DOMINICAN REPUBLIC: INPUT FOR 2006 SPECIAL 301

UNCLAS SANTO DOMINGO 000642 SIPDIS SIPDIS PLS. PASS TO USPTO FOR JOELLEN URBAN PASS USTR FOR JENNIFER CHOE-GROVES E.O. 12958: N/A TAGS: KIPR ETRD DR SUBJECT: DOMINICAN REPUBLIC: INPUT FOR 2006 SPECIAL 301 REVIEW REF: STATE 14937 ¶1. Summary: The Dominican government has shown improvement in its atten intellectual property rights. Ratification of CAFTA-DR by Dominican Co in September 2005 brought further pressure on the government to underta legislative changes as part of its commitment under the free trade agre strengthen IPR protection. In January 2006 the Dominican Republic depo instruments of ratification for the WIPO Copyright Treaty and the WIPO Performances and Phonograms treaty as part of this commitment. Ongoing to meet implementation requirements for CAFTA-DR have helped keep the government focused on improving IP protection, though there remains sig room for progress, notably in strengthening data protection and linkage video piracy is a growing problem, the copyright office (ONDA) reported confiscation and destruction of 190,000 DVDs during 2005. Embassy reco maintaining the Dominican Republic on the Special 301 Watch List. End IP Climate -------------- ¶2. While the Dominican Republic has laws with sanctions adequate to pro copyrights and has improved the regulatory framework for patent and tra protection, United States industry representatives continue to cite insufficiently rigorous IPR enforcement as a major concern. There have signs of improvement in IPR enforcement, most notably in the area of te broadcast piracy, which has been a source of major concern. ¶3. CAFTA-DR, ratified by the Dominican Republic in September 2005 but n implemented, obligates the Dominican Republic to strengthen its IPR pro regime. In particular it will require stronger deterrence against pira counterfeiting by criminalizing end user piracy and requiring the autho to seize, forfeit, and destroy counterfeit and pirated goods and the equipment used to pro them. Comment: We are optimistic that the Dominican GovernmentQs interest in implementing CAFTA-DR will bring about further improvements over the co the next few months. End comment. Optical Media Piracy -------------- ¶4. According to a local attorney who serves as MPA representative in t Dominican Republic, the number of illegal copies of DVD movies produce grew significantly during 2005. ONDA (the Dominican copyright office reported confiscation and destruction of 250,000 music compact discs an 190,000 DVDQs during 2005. 31 multiple drive computers for audio and v reproduction were also confiscated and destroyed during the year. ¶5. Note: In February 2006, local newspapers reported on police raids on resulting in shootings and at least one serious injury of a vendor of p CD/DVDs. One report included the story of a group of pirates respondin crackdown by forming a committee and approaching local music and movie producers in hopes of being awarded favorable prices on legitimate copi protected material, which could then be distributed at lower prices in neighborhoods where the pirates are often established. Use/Procurement of Government Software -------------- -- ¶6. ONDA prepared a draft regulation in December 2005 designed to regula government procurement and use of computer equipment and software. The was submitted to USTR and is currently under review along with other CA implementation draft documentation. It specifically calls for central government offices to guarantee that government computers use only soft that complies with Qapplicable copyright regulations.Q TRIPS Compliance and CAFTA DR -------------- ¶7. CAFTA-DR mandates both statutory and actual damages for copyright an trademark infringement, measures to help ensure that monetary damages c awarded even when it is difficult to assign a monetary value to the infringement. In December 2005 the Dominican government submitted to U ranging proposed legislation to meet its commitments under CAFTA-DR. I working meetings between the Dominican government and USTR are pending documents are translated and USTR continues to move forward with its re four Central American CAFTA countries which began the implementation pr earlier. Embassy expects a detailed and intense series of technical wo sessions to begin soon, during which USTR will work with Dominican auth to ensure that proposed legislation brings the country into compliance commitments under CAFTA-DR. Data Protection -------------- ¶8. Dominican Industrial Property Law and regulations have not yet been in legal proceedings, so the effectiveness of those measures has not be tested. CAFTA-DR requires that test data submitted to the Dominican government for the purpose of product approval be protected against unf commercial use for a period of 5 years for pharmaceuticals and 10 years agricultural chemicals. Several Dominican pharmaceutical manufacturers repeatedly sought changes to proposed implementing laws and procedures E to avoid this requirement, but leadership in both houses of Congress ha declined to entertain draft legislation to this effect. Complying with requirements for data protection will necessitate close and more effect coordination between licensing authorities and the Patent Office. Television Broadcast Piracy -------------- ¶9. The Dominicans committed in a side letter to CAFTA-DR to make strong efforts to halt television broadcast piracy and agreed to report on the efforts in this regard in a quarterly report to USTR. The Embassy has improved coordination in this regard among various government agencies including the Secretariat of Industry and Commerce, the Attorney Genera Office, the Patent Office and the Copyright Office. The authorities ad cable television operators of their legal responsibilities regarding co secured a formal agreement with the operators' association in August 20 in September seized equipment from six operators found to be infringing laws. The Attorney General's office instituted proceedings against sev television broadcasters in the first half of 2005 for infringement of t copyrights of the owners of various U.S. film titles. Enforcement and Efforts Against Import of Counterfeit Goods -------------- -------------- ¶10. Dominican Customs recently created a six-person office responsible enforcement on imported goods. The officeQs director, formerly assigne Dominican Embassy in Washington, appears to be capable and eager to wor other appropriate Dominican government agencies to ensure the effective his office. In February 2006, Dominican House of Representatives appro legislation that gives Customs full, legal autonomy over its own budget should make it possible for Customs to continue efforts such as this. Treaties -------------- ¶11. The Dominican Republic deposited instruments of ratification for th Copyright Treaty and the WIPO Performances and Phonograms Treaty, and t entered into force for the country on January 10, 2006. Summary and Recommendation -------------- ¶12. The CAFTA-DR implementation process presents a significant opportun ensure that the stronger IPR protections negotiated under the agreement adhered to by the Dominican government. The CAFTA-DR framework has res efforts by the Dominican government to step up enforcement as in the ca improved efforts to stop cable broadcasting piracy, to create an IP enf office within Customs and to modify legislation to ensure that areas in the country is weak are brought up to international standards. We re maintaining the Dominican Republic on the Special 301 Watch List so tha Embassy can use the ranking to encourage the government to undertake fu efforts to strengthen IPR protections in the coming year. HERTELL