Identifier
Created
Classification
Origin
09BAMAKO251
2009-04-21 16:47:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Bamako
Cable title:  

MALI'S ANTI-PIRACY EFFORTS STYMIED BY ITS OWN

Tags:  ECON EAID ETRD EINT EAGR ML 
pdf how-to read a cable
VZCZCXRO5306
RR RUEHMA RUEHPA
DE RUEHBP #0251/01 1111647
ZNR UUUUU ZZH
R 211647Z APR 09
FM AMEMBASSY BAMAKO
TO RUEHC/SECSTATE WASHDC 0262
INFO RUEHZK/ECOWAS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SECTION 01 OF 02 BAMAKO 000251 

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON EAID ETRD EINT EAGR ML
SUBJECT: MALI'S ANTI-PIRACY EFFORTS STYMIED BY ITS OWN
JUDICIARY

REF: BAMAKO 51

UNCLAS SECTION 01 OF 02 BAMAKO 000251

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON EAID ETRD EINT EAGR ML
SUBJECT: MALI'S ANTI-PIRACY EFFORTS STYMIED BY ITS OWN
JUDICIARY

REF: BAMAKO 51


1. (SBU) Summary: On March 21, Malian authorities destroyed
20 tons of counterfeit goods - including fake toothpaste,
soap, and other products valued at USD 40,000 to 60,000 -
seized from local markets. The joint effort by the Regional
Directorate of Trade and Competition (DRCC),law enforcement,
local, and judicial officials was the latest action in Mali's
attempt to curb its flourishing trade in counterfeit goods.
Counterfeit products comprise a significant share of local
consumption of some goods: an estimated 40 percent of the
cigarettes on the local market, for example, are deemed to be
counterfeit. In an April 6 meeting with Embassy, Director of
the DRCC said the largest obstacles to effectively combating
piracy were a shortage of resources as well as delays and
corruption within Mali's judiciary. While western donors
often tend to focus more on the corrupt component of the
Malian judiciary, helping Mali address its systemic
shortcomings - ranging from the evident lack of training,
resources, and qualified personnel - may be the first step
toward supporting responsible officials and institutions like
the DRCC combat against Mali's trafficking trade. End
summary.

--------------
Mali's Trade in Counterfeit Stuff
--------------


2. (U) On March 21, a regional branch of Mali's primary
anti-piracy authority, the Regional Directorate of Trade and
Competition (DRCC) in Segou, northeast of Bamako, destroyed
2,330 cartons of counterfeit Close Up toothpaste, 447 cartons
of soap, 290 cartons of motor oil, and sundry other products
valued at CFA 20-30 million (USD 40,000-60,000). This was
the most recent of the agency's efforts to curb Mali's
vibrant trade in counterfeit goods, which includes
cigarettes, textiles, auto parts and electronics, medicines,
and foodstuffs. Most of these goods are manufactured in
China, while counterfeit electronics originate primarily in
Dubai. The DNCC claimed that, between 2004 and 2007, it
seized CFA 474.5 million (USD 949,000) worth of counterfeit
products.

-------------- --
Anti-Piracy Efforts Face Significant Challenges
-------------- --


3. (U) In an April 6 meeting with the Embassy, Director of

the National Directorate for Trade and Competition, Mahamane
Toure, said Malian law made it difficult to prove what he
described as otherwise straightforward cases of piracy.
Mali's 2007 statute against piracy requires the complainant
to prove, in a tribunal, ownership of the original product.
Ownership is based on the registry of the product with the
Organization of Intellectual Property of African Countries
(OAPI),a regional organization, and the Malian Center for
the Advancement of Industrial Property (CEMAPI). Toure
claimed that this can be tricky, as the tribunal may
interpret the language of the product registration quite
strictly. Taking his cellular phone as an example, Toure
said that the court could decide that, if the size of the
lettering of the brand in the original product had not been
specified, the product in question might not, in fact, be
registered and the complainant could claim no damages.


4. (U) Once the complainant has successfully proven
infringement of intellectual property rights, the tribunal
approves the seizure of the counterfeit product, at which
point the DNCC may destroy the merchandise. In some cases,
the companies in dispute may reach an agreement before the
case is heard in the tribunal. Toure gave the example of one
Chinese tea company whose labeling closely resembled that of
another Chinese tea manufacturer. Both parties agreed that
the offending company would remove its labeling and sell its
products in bulk, thereby avoiding significant losses. This
case, involving two Chinese companies, was the only instance
of agreement Toure could cite.


5. (SBU) When asked about the role of the judiciary in
enforcing Mali's anti-piracy laws, Toure said it is
complicated and indicated that delays and corruption within
the judiciary had stymied efforts to combat the flourishing
trade in counterfeit goods. At best, the tribunals are slow
to decide the merits of complaints. At worst, judges could
be bribed to rule against the complainant in clear instances
of property rights infringement. Toure cited two ongoing
cases: Dunhill cigarettes, owned by British American Tobacco,
and Maggi bouillon cubes, owned by Nestle. Both cases involve
Chinese manufactured counterfeits. Toure presented samples
of the original and counterfeit Maggi bouillon packages,

BAMAKO 00000251 002 OF 002


which had only minor, almost indistinguishable differences.


6. (U) In addition to challenges in the judiciary, Toure said
it was difficult for the DNCC's agents to effectively patrol
borders and marketplaces, as they lacked transportation.
With 210 agents to staff eight regional offices as well as
the national office in Bamako, the DNCC also faced shortages
in manpower. These shortages prompted British American
Tobacco (BAT) to sign an agreement with the DNCC in December
2008 to provide support for anti-piracy efforts, which
included the provision of ten motorcycles for DNCC patrolling
in key areas. BAT has been heavily affected by piracy, as
DNCC officials estimated that 40 percent of all cigarettes
consumed in Mali were counterfeit. Toure did not say whether
the 10 motos offered by BAT were also of Chinese origin.

--------------
Comment: The Judiciary Again
--------------


7. (SBU) Mali's limited ability to tackle the trade in
counterfeit products provides yet another example of Mali's
difficulties in enforcing the rule of law. The Malian
judiciary has proven unable to meaningfully respond to the
trafficking of goods, as well as to the trafficking of arms
and human beings. While judicial corruption is often the
easiest scapegoat, problems with the Malian judiciary go much
deeper and include systemic challenges associated with legal
training, judicial resources, and an inadequate number of
magistrates and judges on the Malian bench. The experience
of the U.S. firm Dow Agro Sciences illustrates these
complexities (reftel). Its four year ongoing legal battle
with a Chinese company accused of trademark infringement has
turned into a showcase of the Malian judiciary's inability to
adjudicate complex cases of intellectual property rights.
Similar challenges plague other aspects of Mali's enforcement
mechanisms. Meanwhile, Mali's flourishing trade in fake
products continues to put consumers at risk and discourage
investors who cannot be assured of the minimum protections
for their investment.
LEONARD