Page:Special 301 Report 2008.pdf/41

 HUNGARY Hungary will remain on the Watch List in 2008. Hungary has made some IPR improvements, including the establishment in January 2008 of a National Board Against Counterfeiting. The United States will monitor the progress of Hungary's efforts to combat piracy and counterfeiting. Further improvements are needed to ensure that prosecutors follow through with cases against IP infringers, and that judges are encouraged to impose deterrent-level sentences for civil and criminal IP infringement. U.S. copyright industries also report that Internet piracy in Hungary is a growing problem. The United States will continue to work with the Hungarian Government to address these IPR concerns.

INDONESIA Indonesia will remain on the Watch List in 2008. Indonesia took some positive steps toward combating piracy and counterfeiting in 2007, including several major raids of optical disc manufacturing plants as well as actions against distributors of counterfeit pharmaceuticals. However, on the whole, there has been little improvement in Indonesia's IPR climate, nor any signs that the government is taking significant steps to address the weaknesses in its system. The United States urges Indonesia to take a comprehensive approach to enforcing IPRs that includes proper application of IPR laws by the courts; effective interagency coordination to ensure that enforcement actions are continuous and sustained; enforcement actions resulting in prosecutions where appropriate; and where there are convictions, the issuance of deterrent penalties. The United States urges Indonesia to improve examination of trademark applications, and to provide an expeditious and effective avenue to challenge questionable registrations. In addition, Indonesia should provide effective protection against unfair commercial use of undisclosed test or other data generated to obtain marketing approval for pharmaceutical products and improve coordination between Indonesia's health and patent authorities to prevent the issuance of marketing approvals for unauthorized copies of patented pharmaceutical products. Also, despite some enforcement actions taken by Indonesia against distributors of counterfeit pharmaceuticals, the U.S. pharmaceutical industry estimates that approximately 25 percent of drugs in Indonesia are counterfeit; this dangerous situation requires greater attention by Indonesia. The United States will continue to use the bilateral Trade and Investment Framework Agreement process to work with Indonesia to improve its IPR protection and enforcement regimes.

ITALY Italy will remain on the Watch List in 2008. Italy made progress in 2007, including through increased senior-level support for IPR enforcement, and some enforcement actions by the Guardia di Finanza. U.S. copyright industries continue to report, however, that Italy maintains one of the highest overall piracy rates in Western Europe. The United States is particularly concerned about the lack of judicial imposition of deterrent-level penalties for criminal copyright and trademark infringers. The United States urges Italy to make IPR enforcement a top priority, including encouraging judges to impose deterrent-level sentences and establishing a national action plan to address commercial-scale piracy, with a particular focus on Internet piracy. The United States will continue to work with Italy, with the goal of improving IPR protection and enforcement.