Identifier
Created
Classification
Origin
04ABUDHABI490
2004-02-25 09:43:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:  

EMBASSY ABU DHABI COMMENTS ON DRAFT 2004 SPECIAL

Tags:  PREL KIPR ETRD TC 
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Diana T Fritz 03/15/2007 03:21:33 PM From DB/Inbox: Search Results

Cable 
Text: 
 
 
CONFIDENTIAL

SIPDIS
TELEGRAM February 25, 2004


To: No Action Addressee 

Action: Unknown 

From: AMEMBASSY ABU DHABI (ABU DHABI 490 - ROUTINE) 

TAGS: PREL, ETRD, KIPR 

Captions: None 

Subject: EMBASSY ABU DHABI COMMENTS ON DRAFT 2004 SPECIAL 301 
 REVIEW 

Ref: None 
_________________________________________________________________
C O N F I D E N T I A L ABU DHABI 00490

SIPDIS
CXABU:
 ACTION: ECON 
 INFO: AMB DCM POL P/M 
Laser1:
 INFO: FCS 

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: AMB: MMWAHBA
DRAFTED: ECON:CMCRUMPLER
CLEARED: DCM: ALBRIGHT; CGD:DAVIS; ECON:JOHN; ATO:HENNEY; FCS:LANCIA

VZCZCADI894
RR RUEHC RUCNWTO RUCPDOC
DE RUEHAD #0490/01 0560943
ZNY CCCCC ZZH
R 250943Z FEB 04
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 3296
INFO RUCNWTO/WORLD TRADE ORGANIZATION COLLECTIVE
RUCPDOC/USDOC WASHDC
C O N F I D E N T I A L SECTION 01 OF 04 ABU DHABI 000490 

SIPDIS

STATE FOR NEA/ARP, NEA/PPR AND EB/IPC FOR WILSON
STATE PASS USTR - PECK AND BUNTIN
STATE PASS LOC - STEPP
USDOC FOR USPTO - URBAN, LASHLEY-JOHNSON
USDOC FOR KSCHLEGELMILCH

E.O. 12958: DECL: 02/23/09
TAGS: PREL KIPR ETRD TC
SUBJECT: EMBASSY ABU DHABI COMMENTS ON DRAFT 2004 SPECIAL
301 REVIEW

REFS: A) STATE 29549
B) ABU DHABI 403
C) ABU DHABI 91
D) 03 ABU DHABI 4594
E) 03 ABU DHABI 2981
F) 03 ABU DHABI 1028
G) 03 ABU DHABI 144

C O N F I D E N T I A L SECTION 01 OF 04 ABU DHABI 000490

SIPDIS

STATE FOR NEA/ARP, NEA/PPR AND EB/IPC FOR WILSON
STATE PASS USTR - PECK AND BUNTIN
STATE PASS LOC - STEPP
USDOC FOR USPTO - URBAN, LASHLEY-JOHNSON
USDOC FOR KSCHLEGELMILCH

E.O. 12958: DECL: 02/23/09
TAGS: PREL KIPR ETRD TC
SUBJECT: EMBASSY ABU DHABI COMMENTS ON DRAFT 2004 SPECIAL
301 REVIEW

REFS: A) STATE 29549
B) ABU DHABI 403
C) ABU DHABI 91
D) 03 ABU DHABI 4594
E) 03 ABU DHABI 2981
F) 03 ABU DHABI 1028
G) 03 ABU DHABI 144


1. (U) Classified by Ambassador Marcelle M. Wahba for
reasons 1.5 (b) and (d).


2. (SBU) Summary and comment: The UAE Government continues
to take the leading role in protecting intellectual
property rights (IPR) in the region. Anecdotal and
statistical evidence confirms that the UAEG is enforcing
copyright, trademark and patent laws passed in 2002 to
protect U.S. intellectual property, and continues to
demonstrate its commitment to the 2002 agreement providing
TRIPs-plus levels of protection to U.S. pharmaceuticals.


