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   to work closely with Brunei to ensure that progress is sustained and to address remaining areas of concern, including through the Trans-Pacific Partnership negotiations.

Canada – Canada enacted the long-awaited Copyright Modernization Act in 2012, which, among other things, is designed to implement Canada's obligations under the WIPO Internet Treaties and address the challenges of copyright piracy in the digital age. In 2013, Canada also introduced a bill designed to strengthen IPR enforcement, including by providing ex officio authority to customs officials. In light of these important developoments, the United States is moving Canada from the Priority Watch List to the Watch List in this year's Special 301 Report.

China – The Supreme People's Court of China issued a judicial interpretation (JI), effective January 1, 2013, on the liability of Internet intermediaries ("Rules of Supreme Court on Several Issues Concerning the Application of Law in Adjudication of Civil Disputes Related to Infringement of Right of Communication over Information Networks"). This JI builds on a Joint Commission Commerce and Trade (JCCT) commitment to make clear that those who facilitate online infringement will be held jointly liable for that conduct. The United States looks forward to appropriate implementation of this JI.

Israel – Israel enacted a law improving its procedures for the publication of patent applications. Furthermore, in light of progress toward implementing the Memorandum of Understanding with the United States that was signed in 2010, the United States moved Israel from the Priority Watch List to the Watch List in September of 2012.

Lao People's Democratic Republic – The Lao PDR became the 158th member of the World Trade Organization on February 2, 2013, and in connection with its accession, enacted a sweeping reform of its laws governing the protection and enforcement of IPR.

Panama – On October 31, 2012, the United States-Panama Trade Promotion Agreement entered into force, providing for strong standards for the protection and enforcement of IPR.

Philippines – The Philippines passed long-awaited legislation to implement the WIPO Internet Treaties and to provide ex officio authority for customs officials. While the United States hopes that additional clarifying provisions will be included in implementing regulations, the United States applauds these developments. Additional challenges remain with respect to addressing piracy over the Internet, in particular notorious online markets, and the need to strengthen IPR enforcement efforts. The United States looks forward to working with the Philippines in the coming year to address these issues and will review its Special 301 status if the Philippines continues to achieve progress in key areas.

<li>Russia – In December 2012, the United States and Russia developed an IPR Action Plan that addresses the areas of greatest mutual concern in IPR protection and enforcement. Russia also enacted a law to establish a specialized IPR court in 2013 and amended its Criminal Code to revise criminal thresholds for copyright piracy.</li> </ul> 10