Identifier
Created
Classification
Origin
09RIYADH1572
2009-11-24 14:10:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Riyadh
Cable title:  

Saudi government input to U.S. Special 301 OCR

Tags:  ETRD KIPR SA 
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SUBJECT: Saudi government input to U.S. Special 301 OCR

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1. (SBU) Embassy received the following Saudi government input to
the U.S. Special 301 out of cycle review for Saudi Arabia from the
Chairman of the Saudi Ministry of Commerce and Industry Standing IPR
Committee on November 22. Begin text:

Kingdom of Saudi Arabia
Ministry of Commerce and Industry
Intellectual Property Rights Standing Committee

KSA Report on USTR Special 301
Out of Cycle Review

November 2009
INPUT OF THE KINGDOM OF SAUDI ARABIA TO USTR's SPECIAL 301 OUT - of
- CYCLE REVIEW
November 2009

The following is the summary of activities and efforts of government
agencies of the Kingdom of Saudi Arabia responsible for
implementation of IPR laws.

The Kingdom has continued its sincere and vigorous efforts for
implementation and enforcement of IPR laws and procedures during the
year 2009. The Kingdom is fully committed to fulfill its promises
and WTO commitments in good faith. No efforts are spared in the
achievement of this objective.

The attached information and statistics for each relevant agency
testifies to the continuing improvement and success of our mission.
The Kingdom sincerely believes that implementation and enforcement
of its IPR laws is beneficial for its economy and thus in our own
supreme interest. IPR protection is a key component of Saudi
Arabia's long-term commitment to implementing King Abdullah's vision
to develop a knowledge-based economy.

The efforts of Saudi Arabia have been duly recognized in the form of
anti-counterfeiting and piracy awards to Saudi Arabia Customs by the
World Customs Organization in 2009 for its work in raising awareness
in the Middle East by organizing the first Pan-Arab conference on
this issue and by its commitment to building the capacity of Customs
and by translating WCO documents into Arabic. Saudi Customs has
also provided information about its extensive seizures to enforce

trademark rules.

The Kingdom has taken concrete action to build an effective IPR
regime, and has worked closely with industry to not only ensure
their concerns are addressed, but also to increase the capacity of
government agencies with training. Industry has recognized the
Kingdom's progress, and continues to partner with the Saudi
government to enhance IPR enforcement and awareness.

The Kingdom is pleased to give below an account of some important
developments during the year 2009, along the lines outlined in
USTR's list of issues.

Transparency in Copyright Enforcement:


1. The website of the Ministry of Culture and Information giving
information on raids data, hearing dates and decisions and penalties
issued by the Violation Review Committee (VRC) is being updated. A
good lot of new information has been posted, including 529 VRC cases
to date. The English version of the website is being developed and
it is expected to be in use in the first quarter of 2010. Work is
continuing and will be completed and updated very soon.


2. The dates of adjudication of IPR cases in the VRC are set in
coordination with the rights-holders thus giving them adequate
advance notice to attend hearings.

IPR Enforcement:

RIYADH 00001572 002 OF 006




3. Raids on the street vendors of pirated and counterfeit goods have
been intensified. Statistics are given in Annexes A through C.


4. The Ministry of Culture and Information opened a VRC branch in
Jeddah. Another branch in Dammam is expected to open in 2010.


5. The VRC has imposed the maximum penalty of Saudi Riyals 100,000
in some cases. The VRC is currently considering two cases which
will be referred to the Board of Grievances with a recommendation of
deterrent sentencing once the VRC concludes its proceedings. 30
decisions were issued to compensate rights holders where
compensations reached up to SR (70,000),and it was decided to close
the store for different periods.


6. The Ministry of Culture and Information is conducting a study in
collaboration with the Communications and Information Technology
Commission (CITC) to devise suitable procedures to block websites
that sell pirated or counterfeit goods on the internet. The study
would also devise ways and means to take action against infringing
websites. In addition, we have requested WIPO for an expert to
provide advice and help on this issue, including advice on legal and
technical matters in relation to adherence to internet treaties


7. As for satellite signal piracy, Ministry of Culture and
Information now has the authority to control the import and use of
receivers with decoding capacity. The Ministry would thus be able to
license and monitor their use which would go a long way in curbing
satellite signal piracy.

