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the E.U. member states. The directive takes advantage of a rare reciprocity-based provision in the Berne Convention called the rule of the shorter term, which permits reciprocity-based extensions to the life-plus-50-year term required by the convention.
In light of the differences in the terms of protection for certain works and rights in the U.S. and E.U. systems, some U.S. rightholders will be denied the extended term in the European Union if the U.S. term of protection is not also increased accordingly. I've detailed in my written testimony how U.S. rightholders would be affected in E.U. member States if H.R. 989 is enacted.
In sum, the increase in the term of protection called for by the legislation will permit the creators of works that are not made in a work-for-hire context, such as independent writers, composers, playwrights, architects, painters, and sculptors, to enjoy a term of protection that is life-plus-70 years rather than life-plus-50 years. Additionally, the owners of certain works-for-hire, such as motion pictures, will enjoy the right to exploit the films in the EU member states for up to 20 years longer than the 75 years they now have.
The countries of the European Union are a large and very affluent market for U.S. copyrighted works. According to a number of our copyright industries, European accounts for more than half of their international revenues, and the reach of European law will extend to the E.U.'s neighbors to the east and south as they attempt to harmonize their legislation with E.U. standards to forge closer associations with the European Union. Given our large surplus in trade with Europe in copyrighted works, I'm confident the term extension in the United States will generate more revenues for the United States than it will cost us in outflows.
Mr. Chairman, Mr. Conyers, one of the main trade policy objectives of USTR is to promote the establishment of legal and enforcement structures overseas that allow our intellectual property rights industries to exercise their rights in the intellectual property that they create. In that role, we're, of course, much more accustomed to commenting on changes in foreign laws than we are in commenting on changes on U.S. domestic law. Nonetheless, there is no doubt that H.R. 989 has international, as well as domestic, implications. Its passage would have a positive effect on our trade balance, and USTR strongly supports its passage.
I'd be happy to answer any questions the committee has on the international implications of the legislation. Thank you.
[The prepared statement of Ms. Barshefsky follows:]