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 products. Finally, the United States recommends that India take steps to improve the efficiency of judicial proceedings, and strengthen its criminal enforcement regime, by encouraging the imposition of deterrent-level sentences for IPR violations and by giving prosecution of IPR offenses greater priority. The United States looks forward to increased engagement with India to address these and other matters in the coming year.

Indonesia

Indonesia remains on the Priority Watch List. Indonesia continued its enforcement efforts and enhanced its cooperation with rights holders in 2010. For example, rights holders report that Indonesia has adopted helpful practices and policies with respect to cable piracy. However, enforcement efforts were insufficient to keep pace with Indonesia's piracy and counterfeiting problem, including with respect to the widespread availability of counterfeit pharmaceutical products and other counterfeit hard goods. The United States urges Indonesia to improve its enforcement efforts, to address problems that its prosecutorial and judicial systems confront, to provide deterrent penalties for IPR violations, and to encourage courts to impose those penalties. While the number of criminal IPR cases handled by the Attorney General appears to have increased during the past year, investigatory and prosecution efforts remain limited. The United States encourages Indonesia to provide an effective system for protecting against unfair commercial use, as well as unauthorized disclosure, of undisclosed test and other data generated to obtain marketing approval for pharmaceutical and agricultural chemical products. The United States also urges Indonesia to address its serious market access barriers for IPR-intensive products. These barriers include measures imposing requirements that restrict the importation of medicines by foreign pharmaceutical companies, a troubling change to its customs valuation methodology for imported motion pictures, and continuing market access restrictions in the entertainment industry. The United States will continue to engage with Indonesia on these and other issues.

Israel

Israel remains on the Priority Watch List. While Israel has taken steps towards implementing an Understanding on IPR it concluded with the United States in 2010, further action is needed. The United States stands ready to work closely with the government of Israel in 2011 to achieve full implementation of the Understanding.

The United States and Israel reached the Understanding, which concerns several longstanding issues regarding Israel's regime for pharmaceutical products, on February 18, 2010. As part of the Understanding, Israel committed to strengthen its laws on protection of pharmaceutical test data and patent term extension, and to publish patent applications promptly after the expiration of a period of eighteen months from the time an application is filed. The Understanding provided, among other things, that Israel would submit legislation regarding these matters within 180 days of the conclusion of the Understanding. The United States agreed to move Israel to the Watch List once Israel submitted appropriate legislation to the Knesset, and to remove Israel from all Special 301 lists once the government enacted legislation that implemented Israel's obligations fully.

Israel has submitted legislation to the Knesset regarding the protection of pharmaceutical test data. The United States commends Israel for taking that important step, and looks forward to enactment of that legislation. To date, however, Israel has not submitted legislation to the Knesset regarding patent term extension or patent publication. The United States encourages Israel to submit bills to