Government Use of Legal Software:


8. As the lead agencies responsible for IPR protection, the Ministry
of Commerce and Industry and the Ministry of Culture and Information
are jointly drafting the text of a proposed decision to be issued by
His Majesty the King asking all Ministries, Departments and Agencies
to carry out and complete software asset management audit.


9. The software asset management audit by the Ministry of Commerce
and Industry is expected to be completed in the first quarter of

2010. The Ministry of Culture and Information has an active
software management program which meets international standards.

Data Protection:


10. The Saudi Food and Drug Administration (SDFA) has confirmed its
commitment to the Saudi legislation on the Protection of Commercial
Trade Secrets. The Chairman of Saudi IPR Committee has held
discussion on this matter with Pharma and then with SDFA to clarify
some technical points. It was also agreed that this matter requires
some technical assistance and the need to hold a seminar or a
workshop. Incidentally, a workshop on the Protection of Confidential
Commercial Information was held in Riyadh in June 2009. Pharma is
looking into the possibility of organizing another similar workshop
with specific focus on the implementation issues and on the
practices of different countries. In addition Ministry of Commerce
and Industry is seeking assistance from the WIPO on this matter.


11. King Abdullah approved the Exclusive Marketing Rights (EMR)
proposal in October 2009. The Ministry of Commerce and Industry,
SFDA, King Abdulaziz City for Science and Technology (KACST),and
Ministry of Health have agreed on a procedure to implement the EMR.
KACST's General Directorate of Industrial Property is prepared to
consider applications which request EMR protection immediately.

Public Awareness Campaign:


12. The public awareness campaign against piracy and counterfeiting
is continuing through the print and electronic media and the
response is encouraging. It was also requested that the private
sector take a major part in this and they promised to do so by the
first quarter of 2010.

Legislation:

Saudi Arabia has requested for an expert from the WIPO on
implementation of the provisions of the WCT and WPPT.

Summing Up:

The foregoing narration and the attached statistical tables show the
commitment, attention, action and achievements of the Kingdom of
Saudi Arabia in implementing and enforcing its IPR obligations.
These are bearing fruit and this process will continue and will be
further enhanced.

H125


RIYADH 00001572 003 OF 006


--------------
Annex - A
--------------

Ministry of Culture and Information

The Efforts of the Copyright General Department

First: In the Field of Cases
The Copyright General Department (CGD) has adopted a procedure
whereby if a case on initial examination is found to be within the
competence of the Department, it is put on the Department's website,
with a number, in order to enable the holder of the right to follow
his case through the internet, without the need to contact the
Department, until the decision by the Committee.

The cases on the website up till now are 529. Decisions have been
made in some of them while decisions on the remaining cases are in
process.

Visits made by the Department to the market during the period from
1/1/2009 to 30/9/2009 were 2106 and during these visits about 4912
sites and establishments were visited and 3,838,975 violating
materials and equipments were seized.

The Violations Review Committee under the provisions of Copyright
Protection Law is chaired by the Assistant Deputy Minister of
Domestic Media.

The Committee has made during the past three months more than 128
decisions. Punishments in these decisions range from warnings to
fines up to SR (100,000),in addition to closure of outlets from ten
days to two months. For repeated violations, one of the stores was
fined SR 270,000, and it was decided to close the store.

30 decisions were issued to compensate rights holders where
compensations reached up to SR (70,000),and it was decided to close
the store for different periods.

Second: In the Field of Awareness:

The Department designed symposia and printed pamphlets giving
warnings for not respecting the law. Also fatwas by famous Islamic
scholars against copyright violations were published on the website.
The Department has supported and encouraged symposia and lectures
organized by the private sector with good participation.

The Department has encouraged the private sector to make information
and awareness campaigns.

Moreover, The Department has initiated TV and Radio programs to
create awareness about copyright protection.

Third: In the Field of Training:

The Department has stepped up its training program. Every Monday, a
lecture is given by specialists to train the employees on how to
perform their tasks. The private sector participates in these weekly
lectures.

The Department took part in workshops organized by international
organizations in the field of intellectual property, specially the
World Intellectual Property Organization WIPO. The Department now
has qualified persons bearing certificates in the field of
intellectual property.

