(U) ACTING ON INTELLECTUAL PROPERTY RIGHTS

UNCLAS ABUJA 001679

SIPDIS

STATE PASS TO USTR, EXIM

E.O. 12958: NA
TAGS: ETRD ECPS ECON SCUL NI
SUBJECT: (U) ACTING ON INTELLECTUAL PROPERTY RIGHTS
VIOLATIONS IN NIGERIA

REF: Lagos 1933


1. (U) Further to reftel, we recommend that EXIM take
account of alleged IPR violations of U.S. copyrights
when considering whether to lend or guarantee loans to
potential Nigerian importers of U.S. goods and
services or their Nigerian banks. The illicit
proceeds from software piracy possibly exceed those
generated by video films (mentioned in reftel).
Microsoft, for example, is suing Globacom, Nigeria's
second national carrier, for illegal use of
Microsoft's products after being notified by Microsoft
to cease and desist from doing so. Microsoft's action
was prompted by Globacom's alleged unwillingness to
pay about $180,000 for authorized use of Microsoft
products prior to the two companies' falling out
(source: Financial Standard, September 27, 2004).
Since Globacom may have benefited from EXIM support
despite Globacom's alleged infringement of Microsoft
rights, we recommend that EXIM take account of
possible IPR infringements in the course of EXIM's due
diligence reviews.

CAMPBELL