Identifier
Created
Classification
Origin
07TASHKENT292
2007-02-21 10:42:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Tashkent
Cable title:
SPECIAL 301 REVIEW: KEEP GOU ON WATCH LIST
how-toVZCZCXRO3024 PP RUEHDBU DE RUEHNT #0292/01 0521042 ZNR UUUUU ZZH P 211042Z FEB 07 FM AMEMBASSY TASHKENT TO RUEHC/SECSTATE WASHDC PRIORITY 7064 INFO RUEHAH/AMEMBASSY ASHGABAT 2559 RUEHTA/AMEMBASSY ASTANA 8631 RUEHEK/AMEMBASSY BISHKEK 3145 RUEHDBU/AMEMBASSY DUSHANBE 3023
UNCLAS SECTION 01 OF 02 TASHKENT 000292
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR SCA/CEN
E.O. 12958: N/A
TAGS: ECON ETRD KIPR UZ
SUBJECT: SPECIAL 301 REVIEW: KEEP GOU ON WATCH LIST
REF: STATE 7944
SENSITIVE BUT UNCLASSIFIED--PLEASE PROTECT ACCORDINGLY.
UNCLAS SECTION 01 OF 02 TASHKENT 000292
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR SCA/CEN
E.O. 12958: N/A
TAGS: ECON ETRD KIPR UZ
SUBJECT: SPECIAL 301 REVIEW: KEEP GOU ON WATCH LIST
REF: STATE 7944
SENSITIVE BUT UNCLASSIFIED--PLEASE PROTECT ACCORDINGLY.
1. (SBU) Summary: Post has seen minimal, if any, progress on
legislative changes to Uzbekistan's Intellectual Property
Rights (IPR) regime in 2006. The Government of Uzbekistan
(GOU) continues to delay reforming the civil, criminal and
administrative codes. Uzbekistan adhered to the Berne
Convention in 2005, but still holds a reservation to its
accession regarding Article 18. There has been little
movement on adopting the new Copyright Code, which adheres to
all international conventions and the WTO Trade Related
Aspects of Intellectual Property Rights (TRIPS) agreement.
Post agrees with the International Intellectual Property
Alliance's (IIPA) criticisms of the GOU's existing IPR regime
and agrees that Uzbekistan should stay on the Special 301
watch list. However, Post does not believe that revoking
General System of Preferences (GSP) privileges will lead to
further progress. End summary.
LEGISLATION: "WE'RE WORKING ON IT"
--------------
2. (SBU) Throughout 2006, the GOU showed no progress towards
World Trade Organization (WTO) accession. Accession remains
a long-term goal and the government is behind schedule. In
2005, Uzbekistan finally agreed to the Berne Convention, but
made a reservation to its accession regarding Article 18.
This reservation continues. (Note: Article 18 protects pre
existing works from the U.S. and all other Berne countries.
End note.)
3. (SBU) Because draft legislative codes are under
consideration in Parliament, USG-funded WTO technical
advisors currently are not working as closely with the GOU on
amending IPR-related legislation, such as the Criminal,
Administrative, and Civil Codes, as in the past.
COPYRIGHT CODE: "WE'RE WORKING ON IT"
--------------
4. (SBU) The GOU originally planned to pass a new Copyright
Code in August 2005. In May 2005, USAID hosted a conference
with international experts to advise the GOU on the draft
copyright law. The experts' suggestions were included and
the draft submitted to Parliament. However, the Parliament
has been revising it for over one year, and remains reluctant
to involve outside parties.
5. (SBU) As the USG and industry groups frequently point out,
the existing "Law for Copyright and Related Rights" does not
fully conform to the requirements of international
conventions, implementation of which is required by the WTO
TRIPS Agreement. The new version of the copyright law
provides for extended rights in accordance with the Berne and
Rome Conventions to the producers of phonograms, foreign and
Uzbek authors, performers and subjects of related rights.
CRIMINAL AND CUSTOMS CODE CHANGES: "WE'RE WORKING ON IT"
-------------- --------------
6. (SBU) Amendments to the Criminal Code affecting IPR were
proposed in 2004, but the Parliament has not officially
reviewed the draft law on changes to the legislation on IPR
enforcement.
7. (SBU) The draft Customs Code still has not been submitted
to the WTO and it appears the Uzbeks are stalling. In both
2005 and 2006, the GOU said the new edition of the Customs
Code would be adopted in 2006 and 2007 respectively.
