US embassy cable - 05MANAMA321

UNCLAS SECTION 01 OF 02 MANAMA 000321 
 
SIPDIS 
 
STATE FOR NEA/ARPI DBERNS AND EB/IPE SWILSON 
USTR FOR JBUNTIN 
COMMERCE FOR ITA/MAC/ONE CLOUSTAUNAU AND THOFFMAN 
GENEVA FOR USTR 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, KIPR, BA 
SUBJECT:  BAHRAIN:  YEAR 2005 SPECIAL 301 REVIEW 
 
REF: STATE 24592 
 
1.  Summary.  In 2004, Bahrain sustained a strong anti- 
piracy policy, seizing nearly 60,000 audiovisual products, 
mostly audio CDs and Video Compact Discs (VCDs). The GOB 
legalized its Microsoft software and is now purchasing, 
rather than illegally copying, additional software products. 
Five of Bahrain's eight proposed intellectual property right 
(IPR) laws are still pending in parliament, including: 
trademarks; industrial design; plant varieties; integrated 
circuits; and copyrights.  Laws concerning trade secrets 
(2003); patent and utility models (2004); and geographic 
indications (2004) were passed.  The Nice Agreement was 
adopted in 2003, and legislation to implement seven 
additional international treaties and conventions is pending 
ratification, including: the Patent Cooperation Treaty; the 
Madrid agreement concerning the international registration 
of marks; the Vienna Agreement establishing an international 
classification of the figurative elements of marks, the 
Trademark Law Treaty; the Patent Law Treaty; the Budapest 
Treaty on the international recognition of the deposit of 
microorganisms for the purpose of patent procedure; and the 
International Convention for the Protection  of New 
Varieties of Plants.  End Summary. 
 
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Strong Enforcement of Optical Media Piracy Laws 
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2.  Optical media piracy in Bahrain is not a homegrown 
industry, said Jamal Dawood Salman, the Ministry of 
Information's Director of Publications and Press.  Salman 
maintained that pirated CDs enter Bahrain from the Far East, 
primarily from Indonesia, Thailand and Malaysia, and are 
brought in small quantities by passengers entering the 
country through Bahrain's airport.  The proportion of 
pirated items seized at the country's ports is increasing 
relative to those found during shop raids, Salman said, 
because fewer illegal products are making it to the shelves. 
Nevertheless, it is estimated that approximately 500,000 
pirated media items enter the country every year, only 12 
percent of which is detected and captured. 
 
3.  The Directorate performed 580 shop raids in 2004. 
Salman's office confiscated and destroyed 60,000 illegal 
audiovisual items including (in order of volume) audio CDs, 
VCDs, DVDs, video games (in particular Sony PlayStation) and 
computer software.  Salman stressed the need for legal 
clarity regarding the distribution of Zone 1 media products 
in Bahrain due to differing interpretations by US government 
and non-government entities. Salman, himself a FTA 
negotiator, stated that during FTA negotiations, the U.S. 
FTA team made it clear that the sale and distribution of 
Zone 1 DVDs were legal in Bahrain provided that the items 
are original and not pirated.  The Ministry of Industry and 
Commerce also agrees to the legality of the distribution of 
Zone 1 media in Bahrain. However, the Motion Picture 
Association has noted its disapproval of the sale of Zone 1 
DVDs in non-Zone 1 regions and questions the legality of 
this practice.  Despite these concerns, the Directorate is 
working in conjunction with the Motion Picture Association, 
directly with studios such as Warner Brothers, Disney, and 
Paramount, and with the Arabian Anti-piracy Alliance to 
improve detection and stem the flow of pirated products into 
Bahrain.  Comment:  Making Bahrain a Zone 1 movie outlet 
would substantially reduce Bahrain's parallel import 
problem.  End Comment. 
 
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Government Software Legalized 
------------------------------ 
 
4.  The GOB legalized all its Microsoft software through an 
October 5, 2003 MOU.  The agreement is designed to keep the 
GOB legal by offering new releases, technical support, 
training and special incentives for schools and students. 
GOB desktops are "clean" (free from illegal software) and 
ministries are buying (rather than illegally copying) 
additional products, said Bahrain Microsoft Business 
Development Manager Samir Benmakhlouf.  He said that the GOB 
is complying fully with the MOU and its commitments to 
protect IPR. 
 
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IPR Legislation Under Review 
----------------------------- 
 
5.  Bahrain is serious about developing quality intellectual 
property protection legislation, said Jameel Al Alawi, 
Director of Agreements and Treaties, Directorate of Legal 
Affairs, Ministry of State for Cabinet Affairs.  Within the 
last two years the Bahraini Parliament passed three IP laws: 
Trade Secrets; Geographical Indicators; and Patents.  The 
Trademarks law and the Copyrights law are with the 
parliament, ready for a vote.  The parliament is currently 
studying Integrated Circuits; Plant Varieties; and 
Industrial Design drafts.  Bahrain adopted the Berne 
Convention for the protection of Literacy and Artistic 
Works; the Paris Convention for the protection of Industrial 
Property; and the Nice Agreement concerning the 
international classification of goods and services, 
according to Shaikh Daij Bin Salman Al Khalifa, Assistant 
Undersecretary for Foreign Trade, Ministry of Industry and 
Commerce.  Al Khalifa also noted that seven additional 
conventions and treaties are at an advanced stage of 
deliberation in parliament, including:  the Patent 
Cooperation Treaty; the Madrid agreement concerning the 
international registration of marks; the Vienna Agreement 
establishing an international classification of the 
figurative elements of marks; the Trademark Law Treaty; the 
Patent Law Treaty; the Budapest Treaty on the international 
recognition of the deposit of microorganisms for the purpose 
of patent procedure; and the International Convention for 
the Protection  of New Varieties of Plants. 
 
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WIPO Treaty Accessions Soon 
--------------------------- 
 
6.  Legislation supporting the WIPO Copyright Treaty and the 
WIPO Performances and Phonograms Treaty was approved by the 
Council of Representatives September 2004 and is currently 
with the Shura Council (the appointed house of Bahrain's 
National Assembly). 
 
MONROE