ENCOURAGING INTELLECTUAL PROPERTY RIGHTS IN BRUNEI

UNCLAS BANDAR SERI BEGAWAN 000158

SENSITIVE
SIPDIS

STATE PASS FOR EAP/MTS/COPPOLAMG, EEB/TPP/IPE/URBANJ
STATE PASS USTR/EHLERSK
STATE PASS FOR USPTO
BANGKOK FOR FCS/NESSJ


E.O. 12958: N/A
TAGS: KIPR ETRD ECON EINV USTR BX

SUBJECT: ENCOURAGING INTELLECTUAL PROPERTY RIGHTS IN BRUNEI

SUMMARY
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1.(SBU) In conjunction with Ambassador Todd and Embassy Brunei's
program to promote Intellectual Property Rights (IPR) in Brunei, a
workshop was recently held entitled "Promoting Your Innovation Through
Intellectual Property". The workshop was led by representatives from
Brunei's Attorney General Chambers (AGC) as well as the USPTO Regional
AttachQ. The Brunei Economic Development Board (BEDB) served as the
workshop host which was specifically targeted at Brunei's small and
medium enterprises (SMES) in the information technology (IT) sector.
Attendees came from a wide range of companies as well as government and
academia. The support of the BEDB as well Government of Brunei (GoB)
and the academic community indicates a growing awareness of the need to
improve Brunei?s reputation and enforcement of Intellectual Property
Rights (IPR). End Summary

PRESENTATIONS AND PRESPECTIVES
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2. (SBU) Brunei's Attorney General Chambers (AGC) highlighted the
existing Bruneian legislation and guidelines on how to protect
copyright, trademark, and industrial design. The subject of patents was
also touched on despite the lack of a patent order and patent office in
Brunei. USPTO representative, Jennie Ness, provided a comprehensive
presentation of IPR Management Strategies for Small and Medium
Enterprises (SMEs). Her presentation focused on the basics of IPR as
well as the distinct challenges SMEs face in protecting their
intellectual property.


4. (SBU) A wide range of questions were poised to the speakers.
Ranging from copyright on blog and web content, to whether personal
usage of pirated optical disks is considered a violation. However, the
issue of patent and industrial design drew the most attention. Many
believe new inventions and designs would not be adequately protected
for the lack of a patent legislation and industrial design library and
database. In response, Naimah Ali, representing the AGC, indicated that
the complex technical nature of a patent system requires extensive
review as well as collaboration with other patent agencies. She did
state that an independent patent system and office could be functional
by the year's end. Commenting on the lack of a design library, USPTO
Representative Ness suggested that Brunei should seek cooperation with
regional patent and design offices and agencies. She also stressed that
Brunei is at a disadvantage in drawing Foreign Direct Investment (FDI),
due to the perception of weak IPR protection in Brunei, with extremely
high rate of optical media piracy being noted as major areas of
concern.

LOCAL ENTREPRENEURS FACE SIGNIFICANT CHALLENGES
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5. (SBU) Three Bruneian entrepreneurs were invited to speak to share
the IPR challenges they face. Fathan Anwar, an established local artist
and music producer, noted the lack of copyright protection for local
artists. He indicated the establishment of a collective copyright
management society, GoB support for more public awareness campaigns,
and the implementation of tariffs and licenses for the use of local
performances as much needed IPR improvements. He went on to disclose
that a copyright collecting society is in the works and would be
established within the year. Zaki Wahab, regulatory policy and legal
representative for the local telecommunications company, DST, spoke on
trademarks. He stressed the importance of trademarks as brand value. He
supported the establishment of a Brunei copyright collective body as
the local legal entity for royalties, stating that foreign registered
copyright bodies do not have jurisdiction over Brunei (NOTE: Wahab was
referring to Recording Industry Malaysia's (RIM's) confrontation with
DST for royalties on songs played over DST's radio station. End Note.).
Zupri Kamis, an independent inventor, recounted his difficulties in
patenting his inventions overseas, and the lack of government support
and funding for inventors who must patent abroad.

COMMENT
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6. (SBU) The workshop received extensive media coverage, a necessary
step in creating awareness of the importance of IPR for Brunei's
economy. In his opening remarks, Dr. Zulkarnain Hanafi, Vice Chancellor
of the Brunei University (UBD) disclosed that UBD intends to set up an
Industry Liaison Office to encourage entrepreneurship and support
development of academic research for commercialization. As many noted,
the local entertainment industry will not be able to grow due to the
lack of copyright enforcement. Some workshop attendees remarked that
Brunei is losing credit for inventions and innovations that had to be
patented and developed abroad. BEDB's support as well as UBD's is a
critical element in increasing overall awareness and a tipping point
for enhanced IPR protections and enforcement in Brunei. The support of
USPTO and other US agencies are crucial in the Embassy's cooperative
programs with the GoB and key IPR stakeholders. Patent offices,
copyright societies, and additional IPR enforcement are all necessary
steps to improving the status of IPR in Brunei, but to date, all are
still in the development and planning stages.


MCINTYRE