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 the implementing regulations to the 2000 Copyright Law to permit exemptions from the SIAE sticker for business software, Italy continues to enforce a problematic program requiring copyright owners to pay for and apply a government-approved sticker on genuine copyrighted works. In addition, U.S. pharmaceutical manufacturers assert that Italian government actions in 2002 may unfairly curtail patent protection for drugs by changing the criteria relating to patent term restoration.

JAMAICA

Jamaica's trademark and copyright regimes are generally consistent with international standards and enforcement efforts over the past year have been commendable. However, lack of parliamentary action to bring Jamaica's patent, industrial design, and plant variety laws into conformity with its international obligations remains the primary motivation for Jamaica remaining on the Watch List. The United States urges Jamaica to complete the process of enacting the necessary legislation and intends to engage the Government of Jamaica over the coming months to assess the status of that effort.

KAZAKHSTAN

Kazakhstan needs to take several remaining steps in order 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. Criminal penalties for intellectual property rights violations were adopted in 2001, but the United States remains concerned about the effectiveness of these Criminal Code provisions in deterring piracy and counterfeiting, due to the high burden of proof. It remains unclear whether new criminal penalties for IPR violations will be effectively enforced and deter piracy.

KOREA

The United States continues to have serious concerns regarding adequate protection and enforcement of intellectual property in Korea. In 2002, in reliance on Korea fulfilling specific pledges the Korean Government made to the U.S. Government to improve IPR protection and enforcement, Korea was moved from the Priority Watch List to the Watch List. While Korea has taken some steps to fulfill its spring 2002 commitments, such as drafting legislation to provide the Standing Inspection Team with police powers, these steps fall far short of what Korea pledged to do. In addition, since the last Special 301 report, new and significant IPR issues emerged that have required strenuous efforts by the U.S. Government to resolve: one related to alleged infringement of a U.S. industry's IP in the creation/promulgation of a new telecommunications standard ("WIPI") and the other concerning pirates' ability to obtain rights to register and distribute U.S. films in the Korean market. The U.S. Government appreciates the May 1, 2003