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
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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
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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
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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
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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
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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

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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
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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