Request for Public Comment: Proposed Determination in Section 301 Investigation Concerning Intellectual Property Laws and Practices of the Government of Paraguay

On January 16, 1998, the USTR identified Paraguay as a ``priority foreign country'' under the ``Special 301'' provisions of the Trade Act of 1974, as amended (19 U.S.C. 2242). In identifying Paraguay as a ``priority foreign country,'' the USTR noted deficiencies in Paraguay's acts, policies and practices regarding intellectual proprerty, including a lack of effective action to enforce intellectual property rights. The USTR also observed that the Government of Paraguay had failed to enact adequate and effective intellectual property legislation covering patents, copyrights and trademarks. As required under Section 302(b)(2)(A) of the Trade Act (19 U.S.C. 2412(b)(2)(A)), an investigation of these acts, policies and practices was initiated on February 17, 1998. On August 4, 1998, the investigation was extended until November 17, 1998, in light of the complex and complicated issues involved. Thus, pursuant to section 304(a)(3)(B) of the Trade Act, the USTR must determine on or before November 17, 1998, whether the Government of Paraguay's acts, policies and practices regarding intellectual property are unreasonable and burden or restrict U.S. commerce. During bilateral negotiations held to resolve these issues, the Government of Paraguay indicated that it has undertaken and will undertake a number of actions to improve the protection of intellectual property rights in Paraguay. For example, since this investigation was initiated, Paraguay has passed new copyright and trademark laws, and has undertaken efforts to legalize government use of software. The Government of Paraguay also has made efforts to improve enforcement of intellectual property rights, including conducting a number of notable recent seizures of counterfeit and pirated products. Despite these efforts, significant issues remain unresolved. Piracy and counterfeiting of U.S. products continue to be serious problems in Paraguay. Paraguay remains a major transshipment point from which pirated and counterfeit products are distributed to markets throughout Latin America. Pirated and counterfeit products continue to be widely available in retail outlets, particularly in Cuidad del Este. Moreover, the Paraguayan judicial system fails to provide effective relief for violations of intellectual property rights. There are frequent reports that infringers are not prosecuted, that seized products are not destroyed, that cases are often mishandled, and that judges lack sufficient understanding of intellectual property issues. In addition, the recently-passed copyright law fails to provide that copyright piracy is a ``public'' criminal offense, and therefore public prosecutors will not enforce its provisions. Finally, Paraguay appears to have made little progress toward enacting legislation to provide adequate and effective patent protection.

Proposed Determination

If the issues that are the basis for this investigation are not addressed, the USTR proposes to determine pursuant to section 304(a)(1) of the Trade Act that acts, policies, and practices of the Government of Paraguay with respect to the protection and enforcement of intellectual property rights are unreasonable and constitute a burden or restriction on U.S. commerce. In the event the USTR makes such a determination, the USTR also must determine pursuant to section 304(a)(1)(B) what action, if any, to take in response.

Public Comment

In accordance with section 304(b)(1)(A) of the Trade Act, USTR invites the presentation of views of interested persons concerning the determinations required under section 304(a)(1). In particular, written comments should address: (1) The USTR's proposed determination that the Government of Paraguay's acts, policies or practices concerning the protection and enforcement of intellectual property rights are unreasonable and constitute a burden or restriction on U.S. commerce; and (2) what actions, if any, would be appropriate to take in response. Comments must be filed in accordance with the requirements set forth in 15 CFR 2006.8(b) (55 FR 20,593) and must be filed on or before noon on Monday, November 16, 1998. Comments must be in English and provided in twenty copies to: Sybia Harrison, Staff Assistant to the Section 301 Committee, Room 416, Office of the U.S. Trade Representative, 600 17th Street, NW, Washington, DC 20508. Comments will be placed in a file (Docket 301-117) open to public inspection pursuant to 15 CFR 2006.13, except confidential business information exempt from public inspection in accordance with 15 CFR 2006.15. Confidential business information submitted in accordance with 15 CFR 2006.15 must be clearly marked ``BUSINESS CONFIDENTIAL'' in a contrasting color ink at the top of each page on each of 20 copies, and must be accompanied by a nonconfidential summary of the confidential information. The nonconfidential summary shall be placed in the file that is open to public inspection. An appointment to review the docket (Docket No. 301-117) may be made by calling Brenda Webb (202) 395-6186. The USTR Reading Room is open to the public from 9:30 a.m. to 12

noon and 1 p.m. to 4 p.m., Monday through Friday, and is located in Room 101. Joanna K. McIntosh, Chairperson, Section 301 Committee. [FR Doc. 98-28441 Filed 10-22-98; 8:45 am] BILLING CODE 3190-01-M