US embassy cable - 05RANGOON209

UNCLAS SECTION 01 OF 02 RANGOON 000209 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EAP/BCLTV, EB/IPE SWILSON 
STATE PASS USTR FOR JCHOE-GROVES, USPTO JURBAN, LOC STEPP 
COMMERCE FOR JBOGER, ITA JEAN KELLY 
TREASURY FOR OASIA 
USPACOM FOR FPA 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, KIPR, PGOV, PREL, BM, Economy 
SUBJECT: SPECIAL 301: BURMA'S IPR SITUATION WORTH WATCHING 
 
REF: STATE 25660 
 
1. (SBU) Summary: This cable is in response to reftel 
request.  Intellectual Property Rights (IPR) are not 
adequately protected in Burma.  There is insufficient 
legislative protection and basically no law enforcement 
attention to the problem.  There are unverified rumors of 
unregulated optical media plants inside Burma, though output 
is likely small relative to production elsewhere in the 
region.  Because the impact of Burmese piracy on U.S. exports 
is small, and the GOB claims it is on track to meet its TRIPs 
requirements in 2006 (with improved legislation and law 
enforcement), we think it is one or two years premature to 
put Burma on any formal or informal list of countries of 
serious IPR concern.  However, it is not too early to raise 
our concerns with the GOB. End summary. 
 
Background: Sanctions Limit U.S.-Burma Trade 
 
2. (U) In May 1997, the United States imposed investment and 
other sanctions against Burma, including the suspension of 
commercial assistance programs.  In July 2003, legislation 
barred the import of Burmese products into the United States 
and an executive order outlawed the export of U.S. financial 
services to Burma.  U.S. commercial policy toward Burma is to 
neither encourage nor discourage legal exports.  U.S. exports 
to Burma in 2004 were about $11.6 million.  Given this 
limited trade and economic relationship with Burma, Post does 
not submit National Trade Estimate reports. 
 
IPR: Legislative Framework and Enforcement Weak 
 
3. (U) Burma does not yet have adequate IPR protection. 
Patent, trademark, and copyright laws and regulations are all 
deficient.  A Patents and Design Act was introduced in 1946, 
but never brought into force.  Thus the Indian Patent and 
Designs Act of 1911, which was enacted under British colonial 
rule, continues to govern the registration of patents and 
designs.  There are rumors that a comprehensive IPR law is in 
the works to make Burma compliant with its WTO TRIPs 
obligations in 2006 (Burma is designated a least-developed 
country for purposes of TRIPs compliance).  After Burma 
joined ASEAN in 1997, it agreed to modernize its intellectual 
property laws in accordance with the ASEAN Framework 
Agreement on Intellectual Property Cooperation and subsequent 
2004-2010 action plan.  However, there has been little 
evident action in this direction. 
 
4. (SBU) Lack of adequate legal protection, very poor 
understanding of IPR among consumers and policymakers, and a 
cash-strapped populace and business community spell trouble 
for IPR protection.  Piracy of optical media (music and video 
CDs, CD-ROMS, and DVDs), books, software, and designs is 
evident nationwide -- especially in the Thai and Chinese 
border regions and in the two major urban centers of Rangoon 
and Mandalay.  The vast majority of consumers of IT products, 
private and governmental, are using pirated software.  Much 
of the pirated U.S.-origin optical media and software is 
imported from China and Thailand.  There have been reliable 
reports in the past that unregulated optical media plants are 
operating inside Burma.  However, we cannot verify this 
information, and output, if it exists, is likely small 
relative to regional production. 
 
5. (U) Burma has no trademark law, though trademark 
registration is possible.  Some firms place a trademark 
caution notice in the regime's official newspaper, declaring 
ownership.  Once this notice has been published, criminal 
and/or civil action can be taken against trademark 
infringers.  Title to a trademark depends on use of the 
trademark in connection with goods sold in Burma.  While the 
Copyright Act was promulgated in 1914, no means to register a 
copyright was ever instituted.  There is thus no legal 
protection in Burma for foreign copyrights. 
 
6. (U) Burmese law enforcement officials do not prosecute 
piracy of domestic or foreign IPR except incidentally when 
such activity breaks other laws.  For instance, the existence 
of domestically pirated or illegally imported optical media 
and books, in particular, are of concern to Burma's military 
regime (the State Peace and Development Council or SPDC) 
because the material has not passed the GOB's censorship 
board.  Recently authorities have been cracking down on 
vendors of unlicensed foreign CDs and DVDs, with the 
unintended consequence of punishing purveyors of pirated 
goods. 
 
Comment: Is Burma Fit for the List? 
 
7. (SBU) U.S. industry is correct in pointing out that Burma 
is at risk of becoming a serious IPR problem.  Porous, 
remote, and, in some cases, relatively lawless border 
regions, combined with rampant corruption and active 
narcotics trafficking organizations inside Burma make the 
movement of optical piracy plants to Burma a real threat. 
Likewise, it is true that the GOB has yet to meet its TRIPs 
requirements or sign the WIPO Internet Treaties or other 
international accords.  However, we note that the scale of 
the local problem is still very small compared to neighboring 
countries.  Given a limited number of likely domestic 
customers (most Burmese are too poor) and a chronic lack of 
adequate infrastructure (e.g., reliable electricity) in most 
of the country, we do not believe Burmese consumption of 
domestically produced pirated products has a significant 
adverse impact on U.S. exports. 
 
8. (SBU) (Comment, cont.) As Burma is not yet required to 
meet TRIPs requirements, we also think it may be too early to 
start officially critiquing a lax law enforcement response. 
Thus, we think it's one or two years premature to add Burma 
to any formal or informal listing of countries of IPR 
concern.  Nonetheless, it is not too early to raise our 
concerns with the GOB over IPR violations in Burma. End 
comment. 
Martinez