PHILIP MORRIS CONVEYS IPR FRUSTRATIONS REGARDING THE

C O N F I D E N T I A L DUBAI 006928

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: DECL: 12/14/2016
TAGS: ECON EINV KIPR PGOV PREL ETRD IZ AE
SUBJECT: PHILIP MORRIS CONVEYS IPR FRUSTRATIONS REGARDING THE
NORTHERN EMIRATES

REF: DUBAI 3360

CLASSIFIED BY: Paul R Sutphin, Consul General, Dubai, UAE.
REASON: 1.4 (d),(e)



1.(C) Summary: On December 5, Philip Morris International (PMI)
representatives and a local law firm employed by PMI told
PolEconoff of intellectual property rights (IPR) failures in
Dubai and the northern emirates. PMI said cigarette
counterfeiters use Dubai as a major transshipment hub for raw
materials and finished product, and at least one major
counterfeiter is based in Dubai. PMI officials are frustrated
at the slow, and at times uneven, response they receive from
various law enforcement entities. While not asking for
assistance at this time, PMI pledged to keep the Consulate
General informed of its progress and let us know if help is
needed. End Summary

2.(SBU) As part of a trip to meet local government officials,
PMI Regional Director Brand Integrity Angelos Antypas, Assistant
General Counsel Brand Integrity Frederic Thiry, Manager Product
Intelligence and Security Mohamed El Sissy along with Nasser Ali
Khasawneh and Nayiri Boghossian from Dubai-based law firm
Khasawneh and Associates (PMI's local legal representative) told
PolEconoff of IPR frustrations in Dubai, Fujairah and Ajman.
PMI believes the IPR environment in the UAE has vastly improved,
citing more than 70 seizures of counterfeit PMI product in the
last four years. However, echoing many rights holders in Dubai
(reftel),PMI said Dubai acts as a major transshipment hub for
counterfeit items, moving non-tobacco raw materials as well as
finished product. PMI said the Fujairah Free Zone and port are
both "part of the problem" without providing specifics, while
counterfeiters -- to a lesser extent -- also operate from Ajman.

3.(C) PMI briefed PolEconoff about an alleged counterfeiting
ring run by Iraqi Waheb Tabra, out of the Dubai World Trade
Center Tower (where ConGen is located). Tabra's company, Margin
Trading Co Ltd, allegedly moves cigarettes and raw material from
South Asia to Baghdad and beyond. PMI continues to work with
Dubai Customs against Tabra's company, but is growing frustrated
by perceived inaction. PolEconoff provided Khasawneh an IPR
contact at Embassy Baghdad.

4.(SBU) At the conclusion of PMI's Dubai meetings, Khasawneh
briefed PolEconoff on the sessions with Dubai-based officials,
including Dubai Customs' IPR Unit. Customs promised to provide
samples from a recent seizure for PMI testing. The Dubai Police
recommended PMI file formal complaints against those entities
PMI believes are counterfeiters. A legal advisor from the
Ruler's Court in Dubai expressed willingness to take up PMI's
case should PMI believe any Dubai office is ineffective. While
not asking for assistance at this time, PMI pledged to keep
ConGen informed of its progress and let us know if help is
needed.

SUTPHIN