US embassy cable - 05COLOMBO831

UNCLAS SECTION 01 OF 03 COLOMBO 000831 
 
SIPDIS 
 
STATE FOR SA/INS 
INL/C FOR ADAM SHANTI 
EB/TPP/IPE FOR ALLISIN AREIAS 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, OTRA, KIPR, CE, USTR 
SUBJECT: COLOMBO IPR TRAINING REQUEST 
REF: A) COLOMBO 816 B) STATE 48295  C) 04 COLOMBO 1971 
 
1.  Per request ref B, Post is pleased to submit the 
following proposals for funding.  Since the passage of a 
new IPR law in 2003, Sri Lanka has taken strong action to 
curb IPR violations in the past few months.  The public and 
private sectors are working together to implement the IPR 
law.  Econoff chairs a private sector IPR Working Group 
that meets with the police and government to support and 
encourage progress.  There has been commendable progress, 
but further assistance will be needed to support government 
efforts and build capacity in all stakeholders. 
 
2.  Ref A outlines recent developments in IPR enforcement 
in Sri Lanka. 
 
3. Proposed projects: 
 
Proposal 1 
 
The National Intellectual Property Office (NIPO) has 
proposed a two-part training for law enforcement officers. 
 
--The first part of the proposal is to hold a 3-day 
training session for 100 Police and Customs Officials in 
Colombo.  The first day of training will provide general 
training for both Customs and Police.  The next two days 
will be specialized one-day training programs for Customs 
and Police.  The training is to be conducted by US law 
enforcement agency officials, NIPO and other IPR personnel 
in Sri Lanka, and private sector representatives from IFPI 
and Microsoft.  They can be trained in law, investigation 
and detection, product identification, prosecution etc.  As 
part of this initiative, the US Embassy and the IPR working 
group will prepare a manual of product and copyright 
information to be distributed among participants and help 
establish a 24 hr help desk for consumers and customs at 
the NIPO.  Estimated Cost is $14,500. 
 
Breakdown: 
Cost of Conference hall hire for 100 participants for 3 
days=$2400 
Local speakers = $500 
Seminar handouts = $500 
Cost of travel of 2 US speakers (economy class)=$6200 
Lodging and Per diem for 2 US Speakers for 5 days=$1600 
Printing of 100 copies of the manual: $2000 
Help Desk at NIPO (2 mobile phones and connections): $500 
Miscellaneous expenses = $800 
Total Cost=$14,500 
 
--The second part of the proposed customs and police 
training will be to select 3 officers each from Police and 
Customs to be trained as trainers following the first in- 
country training.  They will be provided with more 
comprehensive training abroad to provide an exposure to the 
enforcement systems abroad.  Total estimated cost: $35,000 
(Note: If outcomes of part I of this proposal can be 
achieved through the proposed USPTO/IIPI training planned 
in Colombo in FY 2005, then we can proceed directly to part 
2 of the proposal.) 
 
Cost of travel Colombo to Washington for 6 Sri Lankan 
officials on full fare Economy ($3100)= $18,600; 
Lodging and per diem in Washington DC for 7 days 
($208/day)= $9,000 
A 2 day visit to a regional country with a good enforcement 
mechanism: $5,000 
Taxi fares = $600 
Visa fees = $600 
Miscellaneous expenses = $1,200 
Total cost =  = $35,000 
 
Proposal 2 
 
A private sector IPR working group chaired by Econoff and 
coordinated by the American Chamber of Commerce is 
providing assistance to various government agencies in 
implementing the new law.   This working group would 
benefit from training on best practices, and tools and 
techniques for public and private sector responsibilities 
and efforts in enforcement.  The working group would also 
benefit from learning of a model for implementation. 
Estimated Cost $25,000 
 
Cost of travel to 5 members to Washington DC or to a 
regional country= $15,500 
Per Diem for 7 days= $7,140 
Visa Fees= $500 
Taxi fares= $500 
Miscellaneous Expenses= $1,360 
Total Cost= $25,000 
 
4.  Project Criteria: 
 
5.  Targeted to U.S. Priorities: Assisting the IPR regime 
meets a key MPP goal of supporting economic growth in Sri 
Lanka.  Specifically, the two proposals will enable the US 
mission in Colombo to accomplish US priorities of 
encouraging strong protection of IPR through engagement 
with GSL and improving the enforcement regime. 
Strengthening law enforcement and legal system complements 
other US Government activities in Sri Lanka including 
customs enforcement related to Container Security 
Initiative (CSI) and Megaports program.  Colombo port is a 
major transshipment hub and increased IPR enforcement will 
also curb counterfeit trade in the region.  IPR was also a 
topic in all TIFA rounds and strong IPR protection will 
facilitate a future FTA with the United States.  US 
companies in Sri Lanka experience significant market losses 
due to piracy and counterfeiting in music, movie, and 
software products and strong IPR protection will enable 
them to gain increased market access to this growing 
market. 
 
6.  Host government support:  Sri Lanka is a party to major 
Intellectual Property Agreements. Sri Lanka and the US 
signed a Bilateral Agreement for the Protection of 
Intellectual Property Rights in 1991, and Sri Lanka is also 
a party to the Trade Related Intellectual Property Rights 
(TRIPS) Agreement in the World Trade Organization. A new 
intellectual property law came into force in November 2003. 
It meets both US-Sri Lanka bilateral IPR agreement and 
TRIPS obligations to a great extent.  Infringement of 
Intellectual Property Rights (IPR) is a punishable offense 
under the law.  With the passage of the new law, the 
government has taken some positive steps on IPR 
enforcement, including a major raid on a Malaysian-owned CD 
and DVD copying plant.  The Police carried out additional 
raids of counterfeit CD/VCD stores and a duplicating plant, 
so far in 2005.  The Commercial Crimes Unit of the Police 
Criminal Investigation Department, Colombo Fraud Bureau and 
local police stations carried out these raids.  Police 
investigated and prosecuted a small company for selling 
counterfeit apparel using the Internet.  Customs has also 
seized counterfeit consumer goods.  These are all 
significant first steps towards establishing a strong IPR 
regime in Sri Lanka.  Key Government of Sri Lanka officials 
in the National Intellectual Property Office, Department of 
Commerce, Police and Customs have shown support to promote 
IPR enforcement in Sri Lanka. 
 
7.  Key gaps in strategy to improve IPR enforcement:  There 
is an acute need for training here.  Both Police and 
Customs need training in IPR law, investigation and 
detection, product identification, prosecution etc.  Right 
holders have complained that lack of IPR knowledge in the 
police is preventing speedier resolution of cases and 
hampering prosecution. 
 
8.  Metrics to measure progress:  The following indicators 
will be used to judge the success of the projects.  Number 
of police raids of stores; Availability of pirated and 
counterfeit goods in the market; increase in sales of 
original products represented by US companies; and the 
number of customs raids. 
 
9.  Project oversight:  The IPR working group will 
coordinate the implementation of the projects.  The US 
Embassy in Colombo will report the progress in IPR 
enforcement on a half yearly basis. 
 
10.  Post appreciates the opportunity to request vital 
assistance needed to enforce the new IPR law in Sri Lanka 
and protect right holders. 
 
ENTWISTLE