Page:Special 301 Report 2003.pdf/22

 In order to maintain forward movement in IPR protection in the coming year, it is essential that Egypt address the TRIPS-inconsistencies in its IPR law, particularly in the areas of copyrights, trademarks, and patents, as well as take steps to further strengthen protection of confidential test data. Egypt has acknowledged that its IPR law is not fully TRIPS-consistent, and the U.S. Government welcomes Egypt's commitment to address deficiencies in its IPR law, in large part through implementing regulations. Improved enforcement must also be a priority. Much work remains to be done in countering photocopy and reprint piracy, retail piracy, corporate end-user software piracy, piracy of console-based and PC-based video game platforms and increasing efforts to end pirate distribution on the basis of false licenses. Continuing improvements in IPR protection will be a key factor in advancing Egypt's efforts to further expand its trade and investment ties with the United States.

GUATEMALA

Although intellectual property rights enforcement has improved since the creation of the Special Prosecutor's Office for intellectual property crimes last year, Guatemala continues to experience high piracy levels. In November 2002, the Guatemalan Congress effectively suspended the processing of pharmaceutical and chemical patents through 2004 and eliminated the protection of test data provided in support of applications to introduce these products in the local market. The executive branch of the Government of Guatemala worked to submit a new bill to the Guatemalan Congress to reinitiate immediately the processing of pharmaceutical and chemical patents. This legislation, which recently passed, also will provide a term of protection of five years of data protection for pharmaceuticals and ten years of data protection for agrochemicals for data provided in support of the application to bring these products to market.

Other problems in Guatemala include substantially decreased criminal penalties as a result of the amendments to the copyright law passed in 2001; lack of a statutory damages provision for civil copyright infringement; and ineffective legal remedies in civil actions. We are encouraged that Guatemala recently deposited its instruments of accession to the WIPO Copyright Treaty and the WIPO Performances and Phonogram Treaty.

HUNGARY

Hungary has undertaken some positive steps towards more complete implementation of its international obligations by putting into effect a ministerial decree providing for data exclusivity protection on January 1, 2003. However, unfortunately, the decree provides retroactive protection for products that received first marketing authorization in the EU or Hungary on or after April 12, 2001, rather than January 1, 2000, as required by TRIPS. We are concerned by this, as well as by the fact that the data protection term is linked to the existence of a patent. We urge Hungary to resolve these issues in an expeditious manner. At the same time, we recognize that Hungary has made important strides in modernizing its legal regime for copyright over the past several years, including extensive revisions to its criminal code. Enforcement, however, May 1, 2003