VZCZCXRO3591
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHBD #0043/01 0290821
ZNR UUUUU ZZH
R 290821Z JAN 08
FM AMEMBASSY BANDAR SERI BEGAWAN
TO RUEHC/SECSTATE WASHDC 4085
INFO RUEATRS/TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RUEHZS/ASEAN COLLECTIVE

UNCLAS SECTION 01 OF 03 BANDAR SERI BEGAWAN 000043 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPARTMENT FOR EAP/MTS 
DEPARTMENT PASS TO USTR FOR WEISEL, BAE AND EHLERS 
DEPARTMENT PASS TO USPTO 
SINGAPORE FOR FCS AND DHS 
BANGKOK FOR FCS:NESS 
 
E.O. 12958: N/A 
TAGS: ETRD KIPR PREL BX
SUBJECT: USTR VISIT MAKES PROGRESS ON IP PROTECTION, TIFA AGENDA 
 
Ref: A) 07 Bandar 276  B) 07 Bandar 165  C) 06 Bandar 12 
 
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SUMMARY 
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¶1. (SBU) Assistant USTR Barbara Weisel opened the door for closer 
Government of Brunei cooperation with the USG and rights-holders on 
enforcement of intellectual property rights.  She also suggested 
that the GoB submit comments for the Special 301 process by the 
February 29 deadline and that it could review industry submissions 
before drafting its own response. 
Continuing a dialogue under the U.S.-Brunei Trade and Investment 
Framework Agreement (TIFA), Weisel asked for greater transparency on 
halal food certification and also encouraged Brunei to join the 
multi-chip integrated circuit agreement (MCP).  In an interagency 
meeting and in side meetings conducted by USPTO Senior Director 
Peter Fowler, the GoB representatives discussed how to take better 
advantage of USG-supported training and agreed to reach out to 
rights holders to coordinate new enforcement initiatives.  END 
SUMMARY. 
 
----------------------------- 
IPR Enforcement - Way Forward 
----------------------------- 
 
¶2. (SBU) In a brief visit to Brunei January 19, Assistant USTR 
Barbara Weisel met with Ministry of Foreign Affairs and Trade 
Permanent Secretary Dato Lim Jock Hoi to press for further 
improvement in Brunei's IPR enforcement efforts (see also refs A & 
C) and advance our dialogue on issues under the U.S.-Brunei Trade 
and Investment Framework Agreement (TIFA) (ref B).  Dato Lim brought 
in representatives from the Police, Customs, and Attorney General's 
Office to an interagency meeting to demonstrate the seriousness with 
which the GoB is now addressing IPR enforcement issues.  AUSTR 
Weisel was joined by Rachael Bae of USTR, Peter Fowler, Senior 
Counsel for Enforcement at the U.S. Patent and Trademark Office's 
Global Intellectual Property Academy (GIPA) and DCM. 
 
¶3. (SBU) Dato Lim opened the interagency meeting noting that as 
Brunei seeks foreign direct investment, as well as to expand its 
high technology and finance industries, it will need to do better on 
IPR protection.  Lim added that Brunei wanted to identify common 
concerns wQh the USG and set a plan of action. 
 
¶4. (SBU) Attorney General's Chambers (AGC) representatives briefed 
that a draft law to address gaps in current legislation was under 
review.  The U.S. side noted that meeting TRIPs requirements was no 
longer sufficient, as international best practices have advanced to 
reflect the technological changes (i.e. the digital revolution) that 
create new opportunities for IP fraud, as well as enforcement.  AGC 
reps stated that the draft law under consideration would add a range 
of best-practice provisions, including setting a volume threshold 
for a presumption that production was being made for resale; adding 
documentation and jurisdictional presumptions; and allowing police 
to seize reproduction equipment. Noting the small staff working IPR 
issues, the AGC representatives welcomed technical assistance from 
the USG.  However, the GoB representatives did not immediately 
accept a USG offer to review the draft law and provide expert 
commentary. 
 
¶5. (SBU) Responding to U.S. questions about industry complaints of 
pirated optical disks (OD) being produced in Brunei for export, 
Police asserted that they have no information about mass production 
of disks in Brunei, but would follow up on any specific intelligence 
on this the USG or industry could provide.  AGC and Police 
representatives noted that no IPR complaints had been filed for all 
of calendar 2007, and urged that rights holders come to Brunei and 
work with law enforcement to protect their assets.  They are aware 
that some retail shops and individuals are burning ODs on a small 
scale for retail sale.  However, a lack of complaints filed by 
rights holders limits police authority to initiate enforcement 
actions under current law.  AGC reps reinforced that without 
assurances of industry cooperation, the AGC would be reluctant to 
invest resources prosecutions that have limited chances for 
success. 
 
