Page:Special 301 Report 2010.pdf/9



An important part of the mission of the United States Trade Representative is supporting and implementing the Administration's commitment to aggressively protect American intellectual property overseas. IPR infringement causes significant financial losses for rights holders and legitimate businesses around the world. It undermines key U.S. comparative advantages in innovation and creativity to the detriment of American businesses and workers. In its most pernicious forms it can also endanger the public. Counterfeiting of some products, such as automobile parts and medicines, poses a real risk to health and safety. Trade in counterfeit and pirated products often fuels cross-border organized criminal networks and hinders the sustainable economic development of many countries.

Because fostering innovation and creativity is essential to our prosperity and to the support of countless jobs in the United States, USTR works to protect American inventiveness and creativity with all the tools of trade policy, including this Report.

Several countries made significant positive progress on IPR protection and enforcement in 2009 and early 2010. For example:

Countries being removed from the Special 301 Watch List:

 Czech Republic – The Czech Republic is being removed from the Special 301 Watch List because of significant progress made to effectively control its border markets over the past two years. Moreover, a new criminal code raising the maximum penalties for IPR related crimes from 2 to 8 years imprisonment and criminalizing the manufacture and storage of counterfeit items came into effect January 1, 2010. The United States will continue to monitor whether the new law results in the imposition of deterrent penalties.

Hungary – Hungary is being removed from the Special 301 Watch List in recognition of the significant improvements on enforcement and other actions taken during the past year. Hungary has taken proactive steps to address the growing threat of Internet piracy, and its Customs and police officials have developed their ability to effectively identify infringing products. Through effective and consistent enforcement actions, Hungary has closed its notorious Verseny street market, which was home to an array of illegitimate products. Furthermore, Hungary has taken effective measures to protect IPR, including numerous public awareness raising campaigns and training and educational seminars for police, prosecutors, and judges. The United States will continue to monitor Hungary's progress to ensure that IPR protection and enforcement improvements are ongoing. 