YEMEN VOLUNTARY INPUT FOR 2008 SPECIAL 301 REVIEW

UNCLAS SANAA 000344 SIPDIS SIPDIS DEPARTMENT PLEASE PASS TO USTR FOR JENNIFER GROVES EEB/IPE FOR JENNIFER BOGER USDOC WASHDC FOR ITA/MAC/OIPR FOR CASSIE PETERS NEA/ARP FOR NATASHA FRANCESCHI AND ASHLEY BAGWELL NEA/PI FOR SONIA FRANCESKI USDOC WASHDC FOR USPTO FOR BARBARA MCCAFFREY E.O. 12958: N/A TAGS: ECON ETRD KIPR YM SUBJECT: YEMEN VOLUNTARY INPUT FOR 2008 SPECIAL 301 REVIEW REF: STATE 09475 SUMMARY -------------- ¶1. In response to reftel, Post input for the U.S. Trade Representative's 2008 Special 301 review follows. ¶2. Yemen continues to face many obstacles to intellectual property rights (IPR),including a non-TRIPs-compliant IPR law, which it is seeking to amend. Copyright protection of optical media is provided by the Ministry of Culture, which registers CD/DVDs and refers infringement cases to the judiciary, but piracy is still widespread. No effective IPR protection of computer software and the internet exists. Pharmaceutical and agricultural products can be registered, but IPR enforcement is extremely limited. IPR enforcement within the ROYG is hampered by lack of equipment and training of staff. Post recommends continued USG technical assistance and training in the field of IPR. END SUMMARY. BACKGROUND ON YEMEN'S IPR ENVIRONMENT -------------- ¶3. Yemen joined the Paris Convention for the Protection of Industrial Property in November 2006 and acceded to the Berne Convention for the Protection of Literary and Artistic Works in 2007. The ROYG recently applied to join the Gulf Cooperation Council's Patent Organization. Yemen has had observer status in the World Trade Organization (WTO) since 2002 and is in the process of applying for WTO accession. ¶4. Despite all of its efforts, Yemen has a record of inadequate protection of intellectual property rights (IPR), including patents, trademarks, designs and copyrights. Its IPR Law Number 19 of 1994 is not TRIPS-compliant (Note: Yemen currently has only one law which addresses all areas of IPR, Law Number 19. End note). In order to strengthen IPR protection and enforcement, in 2007, the ROYG Ministry of Industry and Trade drafted new patents, trademark, design, and consumer protection laws with assistance from the World Intellectual Property Organization (WIPO) (Note: Yemen has been a member of WIPO since 1979. End note). The ROYG Ministry of Culture has drafted a new copyrights law. Pending final adjustments, the laws will be sent to Parliament for approval. As of February 2008, Yemen's Parliament has not yet passed the new IPR laws. The ROYG has committed itself to passing these laws by December 31, 2008, as part of the steps required for Yemen's accession to the WTO. LIMITED COPYRIGHT PROTECTION ON OPTICAL MEDIA -------------- ¶5. The ROYG Ministry of Culture handles issues related to copyrights of optical media (i.e. music CDs, video CDs, CD-ROMS, and DVDs),computer software, books and magazines. In a February 24 meeting with Econoff, the Ministry of Culture's Director of Intellectual Property Rights Protection Abdullah Mohammed Baddah stated that manufacturers of CDs and DVDs can register their products at the Ministry of Culture, which then issues an identification number and an official letter to all CD/DVD manufacturers in Yemen alerting them of the new product. Baddah said that the Ministry of Culture has twelve inspectors in Sanaa alone who investigate cases of CD/DVD copyright violations. If an inspector determines that a violation has occurred, he or she then types up an official letter, investigates the case, and refers it to the Office of the Prosecutor and/or Ministry of Justice. If a person is convicted of a copyright violation, penalties include a 6-month prison sentence and a 10,000 Yemeni riyal fine. According to Baddah, there were a total of 10 cases of copyright/trademark infringement in 2007, nine of which involved CDs and one which involved a TV program. Three cases resulted in convictions in 2007. ¶6. Nevertheless, piracy of optical media is still widespread in Yemen. Yemen Consumer Protection Association Assistant Secretary General Yaseen Al-Tamimy told Econoff on February SIPDIS 10 that the ROYG cannot control optical media piracy because any shop with a CD/DVD burner can produce counterfeit copies of the CD/DVD at will and Yemeni consumers are not able to tell the difference between genuine and counterfeit products. He also noted the lack of public awareness about copyright protection or other fields of IPR, primarly due to the high illiteracy rate and low income of the people. Baddah admitted that the current law is weak and that the Ministry of Culture, with technical assistance from the World Intellectual Property Organization (WIPO),has developed a much stronger draft copyright Law, which the Cabinet recently approved and will present to Parliament on March 1, 2008. NO IPR PROTECTION ON COMPUTER SOFTWARE AND THE INTERNET -------------- -------------- ¶7. With respect to computer software, Baddah mentioned that Yemen's current IPR law does not cover these products. Manufacturers, however, can register their products with the Ministry of Culture, which issues a certificate. The Ministry of Culture has only one inspector who covers computer software issues. According to Baddah, the Ministry of Culture received no complaints of computer software piracy in 2007. Al-Tamimy noted that the only IPR protection for computer software inside Yemen is built-in protections from the computer companies (e.g. a person with a counterfeit computer software program would not be able to download an update of the same