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 continues to undermine what is left of the legitimate music market. Illegal use of business software in small and medium-sized businesses is widespread, with rates higher in areas outside the major cities. Pirating of video game software on all platforms and illegal photocopying of books are widespread. However, Colombia's progress on the data protection issue is exemplary. Therefore, we are moving Colombia from the Priority Watch List to the Watch List and will monitor further progress in the copyright area.

COSTA RICA

At the beginning of 2002, the Costa Rican Government (GOCR) announced steps to improve intellectual property protection through a government strategy for improving the enforcement of intellectual property rights it began in 2001. The United States recognized progress under this strategy by moving Costa Rica from the Priority Watch List to the Watch List in 2002. However, there remain deficiencies in Costa Rican intellectual property law that have not been addressed. In addition, significant barriers to effective enforcement remain. Two amendments to improve penalties and enforcement infrastructures in Costa Rica's intellectual property laws are pending and an executive decree on data exclusivity has yet to be signed. Additionally, significant delays in judicial proceedings and a lack of official investigators, public prosecutors and criminal and civil judges specializing in intellectual property continue to hamper effective enforcement. We look to the GOCR to enact necessary IP legislation and decrees and to improve enforcement in the near term.

CROATIA

Croatia's otherwise strong protection and enforcement of intellectual property rights – particularly concerning copyright and trademarks – is undermined by inadequate protections in the patent area and delayed judicial decision-making. The absence of confidential data protection; the lack of linkage between the national patent authority and the central health regulatory authority; and the failure of Croatian courts to rule on intellectual property cases in a timely manner prevent rights holders from effectively protecting their intellectual property against infringement. Long delays in granting of health registration further erode the benefits of intellectual property protection. We look to the Croatian Government to ratify and implement the 1998 bilateral Memorandum of Understanding Concerning Intellectual Property Rights in the near term, and to bring provisions such as those on data protection fully into force. In addition, we encourage Croatia to maintain criminal copyright enforcement.

DOMINICAN REPUBLIC

Levels of copyright piracy in the Dominican Republic remain high, over 60 percent in almost all copyright sectors. The Government of the Dominican Republic (GODR) has taken some commendable steps in 2002, however, to improve copyright protection and enforcement. Enforcement of the 2000 copyright law remains critical to continued success. During 2002, May 1, 2003