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In the coming years, we will use existing multilateral mechanisms, such as the TRIPS Agreement, and bilateral mechanisms, such as the Special 301 of our Trade Act, to combat the piracy of U.S. copyrighted works. We will also work on a regional basis --in Asia and in the Americas --to seek better IPR laws, and to ensure that these laws are enforced. Finally, we will work with other agencies in the U.S. government to negotiate with our trading partners the international rules that will be needed to ensure the protection of copyrighted works that will be transmitted over the Global Information Infrastructure.
It is against this backdrop that I will assess the impact of HR 98 9.
It is clear that there are numerous factors and interests to take into account in determining whether a copyright term extension of 20 years is in the overall interests of our country. Many of the domestic issues connected with this decision lie outside the competence of the Office of the United States Trade Representative. We are therefore reluctant to insert this Office into a discussion of the full range of questions that the Subcommittee has before it.
The focus of this statement, rather, will be on the implications for our trade balance of an extension of the copyright term. '
It is impossible to talk about those effects without taking note of the fact that less than two weeks ago, the European Union implemented a decision, taken in 1993, to harmonize its copyright term at life plus 70 years. This means that all members of the European Union, with the exception of Germany (which already had a term of protection of life plus 70 years) had to extend the term of protection that they provide to their own copyright holders, and to copyright holders from the other member states.
Unfortunately, the members of the European Union are under no international obligation to extend this longer term of ■• protection to U.S. right holders, or to right holders from any other country that does not provide a reciprocal term of protection to works of European authorship. The so-called "rule of the shorter term" in Article 7(8) of the Berne Convention permits member countries to limit the term granted foreign origin-works to the term of protection provided in the country of origin. In other words, Berne member countries are permitted to provide terms in excess of that required by Berne - generally life plus fifty years - to nationals of other Berne member countries on the basis of reciprocity rather than national treatment. The EU directive, taking advantage of this rare reciprocal provision in Berne, requires member states to apply the rule of the shorter term to non-EU nationals, except in certain narrowly defined circumstances.
As a result, U.S. right holders will not be able to take