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 monitors developments on these issues and looks forward to continuing to work with Canada to address these and other IPR issues, including through the TPP negotiations.

Mexico Mexico remains on the Watch List in 2015. Positive developments in Mexico in 2014 included progress in law enforcement operations, including at the Notorious Markets Tepito and San Juan de Dios, and the seizure and destruction of pirated and counterfeit goods as well as materials and implements used for their production. However, serious concerns remain, particularly with respect to the widespread availability of pirated and counterfeit goods in Mexico and increased Internet piracy made possible, in part, by higher broadband penetration. To combat these high levels of IPR infringements, Mexico needs to improve coordination among federal and sub-federal officials, devote additional resources to enforcement, bring more IPR-related prosecutions, and impose deterrent penalties against infringers. The United States continues to urge Mexico to enact legislation to strengthen its copyright regime, including by fully implementing the WIPO Internet Treaties and providing stronger protection against the unauthorized camcording of motion pictures in theaters. Prior to 2011, Mexican customs authorities and the Attorney General's Office worked jointly to intercept and prosecute transshipments of counterfeit and pirated goods. Following a shift in policy, however, Mexican authorities now only take action against transshipments of suspected infringing goods if there is evidence of "intent for commercial gain" in Mexican territory, which is very difficult to prove. The United States strongly urges Mexico to provide its customs officials with ex officio authority and to revert to the previous policy that allowed for the interception of potentially dangerous goods bearing counterfeit trademarks in transit to the United States and other countries. The United States looks forward to continuing to work with Mexico to address these and other issues, including through the TPP negotiations.

Costa Rica Costa Rica remains on the Watch List in 2015, although there is growing concern that several promised reforms have yet to yield tangible results. In 2010, the Government of Costa Rica announced a plan to ensure that the government would use only licensed software, but inaction and a series of postponements followed until January of 2015, when the Government of Costa Rica issued a decree requiring government institutions to report in writing the status of their software licenses by June 30, 2015. It is critical that the government both complete scheduled audits and close the unlicensed software gap in the coming year. In 2011, the United States applauded an announcement that the Government of Costa Rica would create a specialized IPR prosecution unit; however, four years later, the government appears not to have followed through with that effort. Nevertheless, a newly appointed Economic Crimes Prosecutor has reportedly instilled new purpose into IPR enforcement efforts, although the number of cases initiated has fallen slightly. It also remains unclear whether the Government of Costa Rica has committed the 67