1. (SBU) Summary: Post recommends that Pakistan be elevated to the
Priority Watch List (PWL) at the conclusion of the 301 Review
process. Although some progress was made on data protection in the
fall, forward movement seems to have stalled. The combination of
lack of progress on data protection and no significant progress in
other areas leads us to recommend elevation of Pakistan to Priority
Watch List status. End Summary.

Data Protection


--------------------------





2. (SBU) Pakistan first promised to pass TRIPS-consistent data
protection legislation in 2006. While there was some progress on
legislation in the fall of 2007, the amendment to the 1976 Drugs Act
is now stalled in disagreements between the Ministry of Health
(MOH), Ministry of Law (MOL) and various industry stakeholders over
the definition of "new chemical entity." In early January, the
Ministry of Law returned the draft amendments to the stakeholders to
revisit the definition of "new chemical entity" with instructions to
hold another stakeholders meeting (domestic and foreign
pharmaceutical companies) to discuss the definition.



3. (SBU) Despite the Embassy's frequent urging to hold the
stakeholders' meeting as soon as possible and finalize the
legislation, the meeting tentatively set for March 1 has not yet
taken place and no firm date has been set. A complicating factor is
that Pakistan is in the last days of a caretaker government. The
Embassy continues to press for finalization of data protection
legislation.



4. (SBU) Pakistan's foreign pharmaceutical companies continue to
believe that imperfect data protection is better than none at all,
and are reassured that they will have additional opportunities to
strengthen data protection through the issuance of implementing
regulations and renewal of the ordinance every four months. They
have been showing remarkable flexibility. An ordinance may be
amended prior to renewal. The domestic pharmaceutical industry is
well-connected politically. At the same time, the European embassies
are not advocating for their companies, despite our overtures to the
appropriate embassies.

FIA seeking regulatory changes


--------------------------





5. (SBU) The Federal Investigative Agency (FIA) IPR enforcement
unit is seeking regulatory changes from the Ministry of Interior to
pursue trademark piracy. These changes, which FIA hopes will be
finalized in the next few months, will allow FIA to pursue trademark
piracy. Trademark piracy is rampant in Pakistan. Private sector
companies, most prominently Levi Strauss, have already expressed
interest in cooperating with FIA to pursue trademark pirates.

IPO still ineffective


--------------------------





6. (SBU) We continue to work proactively with Pakistan's
Intellectual Property Organization and hope to include them in the
planning of the Embassy awareness seminar, now set for May 11 in
Lahore. The IPO Director General has distanced himself from the data
protection debate when the IPO should have encouraged the Ministry
of Health to finalize the amendments to the 1976 Drugs Act so that
Pakistan may meet its TRIPs commitments. The new Chairperson has
been consumed by his other professional responsibilities, and the
Board has still not met. There is no progress on institution of a
patent linkage system.

Comment


--------------------------





7. (SBU) Comment: Given the lack of progress on data protection,
we recommend that Pakistan be elevated to the priority watch list.
We continue to actively pursue opportunities for training, public
awareness, and media outreach. Once the new government is formed,
we will highlight the importance of a robust intellectual property
rights regime and continued enforcement for the growth of Pakistan's
knowledge-based economy and protection of its artistic patrimony.
End comment.

PATTERSON