3. (SBU) Summary and comment continued: According to
figures collected by the Business Software Alliance, the
UAEG has dramatically trimmed the incidence of software
piracy from 86 percent in 1994 to 36 percent in 2002 he
lowest incidence of software piracy in the region. The
Arabian Anti-Piracy Alliance likewise has noted that, "The
UAE authorities have taken concrete and tough measures to
enforce intellectual property rights by introducing laws
that prescribe stiff penalties for violators."


4. (SBU) Summary and comment continued: Additionally, the
UAE has undertaken a massive public relations and
enforcement effort against counterfeiting and routinely
destroys copy-cat goods in large public events. UAE
authorities cooperate closely with U.S. businesses to
prevent the trade of counterfeited goods. Based on its
solid record on IPR protection and enforcement of IPR
legislation in 2003, we strongly recommend that the UAE
remain off the Special 301 Watchlist again this year. End
summary and comment.

--------------
UAEG "Beefing Up" 2002 IPR Legislation
--------------


5. (U) In 2003, the UAEG sought to expand the scope of,
and issue amendments to, the landmark copyright, trademark
and patent laws issued in 2002 in harmony with

international standards and exceeding the UAE's TRIPs
obligations. Most notably, the UAE Ministry of Information
said it would issue regulations under the 2002 Copyright
Law allowing for specialized collecting societies. These
societies are a practical way for sound recording companies
to collect royalties on the broadcast and performance of
copyrighted material. The Ministry of Information is
actively implementing regulations with the Ministry of
Justice. We expect the UAEG to release the new regulations
by mid-2004, at the latest (ref B).


6. (U) In Dubai, the Ruler's Office currently is reviewing
an amendment to the 2002 Electronic Transactions and
Commerce Law (ETCL) that addresses data protection and
privacy and other IP-related issues. The ETCL was issued
in 2002, and is modeled on the UNCITRAL Model Law on
Electronic Commerce adopted by the United Nations. A
similar federal law is under consideration by the UAE
Ministry of Justice that would address copyright violations
on the Internet and covers all aspects of e-transactions
and online activities, including privacy and data
protection.

-------------- --------------
Sustained Patent Protection For U.S. Pharmaceuticals
-------------- --------------


7. (SBU) The UAE Ministry of Health (MoH) issued a
circular in October 2003 strengthening the UAE's 2002
Patent Law, which failed to provide a mechanism for
granting exclusive marketing rights absent MoH-Ministry of
Finance (MoF) cooperation or afford any protection of data
secrecy. The circular stated the mechanism of granting
exclusive marketing rights in the UAE for all innovative
pharmaceutical products registered in other countries. The
circular also implied that the MoH would coordinate with
the MoF to approve exclusive marketing rights, and offer
protection for data secrecy. The circular was a welcome
development for U.S. pharmaceutical manufactures that have
sought to codify the prevailing practice under the terms of
the patent protection agreement reached with U.S.
pharmaceutical industry group, PhRMA in March 2002 (ref D).


8. (C) Embodied in the March 2002 agreement, the written
assurances of the MoH and MoF to ensure that no/no
unauthorized copies of U.S. patent-protected medicines
would be registered in the UAE is still holding firm and,
in fact, the UAE has even refused to register copies during
the last year of the 18 innovative pharmaceutical products
that PhRMA agreed to allow local firm Julphar to produce in
order to secure that agreement. According to the MoH
Central Drugs Control Department, Emirati authorities
destroyed more than 4 million pharmaceutical items in 2002
that violated IPR laws and were deemed "banned items."


9. (SBU) In 2003, the UAEG acted swiftly when U.S.
pharmaceutical manufacturers evidenced patent infringement
in the local market. Such incidents were infrequent, and
often resulted from a fundamental misunderstanding of the
March 2002 agreement at the UAEG working level. Most
recently, Pfizer claimed that a local pharmaceutical
manufacturer was illegally marketing Pfizer's registered
version of Viagra in the UAE. When confronted with the
evidence, the MoH agreed to delay the local manufacturer's
marketing rights until 2005, and undertook to cancel
Julphar's manufacturing privileges in the UAE if Pfizer
could demonstrate that Viagra was still under patent
protection in the United States (ref C).

