PAKISTAN IPR UPDATE

UNCLAS SECTION 01 OF 02 ISLAMABAD 002632 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON ETRD EFIN EINV KIPR PGOV PK SUBJECT: PAKISTAN IPR UPDATE REF: A) ISLAMABAD 996 B) ISLAMABAD 1898 Summary - - - - ¶1. (SBU) The following is an update on IPR issues in Pakistan. Given energy and food shortages, rampant inflation, and an unstable security situation, IPR falls low on the GOP list of priorities. No progress has occurred on TRIPS-compliant data protection legislation since the coalition government took office in March. Working with the U.S. Patent and Trademark Office, Post has sent several GOP officials to judicial, copyright, patent and trademark training in the United States. Post successfully organized its first IPR public awareness seminar in Lahore in May 2008. Pakistan's Federal Investigation Agency has been active against book piracy in recent months, although successful prosecution of piracy cases remains low. End summary. IPR Awareness Seminar - - - - - - - - - - - ¶2. (U) Post held its first IPR public awareness seminar in Lahore in May 2008 attracting over 100 participants (Ref. B). The seminar focused on copyright issues and was well received by the audience - which included members of government and the business community, academics and students - and also received good coverage by the local press. Speakers were drawn from government, the business community and regional USG experts who all expressed their appreciation and desire to see more IPR seminars. Training and Capacity Building - - - - - - - - - - - - - - - - ¶3. (U) Working with the U.S. Patent and Trademark Office (USPTO) and DOC's Commercial Law Development Program (CLDP),Post identified candidates and facilitated travel for participants for seven different training programs, including two programs for judges, as well as copyright, trademark and patent programs. Post continues to work with USPTO and CLDP to identify effective training programs and find travel funding for potential participants. FIA Still Active - - - - - - - - - - ¶4. (U) The Federal Investigation Agency (FIA) remains a relative bright spot in Pakistan's otherwise bleak IPR enforcement landscape. FIA has raided six book retailers in past months and seized 20,000 pirated books in the most recent raid alone. In 2005 and 2006, FIA made considerable headway in the area of optical disc piracy (over 400,000 pirated discs seized and six pirate optical disc manufacturers shut down in 2005 alone) but despite repeated requests Post has not received any information on recent raids. In 2007 activity slowed and FIA only filed 8 cases, however, FIA has filed 10 new cases thus far in 2008. (Comment: Case prosecution statistics demonstrate the need for judicial capacity building. Out of over 50 cases filed by FIA since 2005, only a handful have resulted in convictions, and of those, the fines are usually in the range of USD 500, which hardly provides any deterrent against IPR crime.) Data Protection - - - - - - - - ¶5. (U) Pakistan first promised to pass TRIPS-consistent data protection legislation in 2006, but since the new coalition government has taken office, the amendment to the 1976 Drugs Act has completely stalled. Disagreements remain between the Ministry of Health (MOH),Ministry of Law (MOL) and various industry stakeholders about the definition of "new chemical entity." In early January, the Ministry of Law sent draft amendments to a newly formed ministry, the Planning and Development Division, which had previously not been involved with IPR. The Ministry of Law requested a stakeholders meeting to be held on or before March 1, to include both domestic and foreign pharmaceutical companies, in order to discuss the definition of "new chemical entity." The meeting did not take place, and no further action has occurred. Post repeatedly warned the GOP that failure to pass this amendment could lead to elevation to the USTR 301 Report Priority Watch List (Ref. A),but since the April announcement that Pakistan was indeed elevated to the Priority Watch List, there has been no progress on the data protection amendment. Post has emphasized to GOP officials that passage of this amendment would go far in rebuilding trust and ISLAMABAD 00002632 002 OF 002 momentum on IPR issues and would be an important step towards getting Pakistan off the Priority Watch List. ¶6. (SBU) A Post contact in the pharmaceuticals industry said the amendment seemed to have been "put in a box and forgotten." Lack of progress on the amendment combined with concerns over local pricing and production has prompted some foreign pharmaceutical manufacturers to begin questioning expansion and current levels of investment in Pakistan. Pharmaceutical company representatives continue to press the GOP on the data protection issue. ¶7. (SBU) Pakistan's Intellectual Property Organization (IPO) continues to be ineffectual and has shifted ownership of the data protection issue entirely to the Ministry of Health. IPO has little to no public visibility on any other IPR related issues. (Comment: There is speculation that the current Director General, Yasin Tahir, may retire this fall, which could open the way for new blood and a fresh mandate for the organization. End comment.) Comment - - - - ¶8. (SBU) The announcement of Pakistan's elevation to USTR's 301 Priority Watch List has been met with apathy from the GOP overall and frustration from officials in FIA which has continued its anti-piracy efforts, and has been particularly demoralized by the listing. The new government has not made any comment on the elevation nor announced a formal position on IPR issues, and it too often seeks to assuage USG concerns by highlighting enforcement actions against manufacturers and sellers of such items as fake shoes and beverages - items with low research and development-related costs. Post continues to press the GOP on data protection. Post will use the upcoming Economic Dialogue to engage with the GOP on the importance attached to IPR and to encourage the GOP to move ahead expeditiously with IPR reforms. End comment. BODDE