US embassy cable - 04SANTODOMINGO4635

UNCLAS SANTO DOMINGO 004635 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR WHA/CAR, EB/TPP/MTA/IPC; USDOC PASS USPTO; WHITE 
HOUSE FOR USTR 
 
E.O. 12958: N/A 
TAGS: KIPR, PGOV, DR 
SUBJECT: DOMINICAN CONGRESS STALLS EFFORT TO UNDERCUT IPR 
PROTECTION 
 
 
1.  Summary.  On August 11 Charge and EcoPol counselor urged 
Dominican House of Representatives President Alfredo Pacheco 
to block draft legislation from the Senate intended to reduce 
penalties for IPR infringements and to institute automatic 
compulsory licensing of patents.  Pacheco said that he will 
allow the draft measure to expire with the end of the 
extraordinary session and will not allow precipitate acion on 
it in the session to begin next week.  End Summary. 
 
2.  Dominican IPR attorney Mary Fernandez contacted the 
Embassy on August 9 to advise that in unpublicized action on 
July 22 the Dominican Senate had quickly passed legislation 
that would alter existing law to provide that a) in cases of 
requests for compulsory licensing of patents, these would be 
considered granted in the event that the authorities take no 
administrative action in the period of 120 days, and b) 
current penalties for IPR infringement would be revised to 
exclude jail terms and to set fines on a scale that would not 
exceed 250,000 Dominican pesos (approximately USD 5,000). 
Fernandez provided a facsimile of the draft legislation, 
which reportedly remained in the Dominican Senate awaiting 
transmission to the House of Representatives. 
 
3.  The Charge, FCS counselor, and EcoPol staff received 
Fernandez and regional representative of U.S. pharmaceutical 
manufacturer Merck Sharp and Dohme on August 10 and on August 
11 the Charge and EcoPol counselor called on House of 
Representatives President Alfredo Pacheco.  Pacheco indicated 
that he had just received the Senate draft, along with other 
legislation seeking to set up a closer regime of supervision 
for fuel distribution.  "I will not move quickly on these 
issues," he commented.  "One thing I have learned in this 
year's term as president is that it's a mistake to push 
measures through in a hurry." 
 
4.  The Charge pointed out the potential of this legislation 
for undermining business confidence; she also stressed the 
requirements of the TRIPS agreement for patent protection, 
due process, and disuasive enforcement measures. She provided 
background material taken from the WTO website, the TRIPS 
articles concerning patents, and relevant text from the Doha 
ministerial declaration of the World Trade Organization. 
KUBISKE