Identifier
Created
Classification
Origin
05KUWAIT3608
2005-08-13 13:52:00
CONFIDENTIAL
Embassy Kuwait
Cable title:  

KUWAIT IPR ENFORCEMENT: MESSAGE RECEIVED, BUT

Tags:  ECON KIPR BEXP KU 
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C O N F I D E N T I A L SECTION 01 OF 04 KUWAIT 003608 

SIPDIS

LONDON FOR TSOU
DEPARTMENT PLEASE PASS USTR FOR PBURKHEAD, DBELL, JBUNTIN
DEPARTMENT PLEASE PASS USPTO FOR PFOWLER, JNESS

E.O. 12958: DECL: 08/14/2010
TAGS: ECON KIPR BEXP KU
SUBJECT: KUWAIT IPR ENFORCEMENT: MESSAGE RECEIVED, BUT
LIMITED PROGRESS

REF: A. KUWAIT 0790


B. KUWAIT 1965

C. KUWAIT 2251

D. KUWAIT 3222

E. 2004 KUWAIT 4217

Classified By: Ambassador Richard LeBaron for reason 1.4 (b)

C O N F I D E N T I A L SECTION 01 OF 04 KUWAIT 003608

SIPDIS

LONDON FOR TSOU
DEPARTMENT PLEASE PASS USTR FOR PBURKHEAD, DBELL, JBUNTIN
DEPARTMENT PLEASE PASS USPTO FOR PFOWLER, JNESS

E.O. 12958: DECL: 08/14/2010
TAGS: ECON KIPR BEXP KU
SUBJECT: KUWAIT IPR ENFORCEMENT: MESSAGE RECEIVED, BUT
LIMITED PROGRESS

REF: A. KUWAIT 0790


B. KUWAIT 1965

C. KUWAIT 2251

D. KUWAIT 3222

E. 2004 KUWAIT 4217

Classified By: Ambassador Richard LeBaron for reason 1.4 (b)


1. (U) Summary and Comment: In meetings late July with
Ministry of Information officials and other interlocutors
familiar with the IPR situation in Kuwait, Econ Officer heard
that the GOK has gotten the message on the importance of
intellectual property rights (IPR) enforcement and
protection. An inter-ministerial committee on IPR is the
talk of the town, and the Ministry of Information is expected
to launch a new IPR enforcement task force in September and
has made some organizational changes which should bode well
for increased attention to IPR issues. The new copyright law
is being studied and prepared by legal advisors in
coordination with the Ministry of Information, and is
expected to be presented to the National Assembly for
ratification by the end of 2005. An IPR Exhibition organized
by the Kuwait Bar Association and a new Kuwaiti IPR
Association are bringing more concerned players to the table,
while street enforcement and public awareness campaigns are
on the increase. Ministry of Commerce and Kuwaiti Customs
Agency staff have taken advantage of USPTO IPR training
courses this summer, and we are actively encouraging Ministry
of Information participation in future training
opportunities. Comment: We believe that the entry of a new
Information Minister, the interest of the Prime Minister, and
various public relations events (including watchlisting) have
pushed the GOK in the right direction in dealing with IPR
problems. However, there is still much to do and the
Kuwaiti bureaucracy will need to overcome considerable
inertia to translate good intentions into comprehensive IPR
protection. End Summary and Comment.

"We Recognize It's a Big Problem"
--------------


2. (SBU) During a July 20 meeting, Ministry of Information
Undersecretary Ibrahim Al-Nouh told Econ Officer that the GOK
was now "serious about IPR" and "recognizes it is a big

problem," but "needs more time" to affect real change. "The
pirates are now afraid," he added, but said that the
penalties for piracy were still too weak to act as effective
deterrents. According to Al-Nouh, newly-appointed Minister
of Information Dr. Anas Al-Rasheed is "giving priority to
IPR." He said that "the companies expect rapid results," but
that this was difficult to achieve and the laws still needed
to be changed. In a separate meeting with Kuwait Bar
Association IPR Committee Chairperson Nidal Al-Humaidan, she
told us that "everyone wants to work on this issue now,
because Shaykh Sabah (the Prime Minister) is pushing it.
Everyone wants a part."

