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 provisions that upgrade the prior Uruguayan copyright scheme. In recent years, however, the major obstacle to copyright owners in Uruguay has been lack of effective enforcement against widespread piracy. Enforcement at the borders needs to be improved significantly, especially given the growth of optical media piracy throughout the Mercosur region and Uruguay's role in the transshipment of pirate and counterfeit goods into other countries in Latin America. While we are pleased with progress on copyright protection, we remain concerned about the inadequacies of Uruguay's patent law. We will continue to discuss intellectual property issues in the context of the U.S. - Uruguay Joint Commission on Trade and Investment. In addition, we urge Uruguay to ratify the two WIPO Internet Treaties.

UZBEKISTAN

Uzbekistan needs to take numerous remaining steps in order to fulfill its intellectual property commitments under the 1994 U.S.-Uzbekistan Trade Agreement. Specifically, Uzbekistan is not yet a member of the Berne Convention or the Geneva Phonograms Convention; is not providing any protection or rights to U.S. and other foreign sound recordings; and does not clearly provide protection for pre-existing works or sound recordings under its copyright law. In addition, criminal penalties for IPR violations have yet to be adopted as required by the bilateral agreement. Furthermore, the Customs Code does not appear to provide the proper authority to seize material at the border, as is necessary to conduct effective border enforcement, we are encouraged that a new draft customs law is due for consideration in Uzbekistan's parliament on August 28, 2003. We urge the Government of Uzbekistan to enact this legislation expeditiously.

VENEZUELA

In 2002, Venezuela's commitment to the protection of intellectual property rights appeared to be decreasing. Venezuela began issuing approval for drugs by relying on confidential test data of bioequivalents that were already on the market, and reversed course on the issuance of second use patents to U.S. interests and revoking several which were already issued. Piracy and counterfeiting were increasingly problematic, and deterrence and prosecution levels remain low. We urge the Government of Venezuela to take strong actions to protect intellectual property rights, including by issuing a data protection decree. We will monitor Venezuela's actions in this respect, and will review any progress in the Fall.

VIETNAM

Enforcement of intellectual property in Vietnam remains weak, and violations are rampant. While Vietnam has increased the number of administrative and law enforcement actions against IPR violations over the past year, effective enforcement remains the exception rather than the norm. Market access barriers, especially with regard to "cultural products," continue to impede the availability of legitimate product, further complicating efforts to combat piracy. In most cities, according to industry estimates, up to 100 percent of the music CDs, VCDs, and DVDs on sale are May 1, 2003