property rights, including drafting and submitting for legislation a copyright law, that law has not yet been enacted and proposed patent legislation does not cover important sectors. We will reassess the status of these trading partners under Special 301 when the situation warrants.
Of the 25 countries placed on the original Watch and Priority Watch Lists in May 1989, all remain on the lists except Portugal and Mexico.
Intellectual property protection in some Watch List countries is still well below international standards and is a cause for concern. For example, while Indonesia took the important step of enacting its patent law, problems with market access for motion pictures and insufficient protection for the pharmaceutical industry stand out in an otherwise important year for intellectual property protection. In Turkey, improvements in the area of copyright, specifically stiffer penalties and much improved enforcement, would positively affect the book and motion picture industries. Further discussions are also needed on the protection of computer software under existing copyright law and on the draft patent law. In the Philippines, we are concerned that piracy of videotape and sound recordings has reached very serious proportions. The Philippines should develop solutions for problems with copyright and compulsory licensing.
In this year's review of intellectual property protection, developments in the Federal Republic of Germany have caused concern because judicial interpretations of copyright protection for computer programs appear to have undermined the effective level of protection. The U.S. has made its concerns known to the Federal Republic of Germany.
There has been noteworthy progress in Mexico and Portugal. In January 1990, Mexico was removed from all lists after publishing its "Industry and Trade Sectoral Plan" outlining the Mexican government's program to modernize protection of patents, trademarks and trade secrets. In addition, Mexico has stepped up enforcement efforts against patent and trademark infringers. We look forward to the implementation of Mexico's plan as well as improvements in the level of copyright protection in Mexico, in particular with respect to computer programs and sound recordings. In Portugal, strides in the protection of intellectual property rights have warranted that it now be removed from all lists.
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