A New Order at Ministry of Information
--------------


3. (SBU) Director of the Intellectual Property Department of
the Ministry of Information Rasha Al-Sabah has proven in the
past to have an excellent understanding of what Kuwait needs
to do on IPR. She recently returned from maternity leave and
we had a chance to catch up with her. (Bio Note: Rasha
Al-Sabah is the current Amir's granddaughter. She is about
35 years old and speaks excellent English.)


4. (C) Al-Sabah bemoaned the loss of Judge Khaled Al-Hindi
as IPR Advisor to the Minister of Information. Al-Sabah said
that the new IPR Advisor, Fayez Al-Kandari, "lacks hands-on
practice of IPR" and "needs more education in international
copyright laws." Al-Humaidan of the KBA IPR Committee said
that "Judge Kandari will be key, but won't be as good as
Judge Al-Hindi." (Comment: Al-Hindi has exhibited to Embassy
Officers in the past a clear understanding of IPR issues and
what Kuwait needs to do to comply with international laws
(Ref A). He returned to his normal judicial duties when the
previous Minister of Information resigned. Al-Kandari is a
civil law professor at Kuwait University, and according to
previous reporting, does not yet have a particularly clear
grasp of the deficiencies in Kuwait's copyright law (Ref B).)



5. (C) Al-Sabah said that U.S. pressure on Kuwait to take
action on IPR protection and enforcement has been a "blessing
in disguise," and that "things would have remained the same
without U.S. pressure." She showed Econ Officer a U.S.
Patent and Trademark Office press release for the STOP!
campaign (Strategy Targeting Organized Piracy) and said that
Kuwait should develop a similar program. According to
Al-Sabah, the Kuwait Chamber of Commerce & Industry should be
doing more to educate the business community about IPR, and
the Kuwaiti Bar Association could do more as well. She said
that the Kuwaiti companies that get involved with piracy
"want a large profit margin but do not understand the effects
of piracy." What Kuwait really needs, Al-Sabah said, was "an
independent agency, like the USPTO," that would bring
together all of the IPR-related efforts. "There is no
coordinated effort now," she complained, "it's just based on
knowing the right people."

Special 301 Report
--------------


6. (C) The latest version of the Special 301 Report, with
Kuwait remaining on the Priority Watch List for 2005, appears
to be causing discomfort in the right places. Information
Ministry Undersecretary Al-Nouh described the recent Special
301 report as "harsh" and asked for "more support." Director
of the Information Ministry's Artistic Works Department
Ghannas Al-Adwani, who has been previously described as "the
largest impediment to proper IPR protection" (Ref A),told us
on July 20 that "everyone is offended and upset" by the
Kuwait's continued placement on the Priority Watch List.
According to Al-Adwani, Kuwait's "reputation is damaged" and
the Information Ministry is "giving (its) maximum efforts."
He added that companies holding IP rights can always make a
civil complaint, and can sue the IPR violators. Al-Adwani
suggested that some problems could be solved if Kuwait had a
"settlement method" between violators and rights holders. He
concluded that "the numbers submitted about Kuwait in the
Special 301 report were exaggerated." (Comment: Other
trusted Ministry of Information interlocutors have told us in
the past that Al-Adwani had taken it upon himself to bring in
shop owners accused of selling pirated goods, make them swear
in writing to stop, and then closed the cases. Ref A).

Kuwait's Problem is "Different" Than Rest of GCC
-------------- ---


7. (SBU) Some of the people we spoke with saw Kuwait as
having a different problem than other GCC countries,
particularly UAE, Bahrain and Qatar. Al-Nouh said that he
had traveled recently to all three countries to see how they
tackle their IPR problems, and he said that he thought there
was a "big difference" in the problems that Kuwait faced. In
Kuwait, he explained, there are over 6,000 stores which could
potentially be selling pirated goods. In the other
countries, he said, there were not more than a couple hundred
stores. He said that "Kuwait should not be judged the same
way" as these other smaller countries, but should instead be
looked at as a market similar to Saudi Arabia. Al-Adwani of
the Artistic Works Department echoed Al-Nouh's opinions,
saying that Dubai "has the power to make quick decisions,"
and that "laws in Kuwait take years" to change and implement.


