SINGAPORE: UPDATE ON INTELLECTUAL PROPERTY ISSUES

UNCLAS SECTION 01 OF 03 SINGAPORE 000311

SENSITIVE
SIPDIS

EAP/MTS - MG COPPOLA
BANGKOK FOR JNESS
NEW DELHI FOR JEHRENDREICH
STATE PASS USTR FOR AUSTR BWEISEL AND DAUSTR RBAE

E.O. 12958: N/A
TAGS: KIPR EINT EINV ETRD ECON SN

SUBJECT: SINGAPORE: UPDATE ON INTELLECTUAL PROPERTY ISSUES

REF: A.) 08 SINGAPORE 1168
B.) 08 SINGAPORE 1329
C.) 09 SINGAPORE 186


1. SUMMARY: (SBU) Econoffs met with officials from the
Intellectual Property Office of Singapore (IPOS) March 26 to discuss
progress made on intellectual property rights (IPR) issues since the
October review of the U.S.-Singapore Free Trade Agreement (FTA) (Ref
A),and urge IPOS to focus on resolving remaining issues. While
Singapore amended its law covering remuneration for Internet
"simulcasts" last year (Ref B),industry is still in negotiations
with broadcasters regarding fees. IPOS is examining internet
service provider (ISPs) codes of conduct established in other
countries, but industry contacts complain that the GOS has been too
slow in urging cooperation from ISPs. Econoffs raised Verizon's
Special 301 submission regarding trademark protections, and the
Motion Picture Association's proposal to adopt legislation
prohibiting in-theater "camcording." Econoffs also urged IPOS to
consider ways to increase deterrent penalties in cases of end-user
software piracy, and focus attention on combating the transshipment
of IP-infringing goods. Post intends to have a series of such
follow-up meetings with IPOS to continue to urge Singapore to bring
local IP laws in line with FTA requirements. End Summary.

Progress on "Simulcasting"
--------------


2. (SBU) Econoffs expressed appreciation to IPOS for amending the
Copyright Law to require remuneration for "simulcasting," i.e., the
digital transmission of songs over the Internet (Ref B),and noted
that music industry representatives had told us they were satisfied
with the wording of the amendment. However, negotiations are still
ongoing between the music industry and broadcasters regarding the
fees broadcasters must pay. Econoffs noted that the outcome of
those negotiations and the implementation of the amendment would
determine whether the new protections afforded simulcasts would be
adequate and meet industry's needs.


3. (SBU) IPOS is also following the progress of the simulcasting
fee negotiations and agreed that at this stage it is a commercial
matter for the music industry to work out with the broadcasters.
IPOS will not intervene in the matter unless the talks break down
and "things get ugly," ANG I-Ming, Director and Legal Counsel for
IPOS, told Econoffs. IPOS officials indicated that it was too early
to tell whether the Copyright Tribunal would eventually be needed to
settle the negotiations.


4. (SBU) Ahead of the meeting with IPOS, representatives from
Recording Industry Singapore (RIS) and recording industry
association IFPI told Econoff that fee negotiations have not been
easy, as broadcasters are coming to terms with having to pay for
something they previously got for free. RIS and IFPI attempted to
negotiate with SPH UnionWorks, which is owned by Singapore Press
Holdings (SPH) and operates two channels, but SPH UnionWorks
countered with fee amounts too low for RIS and IFPI to accept. RIS
and IFPI contacts told us that SPH UnionWorks refused to negotiate
and has opted instead to simply stop streaming the music content and
threatened to end other promotional privileges that record companies
have received in SPH's other media outlets. (NOTE: RIS told us
that all Singapore broadcasters have stopped streaming content
temporarily until agreement is reached on the remuneration scheme.
However, SPH UnionWorks seems to have opted for a permanent stoppage
rather than meet the requirements of the amended law. End note.)
MediaCorp, the largest broadcaster in Singapore with 18 channels,
has postponed meetings and delayed responding to RIS regarding fees.
RIS contacts said that the delays could be due to internal
restructuring at the company. RIS and IFPI are unsure whether
negotiations with MediaCorp will be successful, considering its
clout in the market.


5. (SBU) SAFRA Radio, which has two channels, has been the most
responsive, and RIS hopes to conclude a fee agreement within the
next few weeks, Barbara Wong, General Manager of RIS, told Econoff
March 30. Post will continue to monitor the situation and report
any developments.

Facilitating Cooperation between ISPs and Industry
-------------- --------------


6. (SBU) IPOS is studying different agreements and codes of conduct
that are being established worldwide to address internet piracy and
the role internet service providers (ISPs) must play. Ang noted
that no code of conduct has succeeded in resolving piracy, saying

SINGAPORE 00000311 002 OF 003


that even if ISPs take down a site or suspend an individual's
account, infringers will pop up elsewhere. Econoffs agreed that
completely eradicating Internet piracy is a challenge, but pointed
out that every effort needs to be made to make it more difficult and
that Singapore must meet its FTA obligations. Ang said that IPOS
had a meeting scheduled with RIS and IFPI representatives to discuss
the technical aspects of the piracy issue and how ISPs can
contribute. Barbara Wong later confirmed that the meeting took
place, but RIS was disappointed that the meeting only involved GOS
officials and did not include ISPs.


