The term of protection for pharmaceutical process patents is only seven years. India fails to provide patent protection for pharmaceutical and agricultural chemical products and the compulsory licensing system seems overly broad. Also, pending legislation meant to rectify India's TRIPS deficiencies may fall short of that goal. To make matters worse, the inadequate patent protection currently available is difficult for innovators to obtain: India's patent office suffers from a backlog of 30,000 patent applications and a severe shortage of patent examiners. Moreover, India's overly-generous opposition procedures often allow competitors to delay patent issuance until the patent has expired, resulting in a de facto removal of patent protection. India's copyright legislation is generally strong, but poor enforcement allows rampant piracy. Indeed, piracy of motion pictures, music, software, books and video games is widespread; videos and VCDs are often available on the street before titles even open in cinemas. We will continue to consult with the Indian Government to resolve outstanding TRIPS compliance concerns, but if these consultations do not prove constructive, we will consider all other options available, including WTO dispute settlement, to resolve these concerns.

 Indonesia has yet to pass TRIPS-consistent copyright, trademark, and patent laws. We look forward to prompt legislative action to bring Indonesia into full compliance with its TRIPS obligations. Piracy levels in Indonesia's enormous market for copyright and trademark goods are among the highest in the world. Industry estimates the levels of music and business software piracy at 87%, motion picture piracy at 90%, and game software piracy at 99%. Optical media