program from the internet). There is also no protection against internet piracy. Although the Ministry of Telecommunications handles internet use in Yemen, according to al-Baddah, IPR internet protection is weak. Al-Tamimy observed that internet piracy is not a big problem because only 3 percent of the Yemeni population has access to computers. He opined that the ROYG is more concerned about expanding computer access, rather than controlling the use of computers. LIMITED DATA PROTECTION FOR PHARMACEUTICAL AND AGRICULTURAL PRODUCTS -------------- -------------- ¶8. Pharmaceutical products in Yemen are covered under IPR Law No. 19 of 1994, which organizes the import and trade of pharmaceutical products, according to the Ministry of Industry and Trade. Within the ROYG Ministry of Public Health and Population is a Supreme Committee of Drugs and Medical Appliances, which oversees data protection of pharmaceutical products and is in charge of registering pharmaceutical companies and drugs. The Supreme Committee has 250 employees and has agents at every airport and seaport in Yemen. In a February 27 meeting with Econoff, the Supreme Committee's Director General, Abdul Moneim Al-Hakami, explained that if a foreign drug company would like to export its products to Yemen, the company approaches the Supreme Committee, which first runs lab tests on the products, then registers the company and product and issues a certificate. The company then brings the certificate to the MOIT, which issues a trademark. A second way that a company can register its pharmaceutical products in Yemen is through the Gulf Cooperation Council's Health Ministers Council Office in Riyadh, Saudi Arabia. Through this second method, companies' products would be registered in all six GCC countries, plus Yemen. After the pharmaceutical product is registered, the the Supreme Committee conducts random inspections of it in the marketplace. ¶9. If the Supreme Committee discovers counterfeit pharmaceutical goods in the marketplace, it has the power to confiscate the goods and even to close down the companies. It then refers cases to the Office of Public Prosecution. Al-Hakami complained that the current IPR law is weak and that there are no serious consequences for producing counterfeit drugs. As a result, the ROYG is working on a much stronger law specifically focusing on drugs in Yemen, which it expects to present to Parliament in 2008. Based upon this new law, the Supreme Commitee will devise a national strategy on pharmaceutical products. ¶10. The process of data protection/registration for agricultural products follows the same procedure as pharmaceutical products, but takes place within the Ministry of Agriculture, which issues a certificate. The owner of the agricultural product then takes the certificate to the MOIT, which issues the trademark. WEAK IPR ENFORCEMENT IN YEMEN -------------- ¶11. The weak role of the ROYG in the field of IPR enforcement efforts is also demonstrated by the Ministry of Industry and Trade (MOIT) and the Customs Authority (CA). The Ministry of Industry and Trade has a staff of 32 people who focus on three areas of IPR: trademarks, patents and industrial designs. The newly-appointed General Director of the Intellectual Property Department at the Ministry of Industry and Trade, Abdul-Fattah Hayal Farhan, in a February 20 meeting with Econoff, described the Ministry's role as that of an "observer" which records complaints about counterfeit goods but has no enforcement powers. (Note: The MOIT recorded 56 cases of counterfeit goods in 2005, 45 cases in 2006 and 38 cases in 2007. End note.) Even though the MOIT can refer these cases to the judiciary, Farhan complained that many judges are not knowledgable in the area of IPR. He also cited four weaknesses within the MOIT in the field of IPR: the lack of adequate statistics, equipment, trained staff and linkages between the central MOIT office and MOIT governorate branch offices. He added that public awareness of IPR issues will need to be raised. ¶12. The Customs Authority (CA)'s role in IPR enforcement takes place at the 25 Customs entry points located along Yemen's long and porous border. In a February 18 meeting with Econoff, CA Legal Affairs Director Abdullah Rajeh stated that like the MOIT, the CA does not have the right to arrest counterfeiters. The CA does have the right to confiscate and seize items and can refer counterfeit goods cases to the judiciary. He explained that most counterfeit goods in Yemen come from smuggling, especially in electronics, basic commodities and cigarettes. Rajeh urged more USG assistance in terms of providing the CA with equipment to help detect counterfeit products and also training for CA staff, lawyers and the judiciary. COMMENT -------------- ¶13. Yemen faces many challenges in the field of IPR but has strong incentives for improving its IPR environment, including accession to the World Trade Organization and attracting greater foreign direct investment. For example, a March 2007 workshop on IPR sponsored by the Yemen Consumer Protection Association attracted over 200 participants from the public and private sector, including the Prime Minister. Post recommends that Yemen, particularly its judiciary, receive continued USG technical assistance and training in the field of IPR through such organizations as the U.S. Patent and Trademark Organization (USPTO). English language training would also be beneficial. Post agrees with the decision not to place Yemen on the 2007 Special 301 Watch List or Priority Watch List and recommends doing the same in ¶2008. End Comment. SECHE