NIGERIA: U.S. COMPANY ABRO INDUSTRIES DISCUSSES

UNCLAS SECTION 01 OF 02 LAGOS 000068 SIPDIS PRETORIA FOR ICE ATTACHE DEPARTMENT PASS TO USTR-AGAMA, GARDE AND VETERE TREASURY FOR PETERS, IERONIMO AND HALL DOC FOR 3317/ITA/OA/KBURRESS AND 3130/USFC/IOI/ANESA/CREED USAID/AFR FOR ATWOOD E.O. 12958: N/A TAGS: KIPR ECON ETRD EIND EINV PGOV NI SUBJECT: NIGERIA: U.S. COMPANY ABRO INDUSTRIES DISCUSSES IPR VIOLATIONS ¶1. (SBU) Summary: In a February 2 meeting with the Consul General and Commercial Attache, Tim Demarais of Abro Industries expressed concern over the production and importation of counterfeit Abro products in Nigeria. Accompanied by Abro,s distributor he explained how counterfeit car parts and household goods are imported from China and the United Arab Emirates and go unchecked by the Nigerian Ports Authority and the Nigerian Customs Service (NCS). Demarais claimed that attempts to work with the GON to enforce Abro's intellectual property rights have been in vain, and he sought Post,s assistance in engaging the Nigerian government. End Summary. ¶2. (SBU) On February 2, Tim Demarais of Abro Industries, a U.S. company based in South Bend, Indiana, met with the Consul General and Commercial Attache (Poloff note taker) to discuss problems they are having with counterfeit Abro products in Nigeria. Abro manufactures a variety of products, such as automobile transmission fluids, lubricant, car batteries, and glue. Demarais was accompanied by Cosmas Maduka the CEO of Coscharis Motors, the exclusive agent for Abro products in Nigeria. Demarais stated that Nigeria is the number one market in the world for Abro products, which have been distributed here for over fifteen years through Maduka,s automotive company. Abro sells products overseas in over 160 countries, and has annual export sales of about USD 150 million. Demarais estimated that his company loses between USD ten to twenty million per year to counterfeit products. To combat this problem and assist governments in enforcing copyright and trade dress laws, Abro is working to partner with governments and law enforcement agencies in countries where counterfeit products are manufactured or distributed, including China and Saudi Arabia. ¶3. (SBU) As an example of the problem Abro has with trademark violations, Demarais showed an original Abro glue product and a counterfeit glue purchased in a local Lagos market. The counterfeit product was in package, nearly identical to the authentic item, but with the brand name &Abrw8 rather than &Abro." Demarais stated that there are fifteen to twenty small companies that produce and distribute counterfeit Abro products in Nigeria. ¶4. (SBU) Abro approached Post,s Foreign Commercial Service once in 2007 to seek assistance on engaging the GON on IPR violations. Demarais was referred to the Market Access and Compliance group (MAC) at the International Trade Association of the Department of Commerce, but Abro did not contact MAC to pursue USG advocacy. Instead, on its own, the company has lobbied the Standards Organization of Nigeria, and managed to stop one operation that was producing fake car batteries. However, other than that partnership with the SON, there has been no substantive action by any Nigerian government agency to stop counterfeiters. ¶5. (SBU) Demarais was concerned that the Nigerian Port Authority and Nigerian Customs Service (NCS) knowingly permit fake goods to be imported to the country, and that there are no regulations on importing counterfeit goods. He asked for USG assistance in addressing these concerns with the Nigerian Port Authority and NCS and sought Post's intervention with the GON to encourage the relevant agencies to address copyright violations and trade dress laws. Commercial Attache advised Demarais to contact the Market Access and Compliance group at the Department of Commerce, explaining that this is the first step to any inquiry into IPR violations. Demarais stated that Abro would be willing to support any efforts to engage the GON or conduct training courses for NCS. ¶6. (SBU) Comment: Abro Industries has legitimate IPR concerns in Nigeria and has tried to engage the GON on its own to combat counterfeit products. With the lack of results, Abro may be ready to turn to the formal USG channels to pursue the issue further. Following guidance from Commercial Attache, Post will await information from LAGOS 00000068 002 OF 002 Washington on advocating for Abro products in Nigeria if Abro does contact MAC and pursue USG advocacy. End comment. ¶7. (U) This cable has been coordinated with Embassy Abuja. BLAIR