                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 12--TRADE ACT OF 1974
 
              SUBCHAPTER I--NEGOTIATING AND OTHER AUTHORITY
 
   Part 8--Identification of Market Barriers and Certain Unfair Trade 
                                 Actions
 
Sec. 2242. Identification of countries that deny adequate 
        protection, or market access, for intellectual property rights
        

(a) In general

    By no later than the date that is 30 days after the date on which 
the annual report is submitted to Congressional committees under section 
2241(b) of this title, the United States Trade Representative (hereafter 
in this section referred to as the ``Trade Representative'') shall 
identify--
        (1) those foreign countries that--
            (A) deny adequate and effective protection of intellectual 
        property rights, or
            (B) deny fair and equitable market access to United States 
        persons that rely upon intellectual property protection, and

        (2) those foreign countries identified under paragraph (1) that 
    are determined by the Trade Representative to be priority foreign 
    countries.

(b) Special rules for identifications

    (1) In identifying priority foreign countries under subsection 
(a)(2) of this section, the Trade Representative shall only identify 
those foreign countries--
        (A) that have the most onerous or egregious acts, policies, or 
    practices that--
            (i) deny adequate and effective intellectual property 
        rights, or
            (ii) deny fair and equitable market access to United States 
        persons that rely upon intellectual property protection,

        (B) whose acts, policies, or practices described in subparagraph 
    (A) have the greatest adverse impact (actual or potential) on the 
    relevant United States products, and
        (C) that are not--
            (i) entering into good faith negotiations, or
            (ii) making significant progress in bilateral or 
        multilateral negotiations,

    to provide adequate and effective protection of intellectual 
    property rights.

    (2) In identifying priority foreign countries under subsection 
(a)(2) of this section, the Trade Representative shall--
        (A) consult with the Register of Copyrights, the Under Secretary 
    of Commerce for Intellectual Property and Director of the United 
    States Patent and Trademark Office, other appropriate officers of 
    the Federal Government, and
        (B) take into account information from such sources as may be 
    available to the Trade Representative and such information as may be 
    submitted to the Trade Representative by interested persons, 
    including information contained in reports submitted under section 
    2241(b) of this title and petitions submitted under section 2412 of 
    this title.

    (3) The Trade Representative may identify a foreign country under 
subsection (a)(1)(B) of this section only if the Trade Representative 
finds that there is a factual basis for the denial of fair and equitable 
market access as a result of the violation of international law or 
agreement, or the existence of barriers, referred to in subsection 
(d)(3) of this section.
    (4) In identifying foreign countries under paragraphs (1) and (2) of 
subsection (a) of this section, the Trade Representative shall take into 
account--
        (A) the history of intellectual property laws and practices of 
    the foreign country, including any previous identification under 
    subsection (a)(2) of this section, and
        (B) the history of efforts of the United States, and the 
    response of the foreign country, to achieve adequate and effective 
    protection and enforcement of intellectual property rights.

(c) Revocations and additional identifications

    (1) The Trade Representative may at any time--
        (A) revoke the identification of any foreign country as a 
    priority foreign country under this section, or
        (B) identify any foreign country as a priority foreign country 
    under this section,

if information available to the Trade Representative indicates that such 
action is appropriate.
    (2) The Trade Representative shall include in the semiannual report 
submitted to the Congress under section 2419(3) of this title a detailed 
explanation of the reasons for the revocation under paragraph (1) of the 
identification of any foreign country as a priority foreign country 
under this section.

(d) Definitions

    For purposes of this section--
        (1) The term ``persons that rely upon intellectual property 
    protection'' means persons involved in--
            (A) the creation, production or licensing of works of 
        authorship (within the meaning of sections 102 and 103 of title 
        17) that are copyrighted, or
            (B) the manufacture of products that are patented or for 
        which there are process patents.

        (2) A foreign country denies adequate and effective protection 
    of intellectual property rights if the foreign country denies 
    adequate and effective means under the laws of the foreign country 
    for persons who are not citizens or nationals of such foreign 
    country to secure, exercise, and enforce rights relating to patents, 
    process patents, registered trademarks, copyrights and mask works.
        (3) A foreign country denies fair and equitable market access if 
    the foreign country effectively denies access to a market for a 
    product protected by a copyright or related right, patent, 
    trademark, mask work, trade secret, or plant breeder's right, 
    through the use of laws, procedures, practices, or regulations 
    which--
            (A) violate provisions of international law or international 
        agreements to which both the United States and the foreign 
        country are parties, or
            (B) constitute discriminatory nontariff trade barriers.

        (4) A foreign country may be determined to deny adequate and 
    effective protection of intellectual property rights, 
    notwithstanding the fact that the foreign country may be in 
    compliance with the specific obligations of the Agreement on Trade-
    Related Aspects of Intellectual Property Rights referred to in 
    section 3511(d)(15) of this title.

(e) Publication

    The Trade Representative shall publish in the Federal Register a 
list of foreign countries identified under subsection (a) of this 
section and shall make such revisions to the list as may be required by 
reason of action under subsection (c) of this section.

(f) Special rule for actions affecting United States cultural industries

                           (1) In general

        By no later than the date that is 30 days after the date on 
    which the annual report is submitted to Congressional committees 
    under section 2241(b) of this title, the Trade Representative shall 
    identify any act, policy, or practice of Canada which--
            (A) affects cultural industries,
            (B) is adopted or expanded after December 17, 1992, and
            (C) is actionable under article 2106 of the North American 
        Free Trade Agreement.

