VZCZCXRO3380
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHBD #0069 0520827
ZNR UUUUU ZZH
R 210827Z FEB 08
FM AMEMBASSY BANDAR SERI BEGAWAN
TO RUEHC/SECSTATE WASHDC 4110
RUCPDOC/USDOC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHZS/ASEAN COLLECTIVE

UNCLAS BANDAR SERI BEGAWAN 000069 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPARTMENT FOR EAP/MTS 
STATE PASS USTR FOR FOR WEISEL, BAE AND EHLERS 
DEPARTMENT PLEASE PASS TO USPTO 
SINGAPORE FOR FCS AND DHS 
BANGKOK FOR FCS:NESS 
 
E.O. 12958: N/A 
TAGS: ETRD KIPR ECON PREL BX
SUBJECT: BRUNEI: SPECIAL 301 REVIEW 
 
Ref: A) State 9475 
 
B) Bandar Seri Begawan 43 
C) 07 Bandar Seri Begawan 276 
D) 07 Bandar Seri Begawan 165 
E) 06 Bandar Seri Begawan 12 
 
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SUMMARY 
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¶1. (SBU) Having recently reengaged with the Government of Brunei on 
IPR protection and enforcement (refs B, C and D), it is not yet time 
to put Brunei on the Special 301 Watch List.  GoB enforcement 
efforts have been minimal in the past, but we see increased 
willingness to work with rights holders to strengthen enforcement 
cooperation (ref B & C) following a disastrous failed enforcement 
effort in late 2005 (ref E).  Post recommends that we continue to 
work with the GoB and rights holders to improve enforcement 
cooperation and not/not place Brunei on the Special 301 Watch List 
until we have had sufficient time to judge the seriousness of 
current GoB political will to improve enforcement.  END SUMMARY. 
 
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Better Engagement on IPR Enforcement 
------------------------------------ 
 
¶2. (SBU) As detailed in refs B & C, the GoB has responded to our 
increased engagement on IPR enforcement issues since our last formal 
meeting under the U.S.-Brunei Trade and Investment Framework 
Agreement (TIFA) (ref D).  Brunei authorities acknowledge that 
optical disc piracy is endemic and that their enforcement efforts 
have been limited in the recent past, but counter that no rights 
holder filed a complaint during all of calendar 2007. 
Notwithstanding this, GoB officials have requested USG training on 
IPR enforcement and have requested more detailed information on 
allegations of optical disc manufacture and export from Brunei as 
police have no indications that such activities are ongoing in 
Brunei.  Further, the GoB has requested our assistance in 
reestablishing relations with IP rights holders to renew cooperative 
enforcement efforts. 
 
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Getting More/Better Enforcement Action 
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¶3. (SBU) Police, Customs, and the Attorney General's Office all 
point to a need under Brunei's Common Law legal system, a legacy of 
Brunei's century as a British Protectorate, for rights holders to 
provide expert testimony in person and not/not by deposition to have 
a reasonable chance of a successful prosecution.  This creates a 
"chicken-or-egg" situation requiring the rebuilding of mutual trust 
as authorities are reluctant to take enforcement action for fear of 
a lack of after-action support from rights holders.  Conversely, 
rights holders remain justifiably concerned that authorities will 
fail to take appropriate enforcement action in response to 
complaints (see refs C and E for how we got to this point). 
 
¶4. (SBU) In response to the GoB's requests for assistance in working 
with rights holders (refs B, C & D) to improve enforcement, post has 
reached out to regional representatives of rights holders including 
Microsoft's in-country representative and the MPAA's Singapore 
office. These industry representatives have indicated that they 
prefer a cooperative, as opposed to confrontational approach to 
improving enforcement in Brunei.  USPTO is also planning to offer 
enforcement training this coming spring (ref B). 
 
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COMMENT: Not Yet Time for 301 Watchlisting 
------------------------------------------ 
 
¶5. (SBU) Post believes that placing Brunei on the Special 301 Watch 
List now could sour GoB officials from following up on their recent 
initiatives aimed at improving enforcement.  We should continue to 
work to build bridges between authorities and rights holders while 
pressing the GoB, including through our TIFA dialogue, to follow 
through on assurances of better enforcement.  By next year's Special 
301 review, we should have enough of a track record to make a 
decision about the seriousness of the GoB's new political will to 
translate talk into stronger enforcement action. 
 
 
FRIEDMAN