ENFORCEMENT: "WE'RE WORKING ON IT"
--------------
8. (SBU) Uzbekistan is a poor country and despite GDP growth
officially reported around seven percent in 2006, poverty
figures have not improved, meaning that fewer people can
afford basic goods, let alone pirated goods. The GOU, in
order to restrict illicit trade and increase tax collection,
conducted a few raids in 2006 on retailers of optical disks
(music and computer CDs and DVDs) and videotapes. The Uzbek
Copyright Agency, in association with Microsoft's office in
Tashkent and the United Nations Development Program, held two
seminars for law enforcement agencies to discuss intellectual
property rights. Despite these actions, pirated music CDs,
cassettes, movies and computer software are still readily
TASHKENT 00000292 002 OF 002
available, at least in the capital, for approximately
$3.20-5.60 (4,000-7,000 soum). The majority of the black
market goods come from Ukraine and Russia, although an
increasing number of CDs come from Kazakhstan.
RESPONSE TO IIPA and IFPI: A REPEATING RECORD OF DELAYS
-------------- --------------
9. (SBU) Post agrees with IIPA's findings of problems in
Uzbekistan's legislative regime to protect intellectual
property rights. A prerequisite for fixing these problems is
engagement with the GOU. The U.S.-Uzbekistan bilateral
relationship deteriorated significantly following the May
2005 events in Andijon. Subsequently, the GOU has stopped
cooperation in many areas and is currently unwilling to
fruitfully engage with Post on IPR and WTO accession issues.
10. (SBU) Uzbekistan's problem with copyright piracy is with
the sale of pirated goods; not with production. Post
strongly disagrees with the International Federation of the
Phonographic Industry's (IFPI) estimate of losses due to
music piracy of USD 30 million. This does not take into
account the fact that very few Uzbeks, earning an average of
USD 50/month, could or would actually purchase a legal copy
of a CD. It is very possible that the U.S. music, video and
computer software industry suffers limited loss from sales of
pirated music, videos and computer programs in Uzbekistan, as
per capita income is too low to support purchases of legal
IPR products.
KEEP GOU ON WATCH LIST; MAINTAIN GSP PRIVILEGES
--------------
11. (SBU) There is no denying that the GOU has a long way to
go to be in compliance with all WTO TRIPS requirements.
However, the WTO advisor program has made limited but
effective progress in stimulating change within the GOU IPR
regime. We should allow this program more time before
imposing further penalties on Uzbekistan for lack of IPR
protection.
12. (SBU) Although we agree with IIPA that the GOU should
remain on the Special 301 Watch List, Post believes that
eliminating Uzbekistan's GSP privileges, as recommended by
IIPA, would be counterproductive at this time. Rather than
taking this step, Post believes we need to continue to engage
the GOU through the WTO process.
PURNELL
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR SCA/CEN
E.O. 12958: N/A
TAGS: ECON ETRD KIPR UZ
SUBJECT: SPECIAL 301 REVIEW: KEEP GOU ON WATCH LIST
REF: STATE 7944
SENSITIVE BUT UNCLASSIFIED--PLEASE PROTECT ACCORDINGLY.
1. (SBU) Summary: Post has seen minimal, if any, progress on
legislative changes to Uzbekistan's Intellectual Property
Rights (IPR) regime in 2006. The Government of Uzbekistan
(GOU) continues to delay reforming the civil, criminal and
administrative codes. Uzbekistan adhered to the Berne
Convention in 2005, but still holds a reservation to its
accession regarding Article 18. There has been little
movement on adopting the new Copyright Code, which adheres to
all international conventions and the WTO Trade Related
Aspects of Intellectual Property Rights (TRIPS) agreement.
Post agrees with the International Intellectual Property
Alliance's (IIPA) criticisms of the GOU's existing IPR regime
and agrees that Uzbekistan should stay on the Special 301
watch list. However, Post does not believe that revoking
General System of Preferences (GSP) privileges will lead to
further progress. End summary.
LEGISLATION: "WE'RE WORKING ON IT"
--------------
2. (SBU) Throughout 2006, the GOU showed no progress towards
World Trade Organization (WTO) accession. Accession remains
a long-term goal and the government is behind schedule. In
2005, Uzbekistan finally agreed to the Berne Convention, but
made a reservation to its accession regarding Article 18.
This reservation continues. (Note: Article 18 protects pre
existing works from the U.S. and all other Berne countries.