¶6. (SBU) USTR's Bae noted that recent industry filings under the 
Special 301 process would make it possible that the next 301 report 
could mention Brunei.  U.S. reps noted the February 29 deadline for 
the GoB to respond to any 301 filings by industry.  Bae and GIPA's 
Fowler urged that the GoB amend its laws to give police greater 
ex-officio authority to seize pirated goods.  To encourage 
cooperation, industry would want to see that there is a strong 
 
BANDAR SER 00000043  002 OF 003 
 
 
possibility of success in seizing counterfeit goods, prosecuting 
violators, and more strongly penalizing the convicted to deter 
future violations.  Fowler observed that any legal changes should 
also allow for so-called collecting societies representing broad 
groups of rights holders to legally represent and initiate 
investigation and prosecution of individual violators. 
 
¶7. (SBU) GoB reps responded that they would welcome USG help in 
encouraging industry representatives to come to Brunei.  They stated 
that police and customs could accept as sufficient to initiate 
enforcement a simple letter from the rights holder asserting rights 
to specific OD titles (or other products), and for Customs, also 
indicating authorized distributors.  Authorities could detain goods 
on this basis, but would need to be assured that the rights holder 
would quickly provide the technical and documentary assistance 
necessary to begin a legal case against a suspected violator.  It 
was now Brunei practice to bring in a prosecutor into the earliest 
stages of investigation to ensure that law enforcement actions would 
lead to a prosecutable case. 
 
¶8. (SBU) AUSTR Weisel wrapped up the IPR discussion by noting that 
improving communication with rights holders was critical to 
improving enforcement and that both sides could take concrete steps 
to improve on the current situation.  She challenged that as the USG 
looks to deepening its trade relationship with Brunei, improved IPR 
protection will be essential.  Weisel suggested that a follow up, 
detailed discussion on IPR issues be held in the near future and 
said the U.S. would look at adding such a discussion as part of or 
in parallel to the next U.S.-Brunei TIFA meeting in Washington. 
Dato Lim agreed that a follow up discussion would be helpful. 
Catching IPR violations at the border through Customs action offered 
the best, immediate step forward, but he noted that cooperation with 
rights holders remained essential. 
 
---------------------- 
Training Opportunities 
---------------------- 
 
¶9. (SBU) At the interagency meeting and in side meetings conducted 
by USPTO GIPA Senior Counsel Fowler, the GoB requested capacity 
building assistance, including training for Police, Customs, and 
Attorney General's Chambers staff.  Fowler offered to develop an 
integrated training plan, including specific bilateral training, as 
well as regional training for Brunei and its ASEAN partners.  Dato 
Lim suggested that Brunei might be able to host some of the regional 
training events to maximize GoB agency participation. 
 
---------------- 
Urge Joining MCP 
---------------- 
 
¶10. (SBU) Weisel recapped the initiatives discussed under the 
U.S.-ASEAN TIFA at the Senior Officials Meeting recently in 
Singapore, stating that ASEAN members joining the Multichip 
Integrated Circuit Agreement (MCP) could also move forward 
bilaterally.  Noting that the MCP was the next generation ITA, 
Weisel said that the USG goal was ultimately to bind tariffs on 
these products at zero.  Dato Lim noted that Brunei was not party to 
the ITA but adhered to its spirit in practice.  He said that Brunei 
would review the MCP internally, adding that ASEAN was discussing 
whether its members should wait and, if all agree, join as a group. 
 
----------------------------------- 
Need Greater Clarity on Halal Rules 
----------------------------------- 
 
¶11. (SBU) Dato Lim briefed that he would be the technical lead for 
Brunei's delegation to the WTO Trade Policy Review (TPR).  Brunei 
had completed its report on time in October, but Lim expected to 
provide several updates at the TPR, given the impact of the global 
credit crunch and the rising interest in the role of sovereign 
wealth funds. 
 
¶12. (SBU) Weisel stated that the United States would be likely to 
raise agricultural policy, noting that Brunei's rules on halal food 
product standards were difficult to understand.  Lim said that 
Brunei considers halal to be a phyto-sanitary issue (SPS) but had 
also notified the WTO of its standards as a technical barrier to 
trade.  Lim assured that the GoB will apply halal rules uniformly 
and in a non-discriminatory manner, and that the rules will be 
transparent and available to all interested parties.  Lim plans to 
bring representatives from the Ministry of Religious Affairs, as 
well as from the Agriculture and Customs Departments to the TPR to 
help explain Brunei's halal food policies. 
 
BANDAR SER 00000043  003 OF 003 
 
 
 
------------------------- 
COMMENT: Follow up needed 
------------------------- 
 
¶13. (SBU) Weisel's visit takes us a step further in our dialogue 
(ref A) to improve the GoB's enforcement of intellectual property 
rights.  This is the first time we have heard all the key GoB 
agencies speaking with the same voice on IPR issues.  In a follow up 
to this visit, DCM introduced Microsoft's resident representative to 
senior Royal Brunei Police officials to help them begin to work more 
closely with on enforcement activities.  We believe that further 
progress on IPR enforcement will depend, to a large extent, on our 
continuing to help the GoB rebuild relationships with rights-holders 
so that both sides will feel confident their interests are protected 
and much-needed enforcement activities can be re-initiated. 
 
¶14. (U) USTR cleared this message. 
 
 
SKODON