VZCZCXRO5711
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #4025/01 2010153
ZNR UUUUU ZZH
P 200153Z JUL 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 4477
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEHKSO/AMCONSUL SAPPORO PRIORITY 8425
RUEHNAG/AMCONSUL NAGOYA PRIORITY 7158
RUEHOK/AMCONSUL OSAKA KOBE PRIORITY 0596
RUEHFK/AMCONSUL FUKUOKA PRIORITY 7290
RUEHNH/AMCONSUL NAHA PRIORITY 9881
RUEHBJ/AMEMBASSY BEIJING 3373

UNCLAS SECTION 01 OF 02 TOKYO 004025 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE FOR EAP/J, EAP/EP, EB/TPP/IPE 
USDOC FOR SCOTT SEAMAN 
EAP please pass to USTR Stanford McCoy and Ronald Meyers 
 
E.O. 12958: N/A 
TAGS: KIPR ECON JP
SUBJECT: PM KOIZUMI'S ADVISOR PROPOSES BILATERAL IPR AGENDA 
 
¶1.  (SBU) Summary: Intellectual Property Strategy Headquarters 
(IPSH) Secretary General Hisamitsu Arai set out an ambitious agenda 
for bilateral cooperation on IPR during a farewell call by the EMIN 
on July 14.  Arai proposed issuing a joint statement on IPR 
cooperation at the next U.S.-Japan summit, concluding an 
anti-counterfeiting trade agreement by the end of this year, and 
establishing a system of mutual patent recognition.  He hoped the 
United States and Japan would send a unified message to China on 
IPR.  Arai, who serves as Prime Minister Koizumi's leading advisor 
on IPR issues, affirmed that both leading candidates to become the 
next Japanese PM support strong intellectual property rights and 
their protection.  End Summary. 
 
----------------------------------- 
Joint statement on IPR cooperation 
----------------------------------- 
 
¶2.  (SBU) Arai passed to EMIN proposed text for a joint statement on 
IPR cooperation that could be announced at the next U.S.-Japan 
summit when President Bush meets with the new Japanese Prime 
Minister this fall.  The draft statement identifies 6 areas of 
cooperation: 1) conclude an international agreement on counterfeits 
and pirated goods, 2) strengthen IPR enforcement in Asia and the 
world, 3) Exchange information on IPR through regular bilateral 
exchanges, 4) strengthen border enforcement, 5) facilitate 
information-sharing between U.S. and Japanese embassies in third 
countries on IPR issues, assistance and training programs, 6) 
promote public-private partnership on IPR protection strategies 
through joint conferences or seminars.  Proposed English text is 
attached at the end of this cable in paragraph 9. Full copy of 
proposed English and Japanese text will be emailed to EAP/J. 
 
¶3.  (SBU) The draft is being reviewed by MOFA, METI and MOF and that 
they are considering when and how to bring the issue up to the next 
Prime Minister, according to Arai.  Japan's business circles, 
including the Japan Business Federation (Keidanren), are in full 
agreement, Arai added. 
 
¶4.  (SBU) Given that the United States and EU have issued joint 
declarations on IPR in their last two summits (2005 and 2006) -- 
Arai contends that US-Japan should also issue a joint leaders 
statement.  The United States and Japan are even closer in their 
positions on IPR issues as both are knowledge-based economies, Arai 
asserted. 
 
--------------------------------------------- 
Anti-counterfeit and piracy agreement/treaty 
--------------------------------------------- 
 
¶5.  (SBU) Arai believes that it should not be too difficult to reach 
an agreement on the text of an Anti-Counterfeit Trade Agreement 
(ACTA) among like-minded countries and that we should aim to finish 
talks by the end of this year.   There is a strong support for such 
an agreement within Japan, including among lawmakers of ruling and 
opposition parties Arai stated, singling out Okiharu Yasuoka (LDP), 
Akira Amari (LDP), and Naoto Kan (DPJ) who is a patent attorney, as 
strong IPR supporters. 
 
