US embassy cable - 05ABUDHABI841

UNCLAS SECTION 01 OF 03 ABU DHABI 000841 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EB/IPE FOR SWILSON 
PASS TO USTR JCHOE-GROVES, DOC JBOGER, USPTO JURPAN, LOC 
STEPP 
 
E.O. 12958: N/A 
TAGS: KIPR, PREL, ETRD, TC 
SUBJECT: EMBASSY ABU DHABI COMMENTS ON SPECIAL 301 REVIEW 
 
REF: A. A) SECSTATE 23950 
 
     B. B) ABU DHABI 2980 
     C. C) ABU DHABI 1824 
     D. D) ABU DHABI 577 
     E. E) DUBAI 4573 
 
1. (SBU) Summary and comment:  The UAE Government remains 
strongly committed to protecting intellectual property rights 
(IPR).  The UAE continues to enforce copyright, trademark, 
and patent laws passed in 2002 to protect U.S. intellectual 
property, and remains committed to the 2002 agreement 
providing TRIPS-plus levels of protection to U.S. 
pharmaceuticals.  When Embassy and industry representatives 
confronted UAEG officials with incidents of pharmaceutical 
patent infringement, the UAEG resolved the problems on behalf 
of the U.S. companies.  Additionally, the UAE conducted a 
number of high-profile raids to arrest merchants involved in 
optical media piracy.  We strongly recommend that the UAE not 
be included in the Special 301 Watchlist this year.  Post 
recommends that we use the opening of FTA negotiations to 
work with the UAEG to continue making improvements in the IRP 
regime. 
 
 
High-level UAEG Commitment Generates IPR Success Stories 
--------------------------------------------- ----------- 
 
2. (U) Intent on meeting its own IPR commitments and aware 
that industry concerns regarding IPR violations could have 
impeded movement toward a Free Trade Agreement with the 
United States, last spring senior UAE officials personally 
committed themselves to resolving any outstanding IPR issues. 
 Minister of Information Sheikh Abdullah bin Zayed al-Nahyan 
told us that we should alert him personally to any problems 
with IPR, and UAE Minister of State for Finance and Industry 
Mohammed Khirbash pledged personal attention to solving the 
pharmaceutical industry,s concerns at the first Trade 
Investment Framework Agreement (TIFA) Council meetings in 
April 2004. 
 
3. (SBU) Following the April TIFA Council meetings, Embassy 
officers and pharmaceutical representatives worked with the 
UAEG and reached a solution to address companies, concerns 
about patent infringement.  The Ministry of Health issued a 
ministerial decree revoking the registration of 4M6 (a Viagra 
composite, whose registration and sale violated Pfizer,s 
patent) and it notified pharmacies that Satibo and Trex (also 
Viagra composites) were not registered and ordered they be 
withdrawn from the market (ref B). 
 
 
TRIPS Compliance 
---------------- 
 
4. (U) In 2004, the UAEG continued to expand the scope of the 
copyright, trademark, and patent laws issued in 2002 (that 
exceed the UAE,s TRIPs obligations) by issuing four new 
regulations.  The most significant regulation allows for 
specialized collecting societies, which provide a mechanism 
for recording companies to collect royalties on the broadcast 
and performance of copyrighted material.  The other three 
regulations cover registration of works, registration of 
importers and distributors, and licensing translations of 
copyrighted material. 
 
5. (SBU) The Ministry of Health (MOH) also took steps to 
ensure that local merchants and health authorities understood 
the UAE,s TRIPs obligations.  In a series of early summer 
meetings, MOH officials told Econchief that Ministry 
officials planned to meet with the general director of every 
health authority in the UAE to put an end to the purchase of 
unregistered drugs through unauthorized suppliers (ref C). 
Khalid al-Bustani, UAE Ministry of Finance Assistant 
Undersecretary also told Econchief that the MOH would 
instruct the various health authorities about the details of 
the UAEG,s commitments under the 2002 MOU between PhRMA and 
the UAE (this MOU ensures TRIPS-plus level of protection for 
pharmaceutical patents and affords 5-year data exclusivity 
protection for 25 U.S. patent-protected products). 
 
 
Enforcement 
----------- 
 
6. (U) Periodic articles in the local newspapers of raids and 
arrests of counterfeiters indicate that the authorities take 
seriously their responsibility to reduce the trade of 
counterfeit goods in the UAE and do not hesitate to publicize 
the results of enforcement actions.  The following are a few 
examples of reports appearing in local media: 
 
-- In March 2004, the Ministry of Information, in cooperation 
with Abu Dhabi TV, filmed an undercover sting operation that 
seized dozens of CDs and copyrighted software at a computer 
store in Abu Dhabi (ref D). 
 
