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 Although not a producer of pirated optical media products, large volumes of pirated products are transshipped through Latvia from Russia and Ukraine. The United States urges Latvia to pass legislation to ensure that customs and police authorities have the tools needed to combat this piracy, including providing adequate civil ex parte search procedures. In addition, the U.S. Government urges the police, customs officials, prosecutors, and judicial authorities to place greater emphasis on combating copyright piracy.

LITHUANIA

Weak enforcement undermines Lithuania's attempts to protect the rights of copyright holders. The country remains flooded with pirated copyrighted materials, including large volumes of optical media products. In addition, Lithuania is a major transshipment country for pirate producers to the East who transport their goods to consumers in the West. Furthermore, Lithuania does not provide protection for confidential test data submitted by pharmaceutical firms for marketing approval.

MALAYSIA

Optical media piracy remains a serious problem in Malaysia. Malaysia's production capacity of optical media exceeds local demand plus legitimate exports, and pirated products believed to have originated in Malaysia have been identified throughout the Asia-Pacific region, North America, South America, Europe, Africa and the Middle East. Although the first year of implementation of the Optical Disk Act was hampered by a slow compliance schedule, the United States continues to appreciate the determined efforts made by agencies within Malaysia to eliminate optical media piracy. The Ministry of Domestic Trade and Consumer Affairs (MDTCA) has inspected licensed factories and conducted raids against pirate plants. Over the past two years, the MDTCA has confiscated a significant amount of pirate product from unlicensed factories and has seized and removed equipment and replication lines. These actions are evidence that Malaysia is serious about stamping out piracy. Although progress has been steady, there is concern that Malaysia has not established a climate of deterrence. Police raids have only infrequently been followed by criminal prosecutions. Without criminal prosecutions and the imposition of serious criminal sentences, there is no true deterrence to piracy in Malaysia. The United States urges Malaysia to continue the progress made against illegal optical disk plants and to focus its attention on the problem of prosecutorial inaction and judicial delays in order to support the enforcement efforts already underway.

NEW ZEALAND

In 1999, New Zealand pledged to introduce legislation regarding imports of newly-released copyrighted products (e.g., music, films, software and books) intended for sale outside New Zealand. By the end of 2001, however, the government had not introduced this legislation. Therefore, the U.S. Government remains concerned about the erosion of the value of copyright protection and the threat of increased piracy of copyrighted goods in New Zealand. However, the United States is encouraged