NEW DIRECTOR OF CUSTOMS IP UNIT PROMISES INCREASED

UNCLAS MANILA 000990 SIPDIS CORRECTED COPY - CAPTION ADDED SENSITIVE SIPDIS STATE FOR EAP/MTS, EB/TPP STATE PASS TO USTR FOR BWEISEL AND DKATZ USDOC FOR SBERLINGUETTE USDOC PASS TO USPTO FOR PFOWLER E.O. 12958: N/A TAGS: ECON ETRD KIPR KCOR RP SUBJECT: NEW DIRECTOR OF CUSTOMS IP UNIT PROMISES INCREASED VIGILANCE REF: MANILA 00244 -------------- SUMMARY -------------- ¶1. (SBU) The Intellectual Property (IP) Unit at Customs is under new management again, for the third time since its inception in 2003. Former IP Unit head, Attorney Eden Dandal, was replaced by Attorney Willie Sarmiento, who was Chief of Staff to the new Customs Commissioner, Napoleon Morales when he was the Chief Collector at the Port of Batangas. Sarmiento expressed enthusiasm for his new role as IP Unit Chief, despite his admission to having no experience with intellectual property rights (IPR) issues. -------------- CUSTOMS PROMISES MORE VIGILANCE ON IPR -------------- ¶2. (SBU) Willie Sarmiento was appointed as the new head of the IP Unit at the Bureau of Customs on January 3, 2006. In a meeting with Econoff and Commercial Counselor on January 24, Sarmiento said that he does not have any experience with IPR issues but that, "rest assured, during my watch, IP will be more vigilant than ever." He added that he is planning to intensify the drive against all kinds of piracy and wants field agents to be more visible, particularly in examination areas. He expressed enthusiasm for the assignment and said that the job is very exciting. However, Sarmiento acknowledged that he was reluctant to accept the assignment at first because the position is responsible not only for IP, but also for internal investigations. He was later assured that his job entailed "80 to 90 percent IPR" and very little internal investigation, which encouraged him to accept the position. Sarmiento's previous post was as Chief of Staff to Commissioner Morales when Morales was the District Collector in Batangas. ¶3. (SBU) Sarmiento is focused on observing operations, learning what he can, and identifying personnel needs. The unit currently has 11 agents stationed at five ports around the country and three lawyers. Since its inception, the Unit has been under-staffed and under-resourced. Sarmiento said that the BOC's rationalization plan, reported in reftel, would make the IP Unit autonomous, under the Division of Legal Affairs, possibly qualifying it for additional resources. ¶4. (SBU) In the two weeks preceding our visit, Sarmiento reported that his unit had issued warrants for three shipments of alleged IPR infringing goods, one container from Pakistan and two from China. He showed us a Rigid brand industrial pipe cleaner that had "made in the USA" marked on the packaging. The fact that the container had been shipped directly from China tipped off the inspector. The eight pallets of goods are being held since the importer cannot show that the products were actually made in the U.S. He also showed us poor quality medical scissors imported from Pakistan that were stamped with "German Stainless." They also happened to have a rubbed out, but still legible "made in Pakistan" engraved on them. -------------- COMMENT -------------- ¶5. (SBU) The move to replace Dandal as the head of the Customs IP Enforcement Unit is disappointing. Attorney Dandal attended several USG sponsored IPR training programs, seemed to grasp the importance of IPR protection, and was making progress toward establishing the IP Unit as en effective enforcement mechanism. Starting over again with yet another director could delay further progress. However, Sarmiento does seem enthusiastic about the job and eager to learn more about IPR. Sarmiento will be attending USPTO's March Academy on IPR enforcement. Embassy will continue to work to identify training opportunities and collaborate on IPR protection. Establishing the unit's autonomy under the rationalization plan would do much to strengthen its enforcement role and could bring it much needed resources. Jones