JORDAN IPR PROBLEMS AND SOLUTIONS: PART I -

UNCLAS SECTION 01 OF 03 AMMAN 008330

SIPDIS

SENSITIVE

STATE PLEASE PASS TO USTR
STATE FOR EB/TPP/IPE - A. ADAMO
STATE ALSO FOR NEA/ELA - M. SINGH

E.O. 12958: N/A
TAGS: KIPR ETRD KTIA PGOV ECON JO
SUBJECT: JORDAN IPR PROBLEMS AND SOLUTIONS: PART I -
AWARENESS CAMPAIGN TACKLES STREET-SMART PIRATES

REF: A. AMMAN 3171

B. AMMAN 1701

C. AMMAN 1697

SENSITIVE BUT UNCLASSIFIED. FOR USG USE ONLY. NOT FOR
INTERNET DISTRIBUTION.

THIS IS THE FIRST IN A SERIES OF CABLES ON INTELLECTUAL
PROPERTY RIGHTS IN JORDAN.


1. (SBU) SUMMARY: Safeguarding intellectual property rights
(IPR) in Jordan has been a major government concern, but
implementation is not yet well-coordinated, and the GoJ is
ill-prepared for modern IP pirating techniques. As the
sophistication of Jordan's IPR protection regime increases,
the resourcefulness of wily IP pirates is also improving.
When a new copyright law went into effect in early 2005,
enforcement officials acted on it immediately (Ref A).
Jordan,s courts, however, have been reluctant to impose the
law's new, tougher penalties, to the dismay of local right
holders and licensees. Although Jordanian IPR protection
measures up well in this region, and confiscations and raids
on violators continue, authorities do not have the resources
to keep up with the considerable influx of pirated optical
media and local copying of books, tapes, and digital
material. Systemic enforcement problems persist, and
enforcement officials require more training. The political
will remains strong, however, to tackle IPR violations and
maintain Jordan's IP reputation. Jordan's trade minister
fully supports implementing TRIPS- and FTA-related IPR
commitments, as does the National Library Director General
who oversees copyright enforcement. USAID is sponsoring a
GOJ-supported $60,000 public awareness campaign, which begins
in October to promote wider public respect for IPR. In the
meantime, Minister of Industry and Trade Sharif Zu'bi has
called for a comprehensive approach to the IPR problem, and
plans to reconvene a meeting of key GoJ and private sector
stakeholders on the issue. END SUMMARY.

Raids Dampen Software Piracy; Other Pirates Persist
-------------- --------------


2. (SBU) When Jordan's new copyright law went into effect on
March 31, a wave of raids on computer software pirates
followed that was unparalleled in its scope (Ref A). Almost
weekly since then, under an agreement with the Business
Software Alliance (BSA),the National Library IP enforcement
team has been raiding shops that sell pirated software either
heavily "discounted" or provided "free" with the sale of
computer hardware. The campaign, which includes close
cooperation with BSA lawyer Tawfiq Taba'a and is always
followed by press coverage, has had a major deterrent effect,
according to Taba'a. On the down side, however, wily vendors
now no longer display their pirated wares, and are more wary
of requests from unknown customers. In the meantime, the
GOJ-BSA program is beefing up its intel-gathering component
to root out the pirates, continue the raids, and prosecute
cases. Taba'a says the cases, which bring the vendors into
court every few weeks for up to two years, are so costly in
time alone that pirates get the message that this crime
doesn't pay.


3. (SBU) While software piracy enforcement is increasing,
other forms of piracy are less frequently policed by the
National Library as its Director General Mahmoud Talhouni
openly concedes, pointing to his small staff of six and the
irregular availability of police to join in raids. In
mid-October, Econoff criss-crossed Amman to witness a mixed
IPR protection picture.

Some Do it Right
--------------


4. (SBU) In upscale West Amman, many video shops stock
licensed rental copies of DVDs and videotapes in accordance
with the law. The area's music stores also sell new copies
of CD's and audiotapes from licensed distributors, and book
stores sell legally imported best sellers and a wide range of
fiction, nonfiction and textbooks.