Also, the Department sent some of its officials to foreign countries
to participate in courses, seminars and workshops on IPR.

A number of employees working in CGD participated in most of the
local and international IPR conferences and workshops.

--------------
Annex - B
--------------

Statistics In Respect of Counterfeited Goods for (
1/1/2009-30/9/2009)

Ministry of Commerce & Industry
General Department for Combating Commercial Counterfeit

-- 48 cases violating Combating Commercial Counterfeit Law that were
transferred to Commercial Counterfeit Settlement Committee.
-- 361 cases violating Commercial Trademarks Law that were
transferred to the Investigation & Public Prosecution Bureau.
-- 815 import shipments were reported to customs for their violation
of Combating Commercial Counterfeit Law & Trademarks and Commercial

RIYADH 00001572 004 OF 006


Data Law.
-- Seizure of 290,977 packs of counterfeited accessories, perfumes
and cosmetics.

--------------
Annex - C - 1
--------------

Table of Some Customs Committees' Decisions on Counterfeit Goods
Violating IPR Issued from 1/1/2009 to 30/9/2009

Customs committee 1
--------------
Handbags, Footwear & Wallets: 397 cartons of handbags,
8346 handbags, 3209 wallets
Pens, Watches, Glasses & Lenses: 1255 glasses
Clothes, Fabric & Cosmetics: 12380 packages of shampoo
Electrical and Household Appliances: 500 cartons
Cell Phones: --
Sanitary ware & locks: 3031 cartons, 32 cartons of locks
Vehicle Spare Parts: 7913 cartons, 4001 batteries
Others: 7380 pillowcases and quilts
Number of Cases and Suspects: 34
Fine (SR): 664,223

Customs committee 2
--------------
Handbags, Footwear & Wallets: 19766 shoes,
6048 handbags, 275 wallets
Pens, Watches, Glasses & Lenses: 6635 watches 7601 glasses
Clothes, Fabric & Cosmetics: 3420 shawls, 5097 yards of cloth
Electrical and Household Appliances: 1900 heaters,
1725 cartons of lamps
Cell Phones: 739 cell phones
Sanitary ware & locks: 996 cartons, 7526 keys
Vehicle Spare Parts: 15463 cartons
Others: 7813 aluminium sheets,
10000 pieces of computer fittings
Number of Cases and Suspects: 43
Fine (SR): 885,994

Customs committee Jeddah
--------------
Handbags, Footwear & Wallets: 2961 cartons
Pens, Watches, Glasses & Lenses: 6069 watches, 3285 glasses
Clothes, Fabric & Cosmetics: 613 packages of clothes,
1716 pieces of clothes,
2400 packages of shampoo
Electrical and Household Appliances: 2040 cartons
Cell Phones: 168 cell phones
Sanitary ware & locks: 2386 cartons, 600 cartons of locks
Vehicle Spare Parts: 1218 cartons
Others: 1839 cartons of lighting fittings,
1808 cartons of perfume
Number of Cases and Suspects: 60
Fine (SR): 501,114

Customs committee Dammam
--------------
Handbags, Footwear & Wallets: 69 cartons of wallets,
10740 shoes
Pens, Watches, Glasses & Lenses: --
Clothes, Fabric & Cosmetics: --
Electrical and Household Appliances: --
Cell Phones: 248 cell phones
Sanitary ware & locks: --
Vehicle Spare Parts: 1218 cartons
Others: 2018 prepaid charging cards
Number of Cases and Suspects: 3
Fine (SR): 15,709.30

Customs committee Haditha
--------------
Handbags, Footwear & Wallets: --
Pens, Watches, Glasses & Lenses: --
Clothes, Fabric & Cosmetics: 9528 headgears
Electrical and Household Appliances: --
Cell Phones: --
Sanitary ware & locks: --
Vehicle Spare Parts: --
Others: 200 cartons of chocolate
Number of Cases and Suspects: 6
Fine (SR): 186,250

Customs committee Halat Ammar
--------------
Handbags, Footwear & Wallets: --
Pens, Watches, Glasses & Lenses: 325 glasses

