Identifier
Created
Classification
Origin
08RIYADH1630
2008-10-29 13:40:00
CONFIDENTIAL
Embassy Riyadh
Cable title:  

ARAB LEAGUE CONVENES FIRST CONSUMER AND BRAND

Tags:  ECON KIPR KPAO ETRD EINV PGOV EU AL SA 
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FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC PRIORITY 9474
INFO RUEHXK/ARAB ISRAELI COLLECTIVE PRIORITY
RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHFJUSC/US CUSTOMS SERVICE WASHDC PRIORITY
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)
.

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