¶6.  (SBU) Arai stressed that we should move as fast as possible and 
keep in mind that the intent of the agreement is to address the IPR 
problems of third-nations such as China, Russia, and Brazil, not to 
negotiate the different interests of like-minded countries.  The new 
agreement could serve as a yardstick for measuring the market 
economy status of countries such as China and Russia. 
 
--------------------------------------------- 
Mutual Recognition of Patents will boost FDI 
--------------------------------------------- 
 
¶7.  (SBU) Arai hopes the United States and Japan will eventually 
establish a system of mutual patent recognition, which could serve 
as a model for the world.  Mutual recognition of patents could play 
a significant role in increasing FDI into Japan, Arai pointed out. 
 
 
----------------------------------------- 
US-Japan Cooperation on China IPR issues 
----------------------------------------- 
 
¶7.  (SBU) It is important for the United States and Japan to send a 
unified message to China, Arai emphasized.  Both the United States 
 
TOKYO 00004025  002 OF 002 
 
 
and Japan want China to transform itself into a country with a sound 
economy which complies with WTO rules, he noted.  The US and Japan 
should not fight each other over differing IPR priorities -- 
copyright for the U.S. and patent rights for Japan -- but instead 
should underscore that combating counterfeits protects consumer 
health and safety, Arai suggested.  The United States and Japan 
should also share information on technical assistance programs that 
both nations provide to China in order to reach as many people as 
possible and avoid redundancy. 
 
------------------------------------ 
No Change in IPR Policy with new PM 
------------------------------------ 
 
¶8.  (SBU) Both leading candidates for Prime Minister, Abe and 
Fukuda, are eager to promote and protect IPR, Arai said.  He assured 
EMIN that there would be no policy shift after PM Koizumi steps 
down. 
 
¶9.  Arai's Proposed text for a Joint Statement: 
 
U.S.-Japan Working Together for the Enforcement 
Of Intellectual Property Rights 
 
Both the United States and Japan consider that their industry's 
creativity needs to be rewarded and protected through a strong and 
effective intellectual property rights ("IPR") system.  Growing 
global counterfeiting and piracy threatens the competitiveness of 
innovative industries, the livelihoods of creative artists and 
workers, and the health and safety of consumers in the United 
States, Japan and beyond.  Driven by new technologies that make it 
easy to rapidly produce infringing goods in commercial quantities 
and by fraudulent organizations, including organized criminal 
syndicates, that use the Internet and global trading lanes to 
distribute and sell those goods worldwide, this illicit activity 
substantially deprives rights holders of a legitimate income from 
their ideas, designs, brands and inventions. 
 
Therefore, in the framework of their bilateral dialogue on IPR 
issues, the United States and Japan are eager to strengthen their 
co-operation for combating counterfeiting and piracy of goods around 
the world.  Besides, the United States and Japan want to act 
together against counterfeiting and piracy around the world by 
promoting international co-operation on IPR enforcement issues in 
both multilateral and bilateral frameworks. 
 
Our Leaders hereby agree that to strengthen cooperation on IPR 
issues to promote innovation and protect health and safety of 
consumers, the United States and Japan will take the following 
actions: 
 
¶1.  Closely cooperate on an early realization of an international 
agreement to address the proliferation of counterfeit and pirated 
goods; 
 
¶2.  Enhance U.S.-Japan efforts so as to increase awareness to combat 
counterfeiting and piracy as well as to promote the strengthening of 
IPR enforcement in the Asian region and around the world; 
 
¶3.  Information exchange through bilateral regular meetings to 
promote IPR protection and enforcement around the world, and act 
together against counterfeiting and piracy by promoting 
international cooperation on IPR enforcement issues in multilateral 
framework; 
 
¶4.  Increase cooperation to strengthen border enforcement of IPR, 
including engagement in a joint IPR border enforcement action; 
 
¶5.  Create bilateral IP networks in our embassies in relevant third 
counties to facilitate information sharing, delivery of joint 
message, cooperation on training and technical assistance programs, 
and assisting industry enforcement efforts; and 
 
¶6.  Promote public-private partnership to arrange joint conferences 
or seminars to discuss IPR protection strategies. 
 
SCHIEFFER