1999News

DR escapes U.S. trade sanctions this year, but next…

The flurry of Dominican government anti-piracy enforcement activity over the past few months has evidently persuaded U.S. authorities to wait another year before taking trade measures to punish the DR for its poor protection of intellectual property rights (IPR). Under a law known as Special 301, every year the Office of the U.S. Trade Representative (USTR) must draw up and publish by April 30th a list of trading partners whose actions (or in some cases, inaction) regarding intellectual property (IP) are hurting U.S. trade interests. "Priority countries" are those targeted for sanctions if the countries do not agree to change damaging practices. "Priority watch list" countries are those that will be targeted next time if they do not make improvements in the intervening year. "Watch list" countries are those that have been identified as potential problems which could end up on either of the other two lists. In a report released last Friday evening in Washington, the DR was left on the "priority watch list" because of its many IP protection problems. USTR made it clear, however, that only recent highly-publicized enforcement efforts kept it off the primary hit list, and if legislative measures are not adopted by the end of 1999, it will lose important market access benefits. The relevant passage in the report on the DR is as follows: The piracy of computer software, video and audio tapes, and compact disc technologies, as well as TV piracy is widespread, although the Dominican Copyright Office has been more active during the past year in enforcing existing laws. The 1911 Patent Law provides for broad exclusions of subject matter from patentability, and includes onerous local working requirements. Current law is also inadequate with respect to term of protection. The Fernandez Government has submitted new intellectual property legislation that, as presently written, will contravene several TRIPS provisions, such as those pertaining to compulsory licenses. The Ministry of Health is still granting marketing approvals for products that infringe pharmaceutical patents. The Dominican Republic must bring its legal regime into conformity with TRIPS by January 1, 2000. As a major beneficiary of the Caribbean Basin Economic Recovery Act (CBERA) and the Generalized System of Preferences (GSP), it is incumbent upon the Government of the Dominican Republic to provide adequate and effective protection for intellectual property. In an interview published today in the news daily El Siglo, the Technical Secretary of the Presidency, Temístocles Montás announced that the Fernández Administration has been studying suggestions made by the U.S. concerning the IP sections of the Market Order Code now before Congress, and that it will soon send amendments to the bill to Congress. Priority in the amendments will be given to those areas where the DR may be violating its Uruguay Round commitments under the Trade-Related Aspects of Intellectual Property (TRIPs) Agreement.