List: Ukraine Is Copyright Enemy No. 1

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February 16, 2001 (6:10 PM EST)

By Mary Mosquera,

High-tech and copyright trade groups recommended Friday that 58 countries be put on a list that singles out nations with low standards in protecting intellectual property.

Topping the proposed list, according to the International Intellectual Property Alliance, should be Ukraine, followed by Paraguay; China; Philippines; Uruguay; and Russia.

All countries on the list flout the World Trade Organization's agreement on Trade Related Aspects of Intellectual Property Rights, or TRIPs, the alliance said.

The alliance, a coalition of industry groups, asked that these countries be placed on the list under a provision of U.S. trade law called Special 301, which requires the naming of violators of global intellectual property rights agreements.

Placement on the trade list can trigger sanctions by the United States if the country is found to have violated intellectual property laws or has not met deadlines to correct the situation.

Ukraine has developed into a major producer and exporter of pirated CDs, the alliance said. Little progress in ending the activity has been made since June, when President Clinton and Ukraine President Kuchma signed an agreement pledging reforms and enforcement.

Uruguay is on the list because of its antiquated copyright law. It's the only country in South America that has failed to modify its law to protect computer software, said Robert Holleyman, president of the Business Software Alliance.

Prosecution of copyright infringement in Uruguay remains "costly, slow, and ineffective," he said.

As the global marketplace expands with the Internet, strong copyright protection supplies the foundation for a stable economy, Holleyman said.

"Without adequate copyright protection, trade barriers exist that cause loss of revenues, jobs, and business opportunities," he said.

The Business Software Alliance estimates that more than $12 billion in revenue was lost last year to software piracy. The U.S. economy loses $22 billion annually among all copyrighted industries.

China and Paraguay have made commitments on copyright law and enforcement after being cited for violations, but the United States is monitoring their compliance. China must also follow through on market access commitments.

The International Intellectual Property Alliance comprises several organizations, including Business Software Alliance; the Association of American Publishers; Interactive Digital Software Association; and the Recording Industry Association of America.