-- In June 2004, the Ministry of Information and Culture 
conducted a large-scale raid on five UAE based resellers 
dealing in illegal software.  During the raid, 88 counterfeit 
CDs loaded with illegal programs and pirated software were 
seized. 
 
-- In September 2004 Dubai Police conducted three raids that 
resulted in the arrest and conviction of nine South Asians 
for selling pirated CDs.  Acting on tips from the Dubai-based 
Arabian Anti-piracy Alliance (AAA), the Dubai police set up 
the sting operation and confiscated more than 6,000 video and 
software CDs (ref E). 
 
-- In November 2004, ten computers loaded with illegal 
software were confiscated from a pharmaceutical company. 
 
-- In November 2004, the Dubai Court sentenced four Indians 
to three months in jail for distributing pirated DVDs and 
CDs.  After serving their sentence, they will be deported. 
 
-- In February 2005, a Sharjah retailer took out an add in a 
local newspaper publicly apologizing for selling counterfeit 
DeWalt products and promised Black & Decker that he would not 
deal in counterfeit products again. 
 
7. (U) In an effort to crack down on door-to-door vendors 
selling optical media, the Dubai Department of Economic 
Development began fining restaurant and cafE owners if it 
found vendors selling pirated CDs in their establishments.  A 
representative from the AAA said that restaurants have begun 
posting warning signs, with the Dubai police logo, 
highlighting the penalties for sales of pirated CDs. 
 
8. (U) The Ministry of Information and the Dubai police, 
acting on information from the AAA, have taken action against 
individuals and merchants distributing illegal satellite 
subscription cards, in one case sentencing a card distributor 
to a full year of imprisonment (ref E). 
 
9. (U) According to statistics from the Ministry of 
Information and Culture, Dubai police conducted 122 seizures 
of pirated optical media and computer software in 2004, Dubai 
airport authorities made 31 seizures, and the Ministry of 
Information conducted 253 raids.  In total, UAE officials 
confiscated over 275,000 pirated items.  The International 
Federation of the Photographic Industry has expressed 
concerns about IPR enforcement, citing statistics that 
indicate the total number of seized items decreased from last 
year.  It estimates that music piracy increased to 15% in 
2004 (up from 10% in 2003).  The IFPI uses this statistic to 
claim that IPR enforcement in the UAE is slipping, but we 
note that a decline in the number of goods seized could be 
from lax enforcement and fewer raids, or from fewer items 
actually being brought into the country and dealt in the 
market.  The Director General of the Federal Customs 
Authority has asked the Embassy to help facilitate meetings 
with IPR organizations to better coordinate efforts. 
 
 
Industry Officials Pleased with UAE Progress 
-------------------------------------------- 
 
10. (U) Anecdotally, local industry officials are pleased 
with progress the UAE has made in the realm of IPR 
enforcement, and they do not support placing the UAE on the 
watchlist.  In fact, an official with the AAA (which 
represents the Motion Picture Association of America) said he 
would actively fight efforts to put UAE on the Special 301 
watchlist.  He said that placing UAE on the watchlist would 
provide a disincentive to other countries in the region from 
making improvements.  He needs to be able to make the point 
to other countries that by addressing IPR concerns, they can 
be removed from the watchlist, and he points to UAE as an 
example. 
 
11. (U) According to the regional official in charge of IP 
enforcement for Ford Motor Company, Ford has not had problems 
with the UAE this year.  He said that UAE officials have been 
willing to talk about and work toward solutions to the 
counterfeit autoparts problem, and he is pleased with the 
progress they have made.  According to him, Ford did not 
provide any information to police or customs authorities in 
2004 requesting raids or law enforcement actions. 
 
Recommendation: No Watchlist 
---------------------------- 
 
12. (U) For these reasons, Embassy officials strongly urge 
that the UAE remain off of the 2005 Special 301 Watchlist. 
We agree that there is room for improvement, and in 
particular, we support the idea of encouraging the UAEG to 
provide IP owners with information that would permit them to 
pursue the producers and manufacturers of pirated goods in 
source countries.  However, we note that the UAE has taken 
considerable strides in enforcing IPR regulations, 
prosecuting violators, and publicizing law enforcement 
actions.  Placing the UAE on the watchlist would send a 
signal to the UAEG that we are not appreciative of their 
efforts, and we believe that such a signal is inappropriate 
and inaccurate.  The UAE is a solid partner in IPR 
enforcement, and we want to continue to work with the 
government and industry and encourage them to further their 
efforts by offering carrots, and not pulling out the sticks. 
 
 
 
SISON