JORDAN IPR UPDATE: PROGRESS IN REVISING LAWS AND

UNCLAS AMMAN 002420 SENSITIVE SIPDIS STATE FOR NEA/ELA AND EEB STATE PLEASE PASS TO USTR (GROVES, FRANCESKI) STATE PLEASE PASS TO USPTO (LEIFMAN, REVES) STATE PLEASE PASS TO LOC (METZGER) STATE PLEASE PASS TO ICE (LOVETT) E.O. 12958: N/A TAGS: ECON ETRD KIPR JO SUBJECT: JORDAN IPR UPDATE: PROGRESS IN REVISING LAWS AND STRENGTHENING ENFORCEMENT CAPACITY REFS: A) AMMAN 2358 B) AMMAN 332 C) 07 AMMAN 36543 ¶1. (U) Summary: Jordan has continued to take a number of steps to enhance its legislation and increase its capacity to protect intellectual property rights (IPR). With USG assistance, the National Library drafted new amendments to its copyright law to bring it into full compliance with the U.S.-Jordan Free Trade Agreement (FTA). Jordan Customs Department also agreed to amend Article 41 of the Customs Law to ensure border authorities have "ex officio" IPR authorities in line with the FTA. Strengthening border enforcement was the theme of training provided to over 47 interagency government officials in July 2008 by the U.S. Patent and Trademark Office (USPTO),USAID, Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE). USPTO and USAID are also working with Jordan's Ministry of Industry and Trade to enhance the Information Technology (IT) systems that the Ministry uses in processing and examining trademark applications. These and previous efforts have contributed to IPR protection efforts in Jordan, evidenced by 179 copyright violations being referred to the court during the first half of 2008. End Summary. National Library to Amend Copyright Law -------------- ¶2. (U) Representatives from the Office of the U.S. Trade Representative (USTR) and Library of Congress (LOC) met July 20-23 with National Library officials to provide technical assistance in amending Jordan's Copyright Protection Law to ensure compliance with the FTA, a conditions precedent (CP) for FY2008 budgetary support provided by USAID in the form of a cash transfer. Amendments to six articles were drafted among others which clarified distinctions between ownership, authorship and subsistence; prohibited the creation of anthologies of copyrighted works as textbooks; and prohibited the manufacture and importation of devices designed to circumvent protective technological measures. The punishment for repeat offenders was also strengthened by requiring closure of the offending institution and suspending its business license. In addition, the National Library drafted a new article stating that �00A;only original or legitimate copies of software may be used by the government and that an annual audit must be conducted to ascertain license status. The article also states that if an illegitimate copy is found, the status must be rectified immediately. ¶3. (U) The next step for these amendments is review by the Legislation and Opinion Bureau and Cabinet approval before submission to parliament. All amendments have been the subject of discussion for several years and were on the agendas of several Joint Committee meetings. Both Jordanian and U.S. officials were pleased with the progress and far-reaching discussion on other topics such as internet service providers. Additional Progress on Customs and Standards Laws -------------- -------------- ¶4. (SBU) During their visit, USTR and LOC representatives also met with Jordan Customs Department (JCD) officials to discuss amendments to IPR provisions contained in Article 41 of the 1998 Customs Law No. 20, also a CP. The USG has long urged JCD to revise its law in order to bring it into compliance with the FTA, which under Article 4.26 requires that "each party shall provide, at least in cases of copyright piracy or trademark counterfeiting, that its authorities may initiate criminal actions and border measure actions ex officio, without the need for a formal complaint by a private party or right holder." Although JCD officials can currently seize counterfeit goods, they cannot initiate criminal proceedings absent a formal complaint by the rights holder. Often, because of the small size of Jordan's market and lengthy time and money prosecution can require, rights holders choose not pursue criminal action and the goods must be released back to the infringing importer under current law. JCD Director General Miteb Al-Zaben confirmed that the department is seeking to amend the law due to its ineffectiveness and the need for a stronger IPR enforcement role for customs officials. He further noted JCD is still looking at how best to accomplish that goal given certain capacity constraints, and welcomed the USG offer of technical assistance in drafting new amendments. ¶5. (SBU) The USG was also provided a new draft law for the Jordan Institute for Standards and Metrology (JISM). Submission of this law to parliament is another IPR-related conditions precedent. JISM Director General Yassin Khayyat stressed to Econoffs the importance of the law because it specifically gives JISM the authority to seize and destroy