MALAYSIA: IPR ENFORCEMENT ACTIONS DOWN BUT COURT CASES AND

UNCLAS KUALA LUMPUR 000299 SIPDIS DEPT FOR EB/TPP/IPE: T McGowan AND EAP/MTS: D Bischof DEPT PASS USTR FOR B. WEISEL USDOC FOR ITA/MAC/OIPR USDOC ALSO FOR USPTO GENEVA FOR USTR E.O. 12958: N/A TAGS: ECON ETRD KIPR MY SUBJECT: MALAYSIA: IPR ENFORCEMENT ACTIONS DOWN BUT COURT CASES AND CONVICTIONS UP REF: A. STATE 8410 ¶B. KUALA LUMPUR 00177 ¶1. (SBU) Summary: According to High Court of Kuala Lumpur statistics recently released to the Embassy by the Intellectual Property Court, the number of IP cases registered has significantly gone up during the four month period from November 2008 to February 2009. Ministry of Domestic Trade and Consumer Affairs (MDTCA) officials argue that while the number of enforcement actions was down over this period, the GOM was taking more IP cases to court and were getting more convictions. The Recording Industry Association of Malaysia (RIM) would like to see enforcement actions increased, and MyIPO Director Kamel told the Embassy that he expected that the new Minister for Domestic Trade would devote more attention to IP enforcement and that MyIPO expected Malaysia would ratify additional WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty by the end of ¶2009. End Summary. ¶2. (SBU) Malaysia's Intellectual Property Court, which was established in July 2007, recently provided the Embassy an unpublished record of its IP cases. From July 17, 2007 to October 31, 2008, there were total of 531 cases registered in the High Court and Sessions Court combined. Of those cases, 241 were criminal cases and 290 civil cases. From October 31, 2008 to February 28, 2009, there were a total of 849 cases registered. Of those cases, 818 were criminal cases and 31 were civil cases. According to the new procedures in effect since November 2008, all criminal cases first go to the Sessions Court (the lower court),and only appeals go to the High Court. Civil cases still go directly to the High Court. ¶3. (SBU) Econoff met on April 6 with Ministry of Domestic Trade and Consumer Affairs (MDTCA) Enforcement Division Director General Roslan Mahayudin to discuss the IPR enforcement issues in Malaysia. Roslan said that while the number of enforcement actions has gone down during last year, more cases are now being prosecuted. He confirmed that Enforcement Division now only conducts raids if requested by rights holders. In the past, the Enforcement Division was often unable to identify the rights owners of confiscated products. If the authorities are unable to identify the rights owner, they are required by Malaysian law to return the products, even if the product can reasonably be suspected to be an illegal copy. ¶4. (SBU) Recording Industry Association of Malaysia (RIM) Chief Executive NF Tan told Econoff on March 26 that RIM members have been complaining about the recent slowdown in enforcement activities in Malaysia. Tan said that in many cases it would take a month before the Ministry of Domestic Trade and Consumer Affairs (MDTCA) would respond to industry complaints or take any action. He also said that the 2001 ban on open air sales of CDs and DVDs "effectively only illegalized the sales of legal products, since vendors of pirated products just ignore the law." ¶5. (SBU) In meeting with Econoff on April 16 Malaysian Intellectual Property Organization (MyIPO) Director General Kamel Mohammad took note of these shortcomings and said that he expects IPR issues, including enforcement, education, and Malaysia's accession to international treaties, to receive more attention from the new Minister for Domestic Trade and Consumer Affairs Ismail Sabri bin Yaakob. As an example, he offered the importance the new Minister placed on the National Intellectual Property Day Malaysia celebrates from April 23 to April 26. He also said that MyIPO is interested in expanding work with the Royal Malaysian Customs in training customs officers on IPR enforcement issues and laws to improve enforcement on the ground. At the policy level, Kamel said that the GOM hopes to complete parliamentary ratification of Malaysia's accession to the WIPO Copyright Treaty and the WIPO Performances and Phonograms Treaty by the end of 2009. KEITH