RIYADH 00001572 005 OF 006


Clothes, Fabric & Cosmetics: --
Electrical and Household Appliances: --
Cell Phones: --
Sanitary ware & locks: --
Vehicle Spare Parts: --
Others: 2 packages of computer memory, 12 CDs
Number of Cases and Suspects: 3
Fine (SR): 28,770

Customs committee Batha
--------------
Handbags, Footwear & Wallets: 247 handbags,
30 cartons of shoes
Pens, Watches, Glasses & Lenses: 7128 watches,
481 cartons of watches
Clothes, Fabric & Cosmetics: 130 cartons of clothes,
4600 shampoo
Electrical and Household Appliances: 2574 cartons
Cell Phones: 279 cell phones
Sanitary ware & locks: 5216 cartons
Vehicle Spare Parts: 983 cartons
Others: 6307 cartons of perfume,
18588 bottles of perfume,
140 DVDs
Number of Cases and Suspects: 27
Fine (SR): 677,744

--------------
Total cases & suspects: 149
Total fine: 2,282,060 SR

--------------
Annex - C - 2
--------------

Goods Violating IPR Seized by Customs Ports during 1/1/2009 -
30/9/2009

Product Quantity Value (SR)
--------------
Clothes 157,561 355,748
Handbags and
wallets, of
leather 45,179 794,192
Vehicle
spare parts 237,481 1,616,273
Plumbing articles 152,490 186,868
Medical appliances 21,350 870,665
Watches 19,909 511,239
Shoes 2,136 210,067
Electrical
appliances 6,833 320,741
Perfumery 851 157,897
Accessories 46,718 50,854
Glasses and
pens 43,674 67,981
Miscellaneous
goods 15,424 1,310,964
--------------
Total 749,606 6,409,489

--------------
Annex - D - 1
--------------

King Abdulaziz City for Science and Technology
General Directorate of Industrial Property

Activities Relating to Patent and Industrial Designs for 2009
(from 1/1/2009 to 11/10/2009)

Patent Application Statistics for 2009:

Action Number
--------------
Filed patent applications. 592
Granted patents. 114
Rejected patent applications. 268
Forfeited (lapsed) patent applications. 451
Withdrawn patent applications. 0

Industrial Designs Application Statistics for 2009:

Action Number
--------------
Filed Industrial Design applications. 340
Granted Industrial Designs. 124
Rejected Industrial Designs applications. 89

RIYADH 00001572 006 OF 006


Forfeited (lapsed) Industrial
Designs applications. 141
Withdrawn Industrial Designs applications. 0

Recruitment:
5 employees have been recruited as follows: Archiving clerk -
Secretary - translator - accountant - legal researcher.



Action Number
--------------
Abroad training in the field of patents. 9
Abroad training in the
field of plant varieties. 5
Abroad training in the field of
intellectual and industrial property. 9
Abroad training in scientific subjects. 4
Regional and international participation. 8
Participating in exhibitions. 10

--------------
Annex - D - 2
--------------

King Abdulaziz City for Science and Technology
Patent and Industrial Designs Complaints Committee

Statistical Data on Lawsuits for 2009
(from 1/1/2009 to 12/10/2009)

Action type Patents Industrial Designs
Appeals against decisions
of the General Directorate
of Industrial Property. 330 15
Infringement Lawsuits. 22 8
Cases Closed. 270 14

-- Total number of cases since the establishment of the committee is
(375).
-- Total number of decisions since the establishment of the
committee is (284).
-- Total number of unfinished cases (91).

--------------
Annex - F
--------------

Board of Grievances

Actions and Activities from the Beginning of January to the End of
October 2009 Relating to Intellectual Property Rights

Case Statistics:


Number of Cases Case Category
--------------
369 Trademarks
31 Patents
7* Copyrights

Number of Cases Status
--------------
32 Canceling of the Decisions
115 Cases Dismissed
24 Cases Inadmissible on Grounds of Formalities
29 Expiration of Lawsuit
2 Guilty
5 Not Guilty

Sample of Final Decision Resulting of Fines:
Number of Cases Case Category
--------------
1 Guilty and Fined SAR 50,000
1 Guilty and Fined SAR 50,000

* The Board of Grievances hears copyrights appeals cases. All of
these cases were appeals cases referred to the Board by the
Violations Review Committee.

End text.

Smith