VIETNAM PROPOSAL FOR FY 2008 IPR OUTREACH PILOT PROGRAM

UNCLAS SECTION 01 OF 02 HANOI 000996 STATE FOR EAP/MLS AND EEB/TPP/IPE JURBAN STATE FOR EEB/TPP/IPE FOR HALLOCK, WATTS, AND KEAT STATE PASS USTR JCHOE-GROVES, DBISBEE AND RBAE AMEMBASSY BANGKOK FOR USPTO JNESS SIPDIS E.O. 12958: N/A TAGS: EAID KIPR ECON ETRD VM SUBJECT: VIETNAM PROPOSAL FOR FY 2008 IPR OUTREACH PILOT PROGRAM REF: (A) 08 STATE 58059 (B) 08 HANOI 602 HANOI 00000996 001.2 OF 002 ¶1. Mission Vietnam is pleased to submit a program proposal for consideration by EEB as part of the 2008 IPR Outreach Pilot Program (REF A). This proposal follows on our May 16, 2008 Roundtable with U.S. business representatives in Vietnam (REF B) and consultations with the Government of Vietnam's (GVN) National Office of Intellectual Property (NOIP),National Copyright Office (COV),and the Ministry of Industry and Trade's (MOIT) Market Management Bureau (MMB). ¶2. Previous IPR outreach efforts identified weak enforcement of Vietnam's laws; low, non-deterrent penalty levels; a lack of expertise throughout the ranks of Vietnamese authorities; and low levels of public awareness as the most critical impediments to the protection of intellectual property rights (IPR) in Vietnam (REF B). Officials from Vietnam's Market Management Bureau, which has primary oversight for IPR law enforcement policies, say that enforcing IP laws is complicated by the lack of understanding among retailers of their legal obligations and the economic impact upon the IP holders from the sale of counterfeit goods. This is not necessarily limited to small mom-and-pop establishments; Market Watch officials tell us that some of Vietnam's largest retailers, including foreign-owned megastores, routinely peddle illicit goods. ¶3. This outreach project would pursue a general awareness campaign and serve as a "fair warning" to retailers known to carry illicit goods, while serving as a starting point for a broader anti-counterfeit effort throughout Vietnam's retail sector. Bilateral engagement on the project could help yield improvements as Vietnam grapples with the challenges of implementing its many new IPR commitments. PROJECT OVERVIEW -------------- ¶4. In conjunction with Market Management, Post proposes to develop a booklet on IPR and counterfeit goods. The booklet would contain straightforward information on illicit goods and explain why intellectual property rights are important to Vietnam and its citizens and why Vietnam and its citizens should protect IPR. The brochure would define a counterfeit good, describe the legal and economic consequences of peddling such wares, suggest locations where vendors could obtain legitimate goods for sale to consumers, and list contact information for IP-related departments and agencies in Vietnam to assist retailers and consumers who would like to report counterfeit products or learn more. ¶5. Market Watch authorities would distribute the booklet to retailers and provincial consumer protection associations in areas with high rates of counterfeit goods during information sessions. MMB would also publish the information on their website. ¶6. The booklet's publication and initial distribution would be accompanied by a press release coordinated through the Embassy's Public Affairs Section. If the project proves successful and supplemental funding allows, Post would expand the effort to reach small, family-owned stores - the core of Vietnam's retail sector. ¶7. Post would monitor results by tracking the number of brochures distributed, gathering feedback from participants of the program, including retailers who receive the booklet, comparing before and after rates of enforcement by Market Watch authorities, and monitoring related press coverage and web traffic at the booklet's internet site. PROJECT BUDGET -------------- ¶8. Post proposes the following project budget: - Develop, edit, type, print and bind 2,000 thousand copies of a 16-page booklet: $13,125 - Provincial information sessions with retailers and consumer protection associations (64 provinces): $3,000 PROJECT TIMELINE -------------- ¶9. Post proposes the following project timeline: - August 15 to September 12: Information product development HANOI 00000996 002.2 OF 002 - September 15 - September 30: Booklet printing / shipping - October 1 - December 31: MMB authorities conduct information sessions with local retailers and consumer protection associations and distribute booklets - November 1 - March 31: Results monitoring - April 15: Results monitoring report complete. Submit results to EEB. ¶10. Please direct questions to Economic Officer Jeff Bowan (BowanJD@state.gov). MICHALAK 1