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 GUATEMALA

The United States welcomes the appointment in June 2001 of a special prosecutor for intellectual property rights matters, as part of the government's ongoing efforts to improve enforcement and to implement intellectual property rights legislation enacted in mid-2000. Nonetheless, continuing high piracy levels, particularly with respect to business software applications, remain an ongoing concern, and one that has not been adequately addressed through current enforcement and prosecution activity.

ITALY

Despite Italy's enactment of its Anti-Piracy Bill in September 2000 and increased enforcement actions in 2001, Italy continues to have one of the highest overall piracy and counterfeiting rates in Western Europe. In particular, the rate of piracy of business software by corporate end-users remains among the highest levels in Europe, with losses approaching $285 million in 2001. Notwithstanding repeated assurances, Italy still has not clarified the Anti-Piracy Bill's implementing regulations for business software, that exempt copyright owners from a requirement to apply government-approved stickers, for which a fee would be charged, on their genuine copyrighted works. Without this exemption, Italy could be in violation of its international obligations, which do not permit conditioning protection on compliance with a stickering formality. The United States urges Italy to resolve this issue without further delay.

JAMAICA

The U.S. Government is heartened by the creation of Jamaica's Intellectual Property Office, and by continued progress in enforcing existing intellectual property rights laws, including with respect to the misuse of well-known marks. We understand that Jamaican officials have categorically denied reports that Jamaica is considering the compulsory licensing of encrypted broadcasts. The United States is encouraged that Jamaica is continuing to seek fair, commercial solutions to this issue. Lack of parliamentary action to bring Jamaica's patent, industrial design, and plant variety laws into conformity with international standards remains the primary motivation for the country's inclusion on the Watch List. The United States urges Jamaica to complete the process of enacting the necessary legislation.

KAZAKHSTAN

Kazakhstan has several remaining steps to take to fulfill its intellectual property rights commitments under the 1992 U.S.-Kazakhstan Trade Agreement. In particular, Kazakhstan does not clearly provide full retroactive protection for works or sound recordings under its Copyright Law. In addition, there is weak enforcement of intellectual property rights in Kazakhstan, and as a result, piracy and counterfeiting rates are growing problems. New criminal penalties for intellectual property rights violations, however, have been adopted, but the United States is concerned about the effectiveness of