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 counterfeit goods, particularly apparel, are readily available in Ukraine. Industry reports that many Ukraine-based websites offer pirated material for download, and add that nearly 100 percent of downloads of music, movies, and software are from illegal websites. However, there are signs that the Government is trying to adapt its enforcement strategies to address this new challenge. The Ministry launched the first ever criminal case involving unauthorized file sharing in 2008. The United States urges Ukraine to continue raids and arrests of IPR infringers; follow through with vigorous prosecutions and imposition of deterrent-level sentences by courts; continue its efforts to combat the growing problem of Internet piracy in Ukraine; ensure that Government ministries use only legal software; curb the production and distribution of pirated and counterfeit products throughout Ukraine, including in notorious markets in Ukraine; and effectively address the flow of pirated and counterfeit goods transshipped through Ukraine.

UZBEKISTAN

Uzbekistan will remain on the Watch List in 2009. Uzbekistan has been on the Watch List since 2000 and it has yet to fully implement its commitments under the 1994 U.S.-Uzbekistan Trade Agreement. Uzbekistan's 2006 Copyright and Related Rights Law is weak in that it does not protect pre-existing works nor does it provide any protection or rights to U.S. and other foreign sound recordings. Additionally, the Government has taken only modest steps to implement the law. Uzbekistan has not joined the Geneva Phonograms Convention. The Uzbek enforcement regime is weak: criminal penalties for IPR violations are low and its enforcement officials do not have ex officio authority necessary for effective enforcement by police and customs authorities.

VIETNAM

Vietnam will remain on the Watch List in 2009. Piracy rates remain high in the country, and in some categories, rates appear to be increasing. Also, growing Internet penetration has been accompanied by greater online piracy. Vietnamese enforcement authorities have achieved some success in increasing enforcement capacity over the past year; however, in some areas, particularly with respect to copyright enforcement, additional enforcement efforts have not kept pace with rising piracy levels. To date, administrative enforcement actions and penalties have not been sufficient to deter infringing activities. The United States recognizes the strides Vietnam has made in IPR protection and enforcement over the past several years. The Government of Vietnam took substantial steps to address deficiencies cited in last year's Special 301 Report including: initiating the revision of the Criminal Code to include updated IPR provisions; and increasing administrative fines and strengthening capacity in enforcement agencies. Over the past year, Vietnamese agencies took steps for the first time to address concerns raised by rightsholders regarding Internet-based piracy and the United States looks forward to increased cooperation with Vietnamese agencies in this area of growing concern. The Vietnamese Government also took steps to improve the capacity of its agencies and to conduct outreach to its domestic rightsholders and private sector. The United States continues to watch with interest the positive developments in Vietnam, in particular, improvements in enforcement for copyrighted products in both physical and digital form, and the revisions under consideration on the Criminal Code with respect to remedies for copyright piracy and trademark infringement. We look forward to continuing our engagement under the U.S.-Vietnam Trade and Investment Framework Agreement IPR working group and through cooperative capacity-building programs.