US embassy cable - 05SANTODOMINGO4620

UNCLAS SANTO DOMINGO 004620 
 
SIPDIS 
 
DEPT FOR WHA/CAR, WHA/EPSC, EB/TPP/IPE; USDOC FOR USPTO 
(BOLAND); DEPT PASS USTR; WHITE HOUSE FOR USTR FOR R VARGO, 
A MALITO, K HAUDA 
 
E.O. 12958: N/A 
TAGS: DR, ETRD, KIPR, PGOV, IPR 
SUBJECT: DOMINICAN REPUBLIC: SENATE PRESIDENT VOWS TO BLOCK 
ANTI-IPR LEGISLATION 
 
1. Summary: Senate President Andres Bautista told the DCM on 
October 11 that he will not put onto the Senate agenda a 
legislative proposal inimical to patent and trademark law 
submitted  in August by the president of the Senate 
Commission on Industry, Commerce and Free Trade Zones 
Alejandro Santos. The draft legislation would reduce 
sanctions for intellectual property (IP) violators, weaken 
data protection and allow compulsory licenses to be granted 
by government non-action.  This is the third such proposal 
submitted to Congress during the last year.  In each 
instance, the Embassy has been effective in arguing against 
the proposals, bringing its objections to the attention of 
the Dominican authorities both in writing and through 
meetings with congressional leaders.  End summary. 
 
2. Senate President Andres Bautista, Senator Pedro Alegra 
and Senator Csar Diaz Filpo called on the DCM on October 11 
in response to the DCM's letter advising Bautista of 
anti-trade, anti-CAFTA aspects of proposed legislation 
submitted in August to change (weaken) the country,s 
industrial property law.  FCS officer, Department desk 
officer and EcoPol attended.   The draft legislative proposal 
was almost certainly prepared or at least helped along by 
Dominican pharmaceutical association INFADOMI, some of whose 
members are known to pirate patented and trademarked 
products.  Bautista was quick to point out that this was a 
proposal supported by only one member of the Senate 
(Alejandro Santos) and that it is not being considered for 
passage. 
 
3. Bautista and his colleagues welcomed details about the 
potential damage such legislation would cause, some of which 
were already familiar to them.  Principal problems with the 
legislation as drafted are that it would 1) remove prison 
sanctions for patent violators and create them for cases 
where individuals applying for patents provide incorrect 
information (either intentionally or by accident), 2) weaken 
data protection, and 3) allow automatic granting of 
compulsory licenses to firms which file applications with the 
patent office and receive no response within 120 days. 
 
4. Bautista said that he was suspicious of the proposed 
legislation and its one-senator support from the beginning. 
This prompted him to appoint Senator Pedro Alegria to head a 
commission to review the proposal.  Alegra asked economic 
officer to provide additional written details of the 
problematic aspects of the legislation for future use. 
While Bautista did not make a direct link to Santos, 
involvement with the IP proposal, he informed us that Santos 
was recently replaced as head of the Senate,s Commission on 
Industry, Commerce and Free Trade Zones, by La Vega Senator 
Fausto Lpez Sols. 
 
5. This is the third time over the past year that similar, 
IP-weakening proposals have been submitted to Congress.  Each 
time the Embassy has expressed USG concern in writing to 
congressional leadership and followed-up with meetings with 
congressional leadership, successfully arguing against 
passage.  Embassy has advised local attorneys associated with 
pharmaceutical association Pharma in each instance.  Pharma 
is scheduled to visit the Domincan Republic next week. 
 
6. Comment: Bautista's assurance that he will not consider 
the proposed IP-weakening legislation comes as the government 
and country prepare for entry into force of the free trade 
agreement with the United States and Central America 
(DR-CAFTA).  While similar IP proposals have failed in the 
past, local patent attorneys expressed their worries to the 
Embassy recently that the current proposal stood a greater 
chance of being approved, wrapped with other reform 
legislation now under congressional review and necessary for 
DR-CAFTA implementation.  Embassy believes that ploy has been 
blocked. 
HERTELL