Identifier
Created
Classification
Origin
05ABUDHABI841
2005-02-23 07:58:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Abu Dhabi
Cable title:  

EMBASSY ABU DHABI COMMENTS ON SPECIAL 301 REVIEW

Tags:  KIPR PREL ETRD TC 
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Diana T Fritz 12/06/2006 02:50:40 PM From DB/Inbox: Search Results

Cable 
Text: 
 
 
UNCLAS ABU DHABI 00841

SIPDIS
CXABU:
 ACTION: AMB
 INFO: DCM FCS POL ECON

DISSEMINATION: AMB
CHARGE: PROG

APPROVED: AMB:MJSISON
DRAFTED: ECON:AECURTIS
CLEARED: DCM:RABLBRIGHT, ECON:OJOHN, CGD:MCARVER

VZCZCADI536
PP RUEHC RUCNWTO RUCPDOC
DE RUEHAD #0841/01 0540758
ZNR UUUUU ZZH
P 230758Z FEB 05
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC PRIORITY 8334
INFO RUCNWTO/WORLD TRADE ORGANIZATION COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SECTION 01 OF 03 ABU DHABI 000841 

SIPDIS

SENSITIVE

STATE FOR EB/IPE FOR SWILSON
PASS TO USTR JCHOE-GROVES, DOC JBOGER, USPTO JURPAN, LOC
STEPP

E.O. 12958: N/A
TAGS: KIPR PREL ETRD TC
SUBJECT: EMBASSY ABU DHABI COMMENTS ON SPECIAL 301 REVIEW

REF: A. A) SECSTATE 23950


B. B) ABU DHABI 2980

C. C) ABU DHABI 1824

D. D) ABU DHABI 577

E. E) DUBAI 4573

UNCLAS SECTION 01 OF 03 ABU DHABI 000841

SIPDIS

SENSITIVE

STATE FOR EB/IPE FOR SWILSON
PASS TO USTR JCHOE-GROVES, DOC JBOGER, USPTO JURPAN, LOC
STEPP

E.O. 12958: N/A
TAGS: KIPR PREL ETRD TC
SUBJECT: EMBASSY ABU DHABI COMMENTS ON SPECIAL 301 REVIEW

REF: A. A) SECSTATE 23950


B. B) ABU DHABI 2980

C. C) ABU DHABI 1824

D. D) ABU DHABI 577

E. E) DUBAI 4573


1. (SBU) Summary and comment: The UAE Government remains
strongly committed to protecting intellectual property rights
(IPR). The UAE continues to enforce copyright, trademark,
and patent laws passed in 2002 to protect U.S. intellectual
property, and remains committed to the 2002 agreement
providing TRIPS-plus levels of protection to U.S.
pharmaceuticals. When Embassy and industry representatives
confronted UAEG officials with incidents of pharmaceutical
patent infringement, the UAEG resolved the problems on behalf
of the U.S. companies. Additionally, the UAE conducted a
number of high-profile raids to arrest merchants involved in
optical media piracy. We strongly recommend that the UAE not
be included in the Special 301 Watchlist this year. Post
recommends that we use the opening of FTA negotiations to
work with the UAEG to continue making improvements in the IRP
regime.


High-level UAEG Commitment Generates IPR Success Stories
-------------- --------------


2. (U) Intent on meeting its own IPR commitments and aware
that industry concerns regarding IPR violations could have
impeded movement toward a Free Trade Agreement with the
United States, last spring senior UAE officials personally
committed themselves to resolving any outstanding IPR issues.
Minister of Information Sheikh Abdullah bin Zayed al-Nahyan
told us that we should alert him personally to any problems
with IPR, and UAE Minister of State for Finance and Industry
Mohammed Khirbash pledged personal attention to solving the
pharmaceutical industry,s concerns at the first Trade
Investment Framework Agreement (TIFA) Council meetings in
April 2004.


3. (SBU) Following the April TIFA Council meetings, Embassy
officers and pharmaceutical representatives worked with the
UAEG and reached a solution to address companies, concerns
about patent infringement. The Ministry of Health issued a
ministerial decree revoking the registration of 4M6 (a Viagra
composite, whose registration and sale violated Pfizer,s
patent) and it notified pharmacies that Satibo and Trex (also

Viagra composites) were not registered and ordered they be
withdrawn from the market (ref B).


TRIPS Compliance
--------------


4. (U) In 2004, the UAEG continued to expand the scope of the
copyright, trademark, and patent laws issued in 2002 (that
exceed the UAE,s TRIPs obligations) by issuing four new
regulations. The most significant regulation allows for
specialized collecting societies, which provide a mechanism
for recording companies to collect royalties on the broadcast
and performance of copyrighted material. The other three
regulations cover registration of works, registration of
importers and distributors, and licensing translations of
copyrighted material.