--------------
Continuing Crackdown On Counterfeit Goods
--------------


10. (U) The UAE authorities are well aware of the danger
to legitimate commerce posed by counterfeiting,
particularly of safety-related items such as locks,
automobile spare parts and food items. The government has
conducted a public awareness campaign warning consumers of
the dangers of buying fake products, and industry also has
been active in this respect. A few examples include:

-- The Gulf News reported that Dubai Police confiscated and
destroyed more than 1,000 boxes of counterfeit Yale and
Union locks in June 2003, and arrested three resellers of
the counterfeit goods.

-- The Dubai Chamber of Commerce established a Fake Parts
Committee, in partnership with local auto-industry
representatives including General Motors (GM),AC Delco,
and Daimler Chrysler. A local GM official recently told
Embassy officers that the company was pleased with the
cooperation it has received from the UAEG, which recently
seized more than USD $1.4 million in counterfeit GM parts.
He added that he would not/not support other private sector
efforts to add the UAE to the Special 301 Watchlist.

-- In June 2003, manufacturers of the Austrian energy
drink, Red Bull, won a trademark infringement lawsuit
against a prominent local importer for selling a competitor
product, called "Bullfighter." UAE courts decided that the
importer attempted to capitalize on Red Bull's reputation
and fined the importer AED 15,000 (USD $4,087). Red Bull
is a registered trademark in the UAE.


11. (U) Regular articles in the local dailies of raids and
arrests of counterfeiters indicate that the authorities
take seriously their responsibility to reduce the trade of
other counterfeit consumer products, as well. Penalties
for IPR violations include destruction of the counterfeit
goods, destruction of the counterfeiting equipment, fines,
imprisonment, and publication of judgment. Under the new
Copyright Law of 2002, counterfeiters may face two to nine
months imprisonment and a fine ranging from USD $2,700 to
$55,000. The penalty is doubled for repeat offenders
according to the number of copyrights violated. The
following are a few recent examples:

-- In early 2003, the Dubai Public Prosecution charged a
local company with software piracy for using one copy of
Microsoft Windows, and downloading the program onto more
than one computer without the written permission of
Microsoft. The company's license specified the use of the
program on only one computer. The Dubai Court of Appeal
eventually confiscated the seized hardware and software and
ordered the accused to pay AED 25,000 (USD $6,811).

-- Local press reported in April 2003 that Dubai Police
seized 87,000 counterfeit cameras brought to Dubai from an
Asian country. Police received a tip-off that the cameras
were stored in a warehouse, and arrested the owner.

-- The Ministry of Information and Dubai Economic
Development Department recently began a crackdown against
street vendors of pirated CDs and DVDs. According to the
Economic Development Department, inspectors are permanently
stationed at some of the market areas where such vendors
congregate.

-- Following a complaint filed on behalf of the trademark
right holder, the Dubai Public Prosecutor brought charges
against an individual in August 2003 for the possession and
intention to sell 17 boxes of a perfume bearing a
counterfeit famous trademark. The Court ordered the
accused to serve a 2-months jail term followed by
deportation and ordered the seized goods to be confiscated.

-- In November 2003, Dubai authorities destroyed more than
400,000 fake watches in public, and forced the
counterfeiters to witness the demolition. The event
received coverage in the international 'Financial Times'
newspaper, with a picture of the bulldozer at work.

-------------- ---
Anti-Counterfeiting Efforts Not Limited To Dubai
-------------- ---


12. (SBU) Although most anecdotal evidence of counterfeit
trade centers in Dubai (indeed, most of the UAE's licit
trade is via the emirate of Dubai),conversations with UAEG
officials and news reports suggest that the other emirates
are replicating Dubai's efforts to enforce federal IPR
legislation.

-- In a February 29 meeting with the U.S. Consul General,
Ruler of Sharjah Shaykh Sultan Al-Qassimi acknowledged the
counterfeiting problem in the emirate and undertook to
better enforce federal IPR legislation. He understands
that Sharjah law enforcement must not only confiscate
counterfeit goods, but also must vigorously arrest and
prosecute IPR violators. The Ruler designated an official
from the Sharjah Economic Department to formulate an anti-
counterfeiting campaign, in consultation with the U.S.
Mission and industry representatives.