                (2) Special rules for identifications

        For purposes of section 2412(b)(2)(A) of this title, an act, 
    policy, or practice identified under this subsection shall be 
    treated as an act, policy, or practice that is the basis for 
    identification of a country under subsection (a)(2) of this section, 
    unless the United States has already taken action pursuant to 
    article 2106 of the North American Free Trade Agreement in response 
    to such act, policy, or practice. In deciding whether to identify an 
    act, policy, or practice under paragraph (1), the Trade 
    Representative shall--
            (A) consult with and take into account the views of 
        representatives of the relevant domestic industries, appropriate 
        committees established pursuant to section 2155 of this title, 
        and appropriate officers of the Federal Government, and
            (B) take into account the information from such sources as 
        may be available to the Trade Representative and such 
        information as may be submitted to the Trade Representative by 
        interested persons, including information contained in reports 
        submitted under section 2241(b) of this title.

                       (3) Cultural industries

        For purposes of this subsection, the term ``cultural 
    industries'' means persons engaged in any of the following 
    activities:
            (A) The publication, distribution, or sale of books, 
        magazines, periodicals, or newspapers in print or machine 
        readable form but not including the sole activity of printing or 
        typesetting any of the foregoing.
            (B) The production, distribution, sale, or exhibition of 
        film or video recordings.
            (C) The production, distribution, sale, or exhibition of 
        audio or video music recordings.
            (D) The publication, distribution, or sale of music in print 
        or machine readable form.
            (E) Radio communications in which the transmissions are 
        intended for direct reception by the general public, and all 
        radio, television, and cable broadcasting undertakings and all 
        satellite programming and broadcast network services.

(g) Annual report

    The Trade Representative shall, by not later than the date by which 
countries are identified under subsection (a) of this section, transmit 
to the Committee on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate, a report on actions taken under 
this section during the 12 months preceding such report, and the reasons 
for such actions, including a description of progress made in achieving 
improved intellectual property protection and market access for persons 
relying on intellectual property rights.

(Pub. L. 93-618, title I, Sec. 182, as added Pub. L. 100-418, title I, 
Sec. 1303(b), Aug. 23, 1988, 102 Stat. 1179; amended Pub. L. 103-182, 
title V, Sec. 513, Dec. 8, 1993, 107 Stat. 2156; Pub. L. 103-465, title 
III, Sec. 313, Dec. 8, 1994, 108 Stat. 4938; Pub. L. 106-113, div. B, 
Sec. 1000(a)(9) [title IV, Sec. 4732(b)(8)], Nov. 29, 1999, 113 Stat. 
1536, 1501A-584.)


                               Amendments

    1999--Subsec. (b)(2)(A). Pub. L. 106-113 substituted ``Under 
Secretary of Commerce for Intellectual Property and Director of the 
United States Patent and Trademark Office'' for ``Commissioner of 
Patents and Trademarks''.
    1994--Subsec. (b)(4). Pub. L. 103-465, Sec. 313(1), added par. (4).
    Subsec. (d)(3). Pub. L. 103-465, Sec. 313(2)(A), amended 
introductory provisions generally. Prior to amendment, introductory 
provisions read as follows: ``A foreign country denies fair and 
equitable market access if the foreign country effectively denies access 
to a market for a product protected by a copyright, patent, or process 
patent through the use of laws, procedures, practices, or regulations 
which--''.
    Subsec. (d)(4). Pub. L. 103-465, Sec. 313(2)(B), added par. (4).
    Subsec. (g). Pub. L. 103-465, Sec. 313(3), added subsec. (g).
    1993--Subsec. (f). Pub. L. 103-182 added subsec. (f).


                    Effective Date of 1999 Amendment

    Amendment by Pub. L. 106-113 effective 4 months after Nov. 29, 1999, 
see section 1000(a)(9) [title IV, Sec. 4731] of Pub. L. 106-113, set out 
as a note under section 1 of Title 35, Patents.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-465 effective on the date on which the WTO 
Agreement enters into force with respect to the United States [Jan. 1, 
1995], see section 316 of Pub. L. 103-465, set out as an Effective Date 
note under section 3581 of this title.


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-182 effective on the date the North 
American Free Trade Agreement enters into force with respect to the 
United States [Jan. 1, 1994], see section 516(a) of Pub. L. 103-182, set 
out as an Effective Date note under section 3461 of this title.


 Procurement From Countries That Deny Adequate and Effective Protection 
                     of Intellectual Property Rights

    Pub. L. 101-189, div. A, title VIII, Sec. 852, Nov. 29, 1989, 103 
Stat. 1517, as amended by Pub. L. 101-510, div. A, title XIII, 
Sec. 1302(a), Nov. 5, 1990, 104 Stat. 1668, provided that it is the 
sense of Congress that it be a very important consideration in 
procurement of property, services, or technology by the Department of 
Defense whether such procurement is from any person of any country which 
has been identified by the United States Trade Representative as denying 
adequate and effective protection of intellectual property rights or 
fair and equitable market access to United States persons that rely upon 
intellectual property protection.


Identification of Countries That Deny Adequate and Effective Protection 
                     of Intellectual Property Rights

    Section 1303(a) of Pub. L. 100-418 provided that:
    ``(1) The Congress finds that--
        ``(A) international protection of intellectual property rights 
    is vital to the international competitiveness of United States 
    persons that rely on protection of intellectual property rights; and
        ``(B) the absence of adequate and effective protection of United 
    States intellectual property rights, and the denial of fair and 
    equitable market access, seriously impede the ability of the United 
    States persons that rely on protection of intellectual property 
    rights to export and operate overseas, thereby harming the economic 
    interests of the United States.
    ``(2) The purpose of this section [enacting this section and this 
note] is to provide for the development of an overall strategy to ensure 
adequate and effective protection of intellectual property rights and 
fair and equitable market access for United States persons that rely on 
protection of intellectual property rights.''

                  Section Referred to in Other Sections

    This section is referred to in section 2412 of this title.
