EMBASSY BEIJING RESPONSE TO GAO IPR REPORT

UNCLAS SECTION 01 OF 02 BEIJING 003433 SIPDIS STATE FOR EEB/IPE CLaCrosse, TMcGowan STATE PASS USTR FOR KAlvarez USDOC FOR PTO EWu, NKremer STATE PASS COMMERCE FOR MAC ESymanski, NMelcher E.O. 12958: N/A TAGS: KIPR ECON ETRD CH SUBJECT: EMBASSY BEIJING RESPONSE TO GAO IPR REPORT REF: STATE 118266 ¶1. (U) Summary. The China Mission is actively working to implement the recommendations put forth by GAO in its September 2009 report. The Mission's interagency IP Task Force, established in 2005, convenes a monthly meeting to share information on IPR activities in country and in home offices. The Task Force, led by the IPR attach, is currently developing a Mission-wide strategy that will guide IP efforts in China while addressing challenges identified in the GAO report. End Summary. ¶2. (U) The U.S. Mission to China (Post) already implements some of the recommendations set forth in the September 2009 GAO report, "Enhanced Planning by U.S. Personnel Overseas Could Strengthen Efforts." The Mission's IPR Task Force, under the authority of the Chief of Mission and coordinated and led at his discretion by the Senior IPR Attach for the US Patent and Trademark Office (USPTO), endeavors to effectively manage activities already in existence. The PTO attach office, in close coordination with its home agency management and in cooperation with other agencies at post, interfaces on IPR matters with host government organs in China. The attach office advises the USPTO home office and, on request or when otherwise appropriate, other US agencies, on planning and developing their future activities and strategy for intellectual property issues relating to China. Establishing the Post IPR Focal Point -------------- - ¶3. (U) The GAO report noted several common factors that were important to enabling IP attachs to serve as effective focal points in overseas mission. The China mission is in the process of defining roles and responsibilities of the IP team, including the IP attach; we are also looking at establishing compatible policies, procedures, and other means to operate across agency boundaries. The attach has asked each embassy section and agency to designate one representative and a backup person to act as clearing official for IPR-related communications and decisions when discussion during regular IPR Task Force meetings is not feasible; additional procedures will be developed as needs are identified. One preliminary discussion has been held with the PTO. At present, USPTO commonly works with the Economic Section and USTR to coordinate Post's IPR message with Chinese government representatives. Requests for coordination with and clearance through USPTO regularly originate with the working level personnel in these offices. The attach also advises the Commercial Section how to assist U.S. companies to protect their IP. Talking points and briefing papers on IPR at the embassy are either drafted by, or at least cleared through, the IP attach. IPR Strategy -------------- ¶4. (U) The GAO report recommends that Posts with an IP attach work to develop annual IP interagency work plans with input from the relevant agencies. The IP attach is interviewing each agency and consulate, plus consular sections with IP-related work or responsibilities, to identify areas of mutual interest and responsibility to incorporate into the mission's annual IPR strategy. Once this assessment is complete, the IP attach and the IPR Task Force will develop a Mission-wide strategy to ensure overall effectiveness of USG efforts. The Task Force will revamp the "Ambassador's Roundtable," a forum which has previously brought together the US and Chinese governments and US industry for a comprehensive discussion of IP issues. Revamping may include reducing the size and scope of the meeting while increasing the frequency of the event to twice a year in different Chinese cities, including provincial and local-level discussion forums and educational and media outreach. The 2010 IPR strategy will also include recommendations for and programs directed at increased technical training of patent and trademark examiners and initiatives aimed at reducing problems associated with junk patents and bad faith trademark filings; coordinated technical discussions, programs, and joint legislative analysis by USPTO and its counterpart foreign IPR offices located in China and host government offices, enabling all IP offices to dialogue with Chinese offices from a common "best international practices" standpoint whenever possible; and identification and leveraging opportunities for increased interagency enforcement activities in the IPR activities in and outside of China. We expect a draft will be circulated to the IPR Task Force for comment in January, 2010. The Mission's IPR Taskforce -------------- ¶5. (U) The Mission's IPR Task Force was initially formed in 2005. The IPR Task Force currently meets monthly at the Beijing embassy, and it includes representatives from the State Department (Economic Section; Environmental, Science and Technology Section; Public Affairs),other USG agencies (DHS, USTR, DOJ, USDA, FDA, IRS),and consular personnel (via teleconferencing) from Guangzhou and Shanghai. The IPR Task Force meetings have been chaired by the IPR attach on a monthly basis since October; during the past year when the Beijing attach position was vacant, the Economic section led the Task Force meetings. At these meetings, Emboffs discuss recent BEIJING 00003433 002 OF 002 activities throughout the Mission with regards to IPR and the latest legislative developments relevant to China IP issues. They also plan training and capacity building efforts. This sharing of information ensures all members of the group are well-informed. IP Outreach -------------- ¶6. (U) Post is making a concerted effort to coordinate with its consulates in Guangzhou, Chengdu, Shenyang, Shanghai, and Wuhan on IP matters and to do as much outreach as possible with counterparts in both the Chinese government and other governments that share concerns about IP in China. Emboffs have begun meeting on a regular basis with IP representatives at the European Commission and Japan, exploring avenues for common work and discussion. The IPR Task Force is also working to revive the common database of training activities for public access to EU, Chinese, Japanese and US interested parties. The team believes it could be of great value to all parties if completed and launched.