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 government statements and other Chinese measures. For example, the October 2010 State Council Decision on Accelerating the Cultivation and Development of Strategic Emerging Industries states that, "China shall boost the cultivation and development of strategic emerging industry and hold the core technologies and intellectual property as well as enhance independent growth capability." In addition, the Measures for Administration of Recognition of Innovative and High-Tech Enterprises, Guo Ke Fa Huo [2008] No. 172, adopted in final form without opportunity for public comment by MOST, MOF and the State Administration of Taxation, provide for certain tax benefits for qualifying enterprises. One of the eligibility criteria is that "Enterprises registered in China . . . have independent intellectual property rights over the core technology of major products through independent research and development, transfer, recipient, mergers and acquisitions within three years or through exclusive licensing over five years."

At the 2010 JCCT, China agreed not to "adopt or maintain measures that make the location of the development or ownership of intellectual property a direct or indirect condition for eligibility for government procurement preferences for products and services. China and the United States will continue to discuss whether this principle applies to other government measures."

The United States also looks forward to expanding this commitment to clarify that the location of development or ownership shall not be a condition for eligibility for other forms of government preferences as well.

The United States believes that continued bilateral dialogue and cooperation can lead to further progress in these and other areas. The United States will continue to put serious efforts into its joint work with China on IPR enforcement and protection strategies, innovation policies, and the range of other important IPR-related matters in this bilateral economic relationship, including through the JCCT and other fora.

Russia

Russia has taken significant steps in the past year to improve IPR protection and enforcement, and the United States commends this important progress. Because of ongoing concerns, particularly with respect to piracy over the Internet and enforcement generally, Russia remains on the Priority Watch List. Russia is therefore encouraged to work with the United States to set metrics, including through the establishment of an action plan, to resolve these issues.

The United States welcomes Russia's enactment, as part of the WTO accession process, of four important IPR laws. These achievements complete the legislative commitments it made in the 2006 Bilateral Agreement on Protection and Enforcement of Intellectual Property Rights (2006 Bilateral Agreement on IPR). In 2010, Russia passed: (1) amendments to Part IV of the Civil Code (governing intellectual property generally); (2) enactment of the Federal Law on Customs Regulation granting ex officio authority to customs officials; (3) amendments to the Law on Activity Licensing, which ensures that infringers cannot renew optical media production licenses; and (4) amendments to the Law on Circulation of Medicines to protect undisclosed test or other undisclosed data generated to obtain marketing approval.

In addition to these legislative reform efforts, Russia has had additional success with respect to reducing hard goods counterfeiting and piracy. The pharmaceutical and software industries, for example, report a reduction in the number of counterfeit medicines and optical discs available in