-- According to the Khaleej Times, Sharjah Police raided a
retail computer store in February 2003, and seized a number
of PCs loaded with pirated software. The police also
seized 81 CDs containing copies of pirated software.

-- Abu Dhabi authorities recently raided a number of
companies for using pirated software, and police arrested
five people and seized nine PCs. The computers were loaded
with illicit copies of Microsoft Windows Office, Norton
AntiVirus and 28 other pirated software programs. The UAEG
has undertaken a massive public relations campaign with the
Business Software Alliance targeting computer end-users and
raising awareness about the negative effects of using
pirated software.

-- UAEG officials recently told Embassy officers that they
are stepping up efforts to combat the trade of counterfeit
goods across the porous Oman-UAE border near the city of
Al-Ain. The Director of the UAE's Copyright Office said
that he has asked his Omani counterparts to better enforce
IPR legislation on their side of the border, but the Omani
authorities have been slow to act (ref B).

-- UAE authorities have asked employers to educate their
workers about the legal risks of counterfeiting in an
effort to stem video piracy in certain blue-collar
neighborhoods outside of Abu Dhabi. Employers have posted
signs warning workers that the company will take legal
action against workers involved in counterfeiting.
According to Abu Dhabi police, this campaign has resulted
in the imprisonment and deportation of dozens of
counterfeiters in these neighborhoods.

-- Local merchants in Abu Dhabi have formed a committee to
strategize with Abu Dhabi law enforcement on ways to combat
video piracy. The UAEG is cracking down on counterfeiters
in response to complaints by movie distributors, video
store owners, and local cinemas (ref F).

--------------
Ensuring IPR Protection For The Long-Term
--------------


13. (U) The UAE Government is examining ways to further
reduce the flow of counterfeit products and trademark
infringement in the country. To this end, the National
Anti-Fraud Committee was established in 2001 under the
aegis of the Ministry of Economy and Commerce. The
Committee's scope of responsibility was broadened in 2002
to allow for the study of commercial fraud and counterfeit
and imitation trademarks, and requires that the Committee
propose combating measures on an annual basis.


14. (U) In March 2003, Dubai hosted a conference on
"Middle East Law in the Internet Age" that brought together
intellectual property and technology lawyers, government
officials, and the private sector to discuss recent legal
developments in the area of electronic transactions,
intellectual property and the Internet. The Dubai Chamber
of Commerce, in cooperation with the International
Trademark Association, also sponsored a roundtable
discussion on IPR protection in December 2003. Officials
from the Ministry of Economy, Ministry of Information, the
Dubai Economic Development Department and the Criminal
Investigation Department of Dubai Police attended, as well
as local law firms and representatives of brand owners from
major multinational corporations.


15. (U) The UAEG has welcomed the opportunity to
participate in USG-sponsored training on IPR enforcement.
Most recently, the UAEG sent two representatives to an IPR
enforcement seminar in Oman, co-sponsored by the GCC patent
Office, the International Anti-Counterfeiting Coalition,
and the U.S. Patent and Trademark Office. The UAEG has
also offered to host a MEPI-funded IPR training workshop
for the GCC in Abu Dhabi in April 2004.

--------------
UAEG, Steadfast Ally Against Terrorism
--------------


16. (SBU) The U.S. Mission objects to the International
AntiCounterfeiting Coalition's (IACC) attempts to link
counterfeit trade and terrorist activity in the UAE, and
categorically rebuts any suggestion by the IACC that the
UAEG knowingly facilitates Al-Qaeda activity. The UAEG has
sought to crackdown on potential vulnerabilities in the
financial markets and prevent trade-based money laundering,
and has provided outstanding cooperation in the
international effort to combat terrorism. In close concert
with the United States, the UAEG has frozen the funds of
groups with terrorist links -- to date, more than USD $3.13
million in 18 bank accounts in the UAE since 9/11.
Additionally, the UAEG has provided international
organizations and foreign governments data on 172 cases
related to terrorist financing.


17. (U) This cable has been coordinated with Dubai.

Wahba