US embassy cable - 04YEREVAN470

UNCLAS YEREVAN 000470 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EUR/CACEN, EB/IPC FOR WILSON 
PLS PASS TO USTR BPECK, DOC KSCHLEGELMILCH, USPTO 
JURBAN/DLASHLY-JOHNSON, LOC STEPP 
 
E.O. 12958: N/A 
TAGS: ETRD, ECON, KIPR, AM 
SUBJECT:  ARMENIA SPECIAL 301 COMMENTS 
 
REF:  STATE 29551 
 
1. (U) Sensitive But Unclassified.  Please protect 
accordingly. 
 
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SUMMARY 
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2. (SBU) Post recommends that Armenia remain off the Special 
301 Watch List for 2004.  Music and video piracy does exist 
in Armenia, but industry losses in the Armenian market are 
probably small and the government is growing more and more 
committed to the protection of intellectual property rights. 
USAID is currently working closely with the GOAM to develop 
an enforcement action plan and IPR-related training 
programs.  End Summary. 
 
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LEGISLATION TRIPS-COMPLIANT 
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3. (SBU) Armenia's legislation is Trade-Related Aspects of 
Intellectual Property Rights (TRIPS)-compliant, but 
application is not.  Intellectual Property Rights (IPR) 
legislation is new to Armenia, and enforcement officials 
have yet to develop the capacity to enforce intellectual 
property rights.  A new USAID-financed team of experts is 
working with law enforcement agencies to strengthen 
enforcement, with courts and judges to educate them about 
TRIPS and new IPR legislation, and with the State Customs 
Committee to help them IPR regulations at the borders.  To 
move Armenia to the Watch List now would likely hurt rather 
than help these efforts. 
 
4. (SBU) Armenia's government is aware that Armenia has IPR 
concerns of its own.  One of Armenia major producers and 
exporters, Yerevan Brandy Company, is taking measures to 
guard against the counterfeiting of its label by foreign 
brandy imposters.  Armenia's growing industry in software 
and computer design development also depends on the 
assiduous protection of intellectual property rights. 
Deputy Minister of Trade Tigran Davtian, who is charged to 
meet Armenia's WTO commitments, told us that he was 
committed to pursue steady progress towards "credible 
protection of IPR."  He added that, in his opinion, change 
must be steady and comprehensive rather than knee-jerk: 
raiding CD markets could simply send the industry 
underground rather than encourage retailers to stop selling 
pirated goods. 
 
5. (SBU) Post believes that Armenia's deficiencies in 
intellectual property protection are not due to a lack of 
will or intention to comply with international standards, 
but rather a lack of enforcement capacity and resources. 
The shift in U.S. assistance from helping Armenia pass TRIPS- 
compliant legislation in the run-up to WTO accession to 
enforcement of that legislation promises steady gains in 
combating piracy in the future.  Post believes that as long 
as the government is working successfully with the USAID- 
financed program to improve IPR enforcement, any change for 
the worse of Armenia's status on the Section 301 Watch Lists 
has the potential to do more harm than good. 
ORDWAY