US embassy cable - 04ZAGREB288

UNCLAS ZAGREB 000288 
 
SIPDIS 
 
 
SENSITIVE 
 
STATE FOR EB/IPC AND EUR/SCE 
 
USTR FOR MARK WU AND LISA ERRION 
 
USDOC FOR 4232/ITA/MAC/EUR/MROGERS 
 
USDOC FOR 3133/USFCS/EUR 
 
E.O. 12958: N/A 
TAGS: ETRD, KIPR, PREL, HR, Intellectual Property 
SUBJECT: RECOMMENDATIONS FOR 301 REVIEW: INTELLECTUAL 
PROPERTY MOU ON PARLIAMENTARY AGENDA 
 
REF: STATE 29551 
 
SENSITIVE BUT UNCLASSIFIED -- PLEASE PROTECT 
ACCORDINGLY. 
 
1.  (SBU) WE DO NOT CONCUR WITH THE PHRMA REQUEST TO 
MOVE CROATIA TO THE PRIORITY WATCH LIST SINCE THE NEW 
GOVERNMENT'S RECENT ACTIONS TO SECURE RATIFICATION OF 
THE 1998 INTELLECTUAL PROPERTY RIGHTS MOU DEMONSTRATE A 
SERIOUS NEW COMMITMENT TO ADDRESS THE ISSUES HIGHLIGHTED 
BY PHRMA. 
 
2.  (U) ON FEBRUARY 3, THE CROATIAN GOVERNMENT CABINET 
APPROVED THE 1998 INTELLECTUAL PROPERTY RIGHTS MOU, AND 
IT IS NOW ON THE CROATIAN PARLIAMENTARY AGENDA FOR THE 
SESSION STARTING FEBRUARY 25.  THE MOU WILL BE 
CONSIDERED IN THE PARLIAMENT UNDER AN EXPEDITED 
PROCEDURE, SO WILL NEED ONLY ONE READING AND A STRAIGHT 
UP OR DOWN VOTE. 
 
3.  (SBU) WE ARE VERY ENCOURAGED THAT THE SANADER 
GOVERNMENT HAS FULFILLED ONE OF ITS EARLIEST PROMISES TO 
THE USG AND FOREIGN MINISTER ZUZUL'S JANUARY 21 
COMMITMENT TO THE SECRETARY (RESTATED IN A LETTER DATED 
FEBRUARY 13 TO THE SECRETARY FROM ZUZUL).  WE ARE 
CAUTIOUSLY OPTIMISTIC THAT THE MOU WILL EASILY GAIN 
PARLIAMENTARY APPROVAL, BUT THE CROATIAN PHARMACEUTICAL 
LOBBY IS STILL CAPABLE OF CAUSING PROBLEMS. 
 
4.  (SBU) NONETHELESS, WE RECOMMEND KEEPING CROATIA ON 
    THE WATCH LIST IN ORDER TO MAINTAIN PRESSURE TO RATIFY 
THE MOU, TO IMPLEMENT IT QUICKLY AND TO ADDRESS THE 
OTHER ISSUES THAT DAMAGE OUR INDUSTRY IN THIS MARKET, 
SUCH AS OVERLY LONG REGISTRATION PERIODS AND WEAK PATENT 
ENFORCEMENT. 
 
FRANK 
 
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