counterfeit products, whereas the current law only grants that authority if the products fail to meet Jordanian standards. Khayyat was hopeful that the law and an associated Accreditation Law, which aims to clarify standards and responsibilities for testing laboratories, would be submitted to Parliament in the fall session. He said the JISM law had already been reviewed by the Legislation and Opinion Bureau and would next be further examined by a ministerial committee before its submission. Border Enforcement Training with an Interagency Focus -------------- -------------- ¶6. (U) 47 Jordanian government participants, including 20 from Jordan Customs, seven from the National Library, eight from the Public Security Directorate (Jordan's police force),ten from JISM, and three from the Aqaba Special Economic Zone Authority (ASEZA) participated in a four-day workshop on border enforcement, funded by USPTO and USAID. Taught by USPTO, Customs Border Protection, and Immigration and Customs Enforcement (ICE) experts, the class provided practical, hands-on training in distinguishing fake from real goods. It also featured presentations from GOJ officials, including a judge, on the role of their respective agencies. A private sector panel comprised of local representatives from Microsoft, Caterpillar, and Chrysler promoted private-public partnerships as a means for fighting IPR crimes. The final day was conducted at the Amman Customs House and included searches of incoming container shipments. Based on the success of the workshop, the Head of the IPR Unit at Jordan Customs requested follow-on training, especially focused on how to identify counterfeit goods. Enhancements to Trademark Software -------------- ¶7. (U) Ari Leifman of USPTO met August 14 with Ministry of Industry and Trade (MoIT) Secretary General Montaser Oklah and Mamduh Al-Ksaibeh, Assistant Director of Industrial Property (the MoIT office responsible for patent and trademark registration),to discuss a USPTO-USAID project to enhance the IT systems that MoIT uses to process and examine trademark applications. The IT tools being developed in the current phase of the project are designed to assist MoIT in meeting the responsibilities it will assume once Jordan accedes to the Madrid Protocol. Oklah expressed his strong and enthusiastic support for the project. Oklah urged that staff be provided with guidance on the use of the IT tools to be developed via training and an Arabic-language manual. Additionally, Oklah stressed that the tools being developed through the project should be compatible with a much-delayed e-government initiative that MoIT has developed(ref C). Ksaibeh said that a date for accession to the Madrid Protocol was still unknown and that work was still on-going on the related regulations. Enforcement Efforts On-Going -------------- ¶8. (U) In the first six months of 2008, 179 violations of Jordan's current copyright law were referred to the judiciary. This level of cases is comparable to 2007 when 357 cases were referred to the courts (ref B). The majority of these cases were for the sale of technology, which allows the pirating of satellite television and for the sale of illegally copied CDs, DVDs, and computer software. National Library Director General Mamoun Talhouni recently told local press that the National Library has seen a significant drop in software piracy from 87 percent of software in 2002 to 60 percent in 2007, citing a study by the Business Software Alliance. Under current law, the judiciary has the authority to close stores and institutions violating copyright law after a final verdict. During discussions with USTR and LOC, National Library officials and judges said that they prefer to focus efforts on suppliers and wholesalers rather than individual stores and businesses. Individual private users cannot be charged with copyright violations in Jordan. ¶9. (SBU) Jordan's Pharmaceutical Research and Manufacturers of American (PhRMA) representative Samir Mansour informed Econoffs and USTR that PhRMA is currently satisfied with the level of cooperation and enforcement of IPR in Jordan (ref A). Mansour expressed some concerns regarding potential pricing changes in Saudi Arabia which could affect Jordan's pricing scheme for drugs, but said that communication with the Jordan Food and Drug Administration has been good. Ad-Dustour newspaper reported on August 19 that JFDA had destroyed counterfeit drugs worth $425,000 in 2008. Dr. Mohammed Al-Rhahleh, Regional Manager of Arab Federation for the Protection of Intellectual Property, separately told Econoffs that Jordan and the Arab world had a late start in IPR legislation and enforcement but that Jordan's government has made good progress. He admitted that public awareness is still a challenge in Jordan and that infringers tend to argue that IPR only benefits western nations, but he said the government is solidly on the side of protecting IPR. Visit Amman's Classified Website at http://www.state.sgov.gov/p/nea/amman BEECROFT