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 intellectual property rights in Armenia. New criminal penalties for intellectual property rights violations have been adopted; however, there have been no known convictions under the new law, and it is unclear whether the Government has the authority to commence criminal copyright cases.

AZERBAIJAN

Azerbaijan has several remaining steps to take before fulfilling its intellectual property rights commitments under the 1995 U.S.-Azerbaijan Trade Agreement. Specifically, Azerbaijan is not providing any protection or rights to U.S. and other foreign sound recordings, and Azerbaijan does not clearly provide retroactive protection for works or sound recordings under its copyright law. In addition, there is weak enforcement of intellectual property rights in Azerbaijan. New criminal penalties for intellectual property rights violations have been adopted. However, the provisions under the Azerbaijani Criminal Code are minimal and are limited to copyright and patent violations, completely excluding neighboring rights violations. In addition, it seems the Customs Code may not provide the proper authority to seize material at the border as required by the TRIPS Agreement.

BAHAMAS

The United States is disappointed that the Bahamas has not yet implemented its commitment to the United States to enact legislation to correct deficiencies in its copyright law. The key concern remains the provisions in the law permitting the compulsory licensing to Bahamian cable operators of retransmission of premium cable television programming. Inadequate remuneration for the compulsory licensing of free-over-the-air broadcasts is a related concern, particularly with respect to uses by hotels and other commercial enterprises. The U.S. Government urges the Bahamas to enact swiftly the necessary amendments to its copyright law. The United States will conduct an out-of-cycle review to review actions in this regard. At the same time, the U.S. Government continues to encourage U.S. copyright owners and operators of premium cable services to enter into negotiations with licensed Bahamian cable companies to provide voluntary licensing on commercial terms for the cable transmission of copyrighted works in the Bahamas.

BELARUS

Belarus has several remaining steps to take to fulfill its intellectual property rights commitments under the 1993 U.S.-Belarus Trade Agreement. Enforcement of intellectual property rights in Belarus is also very weak and piracy levels are extremely high. In fact, while Belarus has amended its Criminal Code to adopt deterrent penalties for intellectual property rights violations, the Criminal Code still does not contain the proper authority for officials to initiate criminal copyright cases. Moreover, Belarus is not providing any protection or rights to U.S. and other foreign sound recordings, nor does it clearly provide retroactive protection for works or sound recordings under its Copyright Law. Belarus is not yet a party to the Geneva Phonograms Convention. Belarus has also become a transshipment point for pirate materials throughout the region. The United States is very concerned about recent reports that