There was no 1989 bilateral agreement, but instead, as explained in Protecting American Intellectual Property in Japan (Santa Clara High Technology Law Journal, January 1994):
The Japanese Patent Office has been more willing to change its
protectionist policies than other branches of the Japanese government
due to the firm stance taken by the Reagan and Bush administrations
on intellectual property. This position was first communicated to Japan
in a report entitled "Competition with the Whole World-The
New Reality," released in 1985.[reference 24] This report was considered "shocking" [reference 25] in Japan; since they had relied for decades on being able to
"borrow" American technology at will during the prior period of lax
patent enforcement. Since the release of this report, every significant
trade negotiation with Japan has placed intellectual property enforcement
as a major plank in the United States platform. In fact, President
Bush, through his Council on Competitiveness, placed increased scrutiny
on the policies and procedures of the Japanese Patent Office. In
May of 1989, dissatisfied with the adequacy of the Japanese procedures,
he placed Japan on the United States "watch list" of 17 countries
that had denied effective patent protection for American
inventions.[reference 26] If sufficient progress is not made within a specified period,
trade sanctions will follow.
Specifically, in May 1989 Japan was placed by the US on a watch list of countries using special 301 provisions of the Omnibus Trade and Competitiveness Act.
Then, in October of 1989, Japan finally granted a patent for Jack Kilby's invention of the semiconductor integrated circuit. See Thirty-year wait for microchip patent pays off (NewScientist, 2 December 1989).