Interferon (IFN) treatment induces tyrosine phosphorylation and nuclear tra
nslocation of Stat1 (signal transducer and activator of transcription) to a
ctivate or repress transcription. We report here that a member of the prote
in inhibitor of activated STAT family, PIASy, is a transcriptional corepres
sor of Stat1. IFN treatment triggers the in viva interaction of Stat1 with
PIASy, which represses Stat1-mediated gene activation without blocking the
DNA binding activity of Stat1. An LXXLL coregulator signature motif located
near the NH2 terminus of PIASy, although not involved in the PIASy-Stat1 i
nteraction, is required for the transrepression activity of PIASy. Our stud
ies identify PIASy as a transcriptional I corepressor of Stat1 and suggest
that different PIAS proteins may repress STAT-mediated gene activation thro
ugh distinct mechanisms.