US embassy cable - 04SANAA2775

UNCLAS SECTION 01 OF 02 SANAA 002775 
 
SIPDIS 
 
STATE FOR NEA/ARP, EB/IPR, EB/TRD 
STATE PLEASE PASS TO USTR FOR J.BUNTIN 
STATE ALSO FOR USAID ANE 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, KIPR, YM, ECON/COM 
SUBJECT: IPR IN YEMEN: NEW LAWS AND ENHANCED ENFORCMENT NEEDED 
 
REF A O3 Sanaa 2776 
 
1. Summary.  Intellectual Property Rights Laws in Yemen need to 
be updated to meet Trade Related Aspects of Intellectual Property 
Rights Standards (TRIPS), and existing laws should be enforced. 
Although it is not a major transit point or purchaser for 
illicitly produced goods and is not on USTR Special 301 watch 
list, Yemen does not have adequate IPR laws.  The Ministries 
charged with enforcing IPR regulations suffer from poorly trained 
staff and offer little incentive to pursue IPR violations.  End 
Summary. 
 
2. Yemen is not on USTR's Special 301 Watch List as a country of 
concern for Intellectual Property Rights violations.  The amount 
of smuggled and pirated goods is growing, however, and illegal 
copies of software, DVDs and music can be purchased at some 
stores in major cities.  At this time, Post is unaware of any 
pirated goods being produce illegally Yemen.  Most pirated 
products are likely smuggled from other countries and sold in 
Yemen.  Due to Yemen's extreme poverty, however, the market for 
such items is limited. 
 
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"Tite" Still on Shelves 
----------------------- 
 
3. The Tide/Tite issue (Ref A) is a case-study on the failure of 
IPR enforcement in Yemen.  Proctor and Gamble (P&G) initiated 
court proceedings against the local manufacturer of Tite laundry 
detergent in 1999 for violating their Tide patent.  Having won 
three cases (including a Supreme Court ruling in 2003), Tite 
laundry detergent is still on supermarket shelves and P&G is in 
private arbitration talks.  Continued discussions with the 
Ministry of Industry's Office of Patent Enforcement have produced 
no effective response.  In the Tide case, Yemen's laws worked 
(albeit slowly), but the Supreme Court's decision was not 
enforced and there is no political will to resolve this 
outstanding IPR issue. 
 
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New IPR Legislation Needed 
-------------------------- 
 
4. Yemen's IPR laws are not WTO compliant and legislation 
designed to address many Trade Related aspects of Intellectual 
Property Rights Standards (TRIPS) languishes in Parliament. 
Yemen's patent, industrial design, and copyright laws all must be 
revised to meet international standards.  The U.S. submitted 
several specific questions on Yemen's Memorandum of Foreign Trade 
Regime aimed at TRIPS compliance for patent and copyright laws. 
The Ministry of Culture and Tourism submitted to Parliament an 
amended copyright law that addressed specific concerns over 
software piracy and is TRIPS compliant, but Parliament still has 
not ratified the adjustments.  Gaps such as geographical 
indicators, topographies (integrated circuits layout), 
undisclosed information (especially those related to trade 
secrets), and anti-competitive behavior in contractual licenses 
 
SIPDIS 
still need to be addressed in future legislation. 
 
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Who Controls What? 
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5. The Ministry of Industry and Trade (MIT) controls patents and 
trademarks.  The World Intellectual Property Organization 
provided computers and other English language training for Patent 
officers. Four IPR departments reside in MIT: Patents and 
Industrial Designs; Trademark Registration; Trademark Depository; 
and Public Awareness.  The offices suffer from lack of English 
training, limited awareness of IPR trends and insufficient 
equipment to carry out their functions. 
 
6. The Ministry of Culture and Tourism enforces copyright laws. 
The Ministry is less adept at enforcing its laws that MIT and 
suffers from inadequate resources.  Executives from Microsoft 
along with the private NGO the Business Software Alliance are 
lobbying the ROYG to adopt the changes to the copyright laws 
concerning software piracy.  If such a law is drafted, Microsoft 
will open an office in Yemen.  Enforcement of the laws falls to 
Ministry of Interior and Customs, with little interaction, except 
if encouraged by companies. 
 
7. In July, President Saleh announced an anti-smuggling 
initiative aimed at fighting software piracy and asked Yemen's 
Chamber of Commerce to raise awareness regarding the problem. 
Post has seen no movement to extend enforcement, take readily 
available pirated software off the shelves, or pass legislation 
to enhance enforcement. 
 
--------------------------------------------- ------- 
Untrained Officials Enforcing Little Understood Laws 
--------------------------------------------- ------- 
 
8. Judges and prosecutors lack training to prosecute IPR cases. 
Cases take years to wind their way through Yemen's judicial 
systems; decisions, as in the Tide case, are not enforced. 
Further complicating the situation in Yemen is the combination of 
laws from both the former South and North.  Judges from the South 
often did not receive training in the new commercial laws they 
are required to enforce.  The ROYG is taking small steps to 
address the problem and is looking at upgrading the commercial 
courts in both Sanaa and Aden to meet business needs. 
 
9. Companies who bring IPR complaints to various ministries 
receive attention, but the ministries charged with enforcing IPR 
laws do not take action.  Several businessmen note that once they 
inform the Customs Authority of a problem, officials are helpful 
and usually act to seize goods.  On the flip side, there seems 
little political will to initiate cases of IPR enforcement. 
 
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New Laws, Enhanced Enforcement Equals Revenue 
--------------------------------------------- 
 
10. Comment:  With declining oil revenues and high unemployment, 
even small steps toward improving Yemen's investment climate are 
important to encourage foreign investment.  Until now, the IPR 
message is usually linked to the far off WTO accession goal and 
not the fact that expanded IPR protections will directly benefit 
Yemenis.  The pitch for expanded IPR enforcement and new laws 
should focus on the benefits of job creation and expanded tax 
revenue Yemen would receive should they take necessary steps 
toward WTO accession.  End Comment.