ARAB LEAGUE CONVENES FIRST CONSUMER AND BRAND

C O N F I D E N T I A L SECTION 01 OF 02 RIYADH 001630 SIPDIS USTR FOR JASON BUNTIN COMMERCE FOR TYLER HOFFMAN E.O. 12958: DECL: 09/17/2018 TAGS: ECON KIPR KPAO ETRD EINV PGOV EU AL SA SUBJECT: ARAB LEAGUE CONVENES FIRST CONSUMER AND BRAND PROTECTION MEETING IN JEDDAH RIYADH 00001630 001.2 OF 002 Classified By: Economic Counselor Eric Madison, reasons 1.4 (b) and (d) . ¶1. (C) Summary: Members of the Arab League convened the first "Arab Consumer and Brand Protection Forum" October 19-21 in Jeddah. Over 500 attendees from both the public and private sector heard speakers on topics such as: combating counterfeit production and trade; increasing criminal prosecution for pirated goods; and cooperation between customs authorities and the private sector. Ambassador Ford Fraker delivered remarks on the role of intellectual property rights (IPR) and the need for protection. All speakers commented on the need for greater awareness, and enforcement (by passing new legislation and enforcing existing penalties),and warned of the severe consequences associated with counterfeit goods, ranging from economic loss to serious health concerns. The conference was widely reported on in both Arabic and English media. End summary. ¶2. (U) Over 500 policy-makers, private businessmen, and other interested parties met in Jeddah October 19-20 for the first "Arab Consumer and Brand Protection Forum" sponsored by the Arab League. There were, however, a few notable absences among the higher ranks of SAG officials. Ambassador Fraker attended the opening ceremonies and plenary session. ¶3. (C) Ambassador Fraker opened the meeting by delivering a keynote speech stressing the importance of IPR and its critical role promoting innovation and foreign investment. He acknowledged the progress being made on IPR by many countries in the Arab League, particularly in standardizing legislation and in imposing penalties for counterfeits and piracy. He praised the decision to convene the meeting and particularly the political statement of commitment that the meeting represented. He concluded by the emphasizing U.S. commitment to IPR enforcement and to engaging with local governments on this issue. -------------- Summary of Presentations -------------- ¶4. (C) The next speaker was Dr. Talal Abu Ghazaleh, Chairman and CEO of the Talal Abu Ghazaleh Organization and President of the Arab Society for Intellectual Property. Abu Ghazaleh repeated the Ambassador's praise for the recent strides in legislation and enforcement in the region, and spoke at length about the need to create geographical indicators to protect products native to Arab countries. Abu Ghazaleh claimed that the mark "Jaffa Oranges" was stolen by "Israeli occupiers," and in order to prevent similar occurrences, he encouraged attendees to allow certain Arab products to become geographically identified. He said that Lebanon is currently trying to obtain legal indicators for "tabouleh" and "fattoush" (both typical Arab dishes). ¶5. (C) Mr. Christophe Zimmerman, Coordinator for the Fight Against Counterfeiting and Piracy for the World Customs Organization, praised the Arab League for signaling commitment to IPR, and expressed hope that the conference would lead to real action. He gave an extensive presentation on the way customs officials work to identify counterfeit goods, particularly addressing coordination with other law enforcement agencies to track "into which dirty pocket" the profits from piracy end up. He emphasized the need for collaboration between the public and private sectors, especially cooperation between other government agencies. Zimmerman closed his presentation with a warning against the terrible consequences of unabated piracy, which he said included real health dangers when items such as vaccines, insecticides, or automobile brakes are fake. He said "There are now more counterfeit drugs than perfume, and more counterfeit food than luxury goods." ¶6. (C) Dr. Fawaz Al Alamy, former Saudi Chief Technical Trade Negotiator for the WTO, cited large figures representing the financial losses in the region due to piracy, placing the blame squarely on "the failure of developed nations to control their markets and enforce deterrent penalties." He called for swift action on enforcement and punishment, stressing the need for enforcement of agreements to which Saudi Arabia is party, and transparency in IPR cases undergoing investigation and prosecution. RIYADH 00001630 002 OF 002 ¶7. (C) The final speaker was Luc DeVigne, head of the European Commission's Trade Unit, who focused on the global nature of IPR piracy, noting the negative effect piracy has on foreign investment. According to DeVigne, the EU loses 200 billion euros a year to piracy and counterfeit goods. He said that 50% of all the seizures of pirated electronic media (CD's, DVD's and video games) in the EU come from China, whereas food products come mostly from Turkey, and, counterfeit pharmaceuticals from the UAE. He called the consequences of piracy "catastrophic" and, echoing Zimmerman's remarks, emphasized the problem's strong links to organized crime. -------------- Empty chairs at the big table -------------- ¶8. (C) Some high ranking SAG officials who were scheduled to attend the conference did not appear but instead sent representation at lower levels. Those who did not attend included: Arab League Secretary General Amr Moussa, Minister of Commerce Abdullah Zainal Alireza, and Minister of Culture and Information Iyad Madani. Econ contacts speculated that their absence was a purposeful snub following a power-struggle over who would take credit for the highly publicized conference. According to some contacts, what began as a joint project between the Arab League and multiple SAG ministries was quickly dominated by the Saudi Ministry of Finance. -------------- Press coverage -------------- ¶9. (C) The conference was widely covered by Arabic and English language Saudi media. Full page articles appeared in the Saudi Gazette, Arab News, and other publications. Many of the articles focused on the health risks associated with fraudulent pharmaceuticals. Some editorials also noted that piracy thrives because of the high prices of legitimate goods on the market in Saudi Arabia. This echoes sentiments econoff has heard on the street from consumers, "Why would I pay $20.00 for a video game for my son, when I can buy the same one for less than $2.00 in the souk?" Others suggested that overzealous censorship often delays the appearance of music movies and games on the local market, so consumers prefer to purchase the counterfeit version earlier, when product marketing is exerting its maximum influence on their consumption preferences. ¶10. (C) Comment: This first conference addressing IPR violations and piracy in the region shows genuine commitment on the part of the Arab League to address IPR infringements. As the costs of piracy from both foreign investment and public health concerns are becoming more evident, governments are eager to cooperate within the league and also with the U.S. and the EU to develop strategies to combat counterfeit production and trade. End comment. RUNDELL