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 efforts to address the major concerns of the United States which are: the need for Japan to enact clear-cut internet service provider (ISP) liability laws that properly balance the interests and rights of carriers and right-holders; the need for explicit protection of temporary copies as required by the TRIPS Agreement; and expeditious ratification of the WIPO Performances and Phonograms Treaty (WPPT). As a first step, we urge Japan to agree to expert-led consultations to achieve mutual understanding of our respective concerns with regard to the current draft legislation for ISP liability rules, as well as to provide an opportunity for U.S. experts to explain how the United States dealt with the complex issues involved with ISP liability rules under our Digital Millennium Copyright Act legislation. The review would also examine the Government of Japan's implementation of recent assurances to address concerns over lax border enforcement with regard to the processing of counterfeit imports and the re-export of counterfeit goods from Japan's ports so as to ensure effective implementation of TRIPS border enforcement obligations.

Likewise, should the review of the Bahamas be warranted, it will focus on the Bahamian Government's efforts to meet its bilateral commitment to amend its copyright law to eliminate provisions that create a compulsory license for unauthorized re-transmissions by cable television systems of any copyrighted work transmitted over its territory, including encrypted transmissions. Such provisions violate the Bahamas' obligations under the Berne Convention. In addition, the Bahamas also agreed to revise its copyright law to make clear that internet transmissions are similarly not subject to compulsory licenses.

The reviews of Georgia and the Kyrgyz Republic will assess the progress made by these governments toward the enactment of necessary clarifications in their intellectual property regimes to ensure full compliance with their obligations under bilateral trade agreements with the United States and the TRIPS Agreement, including full protection for pre-existing works and sound recordings. In addition, we look to these governments to take steps toward improving their enforcement regimes, and in particular, to guard against the establishment of pirate optical media production facilities within their borders. Out-of-cycle reviews of both countries will be conducted in December 2001.

Intellectual Property and Health Policy

In announcing the results of the 2001 Special 301 review, Ambassador Zoellick reiterated that USTR is not considering a change in the present flexible approach to health-related intellectual property issues. Consistent with America's protection of intellectual property, we remain committed to working with countries that develop serious programs to prevent and treat HIV/AIDS.

We are informing countries that, as they take steps to address a major health crisis, like the HIV/AIDS crisis in sub-Saharan Africa, they should be able to avail themselves of the flexibilities afforded by the TRIPS Agreement, provided that any steps they take comply with the provisions of the Agreement.