Page:Special 301 Report 2015.pdf/77

 with CTPA obligations. Colombia also reduced patent application backlogs and continued to train judges and law enforcement officials on IPR. However, improvements are still needed with respect to implementation of significant IPR-related commitments made under the CTPA, including commitments to address the challenges of copyright piracy in the digital age. Online piracy, particularly via mobile devices, has grown significantly in Colombia in the last few years; Columbia is currently the third biggest smartphone market in Latin America, with over one-third of Colombians owning one, and more than two-thirds of Colombians having access to the Internet. Colombian law enforcement authorities with relevant jurisdiction, including the National Police and the specialized national-level IPR unit in the Attorney General's Office, have yet to engage in meaningful and sustained investigations and prosecutions against the operators of significant large pirate websites and mobile applications based in Colombia. And, despite dedicating more resources toward enforcement in 2014, the government has also not been able to reduce significantly the large number of pirate and counterfeit hard goods being sold at Bogota's San Andresitos markets, on the street, and at other distribution hubs around the country. Besides tackling online and mobile piracy, the United States urges Colombia to focus enforcement efforts on disrupting organized trafficking in illicit goods, including in the border and free trade zone areas. The United States looks forward to continuing constructive engagement with Colombia on these and other matters.

Paraguay Paraguay remains on the Watch List in 2015. In addition, the United States continues to monitor Paraguay under Section 306. In 2014, promising negotiations occurred with the Cartes Administration to renew the bilateral IPR MOU that expired in April 2012. The United States encourages Paraguay to conclude the MOU by June 30, 2015. If this occurs, USTR will recommend an OCR to consider whether to remove Paraguay from the Watch List. Currently, USTR is identifying alternative options for enhanced engagement under the statute in the event that an MOU does not successfully conclude by the end of June. The United States recognizes that, even without the MOU, Paraguay has continued to take positive steps toward strengthening IPR. In 2014, for example, Paraguayan authorities, especially the National Directorate of Intellectual Property (DINAPI), took additional aggressive enforcement actions, including conducting raids and seizing merchandise from vendors and interdicting cargo at the international airport in Ciudad del Este. Authorities are beginning to work together to investigate cases and pursue legal actions, indicating a recognition by Paraguayan officials of the need for interagency coordination in order to have a significant impact on the availability of counterfeit and pirated merchandise in the marketplace. DINAPI has also continued its outreach to the public, signed inter-institutional cooperative agreements to improve IPR protection and enforcement, and has stepped up enforcement operations, including at the border. Nevertheless, Paraguay remains a major transshipment point for counterfeit and pirated goods, and the re-export trade on the black market is reportedly a source of significant foreign currency for the country. The United States encourages Paraguay to further improve enforcement efforts within 72