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 contrast, Indonesia has begun to improve enforcement efforts, and Malaysia steadily continues to improve its enforcement efforts. Vietnam has agreed that optical disc regulation and its enforcement is an important method of attacking the problem there. The United States continues to urge its trading partners facing pirate optical media production within their borders to adopt similar controls or aggressively enforce existing regulations in the coming year.

Internet Piracy and the WIPO Internet Treaties

The Internet has undergone explosive growth and, coupled with the increased availability of broadband connections, serves as an extremely efficient global distribution network for pirated products. The explosive growth of copyright piracy on the Internet is a serious problem. The Administration is continuing to work with other governments, and to consult with U.S. industry, to develop the best strategy to address Internet piracy. An important first step in the fight against Internet piracy was achieved at the World Intellectual Property Organization (WIPO) when it concluded two copyright treaties in 1996: the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT) (collectively, the "WIPO Internet Treaties"). The WIPO Internet Treaties help to raise the minimum standards of intellectual property protection around the world, particularly with respect to Internet-based delivery of copyrighted works. They clarify exclusive rights in the on-line environment and specifically prohibit the devices and services intended to circumvent technological protection measures for copyrighted works. Both treaties entered into force in 2002.

In order to realize the enormous potential of the Internet, a growing number of countries are implementing the WIPO Internet Treaties and creating a legal environment conducive to investment and growth in Internet-related businesses and technologies. As of April 28, 2006, there are 58 members of the WCT and 57 members of the WPPT; this number will rise significantly when the EU Member States join. Other countries have implemented key provisions of the treaties in their national laws, without having yet formally ratified them. The WIPO Internet Treaties are now part of the international IPR legal regime and represent a majority world community view that the vital framework of protection under existing agreements, including the TRIPS Agreement, should be supplemented to eliminate any remaining gaps in copyright protection on the Internet that could impede the development of electronic commerce. The United States urges other governments to ratify and implement the two WIPO Internet Treaties.

Other Initiatives Regarding Internet Piracy

The United States is strengthening the standards of protection for intellectual property by incorporating standards of the WIPO Internet Treaties as substantive obligations in the bilateral and regional trade agreements that the United States negotiates, as well as by seeking accession to those treaties as a substantive obligation. Moreover, the United States' proposals in its FTA negotiations will continue to include up-to-date copyright and enforcement obligations to reflect contemporary technological challenges.