The U.S., claiming some success in its trade diplomacy, removed South Korea, Taiwan and Saudi Arabia from a list of countries it is closely watching for allegedly failing to honor U.S. patents, copyrights and other intellectual-property rights. However, five other countries -- China, Thailand, India, Brazil and Mexico -- will remain on that so-called priority watch list as a result of an interim review, U.S. Trade Representative Carla Hills announced. Under the new U.S. trade law, those countries could face accelerated unfair-trade investigations and stiff trade sanctions if they don't improve their protection of intellectual property by next spring. Mrs. Hills said many of the 25 countries that she placed under varying degrees of scrutiny have made `` genuine progress '' on this touchy issue. She said there is `` growing realization '' around the world that denial of intellectual-property rights harms all trading nations, and particularly the `` creativity and inventiveness of an offending country's own citizens. '' U.S. trade negotiators argue that countries with inadequate protections for intellectual-property rights could be hurting themselves by discouraging their own scientists and authors and by deterring U.S. high-technology firms from investing or marketing their best products there. Mrs. Hills lauded South Korea for creating an intellectual-property task force and special enforcement teams of police officers and prosecutors trained to pursue movie and book pirates. Seoul also has instituted effective search-and-seizure procedures to aid these teams, she said. Taiwan has improved its standing with the U.S. by initialing a bilateral copyright agreement, amending its trademark law and introducing legislation to protect foreign movie producers from unauthorized showings of their films. That measure could compel Taipei's growing number of small video-viewing parlors to pay movie producers for showing their films. Saudi Arabia, for its part, has vowed to enact a copyright law compatible with international standards and to apply the law to computer software as well as to literary works, Mrs. Hills said. These three countries aren't completely off the hook, though. They will remain on a lower-priority list that includes 17 other countries. Those countries -- including Japan, Italy, Canada, Greece and Spain -- are still of some concern to the U.S. but are deemed to pose less-serious problems for American patent and copyright owners than those on the `` priority '' list. Gary Hoffman, a Washington lawyer specializing in intellectual-property cases, said the threat of U.S. retaliation, combined with a growing recognition that protecting intellectual property is in a country's own interest, prompted the improvements made by South Korea, Taiwan and Saudi Arabia. `` What this tells us is that U.S. trade law is working, '' he said. He said Mexico could be one of the next countries to be removed from the priority list because of its efforts to craft a new patent law. Mrs. Hills said that the U.S. is still concerned about `` disturbing developments in Turkey and continuing slow progress in Malaysia. '' She didn't elaborate, although earlier U.S. trade reports have complained of videocassette piracy in Malaysia and disregard for U.S. pharmaceutical patents in Turkey. The 1988 trade act requires Mrs. Hills to issue another review of the performance of these countries by April 30. So far, Mrs. Hills hasn't deemed any cases bad enough to merit an accelerated investigation under the so-called special 301 provision of the act. TEXT The U.S. , claiming some success in its trade diplomacy , removed South Korea , Taiwan and Saudi Arabia from a list of countries it is closely watching for allegedly failing to honor U.S. patents , copyrights and other intellectual-property rights . However , five other countries -- China , Thailand , India , Brazil and Mexico -- will remain on that so-called priority watch list as a result of an interim review , U.S. Trade Representative Carla Hills announced . Under the new U.S. trade law , those countries could face accelerated unfair-trade investigations and stiff trade sanctions if they do n't improve their protection of intellectual property by next spring . Mrs. Hills said many of the 25 countries that she placed under varying degrees of scrutiny have made `` genuine progress '' on this touchy issue . She said there is `` growing realization '' around the world that denial of intellectual-property rights harms all trading nations , and particularly the `` creativity and inventiveness of an offending country 's own citizens . '' U.S. trade negotiators argue that countries with inadequate protections for intellectual-property rights could be hurting themselves by discouraging their own scientists and authors and by deterring U.S. high-technology firms from investing or marketing their best products there . Mrs. Hills lauded South Korea for creating an intellectual-property task force and special enforcement teams of police officers and prosecutors trained to pursue movie