EGYPTIAN ECONOMIC REFORMERS ENCOURAGE FURTHER IPR

UNCLAS CAIRO 000678 SIPDIS SIPDIS USTR FOR SAUMS COMMERCE FOR OBERG AND ITA/MAC/OIPR PETERS NSC FOR WATERS E.O. 12958: N/A TAGS: ECON ETRD KIPR EG SUBJECT: EGYPTIAN ECONOMIC REFORMERS ENCOURAGE FURTHER IPR PROGRESS REF: A. CAIRO 478 ¶B. STATE 7944 ¶C. 2006 CAIRO 1262 ¶1. (SBU) SUMMARY: FOLLOWING ON POST'S RECOMMENDATION TO MOVE EGYPT FROM THE SPECIAL 301 PRIORITY WATCH LIST TO THE WATCH LIST (REFTELS),WE HAVE INITIATED A NUMBER OF DISCUSSIONS ON INTELLECTUAL PROPERTY RIGHTS WITH THE GOE AND BUSINESS GROUPS AS PART OF OUR ON-GOING ADVOCACY FOR IPR PROTECTION IN EGYPT. TARGETING THOSE OFFICIALS AND INSTITUTIONS MOST LIKELY TO EFFECT POSITIVE CHANGE, WE BELIEVE THAT THE GOE IS DETERMINED TO IMPROVE EGYPTS IPR PROTECTION REGIME, WHICH IN THE PAST HAS FALLEN WELL BELOW INTERNATIONAL STANDARDS. END SUMMARY. ¶2. (SBU) ON MARCH 11, FCS COUNSELOR CALLED ON GABER ASHFOUR, SECRETARY GENERAL OF THE SUPREME COUNCIL OF CULTURE, TO SEEK SIPDIS HIS ASSISTANCE IN PREVENTING THE ILLEGAL COPYING AND SALE OF PRODUCTS PRODUCED BY THE AMERICAN GAME SOFTWARE COMPANY ELECTRONIC ARTS. IN THE PAST, THE COUNCIL HAS CERTIFIED THAT PIRATED SOFTWARE HAS BEEN CLEARED BY EGYPTIAN CENSORS, WHICH RETAILERS HAVE TAKEN AS DE-FACTO GOE APPROVAL FOR THE PIRATED GOODS, EVEN THOUGH THE COUNCIL'S OWN REGULATIONS PROHIBIT CERTIFICATIONS OF ILLEGAL PRODUCTS. DURING THE MEETING, ASHFOUR GAVE IMMEDIATE ORDERS TO THE CENSORSHIP DEPARTMENT TO CANCEL ANY LICENSE ISSUED TO ANY LOCAL COMPANY TO DISTRIBUTE PIRATED EA PRODUCTS. ¶3. (SBU) ASHFOUR ALSO INSTRUCTED THE EGYPTIAN CENSORSHIP AUTHORITY TO CONFISCATE ALL PIRATED COPIES IN THE MARKET. (COMMENT: PIRATED EA SOFTWARE PRODUCTS ARE SOLD THROUGHOUT EGYPT, AND WE WILL BE STARTLED IF THIS ORDER IS IMPLEMENTED IMMEDIATELY AND THOROUGHLY. HOWEVER, WE ARE ENCOURAGED BY ASHFOURS PROMISE AND WILL FOLLOW UP WITH THE CENSORSHIP AUTHORITY CLOSELY.) ¶4. (SBU) SEPARATELY, THE AMBASSADOR RAISED EA'S CONCERNS WITH MINISTER OF TRADE AND INDUSTRY RACHID RACHID IN A MEETING ON MARCH 11. RACHID INDICATED THAT HE UNDERSTOOD THE IMPORTANCE FOR EGYPTIAN TRADE AND ECONOMIC GROWTH OF EGYPT'S ADHERENCE TO ITS WTO IPR OBLIGATIONS AND PLEDGED TO RAISE THE ISSUE WITH MINISTER FOR COMMUNICATIONS AND INFORMATION TECHNOLOGY TAREQ KAMEL. ¶5. (SBU) ON MARCH 6, ECONOFF AND FCS SPECIALIST JOINED IN A MEETING BETWEEN ELECTRONIC ARTS REPRESENTATIVES AND THE INFORMATION TECHNOLOGY INDUSTRY DEVELOPMENT ASSOCIATION (ITIDA),WHICH HAS RECENTLY RECEIVED THE GOE MANDATE FOR ENFORCING PROHIBITIONS ON SOFTWARE PIRACY. ITIDA AGREED DURING THE MEETING TO GIVE AN EXPERT OPINION ON THE ILLEGALITY OF PIRATED SOFTWARE PRODUCTS IN A LONGSTANDING EA EGYPTIAN COURT CASE AGAINST AN ILLEGAL SOFTWARE PRODUCER. ITIDA OFFICIALS SAID THEY VIEWED THE PROTECTION OF IPR AS A CENTRAL PART OF THEIR MISSION TO DEVELOP THE INFORMATION TECHNOLOGY INDUSTRY IN EGYPT. ¶6. (U) FCS CO-SPONSORED THREE SEMINARS ON "INTELLECTUAL PROPERTY IN THE GLOBAL MARKETPLACE" WITH THE U.S. PATENT AND TRADEMARK OFFICE FEB. 19-21 IN CAIRO AND ALEXANDRIA. SOME GOVERNMENT OFFICIALS AT THE SEMINARS WERE A HARD SELL -- FOR INSTANCE, ONE PUBLIC PROSECUTOR ARGUED THAT IPR PROTECTION ISN'T RELEVANT FOR DEVELOPING ECONOMIES SUCH AS IN EGYPT. OTHER GOVERNMENT REPRESENTATIVES WERE SYMPATHETIC AND REQUESTED FURTHER TRAINING ON IPR. THE EGYPTIAN BUSINESS REPRESENTATIVES WERE IN GENERAL WELL ATTUNED TO THE IMPORTANCE OF THE ISSUE FOR THE EGYPTIAN ECONOMY. ¶7. (SBU) COMMENT: WE CLEARLY HAVE MUCH WORK TO DO IN ADVOCATING FOR IMPROVED IPR PROTECTION IN EGYPT. AS THESE DISCUSSIONS INDICATE, HOWEVER, WE SEE ENCOURAGING SIGNS AND INCREMENTAL PROGRESS FROM THE GOE AND EGYPTIAN BUSINESS COMMUNITY. WE SHARE THE BELIEF OF PHRMA AND SOME OTHERS IN THE US IPR INDUSTRY THAT THE BEST WAY TO ENCOURAGE FURTHER PROGRESS IN EGYPT IS TO SIGNAL OUR WILLINGNESS TO WORK WITH THOSE IN THE GOE WHO ARE SAYING AND DOING THE RIGHT THINGS. RICCIARDONE