De Rigueur to buy Bootlegs
--------------


5. (SBU) In downtown Amman a different picture emerges,
however. Murad Bushnaq, President of the Jordan Intellectual
Property Association (JIPA),says that the experience of
purchasing pirated DVD's of U.S. new-release films for 1
Jordanian Dinar ($1.40) is such a thrill that it is de
rigueur for tourists to stop and browse the numerous stalls
found a stone's throw from the downtown Roman Ampitheater.
Near any university in Jordan, according to Post contacts,
the same hip culture exists of buying bootlegs for the thrill
of it. Near the universities, professors can and do
negotiate with copier outlets the complete reproduction of
textbooks for their students. Dozens of copy shops that line
the streets outside university campuses appear to do a
substantial business.
Fair Use?: "We Will Copy Anything"
--------------


6. (SBU) On October 12, Econoff accompanied by Econ FSN
visited six copy shops outside the University of Jordan, only
a small fraction of the shops in the area. In five of the
six stores, proprietors were willing to produce any variation
of textbook copies from full textbooks, to extensive
excerpts, to 600-page anthologies combining multiple
textbooks. At one store, a color-copy anthology on
archaeology of the Jordan-Palestine region was quite
attractive -- it stole from publishers Knopf, Thames &
Hudson, Penguin, and Ernest Benn. The owner promised that he
could copy anything. The illegitimate reproduction business
has reached a level of sophistication that copiers will offer
a wide variety of bindings, including gold-embossed hard
covers - all with an extent of reproduction that goes well
beyond most reasonable definitions of "fair use" as found in
the Bern Convention for the Protection of Literary and
Artistic Works.

One-JD DVD's - Coughing Audiences, Blurry Focus
-------------- --


7. (SBU) With JIPA's Bushnaq, Econoff visited a number of
pirate video shops in three different sections of Amman.
Without exception, all carried an extensive list of pirated
first-run films and classics. Most also stocked pirated
audiotapes of hit Arabic-language singers. NOTE: Bushnaq's
company, Intermedia, owns the Jordan distribution rights to
products from Warner Brothers (WB) and Columbia, as well as
Europe-based EMI and Virgin. Each year, he must guarantee WB
that he will purchase a minimum of $40,000 in DVD's, he said.
But in the last six months, sales declined and his business
partners are threatening to pull out. Bushnaq blamed the
aggressive DVD pirates who sell new-release U.S. films (still
screening in theaters in the States),which hit Amman's
streets within a week of their premieres. END NOTE. Econoff
and Bushnaq saw all current top-ten films showing in U.S.
theaters being widely sold. Bushnaq said many optical media
copies had come in from neighboring countries, especially
Syria; some master copies are flown in from Asia. Malaysia
or Thailand were two common sources, he noted. He did not
believe that disc-copying was a growing concern in Jordan,
however. COMMENT: The quality of the pirated DVD's is
patchy and hawkers have a take-it-or-leave-it attitude. Most
are "theater quality" products, meaning they had been
videotaped by a camera set up on a tripod in the back of the
theater. The picture is flat-looking and one can hear a
regular chorus of theater noises - coughing, laughter, etc.
END COMMENT


8. (SBU) Bushnaq expressed agitation that while in the
previous week GoJ officials had raided two of the seven
stores visited, the enforcement team had confiscated only a
handful of pirated DVDs. Bushnaq explained that the proposed
new enforcement philosophy was to confiscate only enough
evidence to bring a case to court. He thought this policy
kept the pirates open; he would use the pirated new releases
he had bought in the two just-raided stores to make the case
for more vigorous action by GoJ officials and to inform U.S.
right holders, he said. NOTE: When the National Library
later learned that Econoff had been observing pirating
activities in central Amman, its Director General secured
police protection and raided the three biggest vendors
downtown a few days later, Bushnaq reported. They returned
to their old tactics and had confiscated hundreds of DVD's,
he noted. END NOTE.


