US embassy cable - 03ABUDHABI845

C O N F I D E N T I A L SECTION 01 OF 03 ABU DHABI 000845 
 
SIPDIS 
 
STATE FOR NEA/ARP, NEA/PPR AND EB/IPC FOR WILSON 
STATE PASS USTR - ALVAREZ AND BUNTIN 
STATE PASS LOC - TEPP 
USDOC FOR USPTO - URBAN 
USDOC FOR LASHLEY 
GENEVA PASS USTR 
 
E.O. 12958: DECL: 02/19/08 
TAGS: PREL, KIPR, ETRD, TC 
SUBJECT:  EMBASSY ABU DHABI COMMENTS ON DRAFT 2003 
SPECIAL 301 REVIEW 
 
1.(U) Classified by Ambassador Marcelle M. Wahba for 
reasons 1.5 (b) and (d). 
 
2.  (C) Summary and comment: The UAE Government is 
at the forefront of protecting intellectual property 
rights (IPR) in the region.  As part and parcel 
of its development into a regional trading center, 
the UAE Government has made the protection of 
intellectual property a priority in recent years. 
New copyright, trademark and patent laws, passed in 
2002, provide high levels of protection for U.S. 
intellectual property, while an agreement -- brokered 
by the Embassy in 2002 -- continues to provide 
TRIPs-plus levels of protection for U.S. 
pharmaceuticals. Additionally, the UAE has undertaken 
a massive public relations and enforcement effort 
against counterfeiting and routinely destroys copy-cat 
goods in large public events.  UAE authorities cooperate 
closely with U.S. business to prevent counterfeiting of 
trademarked goods.  Based on its solid record on IPR 
protection, we strongly recommend that the UAE remain 
off the Special 301 Watchlist this year.  End summary 
and comment. 
 
--------------------------------------- 
UAEG Enacts Laws To Protect IPR in 2002 
--------------------------------------- 
 
3.  (U) The UAEG repealed previous copyright, trademark, 
and patent laws and issued improved legislation in 2002 
in harmony with international standards and exceeding 
the UAE's TRIPs obligations.  The new Copyright Law, 
enacted in July 2002, is the product of a prolonged 
dialog between the UAEG and international organizations 
such as WIPO and the WTO.  It grants protections to 
authors of creative works and expands the categories of 
protected works, to include computer programs, software, 
databases, and other digital works. 
 
4.  (U) The Business Software Alliance (BSA) issued a 
press release in July that the "new copyright law confirms 
the UAE as the region's standard bearer of intellectual 
property rights...The regular view and revision of 
copyright laws sends a clear message to international 
companies that these laws are real and are part of an 
active policy to protect IP rights [in the UAE]." 
 
5.  (U) The UAE's new Trademark Law, also issued in July 
2002, confirms that the UAE will follow the International 
Classification System and that one trademark can be 
registered in a number of classes.  The new law provides 
that the owner of the registration shall enjoy exclusive 
rights to the use of the trademark as registered and can 
prevent others from using an identical or similar mark on 
similar, identical or related products and services if 
it causes confusion among consumers. 
 
6.  (U) The UAE Government published the official and 
final version in November 2002 of the long-awaited Patent 
Law.  Specifically, the Patent Law provides for -- in 
accordance with the UAE's TRIPs obligations -- national 
treatment for IP owners in other WTO Member States, both 
product and process patent protection, and enforcement 
of IPR whereby civil and criminal procedures and remedies 
may be employed. 
 
--------------------------------------------- ------- 
Sustained Patent Protection For U.S. Pharmaceuticals 
--------------------------------------------- ------- 
 
7.  (C) In March 2002, the UAE Ministries of Health and 
Finance and Industry conveyed in writing their acceptance 
of PhRMA's "best and final offer" under which 25 U.S. 
patent-protected, innovative products would be afforded 
5-year data exclusivity protection. Under the terms of 
the agreement which PhRMA and the UAEG accepted, all 
other U.S.-patented drugs, whether pending registration 
or not, will be given data exclusivity protection in 
the UAE market equal to the patent term -- a major 
commitment which puts the UAE well beyond its minimal 
WTO TRIPs obligations. 
 
8.  (C) The written assurances of the Ministries of 
Health and Finance ensure that no/no unauthorized copies 
of U.S. patent-protected medicines will be registered in 
the UAE.  That agreement is still holding firm and, in 
fact, the UAE has even refused to register copies of 
the 18 innovative pharmaceutical products that PhRMA 
agreed to allow local firm Julphar to produce in order 
to secure that agreement. 
The bottom- line remains that U.S. pharmaceutical products 
continue to enjoy TRIPs-plus levels of protection here. 
 
