RESPONSE TO RUSSIAN CONCERNS ABOUT UNLICENSED

C O N F I D E N T I A L STATE 038565 SIPDIS E.O. 12958: DECL: 04/17/2019 TAGS: PGOV PREL ETTC ETRD MASS RS SUBJECT: RESPONSE TO RUSSIAN CONCERNS ABOUT UNLICENSED PRODUCTION OF KALASHNIKOVS REF: MOSCOW 285 Classified By: EUR Acting DAS Anita Friedt, Reasons 1.4 (b) and (d) ¶1. (C) Background: On several occasions since December 2008, the Government of Russia (GOR) has raised with us concerns about the unlicensed production of Kalashnikov rifles by U.S. companies, particularly Arsenal Inc. The GOR wants to protect the intellectual property rights of its arms manufacturers and is concerned that Arsenal Inc. and other companies like it could export large quantities of these unlicensed Kalashnikovs to countries that are unfriendly to Russia, such as Georgia. The U.S. has conducted an extensive investigation into this and has not found any violation of U.S. export control laws. If Russia believes that violations of intellectual property laws have occurred they should contact appropriate U.S. law enforcement officials or seek civil remedies through the U.S. court system. ¶2. (C) Action Request: Post is instructed to provide the nonpaper (a Russian translation will be provided sep) in para three to appropriate host-nation officials. In doing so post should pursue the following objectives: -- Share with appropriate Russian officials the results of our investigation into the information provided in the nonpaper from December 2008 and again in February 2009. -- Emphasize our agreement that disregard for intellectual property rights, including via patent infringement, is a serious problem. -- As appropriate, request additional information on any potential violations of U.S. export control laws. ¶3. (SBU) Begin talking points/non-paper: -- In response to your concerns raised in December 2008 and February 2009 regarding the possibility that unlicensed production of Soviet/Russia-developed weapons may be occurring in the United States, we have conducted a thorough investigation and would like to inform you of our findings. -- We agree that disregard for intellectual property rights, including via patent infringement, is a serious problem that crosses international borders. -- We also agree that the international black market in arms is a serious problem. The United States Government has a comprehensive legal framework for controlling the import and export of defense articles and defense services. Under the Arms Export Control Act and the International Traffic in Arms Regulations, manufacturers and exporters of defense articles and defense services must comply with export control requirements. -- Based on the information you provided, we have not been able to identify any violations of the Arms Export Control Act, the International Traffic in Arms Regulations, or other U.S. export control laws and regulations by the company you specified, Arsenal Inc. -- If you have additional information suggesting a violation of U.S. export controls by any company, we would of course appreciate receiving such information and would investigate it promptly. -- If you believe that criminal violations of intellectual property laws have occurred, we would welcome additional information, and we could facilitate a further investigation with appropriate USG agencies. -- If you believe that patent rights are being infringed, civil remedies are available through our court system. END POINTS ¶4. (U) POINT OF CONTACT: Washington POC for follow-up and further information is Matt Hardiman, EUR/PRA. ¶5. (U) Department thanks Post for its assistance. Please slug all responses for EUR/PRA, EUR/RUS, L/EB, and EEB. CLINTON