DOMINICNA REPUBLIC:

UNCLAS SANTO DOMINGO 000734 SIPDIS SIPDIS PASS TO USPTO FOR JOELLEN URBAN PASS USTR FOR JENNIFER CHOE-GROVES E.O. 12958: N/A TAGS: ETRD DR KIPR SUBJECT: DOMINICNA REPUBLIC: INPUT FOR 2006 SPECIAL 301 REVIEW REF: STATE 14937 ¶1. Summary: The Dominican government has shown improvement in its attention to intellectual property rights. Ratification of CAFTA-DR by Dominican Congress in September 2005 brought further pressure on the government to undertake legislative changes as part of its commitment under the free trade agreement to strengthen IPR protection. In January 2006 the Dominican Republic deposited instruments of ratification for the WIPO Copyright Treaty and the WIPO Performances and Phonograms treaty as part of this commitment. Ongoing efforts to meet implementation requirements for CAFTA-DR have helped keep the government focused on improving IP protection, though there remains significant room for progress, notably in strengthening data protection and linkage. While video piracy is a growing problem, the copyright office (ONDA) reported confiscation and destruction of 190,000 DVDs during ¶2005. Embassy recommends maintaining the Dominican Republic on the Special 301 Watch List. End Summary. IP Climate -------------- ¶2. While the Dominican Republic has laws with sanctions adequate to protect copyrights and has improved the regulatory framework for patent and trademark protection, United States industry representatives continue to cite insufficiently rigorous IPR enforcement as a major concern. There have been signs of improvement in IPR enforcement, most notably in the area of television broadcast piracy, which has been a source of major concern. ¶3. CAFTA-DR, ratified by the Dominican Republic in September 2005 but not yet implemented, obligates the Dominican Republic to strengthen its IPR protection regime. In particular it will require stronger deterrence against piracy and counterfeiting by criminalizing end user piracy and requiring the authorities to seize, forfeit, and destroy counterfeit and pirated goods and the equipment used to produce them. Comment: We are optimistic that the Dominican Government's interest in implementing CAFTA-DR will bring about further improvements over the course of the next few months. End comment. ; Optical Media Piracy -------------- ¶4. According to a local attorney who serves as MPA representative in the Dominican Republic, the number of illegal copies of DVD movies produced here grew significantly during 2005. ONDA (the Dominican copyright office) reported confiscation and destruction of 250,000 music compact discs and 190,000 DVD's during 2005. 31 multiple drive computers for audio and video reproduction were also confiscated and destroyed during the year. ¶5. Note: In February 2006, local newspapers reported on police raids on pirates resulting in shootings and at least one serious injury of a vendor of pirated CD/DVDs. One report included the story of a group of pirates responding to the crackdown by forming a committee and approaching local music and movie producers in hopes of being awarded favorable prices on legitimate copies of protected material, which could then be distributed at lower prices in the poor neighborhoods where the pirates are often established. Use/Procurement of Government Software -------------- ¶6. ONDA prepared a draft regulation in December 2005 designed to regulate government procurement and use of computer equipment and software. The decree was submitted to USTR and is currently under review along with other CAFTA-DR implementation draft documentation. It specifically calls for central government offices to guarantee that government computers use only software that complies with "applicable copyright regulations." TRIPS Compliance and CAFTA DR -------------- ¶7. CAFTA-DR mandates both statutory and actual damages for copyright and trademark infringement, measures to help ensure that monetary damages can be awarded even when it is difficult to assign a monetary value to the infringement. In December 2005 the Dominican government submitted to USTR wide ranging proposed legislation to meet its commitments under CAFTA-DR. In-depth working meetings between the Dominican government and USTR are pending while documents are translated and USTR continues to move forward with its review of four Central American CAFTA countries which began the implementation process earlier. Embassy expects a detailed and intense series of technical working sessions to begin soon, during which USTR will work with Dominican authorities to ensure that proposed legislation brings the country into compliance with its commitments under CAFTA-DR. Data Protection -------------- ¶8. Dominican Industrial Property Law and regulations have not yet been applied in legal proceedings, so the effectiveness of those measures has not been tested. CAFTA-DR requires that test data submitted to the Dominican government for the purpose of product approval be protected against unfair commercial use for a period of 5 years for pharmaceuticals and 10 years for agricultural chemicals. Several Dominican pharmaceutical manufacturers have repeatedly sought changes to proposed implementing laws and procedures in order to avoid this requirement, but leadership in both houses of Congress has declined to entertain draft legislation to this effect. Complying with the requirements for data protection will necessitate close and more effective coordination between licensing authorities and the Patent Office. Television Broadcast Piracy -------------- ¶9. The Dominicans committed in a side letter to CAFTA-DR to make stronger efforts to halt television broadcast piracy and agreed to report on their efforts in this regard in a quarterly report to USTR. The Embassy has noted improved coordination in this regard among various government agencies including the Secretariat of Industry and Commerce, the Attorney General's Office, the Patent Office and the Copyright Office. The authorities advised cable television operators of their legal responsibilities regarding copyright, secured a formal agreement with the operators' association in August 2005, and in September seized equipment from six operators found to be infringing the laws. The Attorney General's office instituted proceedings against several television broadcasters in the first half of 2005 for infringement of the 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 for IPR enforcement on imported goods. The office's director, formerly assigned to the Dominican Embassy in Washington, appears to be capable and eager to work with other appropriate Dominican government agencies to ensure the effectiveness of his office. In February 2006, Dominican House of Representatives approved legislation that gives Customs full, legal autonomy over its own budget, which should make it possible for Customs to continue efforts such as this. Treaties -------------- ¶11. The Dominican Republic deposited instruments of ratification for the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty, and these entered into force for the country on January 10, 2006. Summary and Recommendation -------------- -------------- ¶12. The CAFTA-DR implementation process presents a significant opportunity to ensure that the stronger IPR protections negotiated under the agreement are adhered to by the Dominican government. The CAFTA-DR framework has resulted in efforts by the Dominican government to step up enforcement as in the case of improved efforts to stop cable broadcasting piracy, to create an IP enforcement office within Customs and to modify legislation to ensure that areas in which the country is weak are brought up to international standards. We recommend maintaining the Dominican Republic on the Special 301 Watch List so that the Embassy can use the ranking to encourage the government to undertake further efforts to strengthen IPR protections in the coming year.