VZCZCXYZ0004
PP RUEHWEB

DE RUEHML #0990 0620751
ZNR UUUUU ZZH
P 030751Z MAR 06
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC PRIORITY 9724
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS MANILA 000990 
 
SIPDIS 
CORRECTED COPY - CAPTION ADDED 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MTS, EB/TPP 
STATE PASS TO USTR FOR BWEISEL AND DKATZ 
USDOC FOR SBERLINGUETTE 
USDOC PASS TO USPTO FOR PFOWLER 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR KCOR RP
SUBJECT: NEW DIRECTOR OF CUSTOMS IP UNIT PROMISES INCREASED 
VIGILANCE 
 
REF: MANILA 00244 
 
------- 
SUMMARY 
------- 
 
¶1.  (SBU)  The Intellectual Property (IP) Unit at Customs is 
under new management again, for the third time since its 
inception in 2003.  Former IP Unit head, Attorney Eden 
Dandal, was replaced by Attorney Willie Sarmiento, who was 
Chief of Staff to the new Customs Commissioner, Napoleon 
Morales when he was the Chief Collector at the Port of 
Batangas.  Sarmiento expressed enthusiasm for his new role as 
IP Unit Chief, despite his admission to having no experience 
with intellectual property rights (IPR) issues. 
 
-------------------------------------- 
CUSTOMS PROMISES MORE VIGILANCE ON IPR 
-------------------------------------- 
 
¶2.  (SBU)  Willie Sarmiento was appointed as the new head of 
the IP Unit at the Bureau of Customs on January 3, 2006.  In 
a meeting with Econoff and Commercial Counselor on January 
24, Sarmiento said that he does not have any experience with 
IPR issues but that, "rest assured, during my watch, IP will 
be more vigilant than ever."  He added that he is planning to 
intensify the drive against all kinds of piracy and wants 
field agents to be more visible, particularly in examination 
areas.  He expressed enthusiasm for the assignment and said 
that the job is very exciting.  However, Sarmiento 
acknowledged that he was reluctant to accept the assignment 
at first because the position is responsible not only for IP, 
but also for internal investigations.  He was later assured 
that his job entailed "80 to 90 percent IPR" and very little 
internal investigation, which encouraged him to accept the 
position.  Sarmiento's previous post was as Chief of Staff to 
Commissioner Morales when Morales was the District Collector 
in Batangas. 
 
¶3.  (SBU)  Sarmiento is focused on observing operations, 
learning what he can, and identifying personnel needs.  The 
unit currently has 11 agents stationed at five ports around 
the country and three lawyers.  Since its inception, the Unit 
has been under-staffed and under-resourced.  Sarmiento said 
that the BOC's rationalization plan, reported in reftel, 
would make the IP Unit autonomous, under the Division of 
Legal Affairs, possibly qualifying it for additional 
resources. 
 
¶4.  (SBU)  In the two weeks preceding our visit, Sarmiento 
reported that his unit had issued warrants for three 
shipments of alleged IPR infringing goods, one container from 
Pakistan and two from China.  He showed us a Rigid brand 
industrial pipe cleaner that had "made in the USA" marked on 
the packaging.  The fact that the container had been shipped 
directly from China tipped off the inspector.  The eight 
pallets of goods are being held since the importer cannot 
show that the products were actually made in the U.S.  He 
also showed us poor quality medical scissors imported from 
Pakistan that were stamped with "German Stainless."  They 
also happened to have a rubbed out, but still legible "made 
in Pakistan" engraved on them. 
 
------- 
COMMENT 
------- 
 
¶5.  (SBU)  The move to replace Dandal as the head of the 
Customs IP Enforcement Unit is disappointing.  Attorney 
Dandal attended several USG sponsored IPR training programs, 
seemed to grasp the importance of IPR protection, and was 
making progress toward establishing the IP Unit as en 
effective enforcement mechanism.  Starting over again with 
yet another director could delay further progress.  However, 
Sarmiento does seem enthusiastic about the job and eager to 
learn more about IPR.  Sarmiento will be attending USPTO's 
March Academy on IPR enforcement.  Embassy will continue to 
work to identify training opportunities and collaborate on 
IPR protection.  Establishing the unit's autonomy under the 
rationalization plan would do much to strengthen its 
enforcement role and could bring it much needed resources. 
Jones