and book pirates . Seoul also has instituted effective search-and-seizure procedures to aid these teams , she said . Taiwan has improved its standing with the U.S. by initialing a bilateral copyright agreement , amending its trademark law and introducing legislation to protect foreign movie producers from unauthorized showings of their films . That measure could compel Taipei 's growing number of small video-viewing parlors to pay movie producers for showing their films . Saudi Arabia , for its part , has vowed to enact a copyright law compatible with international standards and to apply the law to computer software as well as to literary works , Mrs. Hills said . These three countries are n't completely off the hook , though . They will remain on a lower-priority list that includes 17 other countries . Those countries -- including Japan , Italy , Canada , Greece and Spain -- are still of some concern to the U.S. but are deemed to pose less-serious problems for American patent and copyright owners than those on the `` priority '' list . Gary Hoffman , a Washington lawyer specializing in intellectual-property cases , said the threat of U.S. retaliation , combined with a growing recognition that protecting intellectual property is in a country 's own interest , prompted the improvements made by South Korea , Taiwan and Saudi Arabia . `` What this tells us is that U.S. trade law is working , '' he said . He said Mexico could be one of the next countries to be removed from the priority list because of its efforts to craft a new patent law . Mrs. Hills said that the U.S. is still concerned about `` disturbing developments in Turkey and continuing slow progress in Malaysia . '' She did n't elaborate , although earlier U.S. trade reports have complained of videocassette piracy in Malaysia and disregard for U.S. pharmaceutical patents in Turkey . The 1988 trade act requires Mrs. Hills to issue another review of the performance of these countries by April 30 . 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The U.S.|2135,2137,2143,2144,2154,2157,2179,2186,2203,2238,2247,2267,2274,2278 some success|2136 its trade diplomacy|2138 South Korea|2139,2192,2252 Taiwan|2140,2200,2201,2205,2253 Saudi Arabia|2141,2218,2219,2254 a list of countries|2142,2152,2242,2262 U.S. patents, copyrights and other intellectual-property rights|2145,2175,2182 five other countries|2146,2158,2161,2162 China|2147 Thailand|2148 India|2149 Brazil|2150 Mexico|2151 a result of an interim review|2153 Carla Hills|2155,2165,2167,2171,2191,2199,2225,2266,2272,2281,2285 the new U.S. trade law|2156,2257 accelerated unfair-trade investigations|2159 stiff trade sanctions|2160 their protection of intellectual property|2163,2170 next spring|2164 many of the 25 countries|2166 varying degrees of scrutiny|2168 genuine progress|2169 growing realization|2172 around the world|2173 denial of intellectual-property rights|2174 all trading nations|2176 the creativity and inventiveness of an offending country's own citizens|2177 an offending country's own citizens|2178 U.S. trade negotiators|2180 countries with inadequate protections for intellectual-property rights|2181,2183,2184,2190 their own scientists and authors|2185 U.S. high-technology firms|2187,2188 their best products|2189 an intellectual-property task force|2193 special enforcement teams of police officers and prosecutors|2194,2198 movie and book pirates|2195 Seoul|2196 effective search-and-seizure procedures|2197 its standing with the U.S.|2202 a bilateral copyright agreement|2204 its trademark law|2206 legislation|2207,2212 foreign movie producers|2208,2210,2215,2216 unauthorized showings of their films|2209 their films|2211,2217 Taipei|2213 Taipei's growing number of small video-viewing parlors|2214 its part|2220 a copyright law compatible with international standards|2221,2222 computer software|2223 literary works|2224 These three countries|2226,2228 the hook|2227 a lower-priority list|2229 17 other countries|2230,2231 Japan|2232 Italy|2233 Canada|2234 Greece|2235 Spain|2236 some concern|2237 less-serious problems|2239 American patent and copyright owners|2240 those on the `` priority '' list|2241 Gary Hoffman|2243,2258,2259 Washington|2244 intellectual-property cases|2245 the threat of U.S. retaliation|2246 a growing recognition|2248 intellectual property|2249 a country's own interest|2250 the improvements made by South Korea, Taiwan and Saudi Arabia|2251,2255 us|2256 Mexico|2260,2263 one of the next countries to be removed from the priority list|2261 its efforts to craft a new patent law|2264 a new patent law|2265 disturbing developments in Turkey|2268 Turkey|2269,2279 slow progress in Malaysia|2270 Malaysia|2271,2276 earlier U.S. trade reports|2273 videocassette piracy in Malaysia|2275 disregard for U.S. pharmaceutical patents in Turkey|2277 The 1988 trade act|2280,2289 another review of the performance of these countries|2282 these countries|2283 April 30|2284 any cases|2286 an accelerated investigation|2287 the so-called special 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