FOR IMMEDIATE RELEASE
May 10, 2000

“The announcement by United States Trade Representative (USTR) Charlene Barshefsky that Ukraine may be designated as a “Priority Foreign Country” for its failure to protect the rights of intellectual property holders is a warning to the Government,” stated Mary Ann Alford, Executive Policy Chair of the Coalition for Intellectual Property Rights (CIPR).  “The announcement confirms concerns over the lack of adequate IPR enforcement in Ukraine expressed by trademark owners during the past several years,” Alford said.

“Ukraine needs to implement much needed reforms in the area of intellectual property rights (IPR) and maintain the independence and impartiality of its State Patent Office (SPO), which is under threat of liquidation,” she said.  “CIPR has and will continue to support efforts by the Government of Ukraine to improve its IPR regime and join the World Trade Organization (WTO)” Alford continued.

U.S. Trade Representative Charlene Barshefsky met with Ukraine’s Prime Minister Victor Yushchenko on Tuesday to express U.S. concern over IPR practices in Ukraine and emphasized the need to make corrections so that Ukraine can achieve WTO membership.

Ukraine was placed on the “Special 301Priority Watch List” by USTR in its annual review of intellectual property protection by U.S. trading partners.  In addition, Ambassador Barshefsky warned Ukraine that it would be designated a “Priority Foreign Country” on August 1, 2000, unless significant IPR-related improvements were made by that date.  The designation as a “Priority Foreign Country” is the last step in a process that could ultimately lead to retaliatory trade sanctions by the United States.

Under Section 301 of the U.S. trade law, USTR is required to report to the U.S. Congress each year and identify those countries that do not adequately protect the rights of intellectual property holders.  This report is called the “Special 301 Annual Review.”

USTR places countries on a “301 Watch List” that warrant “special attention” because they maintain IP practices or barriers that are a concern to the U.S.  Countries are placed on a “Priority Watch List” if the U.S. believes that their policies and practices need “active work” for resolution and close monitoring.  Those countries with the most “onerous or egregious acts, policies or practices” resulting in the greatest adverse impact on U.S. producers are designated by USTR as “Priority Foreign Countries.”  These countries are potentially subject to a Section 301 investigation and, ultimately, to retaliatory trade sanctions by the United States.

Thirty-nine countries were placed on the USTR “Watch List” this year with Latvia, Lithuania and Kazakhstan appearing for the first time.  Ukraine and Russia were placed on the USTR “Priority Watch List,” with Ukraine identified for potential “Priority Foreign Country” status.

CIPR, a coalition of major international firms, business associations, professional groups and government officials, has been working with Patent and Trademark Office (PTO) directors and other senior officials in Ukraine, Russia and other CIS countries, and the Baltics, on addressing problems raised in the USTR 301 Special Report. 

“The USTR report states that Ukrainian trademark, patent and copyright laws fall short of compliance with the TRIPS agreement and the 1992 US-Ukraine bilateral trade agreement,” stated CIPR Executive Policy Chair Alford.  “The April 4 decision by Ukraine’s Cabinet of Ministers to place the State Patent Office under the jurisdiction of the Ministry of Education is a step in the wrong direction and may compromise the independence and impartiality of this important government body,” Alford said.

“The addition of Kazakhstan, as well as Latvia and Lithuania, to the Watch List now means that 12 of the 15 countries of the former Soviet Union have cited by USTR for inadequate intellectual property protection,” added Alford.  “Clearly, much work remains to be done.  Through combined public-private efforts, these problems can be overcome and these countries can establish effective and responsive IPR enforcement regimes.”

In announcing the 2000 annual review, USTR Ambassador Charlene Barshefsky warned that the Clinton administration “remains concerned about certain failures to comply fully with WTO agreements” and would uphold its “commitment to aggressive enforcement of intellectual property rights.”

“More than ever, enforcement and implementation are the keys to protecting intellectual property,” said Tim Trainer, President of the International Anti-Counterfeiting Coalition (IACC).  “It is not enough that a country’s laws comply with international obligations on paper.”  IACC is an Associate Member of CIPR.

CIPR is a private-public partnership working to improve the protection and enforcement of industrial intellectual property rights in the Baltic States, Russia, Ukraine, Kazakhstan and other CIS countries.  CIPR activities and resources focus at the highest levels of government and include legislative initiatives; enforcement efforts; legal, judicial and regulatory reform; economic and opinion research; public education; and, coalition building among both the public and private sectors.

CIPR provides support to initiatives by public officials, regulators and legislators who are committed to reforming and advancing intellectual property rights; building transparent, non-discriminatory and aggressive enforcement regimes; and, adherence to international intellectual property conventions and treaties.  The state Patent and Trademark Office (PTO) Directors-General from Belarus, Kazakhstan, Kyrygzstan, Latvia, Lithuania, Moldova, Russia and Ukraine officially support CIPR and actively participate in the Coalition’s programs and activities. CIPR also cooperates with the World Intellectual Property Organization (WIPO), United Nations Economic Cooperation Commission and World Customs Organization (WCO), among others.  CIPR is accredited with formal Observer Status by the intergovernmental CIS Interstate Council on Industrial Property Protection.

The full USTR 2000 Special 301 Report can be downloaded from USTR’s website at www.ustr.gov/new/special.html.