SPECIAL 301 SUBMISSIONS - JORDAN

UNCLAS SECTION 01 OF 02 AMMAN 001496

SIPDIS

SENSITIVE

STATE FOR NEA/ARN
STATE ALSO FOR EB/TPP/MTA/IPC - P. QUIGLEY
USTR PASS TO BPECK
DOC PASS TO KSCHELFMILCH

E.O. 12958: N/A
TAGS: KIPR ETRD PREL JO
SUBJECT: SPECIAL 301 SUBMISSIONS - JORDAN

REF: STATE 038125 AND PREVIOUS

SENSITIVE BUT UNCLASSIFIED. PROTECT ACCORDINGLY.


1. (SBU) SUMMARY: Although the International
Anti-Counterfeiting Coalition (IACC) states that enforcement
of IPR violations in Jordan is weak, the evidence available
to us shows that enforcement efforts against pirating in
Jordan are growing in scope and that significant numbers of
convictions are being won. The major problem in Jordan is
the communication gap between enforcement, prosecution, and
the courts. Amendments to the copyright law to bring it in
consonance with the FTA are on track. Trademark protection
is growing, with the addition in the Ministry of Industry and
Trade of a Fulbright-trained lawyer. The Jordan Institute of
Standards and Metrology is also growing in strength and seeks
to enforce safety and technical standards for more and more
products. While the system could be improved, the political
will to strengthen protections for IPR is evident in the
current government. While Jordan needs some time to work
through its remaining problems, we do not believe placing
Jordan on the Special 301 watchlist now would advance IPR
protections. END SUMMARY.

Evidence on Enforcement
--------------


2. (SBU) There is growing evidence of strong IPR enforcement
in Jordan. In calendar year 2003, Jordan's National Library
IPR enforcement unit sent 383 cases of IPR infringement to
prosecutors nationwide. The unit makes frequent raids on
stores, shops, and even homes (used as stores). Library
Director Mahmoun Talhouni told us that he has devised a
system to work with the police on raids, so that arrests can
be made and confiscations of suspected counterfeits ordered.
This year, because some of the targets were involved in other
types of fraud (including passports and documentation),the
police were involved in dangerous shoot-outs. Yet, the unit
persists. From 5 cases brought in 2000 in the city of Amman,
the caseload has grown to 214 in Amman in 2003, according to
National Library statistics. Nationwide, the cases went from
6 in 2000, to 149 in 2002, to 297 in 2002, to 383 in 2003.


3. (SBU) Talhouni also stated that he did not like to see
the caseload go up, as it was an indication of the extent of
the problem. However, he said he believed that, as his unit
presses ahead, the numbers of new cases will eventually
plateau and decline as the public gets the message that IPR
crime does not pay.


4. (SBU) Talhouni said that, although the National Library
did not receive reports back from the various jurisdictions
in which IPR cases are filed, he cited an academic study
noting that prosecutors got convictions in over 80 percent of
IPR cases. He conservatively estimated convictions for the
cases his unit brought to court at about 75 percent, taking
into account appeals. One of the most significant remaining
problems with IPR enforcement is the lack of systematic
communication across functional jurisdictions. Talhouni said
that the National Library unit does not routinely hear back
from the prosecutor once a case is in the courts, and
obtaining a final decision from the court is difficult.

Copyright Law Amendments
--------------


5. (SBU) With amendments to the Copyright law in 2001, the
GOJ came into compliance with international (WIPO) standards.
Submission of the "internet treaties" to WIPO late last year
was another positive step taken by the GOJ. In the first
months of this year, the Ministry of Industry and Trade
(MOIT) has been working closely with the National Library to
further amend the copyright law to bring it into full
compliance with the U.S.-Jordan Free Trade Agreement. This
was also a "condition precedent" of U.S. assistance to
Jordan; the amendments should be submitted to Parliament
soon.

Trademarks
--------------


6. (SBU) The MOIT trademark section has a new U.S.-trained
lawyer who was supported by a Fulbright scholarship. This
addition of an individual who understands U.S. values and
international standards serves to strengthen IPR enforcement.

JISM and Enforcing Product Standards
--------------


7. (SBU) The Jordan Institute of Standards and Metrology
(JISM) has the mandate to enforce product safety and
technical standards. The organization appears to be growing
in depth and experience in holding merchants accountable for
the standards of their products. JISM has a long way to go
in this area, but enforcement against substandard auto parts
is part of its mission.

Transit a Problem... As It Is Worldwide
--------------


8. (SBU) Jordan, like any strategic transit trade nation,
will experience greater volumes of both legitimate and
illegitimate trade crossing through its borders. Embassy
supports a strong USAID program to enhance Jordan customs
operations. The system of accountability and central checks
in GOJ Customs are an indication that its reputation as the
best customs operation in the region is well-deserved. On
February 26, the Jordan Customs Department renewed its offer
to sign a Customs Mutual Assistance Agreement (CMAA) with the
United States DHS Customs and Border Protection department
(faxed to NEA/ARN),another indication of its sincerity.
There is little direct evidence to indicate corruption is a
major problem in Jordan's trading systems, which are so vital
to its economy. The reported increase in corruption-related
cases in 2003 is likely a demonstration that the GOJ is
facing up to problems of "traditional" practices, including
influence-peddling.


9. (SBU) There is no evidence that "Earth Station 5",
reportedly based in a refugee camp outside of Jordan, has any
satellite operations in Jordan offering free downloads.
Embassy has not been able to confirm such a presence.


10. (SBU) RECOMMENDATION: Embassy does not believe that
it would advance IPR protections in Jordan to put Jordan on
the Special 301 watchlist. Deputy Prime Minister Halaiqa has
stated unequivocally that the GOJ is committed to meeting WTO
and FTA commitments on IPR. Although Jordan has much to do
to improve on its policies and procedures regarding
intellectual property protections, we would be sending the
wrong signal by placing the GOJ on a warning list just as it
is making advances in this area.
GNEHM