5. (SBU) The Ministry of Health (MOH) also took steps to
ensure that local merchants and health authorities understood
the UAE,s TRIPs obligations. In a series of early summer
meetings, MOH officials told Econchief that Ministry
officials planned to meet with the general director of every
health authority in the UAE to put an end to the purchase of
unregistered drugs through unauthorized suppliers (ref C).
Khalid al-Bustani, UAE Ministry of Finance Assistant
Undersecretary also told Econchief that the MOH would
instruct the various health authorities about the details of
the UAEG,s commitments under the 2002 MOU between PhRMA and
the UAE (this MOU ensures TRIPS-plus level of protection for
pharmaceutical patents and affords 5-year data exclusivity
protection for 25 U.S. patent-protected products).


Enforcement
--------------


6. (U) Periodic articles in the local newspapers of raids and
arrests of counterfeiters indicate that the authorities take
seriously their responsibility to reduce the trade of
counterfeit goods in the UAE and do not hesitate to publicize
the results of enforcement actions. The following are a few
examples of reports appearing in local media:

-- In March 2004, the Ministry of Information, in cooperation
with Abu Dhabi TV, filmed an undercover sting operation that
seized dozens of CDs and copyrighted software at a computer
store in Abu Dhabi (ref D).

-- In June 2004, the Ministry of Information and Culture
conducted a large-scale raid on five UAE based resellers
dealing in illegal software. During the raid, 88 counterfeit
CDs loaded with illegal programs and pirated software were
seized.

-- In September 2004 Dubai Police conducted three raids that
resulted in the arrest and conviction of nine South Asians
for selling pirated CDs. Acting on tips from the Dubai-based
Arabian Anti-piracy Alliance (AAA),the Dubai police set up
the sting operation and confiscated more than 6,000 video and
software CDs (ref E).

-- In November 2004, ten computers loaded with illegal
software were confiscated from a pharmaceutical company.

-- In November 2004, the Dubai Court sentenced four Indians
to three months in jail for distributing pirated DVDs and
CDs. After serving their sentence, they will be deported.

-- In February 2005, a Sharjah retailer took out an add in a
local newspaper publicly apologizing for selling counterfeit
DeWalt products and promised Black & Decker that he would not
deal in counterfeit products again.


7. (U) In an effort to crack down on door-to-door vendors
selling optical media, the Dubai Department of Economic
Development began fining restaurant and cafE owners if it
found vendors selling pirated CDs in their establishments. A
representative from the AAA said that restaurants have begun
posting warning signs, with the Dubai police logo,
highlighting the penalties for sales of pirated CDs.


8. (U) The Ministry of Information and the Dubai police,
acting on information from the AAA, have taken action against
individuals and merchants distributing illegal satellite
subscription cards, in one case sentencing a card distributor
to a full year of imprisonment (ref E).


9. (U) According to statistics from the Ministry of
Information and Culture, Dubai police conducted 122 seizures
of pirated optical media and computer software in 2004, Dubai
airport authorities made 31 seizures, and the Ministry of
Information conducted 253 raids. In total, UAE officials
confiscated over 275,000 pirated items. The International
Federation of the Photographic Industry has expressed
concerns about IPR enforcement, citing statistics that
indicate the total number of seized items decreased from last
year. It estimates that music piracy increased to 15% in
2004 (up from 10% in 2003). The IFPI uses this statistic to
claim that IPR enforcement in the UAE is slipping, but we
note that a decline in the number of goods seized could be
from lax enforcement and fewer raids, or from fewer items
actually being brought into the country and dealt in the
market. The Director General of the Federal Customs
Authority has asked the Embassy to help facilitate meetings
with IPR organizations to better coordinate efforts.


Industry Officials Pleased with UAE Progress
--------------


10. (U) Anecdotally, local industry officials are pleased
with progress the UAE has made in the realm of IPR
enforcement, and they do not support placing the UAE on the
watchlist. In fact, an official with the AAA (which
represents the Motion Picture Association of America) said he
would actively fight efforts to put UAE on the Special 301
watchlist. He said that placing UAE on the watchlist would
provide a disincentive to other countries in the region from
making improvements. He needs to be able to make the point
to other countries that by addressing IPR concerns, they can
be removed from the watchlist, and he points to UAE as an
example.


11. (U) According to the regional official in charge of IP
enforcement for Ford Motor Company, Ford has not had problems
with the UAE this year. He said that UAE officials have been
willing to talk about and work toward solutions to the
counterfeit autoparts problem, and he is pleased with the
progress they have made. According to him, Ford did not
provide any information to police or customs authorities in
2004 requesting raids or law enforcement actions.

Recommendation: No Watchlist
--------------


12. (U) For these reasons, Embassy officials strongly urge
that the UAE remain off of the 2005 Special 301 Watchlist.
We agree that there is room for improvement, and in
particular, we support the idea of encouraging the UAEG to
provide IP owners with information that would permit them to
pursue the producers and manufacturers of pirated goods in
source countries. However, we note that the UAE has taken
considerable strides in enforcing IPR regulations,
prosecuting violators, and publicizing law enforcement
actions. Placing the UAE on the watchlist would send a
signal to the UAEG that we are not appreciative of their
efforts, and we believe that such a signal is inappropriate
and inaccurate. The UAE is a solid partner in IPR
enforcement, and we want to continue to work with the
government and industry and encourage them to further their
efforts by offering carrots, and not pulling out the sticks.



SISON