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 and trademark infringement with imposition of deterrent-level sentences for IPR infringers, and stronger border enforcement against counterfeit and pirated goods. The United States urges India to strengthen its IPR regime and stands ready to work with India on these issues during the coming year through the Trade Policy Forum and other bilateral mechanisms.

ISRAEL Israel will remain on the Priority Watch List in 2008 and the United States will conduct an Out-of-Cycle Review as a positive step to encourage progress in Israel on IPR issues. The United States is encouraged by recent progress on certain IPR issues in Israel, including: the passage of copyright legislation and issuance of a decree in 2007 that ensures national treatment for U.S. rights holders in accordance with the 1950 exchange of letters between the United States and Israel; the issuance of regulations in 2007 and policy clarifications in 2008 on the manufacturing of pharmaceutical products for export; and increased positive engagement between the United States and Israel on IPR issues. The United States remains seriously concerned, however, with Israel's inadequate level of protection against unfair commercial use of undisclosed test and other data generated to obtain marketing approval for pharmaceutical products, and Israel's laws that adversely affect the term of pharmaceutical patent protection by effectively reducing the time granted to compensate for delays in obtaining regulatory approval of a drug. The United States hopes to see Israel accede to and implement the WIPO Internet Treaties in order to address the growing problem of Internet piracy in Israel. As noted in last year's report, the United States expects Israel to provide an appropriately high level of IP protection that reflects its status as a partner in the U.S. – Israel FTA and its objective of becoming a member of the Organization for Economic Co-operation and Development (OECD). The United States will continue to work together with Israel during the Out-of-Cycle Review to ensure the strengthening of Israel's IPR regime.

PAKISTAN Pakistan will be elevated to the Priority Watch List in 2008. In 2007, the United States conducted an Out-of-Cycle Review to monitor Pakistan's progress on enacting legislation to provide effective protection against unfair commercial use of undisclosed test and other data generated to obtain marketing approval for pharmaceutical products, as well as a system of coordination between its health and patent authorities to prevent the issuance of marketing approvals for unauthorized copies of patented pharmaceutical products. Due to a lack of progress this year in either of these areas, Pakistan is being elevated to the Priority Watch List. The United States and Pakistan will remain closely engaged on these issues during the coming year. The United States commends Pakistan for continuing to take enforcement actions against large-scale illegal optical disc production and retail sales of pirated and counterfeit products, but encourages Pakistan to take enforcement actions against book piracy, aggressively prosecute IPR crimes, and ensure that its courts issue deterrent-level sentences for IPR infringers, especially against those connected with the optical disc pirate plants that were shut down in 2005. The United States will continue to monitor closely the IPR situation, and will work together with Pakistan to achieve further improvements in its IPR protection and enforcement regimes.

THAILAND Thailand will remain on the Priority Watch List in 2008 due to a broad range of concerns surrounding IPR protection and enforcement. Elections in December 2007 re-established