EMBASSY ABU DHABI COMMENTS ON SPECIAL 301 REVIEW

UNCLAS SECTION 01 OF 02 ABU DHABI 000298

SIPDIS

DEPT PASS TO USTR

STATE FOR EB/IPE FOR BOGER
PASS TO USTR JCHOE-GROVES, DOC CPETERS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: KIPR PREL ETRD AE
SUBJECT: EMBASSY ABU DHABI COMMENTS ON SPECIAL 301 REVIEW

REFS:A) SECSTATE 1800821

B) ABU DHABI 231
C) 06 ABU DHABI 3417
D) 06 DUBAI 6928
E) 06 DUBAI 3360
F) 06 DUBAI 326

ABU DHABI 00000298 001.2 OF 002



1. (SBU) Summary: The UAE Government remains strongly committed to
protecting intellectual property rights (IPR). The UAE continues to
enforce copyright, trademark, and patent laws passed in 2002 to
protect U.S. intellectual property, and remains committed to the 2002
agreement providing TRIPS-plus levels of protection to U.S.
pharmaceuticals. In 2006, the UAE enacted the E-Commerce law and the
Anti-Information Technology Crimes law to combat counterfeiting of
websites used in phishing schemes. Additionally, the UAE conducted a
number of high-profile raids to arrest merchants involved in all
forms of piracy. In 2006, the Ministry of Economy met with the
Arabian Anti-Piracy Alliance, Econoff and stakeholders to discuss
ways to increase protection of IPR. Some property rights holders
have expressed concern about the use of the UAE as a transshipment
point for IPR counterfeit products. UAEG officials have also
expressed the same concern. The Mission has engaged on behalf of
rights holders, and the USG has provided IPR training for UAE
officials. Post recommends that the UAE not be included in the
Special 301 Watch list this year. End summary.


TRIPS Compliance
--------------


2. (U) In 2006, the UAEG continued to expand the scope of the
copyright, trademark, and patent laws issued in 2002 (that exceed the
UAE's TRIPs obligations) by issuing two new regulations: the
E-Commerce law and the Anti-Information Technology Crimes law to
combat counterfeiting of websites used in phishing schemes.

Enforcement
--------------


3. (SBU) Stakeholders have told Post that the UAEG has conducted
numerous raids on pirated compact discs and business software
throughout the UAE based on information provided to local authorities
by the individual stakeholders. AAA reported to Econoff that at
least 169,453 pirated DVDs were seized by the UAE in 2006. Periodic
articles in the local newspapers of raids and arrests of
counterfeiters indicate that the authorities take seriously their
responsibility to reduce the trade of counterfeit goods in the UAE
and do not hesitate to publicize the results of enforcement actions.
The following are a few examples of reports appearing in local media:

-- In March 2006, the Dubai Court sentenced an owner of an
electronics store to three months in jail and fined him $14,000 for
breaching the UAE's IPR laws. The owner of the store was convicted
for selling receivers that unblock scrambled TV satellite channels.
The Court also ordered the store's closure for three months and
confiscated the cards and receivers used in the piracy.

-- In May 2006, The IPR section of Dubai Customs, in collaboration
with the Ministry of Health, confiscated "significant quantities" of
counterfeit Panadol.

-- In June 2006, UAE Customs officials seized counterfeit goods worth
more than $2 million; including electronics, spare parts, cosmetics,
and medicines. According to the press, the total amount of goods
seized since February 2006 until June 2006 was $3.5 million.

-- In July 2006, Dubai Customs seized counterfeit goods worth over
$3.8 million.

In addition, Post is aware of other raids throughout 2006 that were
not reported in the press that AAA and industry stakeholders
coordinated with UAEG officials.


4. (U) In an effort to crack down on door-to-door vendors selling
optical media, the Dubai Department of Economic Development continued
to impose fines on restaurant and caf owners if it found vendors
selling pirated CDs in their establishments. Many restaurants have
warning signs, with the Dubai police logo, highlighting the penalties
for sales of pirated CDs.


5. (U) According to statistics from the Intellectual Property Rights
and Intervention Departments of Dubai Customs, between February and
June of 2006, Dubai Customs seized 2,212,147 cartons containing
counterfeit goods. The bulk of the containers were intercepted at
the Customs centers at the Jebel Ali Port and Dubai International

ABU DHABI 00000298 002.2 OF 002


Airport. The majority of the goods came from the Far East, followed
by Central Asia and Africa.

Industry Officials Pleased with UAE Progress
--------------


6. (SBU) Copyright industry officials have generally expressed
pleasure with progress the UAE has made in the realm of IPR
enforcement. The CEO of AAA (which represents the Motion Picture
Association of America) said he would oppose placing the UAE on the
Special 301 watch list. He said that placing UAE on the watch list
would provide a disincentive to other countries in the region from
making improvements. He explained that he needs to be able to make
the point to other countries that by addressing IPR concerns, they
can be removed from the watch list, and he points to UAE as an
example.


7. (SBU) AAA's CEO said the UAE is actively involved in fighting
piracy and that tremendous strides have been made in the UAE in 2006
with numerous raids being conducted and pirates being shut down. AAA
is very pleased with the coordination between the Ministry of
Economy, police, customs and stakeholders to fight piracy throughout
the UAE. AAA estimates that the copyright piracy rate in the UAE is
34 percent, by far the lowest in the region. AAA holds the UAE as a
model in the region and wishes other countries would follow the UAE's
lead in fighting piracy.

Recommendation: No Watch list
--------------


8. (SBU) Embassy officials believe that the UAE should remain off the
Special 301 Watch list. We agree that there is room for improvement.
We support the idea of encouraging the UAEG to provide IP owners
information that would permit them to pursue the producers and
manufacturers of pirated goods in source countries. However, we note
that the UAE has taken considerable strides in enforcing IPR
regulations, prosecuting violators, and publicizing law enforcement
actions. In 2006, several UAEG officials attended IPR trainings
conducted by the U.S. Patent and Trademark Office demonstrating their
commitment to improving their knowledge and performance on IPR
issues. The UAE is a solid partner in IPR enforcement, and we want
to continue to work with the government and industry and to encourage
them to further their efforts. The U.S. and the UAE made good
progress on IPR issues during FTA negotiations and are looking for
ways to solidify that progress.
SISON