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 to seize infringing material at the border, as is necessary to conduct effective border enforcement.

 The United Arab Emirates (UAE) was removed from the Watch List last year in recognition of its commitment to not provide marketing approval to unauthorized copies of patented pharmaceutical products. However, the UAE subsequently granted marketing approval for a number of unauthorized copies of patented pharmaceuticals. As a result, the U.S. Government conducted a Special 301 out-of-cycle review in December 2000 to examine the adequacy and effectiveness of intellectual property protection in the UAE. In light of assurances from the Government of the UAE that it would reverse any marketing approvals for unauthorized copies of patented products and prevent any further such registrations, the UAE was not listed in the out-of-cycle review. However, to date the UAE had not reversed any of the relevant marketing approvals. Thus, the UAE is now being placed on the Watch List. We will continue to monitor the UAE's fulfillment of its commitments and look to the UAE to resolve concerns regarding marketing approvals for unauthorized copies of patented U.S. pharmaceutical products. The United States would look favorably on a rapid and satisfactory resolution to this problem.

 Uzbekistan has several remaining steps to take to fulfill its intellectual property commitments under the 1994 U.S.-Uzbekistan Trade Agreement. Specifically, Uzbekistan is not yet a party to the Berne Convention or the Geneva Phonograms Convention. Thus, Uzbekistan does not provide any protection or rights to U.S. and other foreign sound recordings, nor does it clearly provide protection for pre-existing works or sound recordings under its copyright law. In addition, there is weak enforcement of intellectual property rights in Uzbekistan.

 Venezuela continues to present a mixed record of success with respect to its protection of intellectual property rights, although in some respects it is gradually moving in the right direction. The Venezuelan trademark office (SAPI) and the anti-piracy command of the judicial police (COMANPI) continue to make positive efforts, but operate under severe personnel and resource constraints, which have significantly hampered their effectiveness. Delays in the judicial system have also presented a significant hurdle in efforts against copyright piracy. Venezuela's enforcement of copyright laws is severely lacking, and as a result there is little deterrence. Only a few government agencies have legalized their software and no negotiations are underway to legalize the rest. Although overall piracy levels have declined slightly, there is still much room for improvement. With regard to patents, Andean Community Decision 486 has brought the country closer to TRIPS compliance, although the Decision apparently fail to protect confidential test data adequately and omits protection for second-use patents.

 Piracy rates for all forms of intellectual property, in particular copyright, remain very high in Vietnam. Vietnam has pledged to improve this situation, most importantly by agreeing to provide comprehensive intellectual property protection consistent with international standards in the U.S.-Vietnam bilateral trade agreement, concluded in July 2000. The agreement needs to be approved by the legislatures of both countries in order for it to enter into force. Vietnam's efforts