Taking It To The Street
--------------


8. (SBU) Increased street-level enforcement actions by the
Ministries of Commerce (Ref D) and Kuwait Customs (Ref E)
seem to have finally spurred some enforcement actions by the
Ministry of Information. Al-Nouh said his inspectors are
going to shops and making raids, but that the small
inspection teams have "become well-known to the pirates,"
making them less effective. He said that the shops now use
"look-outs," and that the inspectors had even tried using
their own children to go into stores and ask for copies of
pirated goods, in order to avoid recognition. He added that
it was difficult for him to change inspectors without the
Minister himself giving an order. One difficulty, Al-Nouh
said, is that pirated music CDs and movies are often sold
behind the counter at textile shops and other types of stores
which the Ministry of Information does not have the explicit
authority to enter.


9. (C) Al-Humaidan of the KBA IPR Committee said that the
Ministry of Information "doesn't know the (enforcement)
procedures, follows the wrong procedures, or just doesn't
care." She added that the inspectors often don't write the
date or time on piracy raid reports or forget to sign them,
thus invalidating them. "Microsoft has lost many cases
because of this," she emphasized.


10. (SBU) Rasha Al-Sabah of the Ministry of Information told
us that she has been given the authority to take all IPR
enforcement measures under her jurisdiction and that she will
have a new task force under her authority starting in
September. The task force will consist of 40 people and she
is trying to recruit young people who all have extensive
technology training. Training IPR experts on technology is
much more difficult than training technology experts on IPR,
she explained, and added that the Kuwait Institute for Legal
Education would provide "crash courses" on IPR to the new
enforcement team members. Her team will have the authority
to make seizures and to refer cases to the public prosecutor,
and will focus on CD, software, and broadcast piracy.
Despite the high rate of broadcast piracy in Kuwait, Al-Sabah
noted, the satellite TV companies had offered "zero support."


Taking It To The Public
--------------


11. (U) Rasha Al-Sabah said that the Ministry of Information
was planning a media campaign on intellectual property
awareness for after Ramadan, but that direct education was
needed, "for parents and children." She envisioned a
"targeted TV campaign to get out the message," and said that
it would be ideal to have private companies contribute to
this campaign.


12. (SBU) Kuwaiti companies need to be more involved in the
public campaign, according to Al-Humaidan of the KBA IPR
Committee. She said that the challenge is that, with little
direct foreign company participation in the Kuwaiti economy,
it was up to each company's agent in Kuwait to push for
increased IPR protection. The agents often will not take any
actions, she explained, for a variety of reasons. She added
that many foreign products are sold in Kuwait through
distributors, not agents, and that the distributors have no
legal right to speak on behalf of the foreign IP holders.
She hoped that, with increased attention being paid to fake
medicines and auto parts, safety issues could be used to
better educate consumers on the dangers of pirated goods.


13. (C) Al-Adwani did exhibit some understanding of the
challenges of bringing the issue to the public's attention.
"In advanced countries," he explained, "IPR is about the
public benefit, not the personal interest." "The street man
in the Middle East does not understand this," he continued,
"and does not understand how it harms the reputation of
Kuwait." He added that "normal people cannot make the
distinction between real and pirated products," and that "no
one makes public complaints about pirated materials, like
they do about drugs."

New Copyright Law Still In The Works
--------------


14. (SBU) Al-Nouh said that amendments would be added to the
new copyright law to stiffen punishments for piracy. Rasha
Al-Sabah expected the new draft copyright law to be ready
after Ramadan (November),and would take into account
comments from USPTO and others. She said that the new law
would aim to be in complete compliance with all of Kuwait's
international obligations, including WIPO treaties and the
Rome and Bern conventions on copyright protection. Al-Sabah
explained that the Kuwait Judicial Society and the Kuwait
University Faculty of Law were both helping to draft the new
law.