7. (SBU) Only recently, as other countries announced their own
plans to work with ISPs, has Singapore appeared to be more open to
addressing this issue. Contacts from MPA and RIS complained to
Econoff in several conversations that local ISPs were not responsive
to the numerous notifications industry provided regarding infringing
sites, and ISPs were not fulfilling their obligations to take down
such sites. RIS and IFPI provided Econoff with letters to IPOS and
a timeline documenting several months of correspondence with the
IPRB (Intellectual Property Rights Branch of the Singapore police)
regarding a music-sharing site, Ayunite. RIS first brought it to
IPRB's attention in July 2008, but the site was just taken down in
March of this year.


8. (SBU) Post will continue to report on this issue, but would
welcome guidance on ISP codes of conduct that we could share with
IPOS.

Verizon's Concerns Regarding Trademark Protections
-------------- --------------


9. (SBU) During the 2009 Special 301 process, Verizon submitted its
concerns that Singapore does not adequately protect famous or
"well-known" marks (Ref C). In discussions following the 301
submission, local and U.S.-based legal counsel for Verizon told
Econoff that there is a Singapore wood flooring firm called Verizon
Wood International Pte Ltd., which has not registered the name
Verizon, but is using it in commerce. Verizon has consulted with
outside legal counsel regarding what recourse it has against Verizon
Wood. Gregory Kahn, Assistant General Counsel, South and Southeast
Asia for Verizon Business, told Econoff that one challenge Verizon
faces is that Verizon Wood has not registered its name. If it had,
Verizon would have had an opportunity to block the registration.
Moreover, outside legal counsel for Verizon told the company that it
would be difficult to bring a case against Verizon Wood because
Singapore's trademark law does not appear to adequately protect a
"well-known" mark from use by a firm in an unrelated industry.
Econoff has asked Verizon to provide a more detailed analysis of the
Singapore law, the protections it does or does not provide, and what
Verizon suggests IPOS change to bring the law in line with the FTA
and other international standards.


10. (SBU) Econoffs alerted IPOS to Verizon's concerns, explaining
that more information will be forthcoming. IPOS could not explain
in the March 26 meeting how it might address a case such as this in
which the company alleged to be infringing has not registered for a
trademark. We will continue to work with Verizon and IPOS on this
issue and report any developments.

Restrictions Against In-Theater "Camcording"
--------------


11. (SBU) IPOS requires much more information regarding the problem
of in-theater "camcording" of movies before it will adopt any
changes to its existing laws, Ang said. Although industry is aware
of at least three cases of camcording that have occurred in
Singapore, Ang said that only a few incidents did not constitute an
alarming trend. Ang said Singapore has criminalized the recording
and distribution of pirated movies, but its laws do not conclude
that anyone recording part of a film "for a laugh" intends to
distribute and sell the recording on the black market. Currently,
theater workers can eject a customer caught recording a film, but
there is no law in place giving police the authority to arrest and
question someone caught recording, Ang said. IPOS requested more
information from Econoffs regarding laws and penalties in the United
States against in-theater "camcording." Ang acknowledged that MPA
had provided IPOS with suggested edits to Singapore's law, but he
did not indicate IPOS's position regarding MPA's suggested changes.
IPOS officials noted that this issue is also under discussion within
Anti-Counterfeiting Trade Agreement (ACTA) talks.

Deterrent Penalties for End-User Software Piracy
-------------- ---

SINGAPORE 00000311 003 OF 003




12. (SBU) IPOS officials told Econoffs that the law protecting
copyrights and outlining penalties for software end-user piracy are
sufficient, and it is up to the prosecutors to request a penalty
that fits the crime. In IPOS's view, a judgment in the case of PP
v. PDM International, a case in which the total value of the
software pirated was far greater than the fines charged (Ref A),was
based on mitigating factors, such as how cooperative the defendants
were with authorities. IPOS does not believe it has set a
problematic precedent. Econoffs conveyed to IPOS that one solution
proposed by the Business Software Alliance (BSA) would be to give
prosecutors the latitude to break up the infringement charges
differently, so that they totaled a higher fine in aggregate. IPOS
needs to examine a range of cases in which the penalties were
considered low before making any changes to the current system, Ang
said.

"Self-Help" Cases and Transshipment of Counterfeits
-------------- --------------


13. (SBU) BSA and other industry contacts oppose Singapore's
reliance on a "self-help" model that puts a great deal of
responsibility on industry to conduct investigations and build cases
against IP-infringing companies or individuals. Investigating and
building a case is time-consuming and expensive, Andy Leck, an
attorney with Baker & McKenzie, Wong & Leow, told Econoffs in a
separate meeting. He further noted that such "self-help" cases do
not always lead to more effective enforcement. Leck and others have
argued that even in cases when industry has brought extensive
evidence to Singapore police and customs officials, the authorities
do not always act on it, nor do they inform industry of any actions
taken.


14. (SBU) Econoffs urged IPOS officials to focus more on the issue
of transshipped IP-infringing goods, and asked about what kind of
customs recordal mechanism is currently in place. Econoffs shared
with IPOS that industry contacts told us that the Hong Kong port
system allows companies and their IPR officials to share
information, such as images comparing legitimate and counterfeit
logos and locations of legitimate factories, with customs officials
to help them target shipments more effectively and contact
appropriate company officials in the event that customs interdicts a
shipment of IP-infringing goods. Leck and other industry
representatives would like Singapore to adopt similar programs. Ang
agreed this is an issue that requires coordination with other GOS
agencies, and indicated that he would try to find out what kind of
system exists at Singapore's port.

SHIELDS