AZERBAIJAN: 2008 SPECIAL 301 REPORT SUBMISSION

UNCLAS BAKU 000172

SIPDIS

SENSITIVE
SIPDIS

DEPT PLEASE PASS TO EUR/CARC, EEB/IPE

E.O. 12958: N/A
TAGS: ETDR ECON KIPR USTR WTRO PGOV PREL AJ
SUBJECT: AZERBAIJAN: 2008 SPECIAL 301 REPORT SUBMISSION

REF: A) STATE 9475 B) 07 BAKU 1489

SENSITIVE BUT UNCLASSIFIED. NOT FOR INTERNET DISTRIBUTION.


1. (U) Based on the GOAJ's endeavors to improve intellectual
property rights (IPR) legislation, enforcement, and human
capacity in 2007, and the lack of nominations and complaints
from the private sector, Embassy Baku recommends that
Azerbaijan remain off the Special 301 Watch List in 2008.
Building on their efforts in 2007 (reftel B),in early 2008,
the GOAJ continued to fund GOAJ employees' travel to the
United States for U.S. Patent and Trademark Office (USPTO)
training, submitted additional IPR legislative drafts to the
World Trade Organization (WTO) and U.S. Trade Representative
(USTR) for review, continued efforts to improve IPR
enforcement, and have committed to host one local and one
international IPR conference in the spring.


2. (U) American companies operating in Azerbaijan like
Coca-Cola, Proctor and Gamble, and SilverKey confirmed that
it is increasingly difficult to find counterfeit products in
Azerbaijan, although some counterfeit software and optical
media is still easily purchased in some locations in Baku.
(Note: The owner of Azerbaijan's two largest optical media
chain stores requested Embassy assistance to purchase
licensed media. Despite his attempts to reach out to
companies, many remain unresponsive because of Azerbaijan's
relatively small market.) Some U.S. and foreign companies
credit specific GOAJ agencies for improving enforcement;
however, others assert that while the GOAJ is increasingly
aware of IPR, official efforts are motivated by corruption
rather than respect for IPR, and legitimate efforts are
limited by lack of understanding, lack of capacity and lack
of IPR public education.

Understanding and Benefiting from IPR
--------------


3. (SBU) Azerbaijan's Copyright Agency, which is responsible
for drafting much of Azerbaijan's new IPR legislation aimed
at strengthening administrative, civil law and court
procedures to improve IPR in Azerbaijan, is attempting to
play an international role by addressing what it alleges is
an violation of musical copyright based on a CD produced in
the U.S. and labeled as "Armenian" rather than "Azerbaijani."
Since appeals to the World Intellectual Property
Organization (WIPO) have gone unanswered, the Copyright
Agency corresponded with the Embassy about the case, and
later announced to the media that it intends to pursue a
civil law suit in the U.S. as the USG recommended. (Comment:
While the GOAJ's primary goal in filing this suit likely was
related to the ongoing Nagorno Karabakh conflict, the
agency's press announcement highlighted for the general
public the importance and benefits of IPR.)

Comment
--------------


4. (U) Azerbaijan has contributed resources and taken steps
towards improving the IPR situation in the country. In 2008,
the Embassy will continue to monitor passage into law of the
IPR draft legislation, enforcement efforts, and public
awareness events. The GOAJ has requested training from U.S.
IPR experts to be hosted in Azerbaijan to reach a wider
audience, including both officials and the public. The
Embassy would welcome and support a USG-sponsored and
locally-hosted training seminar.




DERSE