End note.)
3. (SBU) Because draft legislative codes are under
consideration in Parliament, USG-funded WTO technical
advisors currently are not working as closely with the GOU on
amending IPR-related legislation, such as the Criminal,
Administrative, and Civil Codes, as in the past.
COPYRIGHT CODE: "WE'RE WORKING ON IT"
--------------
4. (SBU) The GOU originally planned to pass a new Copyright
Code in August 2005. In May 2005, USAID hosted a conference
with international experts to advise the GOU on the draft
copyright law. The experts' suggestions were included and
the draft submitted to Parliament. However, the Parliament
has been revising it for over one year, and remains reluctant
to involve outside parties.
5. (SBU) As the USG and industry groups frequently point out,
the existing "Law for Copyright and Related Rights" does not
fully conform to the requirements of international
conventions, implementation of which is required by the WTO
TRIPS Agreement. The new version of the copyright law
provides for extended rights in accordance with the Berne and
Rome Conventions to the producers of phonograms, foreign and
Uzbek authors, performers and subjects of related rights.
CRIMINAL AND CUSTOMS CODE CHANGES: "WE'RE WORKING ON IT"
-------------- --------------
6. (SBU) Amendments to the Criminal Code affecting IPR were
proposed in 2004, but the Parliament has not officially
reviewed the draft law on changes to the legislation on IPR
enforcement.
7. (SBU) The draft Customs Code still has not been submitted
to the WTO and it appears the Uzbeks are stalling. In both
2005 and 2006, the GOU said the new edition of the Customs
Code would be adopted in 2006 and 2007 respectively.
ENFORCEMENT: "WE'RE WORKING ON IT"
--------------
8. (SBU) Uzbekistan is a poor country and despite GDP growth
officially reported around seven percent in 2006, poverty
figures have not improved, meaning that fewer people can
afford basic goods, let alone pirated goods. The GOU, in
order to restrict illicit trade and increase tax collection,
conducted a few raids in 2006 on retailers of optical disks
(music and computer CDs and DVDs) and videotapes. The Uzbek
Copyright Agency, in association with Microsoft's office in
Tashkent and the United Nations Development Program, held two
seminars for law enforcement agencies to discuss intellectual
property rights. Despite these actions, pirated music CDs,
cassettes, movies and computer software are still readily
TASHKENT 00000292 002 OF 002
available, at least in the capital, for approximately
$3.20-5.60 (4,000-7,000 soum). The majority of the black
market goods come from Ukraine and Russia, although an
increasing number of CDs come from Kazakhstan.
RESPONSE TO IIPA and IFPI: A REPEATING RECORD OF DELAYS
-------------- --------------
9. (SBU) Post agrees with IIPA's findings of problems in
Uzbekistan's legislative regime to protect intellectual
property rights. A prerequisite for fixing these problems is
engagement with the GOU. The U.S.-Uzbekistan bilateral
relationship deteriorated significantly following the May
2005 events in Andijon. Subsequently, the GOU has stopped
cooperation in many areas and is currently unwilling to
fruitfully engage with Post on IPR and WTO accession issues.
10. (SBU) Uzbekistan's problem with copyright piracy is with
the sale of pirated goods; not with production. Post
strongly disagrees with the International Federation of the
Phonographic Industry's (IFPI) estimate of losses due to
music piracy of USD 30 million. This does not take into
account the fact that very few Uzbeks, earning an average of
USD 50/month, could or would actually purchase a legal copy
of a CD. It is very possible that the U.S. music, video and
computer software industry suffers limited loss from sales of
pirated music, videos and computer programs in Uzbekistan, as
per capita income is too low to support purchases of legal
IPR products.
KEEP GOU ON WATCH LIST; MAINTAIN GSP PRIVILEGES
--------------
11. (SBU) There is no denying that the GOU has a long way to
go to be in compliance with all WTO TRIPS requirements.
However, the WTO advisor program has made limited but
effective progress in stimulating change within the GOU IPR
regime. We should allow this program more time before
imposing further penalties on Uzbekistan for lack of IPR
protection.
12. (SBU) Although we agree with IIPA that the GOU should
remain on the Special 301 Watch List, Post believes that
eliminating Uzbekistan's GSP privileges, as recommended by
IIPA, would be counterproductive at this time. Rather than
taking this step, Post believes we need to continue to engage
the GOU through the WTO process.
PURNELL