ARMENIA SPECIAL 301 COMMENTS

UNCLAS YEREVAN 000470

SIPDIS

SENSITIVE

DEPT FOR EUR/CACEN, EB/IPC FOR WILSON
PLS PASS TO USTR BPECK, DOC KSCHLEGELMILCH, USPTO
JURBAN/DLASHLY-JOHNSON, LOC STEPP

E.O. 12958: N/A
TAGS: ETRD ECON KIPR AM
SUBJECT: ARMENIA SPECIAL 301 COMMENTS

REF: STATE 29551


1. (U) Sensitive But Unclassified. Please protect
accordingly.

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SUMMARY
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2. (SBU) Post recommends that Armenia remain off the Special
301 Watch List for 2004. Music and video piracy does exist
in Armenia, but industry losses in the Armenian market are
probably small and the government is growing more and more
committed to the protection of intellectual property rights.
USAID is currently working closely with the GOAM to develop
an enforcement action plan and IPR-related training
programs. End Summary.

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LEGISLATION TRIPS-COMPLIANT
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3. (SBU) Armenia's legislation is Trade-Related Aspects of
Intellectual Property Rights (TRIPS)-compliant, but
application is not. Intellectual Property Rights (IPR)
legislation is new to Armenia, and enforcement officials
have yet to develop the capacity to enforce intellectual
property rights. A new USAID-financed team of experts is
working with law enforcement agencies to strengthen
enforcement, with courts and judges to educate them about
TRIPS and new IPR legislation, and with the State Customs
Committee to help them IPR regulations at the borders. To
move Armenia to the Watch List now would likely hurt rather
than help these efforts.


4. (SBU) Armenia's government is aware that Armenia has IPR
concerns of its own. One of Armenia major producers and
exporters, Yerevan Brandy Company, is taking measures to
guard against the counterfeiting of its label by foreign
brandy imposters. Armenia's growing industry in software
and computer design development also depends on the
assiduous protection of intellectual property rights.
Deputy Minister of Trade Tigran Davtian, who is charged to
meet Armenia's WTO commitments, told us that he was
committed to pursue steady progress towards "credible
protection of IPR." He added that, in his opinion, change
must be steady and comprehensive rather than knee-jerk:
raiding CD markets could simply send the industry
underground rather than encourage retailers to stop selling
pirated goods.


5. (SBU) Post believes that Armenia's deficiencies in
intellectual property protection are not due to a lack of
will or intention to comply with international standards,
but rather a lack of enforcement capacity and resources.
The shift in U.S. assistance from helping Armenia pass TRIPS-
compliant legislation in the run-up to WTO accession to
enforcement of that legislation promises steady gains in
combating piracy in the future. Post believes that as long
as the government is working successfully with the USAID-
financed program to improve IPR enforcement, any change for
the worse of Armenia's status on the Section 301 Watch Lists
has the potential to do more harm than good.
ORDWAY