US embassy cable - 03ANKARA1275

UNCLAS ANKARA 001275 
 
SIPDIS 
 
 
TREASURY FOR OASIA 
STATE FOR EB/TPP/MTA/IPC - WILSON AND EUR/SE 
DEPT PASS USTR FOR DBIRDSEY/KALVAREZ, PATENT AND 
TRADEMARK OFFICE FOR URBAN, LIBRARY OF CONGRESS FOR TEPP 
USDOC FOR ITA/MAC/DDEFALCO 
 
 
SENSITIVE 
 
 
E.O. 12958: N/A 
TAGS: ETRD, KIPR, TU, USTR 
SUBJECT:  2003 SPECIAL 301 REVIEW:  RECOMMENDATION TO 
MAINTAIN TURKEY ON THE WATCH LIST 
 
 
REF:  02 ANKARA 8635 AND PREVIOUS 
 
 
Summary 
------- 
 
 
1. (SBU) Turkey took some limited steps to improve 
intellectual property protection in 2002, notably by 
suspending a problematic broadcast regulation and by 
forming provincial committees to improve enforcement. 
However, piracy of optical media, books and other 
products remains widespread and the GOT has not 
addressed key issues facing U.S. pharmaceuticals 
companies, including data exclusivity and price 
discrimination against imports.  Overall, IPR protection 
has not improved in most respects in the last year, but 
it has not deteriorated either.  Embassy recommends 
maintaining Turkey on the Watch List.  End Summary. 
 
 
Limited Progress on IPR 
----------------------- 
 
 
2. (U) There were positive developments in IPR 
protection in 2002, all on the copyright side.  The 
Ministry of Culture allowed a registration it had 
previously granted to a firm named Planet to be revoked; 
Planet had obtained a false registration from the 
Ministry to import DVDs.  The Turkish Council of State 
also suspended application of compulsory licensing 
provisions of the GOT's broadcast regulation.  The GOT 
formed provincial committees to improve copyright 
enforcement, and Istanbul-based representatives of the 
IPR industries report that that provincial committee has 
taken concrete steps to curb piracy.  Establishment of 
specialized intellectual property courts is another 
positive step. 
 
 
Enforcement and Data Exclusivity Problems Remain 
--------------------------------------------- --- 
 
 
3. (U) While the motion picture and software industries 
have had some successes in obtaining the cooperation of 
Turkish law enforcement authorities, music industry 
representatives have consistently told us that 
enforcement has not improved for their products and 
IIPA's most recent Special 301 submission show a piracy 
rate of 75 percent for music and records.  Book 
publishers are also experiencing high rates of piracy 
and DVD piracy appeared in 2002.  Industry 
representatives claim that the provincial enforcement 
committees have been active only in Istanbul (although 
this province accounts for the majority of some of these 
firms' sales in Turkey).  Trademark holders also 
criticize enforcement of their rights as deficient, 
claiming that Turkey is one of the world's largest 
exporters of counterfeit goods.  The GOT has not changed 
Health Ministry regulations which fail to provide data 
exclusivity for pharmaceuticals, disputing the U.S. view 
that this is required by TRIPS, nor has it revised 
regulations to remove discriminatory pricing practices 
applied to pharmaceuticals imports. 
 
 
Recommendation 
-------------- 
 
 
4. (SBU) Despite heavy lobbying on copyright and 
pharmaceuticals issues by the Ambassador and other 
Mission elements, the previous GOT took only limited 
action to improve the IPR climate in 2002, and did not 
address data exclusivity.  Our dialogue with the new 
government elected in November 2002 has been dominated 
by foreign policy crises.  We have therefore not been 
able to establish the high-level dialogue that is 
warranted on this issue. 
 
 
5. (SBU) While we recognize that Turkey has not made the 
progress we had hoped for on IPR protection this year, 
Embassy recommends maintaining Turkey on the Watch List. 
We strongly recommend that, after the current situation 
in the region is resolved, Washington ratchet up its 
engagement with the GOT on this issue, possibly 
including a visit to Ankara by an IPR delegation. 
Pearson#