US embassy cable - 03KUWAIT1989

UNCLAS SECTION 01 OF 02 KUWAIT 001989 
 
SIPDIS 
 
DEPT PASS USTR FOR C. NOVELLI 
DEPT PASS USTR FOR J. BUNTIN 
 
E.O. 12958: N/A 
TAGS: KIPR, ETRD, KU, USTR 
SUBJECT: IPR LETTER TO KUWAITI CROWN PRINCE 
 
REF: A. KUWAIT 01911 
 
     B. STATE 123166 
 
This is an action request for the office of the US Trade 
Representative (USTR).  See para 1. 
 
1. SUMMARY AND ACTION REQUEST.  Post plans to use the release 
of the Special 301 report to make a new push for intellectual 
property rights (IPR) reform in Kuwait later this month (Ref 
A).  Per email exchanges to USTR, post requests a letter from 
US Trade Representative Robert Zoellick to Kuwaiti Crown 
Prince Shaykh Saad Al-Abdallah Al-Sabah, which incorporates 
talking points aimed at improving Kuwait's IPR protection and 
enforcement efforts in the coming year (Ref B).  A draft text 
of the letter is contained in para 2.  Post hopes to receive 
a response to this draft at USTR's earliest convenience.  In 
addition to delivering this letter to the Crown Prince, the 
Ambassador plans to use the letter as a starting point for 
discussions during upcoming meetings with other key GOK 
officials.  END SUMMARY AND ACTION REQUEST. 
 
2. Text of the letter: 
 
Your Highness: 
 
I first wish to extend my government's deep appreciation for 
the indispensable assistance Kuwait has provided throughout 
the liberation of Iraq.  Your government's cooperation and 
commitment to this effort has been truly commendable. 
 
I would now like to turn your attention to another matter of 
mutual concern.  On May 1, I made a worldwide announcement of 
the results of the 2003 "Special 301" annual review.  This 
report examines in detail the adequacy and effectiveness of 
the efforts made by our international trading partners to 
protect intellectual property rights, such as trademarks, 
copyrights and patents. 
 
As you may know, Kuwait was again place on the Watch List, as 
a country of particular concern for insufficient protection 
of intellectual property.  Copyright violations continue to 
pose the most serious problem in Kuwait, where the rate of 
piracy remains the highest in the Gulf region.  According to 
industry estimates, 95 percent of motion pictures and 64 
percent of records and music sold in Kuwait are illegally 
pirated copies. 
 
These figures have grown so far out of any reasonable 
proportion that they are tarnishing Kuwait's image to 
international investors.  Companies such as Microsoft, AOL 
Time Warner and Disney have been placing the center of their 
Middle East operations in the United Arab Emirates, rather 
than Kuwait, resulting in large losses of revenue now and in 
the future for your country.  As a prime example, Showtime 
recently signed a 10-year deal worth millions of dollars with 
the Dubai Investment Authority. 
 
This problem also threatens to create unnecessary strains in 
our bilateral relations.  Last year alone the motion picture 
industry estimated that it lost approximately USD 10 million 
in Kuwait, while the music industry lost an additional USD 
3.4 million from sales of illegally sold products.  As the 
majority of those films and records are owned by American 
production companies or created by American artists, Kuwaiti 
vendors of pirated goods are in essence stealing U.S. 
property. 
 
The purpose of the Special 301 report is not to condemn but 
rather to highlight and resolve problems.  The U.S. 
Government would like nothing better than to see Kuwait 
removed from the Watch List.  Toward this end, we stand ready 
to assist you in meeting your international obligations and 
are willing to explore opportunities for potential technical 
assistance and expert training on improving IPR enforcement 
and protection. 
 
We must, however, see Kuwait begin to intensify the depth and 
breadth of its efforts.  Steps that need to be taken as soon 
as possible include the following: 
 
-- Making a public declaration at the highest level that 
copyright piracy in Kuwait will not be tolerated. 
 
-- Introducing and passing the long-promised amendments 
necessary to make copyright law fully consistent with the 
provisions of the World Trade Organization (WTO) TRIPs 
Agreement. 
 
-- Undertaking a far more stringent and effective 
intellectual property enforcement campaign, including 
launching serious investigations of large-scale producers and 
distributors of illegal goods, increasing penalties for 
offenders, and publicizing results of the court cases as a 
deterrent to future crimes. 
To be effective, the police force must be incorporated into 
this process, making regular arrests of all violators.  These 
include the young street vendors, who sell pirated copies of 
CDs and DVDs throughout Kuwait, to the high-level importers 
and manufacturers of illegal goods.  Experience has shown in 
countries like the United Arab Emirates and Saudi Arabia, 
where copyright piracy once posed rampant problems, that 
great strides can be made once the police are directed to 
take proper action. 
 
In today's information and technology based global economy, 
intellectual property rights industries have become the 
growth industry of the 21st Century.  Those countries that do 
not actively pursue and protect these intellectual property 
rights and associated companies are essentially closing the 
door on a wealth of economic potential. 
 
In the interest of both of our countries, we would like to 
renew our cooperation with you on this important front and 
see that Kuwait joins the list of countries well respected 
for its protection of intellectual property rights. 
 
Sincerely, 
 
Robert B. Zoellick 
U.S. Trade Representative 
URBANCIC