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 resulted in a significant drop in estimated trade losses from a high of $847.9 million in 2002 to $315.5 million in 2004. The United States commends Taiwan for its accomplishments on these important issues. However, we continue to look to Taiwan to improve its efforts in such areas as effectively combating increasing levels of Internet piracy of copyrighted works, further reducing corporate end-user business software piracy, and halting the illegal copying of textbooks. Other issues that require monitoring include transshipment of counterfeit and pirated goods to third areas, ensuring that changes to Taiwan's export monitoring system do not result in a resurgence of counterfeit exports, effectively halting the spread of counterfeit pharmaceuticals, and stopping unauthorized cable operations in central and southern Taiwan. We urge Taiwan to continue making progress by addressing these remaining IPR concerns, and we will work together with Taiwan to achieve further progress.

TAJIKISTAN The United States is concerned that Tajikistan still needs to fulfill its IPR obligations under the 1993 bilateral agreement. Tajikistan, therefore, will remain on the Watch List in 2005, where it has been since 2000. Specifically, Tajikistan is not yet a member of the Geneva Phonograms Convention, and Tajikistan's Copyright Law does not clearly provide protection for pre-existing works or sound recordings. In addition, Tajikistan has a weak enforcement regime, since it does not provide criminal penalties for IPR violations, does not provide ex officio authority to commence criminal cases, and does not provide for civil ex parte search procedures necessary to provide effective enforcement against end-user pirates. The Tajik Customs Code also fails to provide customs officials with ex officio authority to suspend the release of suspected infringing materials at the border. The United States urges Tajikistan to address deficiencies in its IPR laws and strengthen IPR protection and enforcement.

THAILAND Thailand has made some efforts to strengthen its IPR regime during 2004. We are keeping Thailand on the Watch List in 2005 to monitor further progress. The Thai authorities conducted a number of inspections and raids in July 2004, and in late 2004 they cooperated with rights holders to conduct an enforcement campaign called "Operation Eradicate," which raided dozens of factories and warehouses, yielded seizures of millions of pirated discs, and decommissioned several replication machines used for copyright infringement. We note Thailand's efforts, and encourage Thailand to continue with activities such as this on a frequent and sustained basis to achieve a decrease in piracy and counterfeiting and strengthening of its IPR system. The U.S. Government and U.S. copyright industry remain concerned, however, over the growing problem of optical disc piracy at plants in Thailand, as well as deficiencies in Thailand's optical disc legislation. Piracy also remains high in the areas of photocopying of books, cable piracy, videogame piracy, business software end-user piracy, Internet piracy of music, and unauthorized public performances of motion pictures and television programs in hotels, bars, and restaurants. The United States urges Thailand to establish an effective system to license and regulate broadcast and cablecasting facilities, including having the authority to take actions that will deter illegal broadcasters. The production, distribution, sale, and export or transshipment of pirate and counterfeit products continues to be a serious concern to the U.S. copyright and trademark industries. The U.S. pharmaceutical industry also is concerned about Thailand's failure to date to enact implementing regulations for the Trade Secrets Act to provide effective data protection in line with Thailand's existing international commitments. Additional concerns include delays