PM KOIZUMI'S ADVISOR PROPOSES BILATERAL IPR AGENDA

UNCLAS SECTION 01 OF 02 TOKYO 004025

SIPDIS

SIPDIS
SENSITIVE

STATE FOR EAP/J, EAP/EP, EB/TPP/IPE
USDOC FOR SCOTT SEAMAN
EAP please pass to USTR Stanford McCoy and Ronald Meyers

E.O. 12958: N/A
TAGS: KIPR ECON JP
SUBJECT: PM KOIZUMI'S ADVISOR PROPOSES BILATERAL IPR AGENDA


1. (SBU) Summary: Intellectual Property Strategy Headquarters
(IPSH) Secretary General Hisamitsu Arai set out an ambitious agenda
for bilateral cooperation on IPR during a farewell call by the EMIN
on July 14. Arai proposed issuing a joint statement on IPR
cooperation at the next U.S.-Japan summit, concluding an
anti-counterfeiting trade agreement by the end of this year, and
establishing a system of mutual patent recognition. He hoped the
United States and Japan would send a unified message to China on
IPR. Arai, who serves as Prime Minister Koizumi's leading advisor
on IPR issues, affirmed that both leading candidates to become the
next Japanese PM support strong intellectual property rights and
their protection. End Summary.

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Joint statement on IPR cooperation
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2. (SBU) Arai passed to EMIN proposed text for a joint statement on
IPR cooperation that could be announced at the next U.S.-Japan
summit when President Bush meets with the new Japanese Prime
Minister this fall. The draft statement identifies 6 areas of
cooperation: 1) conclude an international agreement on counterfeits
and pirated goods, 2) strengthen IPR enforcement in Asia and the
world, 3) Exchange information on IPR through regular bilateral
exchanges, 4) strengthen border enforcement, 5) facilitate
information-sharing between U.S. and Japanese embassies in third
countries on IPR issues, assistance and training programs, 6)
promote public-private partnership on IPR protection strategies
through joint conferences or seminars. Proposed English text is
attached at the end of this cable in paragraph 9. Full copy of
proposed English and Japanese text will be emailed to EAP/J.


3. (SBU) The draft is being reviewed by MOFA, METI and MOF and that
they are considering when and how to bring the issue up to the next
Prime Minister, according to Arai. Japan's business circles,
including the Japan Business Federation (Keidanren),are in full
agreement, Arai added.


4. (SBU) Given that the United States and EU have issued joint
declarations on IPR in their last two summits (2005 and 2006) --
Arai contends that US-Japan should also issue a joint leaders
statement. The United States and Japan are even closer in their
positions on IPR issues as both are knowledge-based economies, Arai
asserted.

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Anti-counterfeit and piracy agreement/treaty
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5. (SBU) Arai believes that it should not be too difficult to reach
an agreement on the text of an Anti-Counterfeit Trade Agreement
(ACTA) among like-minded countries and that we should aim to finish
talks by the end of this year. There is a strong support for such
an agreement within Japan, including among lawmakers of ruling and
opposition parties Arai stated, singling out Okiharu Yasuoka (LDP),
Akira Amari (LDP),and Naoto Kan (DPJ) who is a patent attorney, as
strong IPR supporters.


6. (SBU) Arai stressed that we should move as fast as possible and
keep in mind that the intent of the agreement is to address the IPR
problems of third-nations such as China, Russia, and Brazil, not to
negotiate the different interests of like-minded countries. The new
agreement could serve as a yardstick for measuring the market
economy status of countries such as China and Russia.

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Mutual Recognition of Patents will boost FDI
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7. (SBU) Arai hopes the United States and Japan will eventually
establish a system of mutual patent recognition, which could serve
as a model for the world. Mutual recognition of patents could play
a significant role in increasing FDI into Japan, Arai pointed out.


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US-Japan Cooperation on China IPR issues
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7. (SBU) It is important for the United States and Japan to send a
unified message to China, Arai emphasized. Both the United States

TOKYO 00004025 002 OF 002


and Japan want China to transform itself into a country with a sound
economy which complies with WTO rules, he noted. The US and Japan
should not fight each other over differing IPR priorities --
copyright for the U.S. and patent rights for Japan -- but instead
should underscore that combating counterfeits protects consumer
health and safety, Arai suggested. The United States and Japan
should also share information on technical assistance programs that
both nations provide to China in order to reach as many people as
possible and avoid redundancy.

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No Change in IPR Policy with new PM
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8. (SBU) Both leading candidates for Prime Minister, Abe and
Fukuda, are eager to promote and protect IPR, Arai said. He assured
EMIN that there would be no policy shift after PM Koizumi steps
down.


9. Arai's Proposed text for a Joint Statement:

U.S.-Japan Working Together for the Enforcement
Of Intellectual Property Rights

Both the United States and Japan consider that their industry's
creativity needs to be rewarded and protected through a strong and
effective intellectual property rights ("IPR") system. Growing
global counterfeiting and piracy threatens the competitiveness of
innovative industries, the livelihoods of creative artists and
workers, and the health and safety of consumers in the United
States, Japan and beyond. Driven by new technologies that make it
easy to rapidly produce infringing goods in commercial quantities
and by fraudulent organizations, including organized criminal
syndicates, that use the Internet and global trading lanes to
distribute and sell those goods worldwide, this illicit activity
substantially deprives rights holders of a legitimate income from
their ideas, designs, brands and inventions.

Therefore, in the framework of their bilateral dialogue on IPR
issues, the United States and Japan are eager to strengthen their
co-operation for combating counterfeiting and piracy of goods around
the world. Besides, the United States and Japan want to act
together against counterfeiting and piracy around the world by
promoting international co-operation on IPR enforcement issues in
both multilateral and bilateral frameworks.

Our Leaders hereby agree that to strengthen cooperation on IPR
issues to promote innovation and protect health and safety of
consumers, the United States and Japan will take the following
actions:


1. Closely cooperate on an early realization of an international
agreement to address the proliferation of counterfeit and pirated
goods;


2. Enhance U.S.-Japan efforts so as to increase awareness to combat
counterfeiting and piracy as well as to promote the strengthening of
IPR enforcement in the Asian region and around the world;


3. Information exchange through bilateral regular meetings to
promote IPR protection and enforcement around the world, and act
together against counterfeiting and piracy by promoting
international cooperation on IPR enforcement issues in multilateral
framework;


4. Increase cooperation to strengthen border enforcement of IPR,
including engagement in a joint IPR border enforcement action;


5. Create bilateral IP networks in our embassies in relevant third
counties to facilitate information sharing, delivery of joint
message, cooperation on training and technical assistance programs,
and assisting industry enforcement efforts; and


6. Promote public-private partnership to arrange joint conferences
or seminars to discuss IPR protection strategies.

SCHIEFFER