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 effective protection of intellectual property rights. The United States will continue to work with India to address these and other issues.

Indonesia

Indonesia remains on the Priority Watch List in 2012. Indonesian authorities made positive efforts in 2011 to strengthen IPR protections, and some rights holders reported good cooperation with enforcement authorities. However, the United States remains concerned that Indonesia's IPR enforcement efforts have not been effective in addressing challenges such as rampant piracy and counterfeiting, including growing piracy over the Internet, and the widespread availability of counterfeit pharmaceutical products. The United States urges Indonesia to take steps to address inefficiencies in its judicial and prosecutorial systems and to impose deterrent-level sentences. While authorities conducted some enforcement against cable piracy, and although rights holders welcomed efforts to ensure that operators are properly licensed, cable piracy rates rose significantly in 2011. The United States is also concerned about the long-term effects of a recent decree that imposed strict limitations on the delivery of ringtones, undermining a once-thriving legitimate market for music distribution. The United States encourages Indonesia to provide an effective system for protecting against the unfair commercial use, as well as unauthorized disclosure, of test or other data generated to obtain marketing approval for pharmaceutical and agricultural chemical products. The United States also remains concerned about market access barriers in Indonesia, which include measures imposing requirements that restrict the importation of medicines and measures that could restrict market access for motion pictures. The United States will continue to engage with Indonesia on these and other matters.

Israel

Israel remains on the Priority Watch List in 2012. Israel has taken steps towards implementing an Understanding on IPR that it concluded with the United States in 2010; however, further action is needed to fully implement that Understanding. The United States stands ready to work closely with the Government of Israel 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 the Special 301 Watch List once the Government enacted legislation implemented Israel's obligations fully.

Israel has already enacted legislation regarding pharmaceutical test data, and has submitted legislation to the Knesset regarding patent publication. The United States commends Israel for 36