9. (SBU) Bushnaq was also critical of the judiciary. He had
filed dozens of cases, he noted, and the embarrassment of a
court appearance was enough to stop some pirates. But a
successful prosecution usually resulted in a fine of only
10-20 JD ($14-28). When the new copyright law went into
effect last March, the pirates were running scared because of
new fines of up to 6,000 JD (twice the old fines),he noted.
Now, they just laughed because none of the judges were
imposing the tough new penalties under the copyright law.
Instead, judges continued to use the more lenient criminal
law. Bushnaq says he will urge Judicial Council head
Mohammad Raqad to emphasize the need for continued IP
training of a reliable cadre of judges. There were already a
few such justices on the bench, but more needed training, he
said.
IPR Public Awareness the Next Step
--------------

10. (SBU) The National Library is now looking to widen the
base of its public support in Jordan through a public
awareness campaign. The USAID Achievement of Market-Friendly
Initiatives and Results (AMIR) Program is planning to provide
an estimated $60,000 to the campaign, jointly run with JIPA.
Eventually, the campaign will host events for the business
community and the public, and advertise on billboards around
Amman, said AMIR's Private Sector Policy Initiative Team
Leader Greta Boye.


11. (SBU) In its initial stages, the campaign is focusing on
placement of articles in the Arabic-language press based on
press releases, features and interviews. An interview with a
law professor is scheduled for later in October, and an
article on IP violators will appear next month. By the end
of the year, an IP awareness leaflet will be ready for
distribution. In addition, surveys will be conducted before
and after the six-month IPR awareness campaign to gauge
shifts in public awareness and/or attitudes.

Policy-Level of GoJ Committed to IPR Protection
-------------- --


12. (SBU) In an October 17 meeting with AMIR (attended by
USAID and Econ Section officers),Minister of Industry and
Trade Sharif Zu'bi stated that he was committed to a
comprehensive approach to IPR issues, including amendments to
the current law, but especially focused on implementation of
existing ideas and on enforcement. Zu'bi took on board that
IPR protections as practiced daily in Jordan were not at the
level that he and the National Library Director General
wanted. He asked his senior trade policy officer, Maha Ali,
to coordinate another meeting of a group of public-private
IPR stakeholders within the next few weeks. This group
includes officials from the police, library enforcement
office, customs, security, trade ministry, standards, and
other agencies, as well as private stakeholders such as JIPA
and the local music industry. Zu'bi repeated his desire to
adhere to international standards and meet commitments in the
U.S.-Jordan Free Trade Agreement. NOTE: Econoff noted to
trade policy officer Ali that IPR issues had been raised in a
September 13 exchange between Zu'bi and USTR Donnelley, and
that they would remain of concern in the lead-up to the
proposed FTA Joint Committee meeting to be hosted by Jordan
in early 2006. Ali, who had asked for a written list of
concerns, acknowledged that the AMIR presentation was a good
start -- it included a summary of a number of outstanding IPR
issues related to the FTA. END NOTE.


13. (SBU) COMMENT: We believe that Trade Minister Zu'bi is
likely to achieve more gains in IPR protection than his two
predecessors. But challenges to IPR protection in Jordan are
not minor, and won't be completely or easily solved
immediately. Zu'bi is the first to acknowledge that a more
forceful champion for IPR issues must emerge out of the
nascent public-private partnership on IPR. If the public
awareness campaign succeeds, we may see more members of the
concerned industries -- and especially the local music
industry -- take a more proactive role. For now, repeated
voicing of USG concerns, AMIR's active consultancy, and the
ongoing IPR public awareness campaign have given IPR
protection a new urgency at the Ministry of Industry and
Trade.


14. (U) Next installment on IPR: Gaps in the
Legal-Regulatory Framework.
RUBINSTEIN