15. (SBU) Al-Humaidan of the KBA IPR Committee said that
jail sentences could be applied for piracy under the current
law but that no judge is giving out any jail sentences. She
said that "if one judge were to give even one month in jail
to someone, so many people would stop (being involved in
piracy)." She pointed out, though, that the jail sentences
would have to be given to the people at the top of the chain,
rather than the street-level hawkers.

IPR Exhibition in September
--------------


16. (U) The Kuwait Bar Association (KBA) established an IPR
Committee three years ago, according to Committee Chairperson
Nidal Al-Humaidan, and the past year has seen "an increased
emphasis" on the issue. The KBA and the Ministry of
Commerce and Industry will hold an "IPR Exhibition" on
September 19-20. This exhibition will give companies an
opportunity to showcase genuine products and will be aimed at
consumers in order to educate them on the differences between
real and fake products. Al-Humaidan told us that the idea of
an exhibition came about because "everyone was tired of
always just going to seminars." "Speaking, speaking,
speaking," she said, "it's all we ever do." She explained
that the sponsors of this exhibition hoped to reach a
different audience, and added that she was working with the
Ministry of Education to arrange for high school students to
come to the exhibition as a field trip.
Inter-ministerial Committee Formed...Sort Of
--------------


17. (U) Al-Nouh and others repeatedly spoke of the new
inter-ministerial IPR Committee formed in May 2005 (Ref C),
which includes the Ministries of Information, Commerce, and
Interior, as well as representatives from the Kuwaiti Customs
Agency, and the municipalities. Al-Nouh said that the IPR
Committee would consist of people at the Undersecretary
level, but that no one had been specifically named to the
committee yet. Al-Humaidan of the KBA IPR Committee said
that she thought this inter-ministerial committee "could work
well, if they get together" and "if specific people are
named."

Kuwait IPR Association
--------------


18. (SBU) According to Rasha Al-Sabah, the Kuwait IPR
Association has about 50 members and is headed by Shaykh
Salman Dawood Al-Sabah. She said that she is "not sure what
they are really doing" but that many prominent people, from
within the GOK and from the private sector, had become
members. She said that she thought it was an interesting
initiative and hoped that it would be put to good use.

But "Things Still Cost Too Much"
--------------


19. (C) While all of the people we spoke with recognize the
problem, some are still toeing the "piracy exists because
things cost too much" line. Al-Nouh himself asked if the
companies were aware how much the agents and distributors
actually charge for their products in Kuwait and said that
the companies "need to know what the realistic difference is
in prices" between the real and pirated products. He added
that the companies "should know if they reduce prices they
will get more sales of genuine products," and that "consumers
might decide to buy the legitimate product if it was
cheaper." Speaking from the same playbook, Al-Adwani also
said that "manufacturers should look at the pricing issue."
Repeating points made by Post before (Ref C),Econ Officer
explained to Al-Nouh and Al-Adwani that piracy was more than
just a question of price and that it negatively impacts
Kuwait's reputation in the world as well as Kuwait's ability
to attract foreign investment.

More Training Still Needed
--------------


20. (U) Al-Nouh said that more training was needed,
including courses and workshops in Kuwait and any training
programs available in the United States. He also repeated an
earlier request (Ref C) for better technology to track IPR
enforcement. "We have a problem in technical expertise, and
while our plan is long term, we need short term technical
help," he added. Rasha Al-Sabah said that Kuwait University
was now offering training in copyright law as part of the
Faculty of Law curriculum. She added that the "Center for
Excellence in Management" at Kuwait University also has
experience with WTO obligations and could offer assistance in
IPR training.


21. (U) Note: Post has nominated a number of employees of
the Ministries of Commerce and Information as well as Customs
Agency employees to attend IPR training programs offered by
the USPTO. This summer alone we have sent back three
Kuwaitis for training and we hope to send additional people
for training this fall, especially Ministry of Information
employees. End Note.

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