IIPA Submits 'Special 301' Copyright Piracy Recommendations to Trade Rep

(February 18, 1999) The International Intellectual Property Alliance submitted its 'Special 301' recommendations to U.S. Trade Representative Charlene Barshefsky on Tuesday, February 16. The filing, which addresses international copyright piracy, recommends that Israel be designated as a Priority Foreign Country under Special 301.

The International Intellectual Property Alliance (IIPA) did a study of 62 nations. It estimated that U.S. industry lost $12.38 Billion to copyright piracy in 1998, up from $11.69 Billion in 1997. However, the increase was concentrated in music piracy, which grew from $1.25 to $1.73 Billion, an increase of over 38 percent. In contrast, piracy of business applications dropped slightly, from $4.78 to $4.65 Billion.

The IIPA asked the United States Trade Representative, Ambassador Charlene Barshefsky, to designate Israel as a "Priority Foreign Country" under "Special 301." The IIPA estimated that Israel was responsible for $141.2 Million in piracy in 1998, which was far less than many other nations' piracy. Moreover, Israel's piracy levels were in the 40% to 55% range, depending on the category of copyright. In contrast, the piracy levels were higher in many other nations. For example, the IIPA estimated that 96% of business applications are pirated in the People's Republic of China (PRC).

Nevertheless, the IIPA requested "Priority Foreign Country" treatment for Israel. It wrote that "Israel is now the key locus of international optical media piracy, producing, importing and transshipping pirate product in quantities that dwarf its modest legitimate domestic demand. Israel's domestic market for sound recordings, videogames and computer programs, once promising and profitable, are being overwhelmed by piracy."

The IIPA also recommended Section 306 monitoring of the PRC and Paraquay. It also recommended Priority Watch List placement for Argentina, Brazil, Czech Republic, Dominican Republic, Greece, Ireland, Italy, Kuwait, Macau, Mexico, Peru, Poland, Russia, Thailand, Turkey, and the Ukraine.

The International Intellectual Property Alliance is a coalition of of associations representing the various sectors of the copyright industry. Its members are the Business Software Alliance, Recording Industry Association of America, Motion Picture Association of America, Association of American Publishers, American Film Marketing Association, National Music Publishers Association, and Interactive Digital Software Association.

"We have seen progress in many countries this past year," Robert Holleyman, President and CEO of the BSA, stated in a press release. "Our initial estimates indicate that piracy rates may be trending downward but at the same time, there remain significant problems across the globe, including continued, unacceptable levels of end-user and retail piracy and the need for copyright law reform in many countries."

USTR Charlene Barshefsky

The U.S. Trade Representative (USTR) is responsible for developing and coordinating U.S. international trade policy, and leading negotiations with other countries on such matters. Under the Omnibus Trade and Competitiveness Act of 1988 the USTR has responsibility for Section 301 complaints against foreign unfair trade practices.

The USTR, Charlene Barshefsky, testified before the Senate Finance Committee on January 26. "Intellectual property rights -- Our success in this field over the past decade owes a great deal to the Finance Committee's work both in the Trade Act of 1988 with its creation of "Special 301," and on the Uruguay Round. Today, the vast majority of our trading partners have passed modern intellectual property laws and are improving levels of enforcement. In this area, we will spend a great deal of time ensuring that all WTO members comply with their obligation to introduce full intellectual property protection by January 1, 2000. (For countries, like China, which are not WTO members, we will vigorously monitor compliance with bilateral agreements.)"

Barshefsky continued: "We have also launched campaigns against worldwide piracy of new optical media technologies, and against end-user piracy of software. These issues are integral parts of our regional negotiating agenda in Asia, Latin America, Europe, Africa and the Middle East. Looking ahead, we must extend protection of intellectual property rights beyond basic laws and enforcement to protect new technologies like genetically engineered plant varieties."