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 that New Zealand's parliament is currently considering legislation to strengthen New Zealand's enforcement regime with respect to copyright piracy and trademark counterfeiting, which may move towards addressing our concerns. The United States urges New Zealand to adopt legislation to correct the erosion of copyrights and improve enforcement against piracy and counterfeiting as soon as possible.

PAKISTAN

Over the past two years, Pakistan has attempted to address most of its deficiencies in its intellectual property rights regime. The U.S. Government recognizes and appreciates the efforts made by Pakistan to improve the protection and enforcement of intellectual property rights. However, optical media piracy remains a growth industry in Pakistan. Pakistan has emerged as one of the world's largest exporters of pirate CDs and optical media. Industry estimates eight illegal optical media production plants are operating, with actual production of approximately 55 million units (or ten times Pakistan's legitimate domestic demand). Pirate goods account for 90% of the domestic marketplace. Similarly, book piracy remains a significant issue, accounting for $44 million in losses for U.S. publishers. At present, lengthy registration processes for innovative drugs offer ample time for generic copies to reach the domestic market despite apparent patent infringements. The United States urges Pakistan to address its serious piracy problems, including, in particular, the rampant optical media piracy situation.

PERU

Peru has continued to improve intellectual property rights protection, although copyright piracy levels have remained fairly constant and the criminal enforcement system remains generally weak. Peru has not yet issued a decree mandating the use of licensed software by government agencies. On a positive note, during the past year Peru ratified both WIPO Treaties related to the digital environment. Several patent-related concerns remain outstanding, the most significant of which relates to an Andean Tribunal decision ordering Peru to stop issuing "second use" patents.

POLAND

Poland has a substantial copyright piracy and trademark counterfeiting problem, the most glaring symbol of which is the Warsaw Stadium and the unauthorized retail activity that is carried on in those premises. Although Poland is not a major producer of pirated optical media products, pirates import unauthorized copies of optical media products, principally from Ukraine, for sale at the Stadium. Poland's enforcement efforts at the Stadium so far have been insufficient to halt the sale of pirated and counterfeit goods. The U.S. Government intends to conduct an out-of-cycle review (OCR) later this year in order to focus on this aspect of Poland's intellectual property rights protection regime. In this OCR, the United States will specifically look to Poland to commence unannounced raids against retailers at the Warsaw Stadium. These raids, followed by prosecutions, should be significant enough in number to stem the sale and distribution of pirated and counterfeit goods at the Stadium. The U.S.