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 FOREWORD

It has been 25 years since the first Special 301 Report was published in 1989. The first report, called a "Fact Sheet," highlighted 25 trading partners – eight on the Priority Watch List and 17 on the Watch List.

Over the past 25 years, the Special 301 Report has identified positive advances as well as areas of continued concern. The Report has reflected changing technologies, promoted best practices, and situated these critical issues in their policy context, underscoring the importance of intellectual property rights protection and enforcement to the United States and our trading partners.

During this period, there has been significant progress in a variety of countries. For instance, Korea, which appeared on the Priority Watch List in the original 1989 Fact Sheet, has since been removed from both the Priority Watch List and the Watch List. Korea has transformed itself from a country in need of intellectual property rights enforcement into a country with a reputation for cutting-edge innovation as well as high-quality, high-tech manufacturing. Korea is now one of the top patent filers internationally and a U.S. trade agreement partner with state-of-the art standards of intellectual property rights protection and enforcement. Italy, which was first placed on the Watch List in 1989, is removed from the Watch List in 2014 in recognition of its latest effort, addressing copyright piracy over the Internet. Likewise, the Philippines, which was first placed on the Watch List in 1989, is removed from the Watch List in 2014 based on sustained actions that the Philippine government has undertaken to improve intellectual property rights protection and civil and administrative enforcement in the Philippines. There have also been important advances in many other markets over the past 25 years that have been reflected in the Special 301 Report, including in Australia, Israel, Japan, Qatar, Spain, Taiwan, the United Arab Emirates, and Uruguay.

Still, considerable concerns remain. In 2014, 10 countries are on the Priority Watch List and 27 countries are on the Watch List. Several countries, including Chile, China, India, Indonesia, Thailand, and Turkey, have been listed every year since the Report's inception.

The Special 301 Report serves a critical function by identifying opportunities and challenges facing our innovative and creative industries in foreign markets and by promoting the job creation, economic development, and many other benefits that effective intellectual property protection and enforcement support. The Special 301 Report informs the public and our trading partners and can serve as a positive catalyst for change. USTR remains committed to meaningful and sustained engagement with our trading partners, with the goal of resolving these challenges.