DOMINICAN REPUBLIC: SENATE PRESIDENT VOWS TO BLOCK

UNCLAS SANTO DOMINGO 004620

SIPDIS

DEPT FOR WHA/CAR, WHA/EPSC, EB/TPP/IPE; USDOC FOR USPTO
(BOLAND); DEPT PASS USTR; WHITE HOUSE FOR USTR FOR R VARGO,
A MALITO, K HAUDA

E.O. 12958: N/A
TAGS: DR ETRD KIPR PGOV IPR
SUBJECT: DOMINICAN REPUBLIC: SENATE PRESIDENT VOWS TO BLOCK
ANTI-IPR LEGISLATION


1. Summary: Senate President Andres Bautista told the DCM on
October 11 that he will not put onto the Senate agenda a
legislative proposal inimical to patent and trademark law
submitted in August by the president of the Senate
Commission on Industry, Commerce and Free Trade Zones
Alejandro Santos. The draft legislation would reduce
sanctions for intellectual property (IP) violators, weaken
data protection and allow compulsory licenses to be granted
by government non-action. This is the third such proposal
submitted to Congress during the last year. In each
instance, the Embassy has been effective in arguing against
the proposals, bringing its objections to the attention of
the Dominican authorities both in writing and through
meetings with congressional leaders. End summary.


2. Senate President Andres Bautista, Senator Pedro Alegra
and Senator Csar Diaz Filpo called on the DCM on October 11
in response to the DCM's letter advising Bautista of
anti-trade, anti-CAFTA aspects of proposed legislation
submitted in August to change (weaken) the country,s
industrial property law. FCS officer, Department desk
officer and EcoPol attended. The draft legislative proposal
was almost certainly prepared or at least helped along by
Dominican pharmaceutical association INFADOMI, some of whose
members are known to pirate patented and trademarked
products. Bautista was quick to point out that this was a
proposal supported by only one member of the Senate
(Alejandro Santos) and that it is not being considered for
passage.


3. Bautista and his colleagues welcomed details about the
potential damage such legislation would cause, some of which
were already familiar to them. Principal problems with the
legislation as drafted are that it would 1) remove prison
sanctions for patent violators and create them for cases
where individuals applying for patents provide incorrect
information (either intentionally or by accident),2) weaken
data protection, and 3) allow automatic granting of
compulsory licenses to firms which file applications with the
patent office and receive no response within 120 days.


4. Bautista said that he was suspicious of the proposed
legislation and its one-senator support from the beginning.
This prompted him to appoint Senator Pedro Alegria to head a
commission to review the proposal. Alegra asked economic
officer to provide additional written details of the
problematic aspects of the legislation for future use.
While Bautista did not make a direct link to Santos,
involvement with the IP proposal, he informed us that Santos
was recently replaced as head of the Senate,s Commission on
Industry, Commerce and Free Trade Zones, by La Vega Senator
Fausto Lpez Sols.


5. This is the third time over the past year that similar,
IP-weakening proposals have been submitted to Congress. Each
time the Embassy has expressed USG concern in writing to
congressional leadership and followed-up with meetings with
congressional leadership, successfully arguing against
passage. Embassy has advised local attorneys associated with
pharmaceutical association Pharma in each instance. Pharma
is scheduled to visit the Domincan Republic next week.


6. Comment: Bautista's assurance that he will not consider
the proposed IP-weakening legislation comes as the government
and country prepare for entry into force of the free trade
agreement with the United States and Central America
(DR-CAFTA). While similar IP proposals have failed in the
past, local patent attorneys expressed their worries to the
Embassy recently that the current proposal stood a greater
chance of being approved, wrapped with other reform
legislation now under congressional review and necessary for
DR-CAFTA implementation. Embassy believes that ploy has been
blocked.
HERTELL