US Trade Representative recognizes Indonesia’s efforts in addressing intellectual property piracy
November 7, 2006, Jakarta – The Business Software Alliance (BSA) today congratulated Indonesia on its improved standing in the United States Trade Representative (USTR) Special 301 Watch List after completion of an “Out-of-Cycle” review (OCR). This review, which was announced earlier this year, examined in detail the adequacy and effectiveness of intellectual property rights (IPR) protection in Indonesia. In recognition of progress made during the 2006 OCR period, the USTR lowered Indonesia from Priority Watch List to Watch List.
“This improved IPR ranking is made in recognition of the Indonesian government’s efforts in fighting intellectual property piracy,” said Jeffery Hardee, Vice President and Regional Director, BSA Asia-Pacific. “Indonesia needs to be congratulated for the multi-level approach it has adopted in addressing piracy, which has been seen as a major barrier to the growth potential of its IP related industries. The government’s resolve bodes well for the future of the country’s economy and international standing.”
Amongst the improvements that have been noted include:
- The implementation of regulations designed to stop the illegal production of pirated optical discs,
- The licensing of optical disc factories and raids against illegal optical disc factories,
- Raids against retailers selling pirated goods,
- Activation of a ministerial-level National Intellectual Property Task Force to coordinate IPR enforcement and the conduct of public awareness programs,
- A new Customs Law that clarifies the authority of Customs officers to seize goods that infringe on IPR
Whilst recognizing the progress Indonesia has made, the BSA was also quick to point that a lot more work remains to be done before software piracy can be lowered substantially.
Hardee added, “It is important that Indonesia now builds on the good foundation it has built through these efforts. The biggest piracy threat to the BSA remains that of corporate end-user piracy, where organizations continue to use unlicensed software in the course of their business. Though the authorities have taken the first steps in conducting enforcement against illegal business users of software under the new amendments of the Copyright Law, a lot still needs to be done as software piracy in Indonesia remains amongst the highest in the world. In short, more corporate end-user enforcement needs to be conducted against this group of software pirates.
Just as more criminal cases need to be brought to court, a lot more marketing campaigns also need to be run to promote further awareness of IPR. To this end, the BSA stands by the government in offering its support in such awareness building initiatives.”
An annual global PC software study released by BSA in May this year shows that the PC software piracy rate of Indonesia remains the same at 87% compared to the piracy rate in 2004. The independent study was conducted by IDC, the information technology (IT) industry’s leading global market research and forecasting firm. For more details or for a copy of the study, please visit www.bsa.org/globalstudy.
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About BSA
The Business Software Alliance (www.bsa.org) is the foremost organization dedicated to promoting a safe and legal digital world. BSA is the voice of the world's commercial software industry and its hardware partners before governments and in the international marketplace. Its members represent one of the fastest growing industries in the world. BSA programs foster technology innovation through education and policy initiatives that promote copyright protection, cyber security, trade and e-commerce. BSA members include Adobe, Apple, Autodesk, Avid, Bentley Systems, Borland, CNC Software/Mastercam, McAfee, Microsoft, Minitab, PTC, SolidWorks, Sybase, Symantec, The MathWorks, Trend Micro and UGS.
Contact Information
Reza Maulana
APCO Indonesia
Phone: 5296 4611; Fax: 5296 4610;
Email: rmaulana@apcoindonesia.com
Background on Special 301
Pursuant to Section 182 of the US Trade Act of 1974, as amended by the Omnibus Trade and Competitiveness Act of 1988 and the Uruguay Round Agreements Act (enacted in 1994) (“Special 301”), under Special 301 provisions, USTR must identify those countries that deny adequate and effective protection for IPR or deny fair and equitable market access for persons that rely on intellectual property protection. Countries that have the most onerous or egregious acts, policies, or practices and whose acts, policies, or practices have the greatest adverse impact (actual or potential) on the relevant U.S. products must be designated as “Priority Foreign Countries.”
Priority Foreign Countries are potentially subject to an investigation under the Section 301 provisions of the Trade Act of 1974. USTR may not designate a country as a Priority Foreign Country if it is entering into good faith negotiations or making significant progress in bilateral or multilateral negotiations to provide adequate and effective protection of IPR.
USTR must decide whether to identify countries within 30 days after issuance of the annual National Trade Estimate Report. In addition, USTR may identify a trading partner as a Priority Foreign Country or remove such identification whenever warranted.
USTR has created a “Priority Watch List” and “Watch List” under Special 301 provisions. Placement of a trading partner on the Priority Watch List or Watch List indicates that particular problems exist in that country with respect to IPR protection, enforcement, or market access for persons relying on intellectual property. Countries placed on the Priority Watch List are the focus of increased bilateral attention concerning the problem areas.
Additionally, under Section 306, USTR monitors a country’s compliance with bilateral intellectual property agreements that are the basis for resolving an investigation under Section 301. USTR may apply sanctions if a country fails to satisfactorily implement an agreement.
The interagency Trade Policy Staff Committee, in advising USTR on the implementation of Special 301, obtains information from and holds consultations with the private sector, U.S. embassies, the United States' trading partners, the U.S. Congress, and the National Trade Estimates report, among other sources.
The United States has in recent years worked to deepen cooperation with Indonesia under a bilateral Trade and Investment Framework Agreement (TIFA). Indonesia had been on the Special 301 Priority Watch List since 2001. In 2005, the United States conducted an out-of-cycle review (OCR) with respect to Indonesia, which resulted in Indonesia’s retention on the Priority Watch List. In recognition of progress made during the 2005 OCR period, the United States elected to conduct a second consecutive OCR in 2006, which resulted in the decision to lower Indonesia to the Watch List based on improvements in its enforcement of IPR, though additional work remains.
