The Administration made this determination following close consultation with key sectors of the U.S. business community regarding foreign government practices and the amount of harm resulting from those practices.
Today's action underscores Congressional findings that international protection of intellectual property rights is vital not only to U.S. competitiveness but to continued investment and technological growth in all economies. Denial of such protection undermines essential economic benefits flowing from creativity, invention and investment.
The Administration's decision to place certain of our trading partners on the Priority Watch List and Watch List reflects the recognition that governments may be at different stages in providing adequate and effective protection of intellectual property. Also the economic interests of the United States require it to attach greater priority to certain foreign markets. Many countries have already made progress as a result of bilateral negotiations and consultations; others are at an earlier stage of the process. Nevertheless, expeditious improvements will be sought from all of our trading partners.
Use of Special 301 to date
On May 25, 1989 USTR announced that under the Special 301 intellectual property provisions of the Omnibus Trade and Competitiveness Act of 1988, the Administration singled out 25 trading partners whose practices deserved special attention. Of these, 17 were placed on the Watch List, while the remaining eight were placed on a Priority Watch List.
The status of the eight trading partners placed on the Priority Watch List was carefully reviewed on November 1, 1989. Saudi Arabia, Korea and Taiwan were moved to the Watch List at that time because of significant progress in the protection of intellectual property rights. In the press release issued on November 1, 1989, the Administration expressed concern about certain intellectual property practices of two countries that remain on the Watch List: Malaysia and Turkey.
Following placement of Taiwan on the Special 301 Priority Watch List in May 1989, authorities on Taiwan agreed to take measures to prevent unauthorized public performance of U.S. motion pictures in video rental shops, and initialled a bilateral agreement to improve copyright protection on Taiwan.
In January 1990, Mexico was removed from all lists after it published its "Industry and Trade Sectoral Plan" outlining the Mexican government's intention to improve process and product
