VZCZCXRO6142
OO RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHMO #2158/01 3051052
ZNR UUUUU ZZH
O 011052Z NOV 06
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4734
INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 MOSCOW 012158 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR/RUS AND EB/TPP/BTA 
STATE PASS USTR FOR DWOSKIN, DONNELLY, ERRION 
NSC FOR TGRAHAM, TMCKIBBEN 
USDOC FOR 4231/IEP/EUR/JBROUGHER AND MEDWARDS 
 
E.O. 12958: N/A 
TAGS: KIPR ETRD WTO RS
SUBJECT: RUSSIA IPR: AMBASSADOR'S 10/31 MEETING ON CIVIL 
CODE PART IV 
 
¶1. (SBU) SUMMARY: In an October 31 meeting with Presidential 
Advisor Veniamin Yakovlev and Duma Legislative Committee 
Chairman Pavel Krasheninnikov, Ambassador outlined top USG 
concerns regarding draft Part IV of the Civil Code on IPR and 
strongly urged action now to correct serious inconsistencies 
with the WTO TRIPs Agreement and international IP 
conventions.  Yakovlev reported some 20 USG-proposed 
amendments to Part IV were among the 300 accepted for 
inclusion in the draft, which is up for its second of three 
readings on November 3.  Accepted amendments 1) allow 
seizure, including of equipment, in all piracy cases; 2) 
remove limitations on the scope of exceptions to copyright 
protection; 3) delete domain names from the list of protected 
works; 4) seek greater consistency with WIPO Internet treaty 
language regarding protection for temporary copies, the "make 
available" right, and "protection for technological 
protection measures;" and 5) appear to respond to USG 
concerns about the scope of national treatment.  The final 
version of Part IV, likely to be adopted by the end of 
November, will undoubtedly require further amendment, but, 
again, it appears that the GOR is attempting to address 
significant USG concerns in advance of Code passage.  End 
summary. 
 
¶2. (SBU) Following up on an October 21 conversation between 
the Secretary, the Ambassador and Deputy PM Dmitriy Medvedev 
on draft Part IV of the Civil Code, Medvedev asked 
Presidential Advisor Veniamin Yakovlev and Duma Legislative 
Committee Chairman Pavel Krasheninnikov to meet with 
Ambassador October 31.  The Russians' stated intention was to 
meet prior to the conclusion of the amendment process, which 
will end with the Duma's second reading of Part IV on 
November 3.  Also present was Aleksandr Makovskiy, Yakovlev's 
deputy in the working group that drafted Part IV, and 
Krasheninnikov's chief of staff Igor Manylov. 
 
¶3. (SBU) Yakovlev claims the Legislative Committee has 
incorporated into draft Part IV "over twenty" USG-proposed 
amendments presented by a USTR-led team of experts in early 
October.  The Committee rejected amendments where it was felt 
they "reflected a lack of understanding of the Russian legal 
system," or where international conventions provide 
discretion on how certain provisions were to be implemented. 
All told, the Committee accepted 300 of 600 proposed 
amendments. Yakovlev passed the Ambassador a Russian version 
of the current draft (with all 300 proposed amendments), 
which will be voted on November 3.  The third (and final) 
reading of Part IV is expected by end-November. 
 
¶4. (SBU) The Ambassador outlined top line USG concerns 
regarding the draft, urging the Duma bring it into compliance 
with TRIPs and international IP conventions now rather than 
amend the text after its adoption.  He also passed a Russian 
version of a USTR non-paper explaining our key concerns. 
 
¶5. (SBU) Makovskiy reported that the Legislative Committee 
accepted amendments allowing seizure in all piracy cases, not 
just the largest, and including seizure of equipment used in 
piracy.  The Committee incorporated into Article 1229 
provisions of current Russian copyright law, Article 16, 
providing TRIPS-consistent exceptions to copyrights. 
Regarding concern related to consistency with the WIPO 
Internet treaties, the Committee proposed including 1) 
protection for temporary copies; 2) language in current 
Russian copyright law on the "making available" right; and 3) 
the word "technologies" in the article dealing with 
protection for technological protection measures, all of 
which were intended to address USG concerns.  The Committee 
recommended changes to the Part IV language on domain names 
which would allow domain names to remain objects of IPR, 
while deleting provisions explaining how they should be 
protected. 
¶6. (SBU) Regarding USG concerns about national treatment for 
all aspects of IPR, Makovskiy pointed to Article 2 of the 
Civil Code's general provisions, which specifies that the 
entire Civil Code applies to all citizens, regardless of 
nationality -- in this way national treatment applies to all 
Civil Code provisions.  The only place in which Part IV 
specifically states application to foreign citizens are 
articles using language taken from the Berne Convention, 
which do not provide national treatment to foreigners.  A 
subsequent Embassy review of the latest text revealed new 
text specifically linking non-exclusive rights to the 
 
MOSCOW 00012158  002 OF 002 
 
 
¶7. (SBU) Regarding geographical indications (GIs) provisions 
of draft Part IV, Makovskiy comments revealed a continuing 
disconnect with GOR about USG concerns. The Ambassador urged 
his interlocutors to reread and carefully consider that and 
other points contained in the USTR non-paper. 
 
¶8. (SBU) Comment: A very rough back of the envelope analysis 
identified 15 instances where the GOR appears to have 
accepted USG proposed amendments, although patents seems to 
be a broad exception to this pattern, and there may be some 
mop up work to do with respect to the "make available right" 
as well as the "temporary copies" language.  While it is a 
given that the text of Part IV likely to be adopted this 
month will contain inconsistencies with TRIPs and IP treaties 
that will require amendment, it appears the GOR is attempting 
to address significant USG concerns.  Our interlocutors were 
instructed to meet with us prior to the second reading of 
Part IV, and they were clearly sensitive to our suggested 
amendments.  We are providing to USTR and EUR/RUS by fax the 
pages of the latest draft, concentrating on passages of 
greatest concern to the USG, and are making arrangements for 
the shipment of the entire 300  page text to Washington as 
quickly as possible.  End Comment. 
BURNS