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 looks forward to continuing to work with Chile to resolve these and other issues, including through the TPP negotiations.

ECUADOR

Ecuador is elevated from the Watch List to the Priority Watch List in 2015. This decision is based on Ecuador's 2014 repeal of its criminal IPR provisions. The United States urges Ecuador to complete its work in reversing the repeal, or to achieve this effect through other means. The current lack of criminal procedures and penalties invites transnational organized crime groups that engage in copyright piracy and trademark counterfeiting to view Ecuador as a safe haven. If Ecuador reinstates the repealed provisions or adopts new acceptable procedures and penalties by December 30, 2015, USTR will promptly conduct an OCR to determine whether to return Ecuador to the Watch List.

Ecuador is strongly encouraged to conduct an open, transparent, and inclusive process before advancing the draft knowledge and innovation economy law that, as currently drafted, would represent a departure from international practice and could threaten foreign investment in and further development of Ecuador's innovative and creative industries. Ecuador is also encouraged to bring patent maintenance fees back into alignment with international practice. With respect to the pharmaceutical and agricultural chemical industries, Ecuador does not adequately protect against the unfair commercial use, or the unauthorized disclosure, of undisclosed test or other data generated to obtain marketing approval for pharmaceutical and agricultural chemical products. Ecuador must also ensure that its implementation of recently-adopted Decree 522 regarding the use of registered trademarks on off-patent medications and generics does not prejudice the legitimate interests of affected trademark holders. Finally, the United States encourages Ecuador to provide clarification on its processes related to the compulsory licensing of pharmaceuticals.

VENEZUELA

Venezuela remains on the Priority Watch List in 2015, as there was no attempt to reverse the downward trajectory of Venezuela's IPR system in 2014. Following Venezuela's formal withdrawal from the Andean Community, the reinstatement of its 1955 Industrial Property Law in conjunction with provisions in Venezuela's 1999 constitution and international treaty obligations has created legal ambiguity and impeded the registration of patents for pharmaceutical products. Venezuela's Autonomous Intellectual Property Service (SAPI) has not issued a new patent since 2007. Venezuela also fails to provide an effective system for protecting against the unfair commercial use, as well as unauthorized disclosure, of undisclosed test or other data generated to obtain marketing approval for pharmaceutical products. IPR enforcement remains insufficient to address widespread counterfeiting and piracy, including 58