GUATEMALA SPECIAL 301 INITIATIVE UPDATE

UNCLAS GUATEMALA 002388 SIPDIS SENSITIVE SIPDIS DEPT PLS PASS TO USTR - JENNIFER CHOE GROVES E.O. 12958: N/A TAGS: ECON ETRD KIPR PGOV SUBJECT: GUATEMALA SPECIAL 301 INITIATIVE UPDATE REF: A. STATE 158938 ¶B. STATE 107629 ¶1. (SBU) Summary: In 2007, Guatemala conducted a record number of raids against IPR violators and obtained 23 convictions in IPR cases. However, implementation of IPR laws remained weak due in large part to a lack of coordinated action by Guatemalan law enforcement authorities. Guatemala met one of the main goals of the USG Special 301 intellectual property action plan when it suspended consideration of a rule that would have reduced the protection of medical test data submitted to obtain market approval. While it is not yet clear how the incoming Colom Administration will address IPR enforcement when it assumes power in January 2008, GOG technical-level contacts developed through Special 301-focused engagement and numerous U.S.-sponsored training classes in 2007 will continue to play an important role in strengthening IPR enforcement in Guatemala. End Summary. IPR Prosecutions Lacking ¶2. (U) The IPR Prosecutors Office in the Public Ministry (MP) gave us a report on December 13, 2007, noting that complaints of IPR violations increased 75 percent from the prior year, from 144 in 2006 to 252 in 2007. From these complaints, Guatemalan authorities were able to conduct 52 raids focused on sellers of pirated CDs, DVDs, clothes, shoes, books, and medicines. The raids resulted in 23 convictions with sentences ranging from 1 to 17 years in prison and fines between $6,500 and $9,000. ¶3. (SBU) Industry sources believe that IPR enforcement was tepid and that the limited number of IPR raids and court cases in 2007 should have been considerably greater. An apparent difficulty has been the inability of the MP and Ministry of Government (MG) to coordinate their actions to pursue large manufacturers and suppliers of counterfeit products. Minister of Government Adela de Torrebiarte pledged in June 2007 to expand coordination between the National Civilian Police (PNC) and the MP to enforce IPR laws. Industry reps, however, argue that cooperation between these two key ministries was lacking throughout the year. For example, in December 2007, the MP alleged that Torrebiarte denied a request by the IPR Prosecutor to initiate a raid against a large warehouse of counterfeit products citing lack of information and advance coordination. ¶4. (SBU) In October 2007, a local IPR association, Fomento a la Propiedad Intelectual (FOMPI),expressed to us its frustration with the MP and MG,s lack of interest in IPR cases. Ms. Norma Bonilla, the prosecutor assigned in August 2007 to head the IPR enforcement office in the MP, reportedly stopped accepting evidQ of IPR violations provided by FOMPI. Bonilla claimed duringQOctober 19, 2007 digital video conference (DVC) between IPR officials from the GOG and USG that industry was not providing sufficient evidence or experts to help pursue IPR cases. In November, Embassy officials expressed concern to the MP,s technical coordinator Mario Falla over the lack of information and progress shown by IPR Prosecutor Bonilla and were informed that a replacement will be named in 2008. Health Ministry Moves Forward ¶5. (SBU) The Guatemalan Ministry of Public Health (MOH) announced during the October 19th DVC that it had suspended consideration of a rule that would have reduced the protection of medical test data submitted to obtain market approval. Had the rule been adopted, it would have undermined Guatemala's compliance with its CAFTA commitment to protect test data. USG advocacy led to the eventual withdrawal of this proposed rule change. ¶6. (U) The MOH has now gone a step further and is working Q6. (U) The MOH has now gone a step further and is working with pharmaceutical research companies in Guatemala to develop a database of medical patents that will help companies registering for approval of new drugs and products to more efficiently identify existing patents. The MOH submitted the proposal to the Ministry of Economy; however, no formal response is expected before 2008. US Engagement Critical ¶7. (U) The USG provided training for IPR officials throughout the year and helped to raise IPR awareness through consultations with ministerial and working level contacts. In January, Econoff worked with the USDOJ to organize an in-country workshop for IPR prosecutors, judges, and law enforcement officials that resulted in the creation of a handbook for combating IPR crimes. In May, DHS/ICE hosted a number of GOG officials at a regional conference on IPR enforcement in El Salvador. In September, two Guatemalan judges attended a training program for judges at the U.S. Patent and Trademark Office (USPTO) Global IP Academy in Virginia, and two customs officials attended a USPTO Roundtable on Border Enforcement of IPR in Miami, Florida. The American Chamber of Commerce launched a five-month training program for IPR judges and prosecutors in partnership with the USPTO and a local university. The program will provide educational credit to participants. In November, post sent the ranking professional staff member from the office of the IPR Prosecutor to attend a USPTO program focused on improving the investigation and development of IPR cases. Most of the officials trained throughout the year should remain in their positions after the change of government in 2008. ¶8. (SBU) Comment: While the MOH made progress toward improving enforcement of IPR laws in 2007, the Special 301 initiative highlighted the lack of coordination between the two key GOG entities involved in the enforcement of IPR laws - the IPR Prosecutor's Office in the Public Ministry and the Ministry of Governance/Police that continues to be a problem. The Embassy will engage the new IPR prosecutor and Ministry of Government to enhance coordination between their offices and build links to other IPR actors, such as the Tax Administration and Judicial Organization, to continue to strengthen enforcement of IPR laws in Guatemala. Derham