PROPOSAL WOULD GUT INDUSTRIAL PROPERTY

UNCLAS ANKARA 006899

SIPDIS

DEPT PASS USTR FOR JCHOE-GROVES, LERRION
DEPT PASS USPTO FOR JURBAN AND EWU
USDOC FOR ITA/MAC/CRUSNAK

SENSITIVE

E.O. 12958: N/A
TAGS: ETRD KIPR TU USTR
SUBJECT: PROPOSAL WOULD GUT INDUSTRIAL PROPERTY
PROTECTION

REF: ANKARA 3027


1. (SBU) Summary. A bill abolishing penalties for
infringing the industrial property rights (patents,
trademarks, industrial designs and geographical
indications) of goods produced outside Turkey remains on
the Turkish Parliament's agenda. Embassy contacts claim
that the legislation was recently sent back to the
Parliament's Justice Commission not because it is in
violation of the GOT's international trade and
intellectual property obligations, but for procedural
reasons. While the legislation is contrary to the GOT's
current efforts to harmonize with the EU, as well as its
obligations under TRIPS, it is possible that it will be
passed during the current legislative period. End
summary.


2. (SBU) On November 15, Hulya Cayli, the President of
Paragon Consultancy and Trade, Inc., told econoff that a
piece of proposed legislation (reftel),previously
thought by many to be dead, has reemerged in Parliament
and could be considered by MPs for passage in the very
near future. The bill is currently slated to come out
of the Parliament's Justice Commission for general
debate. The proposal, tabled by an MP from the ruling
AK party, would abolish penalties for infringing
industrial property rights (such as patents, trademarks,
industrial designs and geographical indicators) if the
rightholder does not produce the good in question in
Turkey.


3. (SBU) Cayli hoped to meet with the chair of the
Justice Commission on November 15 to appeal for the
legislation not to move to Parliament for passage. She
added that the proposal violates not only Turkey's TRIPS
but also EU requirements. "Even if they pass it, the
government will have to rescind it at some point," she
argued.


4. (SBU) Commenting on the same legislation, Hulya
Cetin, a judge from the EU Affairs Department of the
Ministry of Justice, told Econ Specialist that the law
was sent back to the commission not because its contents
contradicted with Turkey's international obligations,
but because it would be faster to pass it together with
a revised Patent Law, which is also at the Justice
Commission. Cetin suggested that the interested
international parties bring the legislation to the
attention of the Parliament's EU Harmonization
Commission. Cetin, too, thought the GOT would have to
rescind the legislation at some point, but noted this
would be a long and difficult process.


5. (SBU) Comment: There are various allegations as to
why the GOT is considering legislation clearly in
violation of its international trade obligations. Some
claim that the legislation is designed to encourage
local production, while others allege smuggling
organizations are behind it. In any case, passing this
legislation would negatively affect the GOT's
international credibility in intellectual and industrial
property protection, which the GOT has been striving to
improve. We are increasingly seeing the positive
impacts of training and interaction with international
agencies on the Turkish bureaucracy's perception of IP
issues. However, we continue to need ways to get high
level decision makers, including parliamentarians, to
commit to the fight against IP crimes.
McEldowney