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rights, a copyright law has not yet been enacted and proposed patent legislation does not cover important sectors.

Intellectual property protection in some Watch List countries is still well below international standards and is a cause for concern. For example, in Indonesia, despite the important step of enacting its first-ever patent law, problems with market access for motion pictures and insufficient protection for the pharmaceutical industry stand out as issues that must be resolved. In Turkey, improvements in the area of copyright, specifically stiffer penalties and much improved enforcement, would positively affect the book and motion picture industries. Clarification of computer software protection is needed; as well as passage of patent legislation. In the Philippines, we are concerned that piracy of videotape and sound recordings has reached dramatic 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 (FRG) have cause concern because judicial interpretations of copyright protection for computer programs appear to have undermined the effective level of protection.

There has been noteworthy progress in Mexico. 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. However, the level of copyright protection in Mexico needs certain important revisions in particular with respect to computer programs and sound recordings.

The following is the status of the 23 trading partners currently listed:

The Priority Watch List The Watch List
Brazil
India
China (PRC)
Thailand
Argentina
Canada
Chile
Colombia
Egypt
Greece
Indonesia
Italy
Japan
Korea
Malaysia
Pakistan
Philippines
Saudi Arabia
Spain
Taiwan
Turkey
Venezuela
Yugoslavia