----------------------------------------- 
Continuing Crackdown On Counterfeit Goods 
----------------------------------------- 
 
9.  (U) The UAE authorities are well aware of the danger 
to legitimate commerce posed by counterfeiting, particularly 
of safety-related items such as automobile spare parts and 
tires.  The government has conducted a public awareness 
campaign warning consumers of the dangers of buying fake 
automotive components, and industry has also been active 
in this respect.  A few examples include: 
-- The Dubai and Sharjah Police have conducted a series 
of raids on "chop-shop" counterfeit parts distributors 
during the last year. 
-- The Dubai Chamber of Commerce (DCCI) has established 
a Fake Parts Committee regarding counterfeit auto parts, 
in partnership with local auto-industry representatives 
including General Motors, AC Delco, Daimler Chrysler. 
More generally, the DCCI has embarked on a publicity 
campaign to heighten consumer awareness regarding 
counterfeit auto parts. 
 
-- Sharjah Municipality has destroyed empty boxes that 
contained international trademarks of car spare parts 
(e.g., the empty boxes were to be filled with bogus 
parts, deceiving the consumer).  Sharjah Municipality 
has also established an emergency phone hotline to 
report fake spare parts. 
 
10.  (U) Regular articles in the local dailies of raids 
and arrests of counterfeiters indicate that the authorities 
take seriously their responsibility to reduce the trade 
of other counterfeit consumer products, as well.  Penalties 
for IPR violations include destruction of the counterfeit 
goods, destruction of the counterfeiting equipment, fines, 
imprisonment, and publication of judgment.  The following 
are a few recent examples: 
 
-- The Gulf News reported in August 2002 that raids by the 
UAE Ministry of Information led to the conviction of 34 IT 
resellers in Dubai who were dealing in illegal software. 
The authorities confiscated 47 PCs, which were loaded with 
copies of Windows 98, Windows XP, Office XP, and Adobe 
Photoshop.  Dubai police raided several warehouses and 
seized equipment used for copying software CDs and more 
than 205,000 pirated CDs. 
 
-- Dubai Customs in July 2002 destroyed 1.5 million pieces 
of counterfeit CDs, 16 tons of illegal medicines, 840 
satellite decoder cards and 1,377 cartons of fake 
cigarettes.  According to press reports, customs 
inspectors discovered the items while they were passing 
through either cargo or passenger inspections at various 
air, sea and land entry points across Dubai.  Dubai 
Customs inspectors undertake continuous training programs 
in order to identify suspected illegal activities and use 
the latest equipment for uncovering and seizing 
counterfeit goods. 
 
-- In July 2002, Sharjah Municipality confiscated and 
destroyed 799 cartons of fake cigarettes carrying the 
Marlboro trademark.  Sharjah officials said that, in some 
cases, the agent notifies the Municipality about the 
location of fake products and sometimes people report 
offenders.  The Municipality also employs undercover 
agents, disguised as customers, to visit shops and seek 
out counterfeit goods. 
 
-- Sharjah Economic Department forced 14 outlets to 
remove the word "Mercedes" and the trademark three 
pointed star in a circle logo associated with the 
Mercedes brand. Sharjah police closed some of the outlets 
pending their compliance. 
 
----------------------------------------- 
Ensuring IPR Protection For The Long-Term 
----------------------------------------- 
 
11.  (U) The UAE Government is examining ways to further 
reduce the flow of counterfeit products and trademark 
infringement in the country.  To this end, the National 
Anti-Fraud Committee was established in 2001 under the 
aegis of the Ministry of Economy and Commerce.  The 
Committee's scope of responsibility was broadened in 2002 
to allow for the study of commercial fraud and 
counterfeit and imitation trademarks, and requires that 
the Committee propose combating measures on an annual 
basis. 
 
12.  (U) The Emirate of Dubai established the "Dubai 
Technology, Electronic Commerce and Media Free Zone 
(TECOM)," which contains Dubai Internet City and Dubai 
Media City, and has been at the forefront of protecting 
digital media. In February 2002, Dubai issued the 
"Electronic Transactions and Commerce Law," which is 
modeled on the UNCITRAL Model Law on Electronic Commerce 
adopted by the United Nations.  A similar federal law is 
under consideration by the UAE Ministry of Justice that 
would address copyright violations on the Internet, in 
particular. 
 
13.  (U) In October 2002, Sharjah sponsored a conference 
to encourage dialogue between IPR experts and the local 
business community regarding the value of intellectual 
property assets and how they can be tools for economic 
growth.  IPR experts also discussed how local businesses 
could utilize patent laws to develop new business and 
import/export technology through licensing.  Not to be 
outdone, Dubai will host a conference on "Middle East Law 
in the Internet Age" in March 2003. Designed for 
intellectual property and technology lawyers, the 
conference will explore recent legal developments in the 
area of electronic transactions, intellectual property 
and the Internet. 
 
Wahba