Excerpt from 2003 USTR 301 Report
We look forward to seeing Chile implement the provisions of the recently negotiated intellectual
property chapter of the U.S. Chile Free Trade Agreement, which provides high levels of
protection of appropriate for the digital age, including non-discriminatory treatment for U.S.
software, music, text, and motion pictures. Protections for U.S. patents, trademarks and
undisclosed information exceed past trade agreements (e.g. NAFTA and the U.S.-Jordan FTA),
and obligate Chile to make its IP laws and enforcement practices conform to the most advanced
standards. This is a good agreement for both the United States and Chile. The protection of
intellectual property is important for economic development because it promotes the creation of
knowledge industries and provides incentives for increased investment. The agreement includes
important new protections for Chilean writers, singers, and software developers, specifically
ensuring that they will continue to reap the rewards of their creativity in the digital realm. The
Agreement also will make Chile an attractive location for clinical trials for pharmaceuticals.
However, to date, Chile’s IPR laws are not yet fully TRIPS-consistent. Shortcomings with
respect to enforcement remain and we are concerned with Chile’s large backlog of pending
patent applications. In addition, the United States was very disappointed with the registration of
several pharmaceutical products that appear to infringe validly issued Chilean patents. We
expect these issues to be resolved through Chile’s implementation of the U.S.-Chile FTA and
look forward to following Chile’s progress with respect to meeting its commitments under this
and the TRIPS agreement. Upon full implementation of the U.S. – Chile Free Trade Agreement,
we would expect to re-evaluate Chile’s status in the Special 301 review.