VZCZCXRO5837
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHAK #0128/01 0231535
ZNR UUUUU ZZH
R 231535Z JAN 07
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC 0661
INFO RUEHIT/AMCONSUL ISTANBUL 1980
RUEHDA/AMCONSUL ADANA 1567
RUCNMEM/EU MEMBER STATES COLLECTIVE

UNCLAS SECTION 01 OF 03 ANKARA 000128 
 
SIPDIS 
 
EB/TPP/IPE FOR JBOGER 
PLEASE PASS USTR FOR JCHOE-GROVES AND LERRION 
USPTO FOR JURBAN 
USDOC FOR ITA/MAC/CRUSNAK 
 
SENSITIVE 
SIPDIS 
 
E.O.12958: N/A 
TAGS: ECON ETRD KIPR PGOV TU
SUBJECT:  TURKEY:  ADVANCE SPECIAL 301 INITIATIVE RESPONSE 
 
Ref: A) 06 STATE 183957 
 
     B) 06 STATE 180082 
 
ANKARA 00000128  001.2 OF 003 
 
 
¶1. (U) Turkish officials welcomed the opportunity to work with us on 
intellectual property issues in advance of the regular "Special 301" 
season.  We coordinated with several Turkish government agencies, 
including the Foreign Trade Undersecretariat (FTU), which is 
responsible for ensuring that Turkey is upholding its international 
obligations, such as IP protection obligations.  FTU and the 
Ministry of Justice (MOJ) provided extensive written responses to 
the questions raised in reftels.  We also met separately with FTU, 
MOJ, Customs Undersecretariat, and Patent Institute and received 
information from the Turkish National Police and the Turkish chapter 
of the Business Software Alliance and member companies.  Finally, 
Ambassador plans to meet with State Minister for Foreign Trade and 
Customs, Kursad Tuzmen, in the near future to discuss these issues 
with him and encourage his involvement during the "Speial 301" 
process this year. 
 
¶2. (SBU) In its coordinated written submission, FTU noted a number 
of improvements during 2006 related to Turkey's IP protection.  A 
summary of the response to ref A follows: 
 
--  In response to the question of pharmaceutical data-exclusivity, 
the Ministry of Health (MOH) stated that its review of the generics 
applications received prior to January 1, 2005, is ongoing.  FTU 
noted that only one case has been approved thus far (for a copy of 
one of Danish firm Lundbeck's products), and added that during 
meetings with PhRMA company representatives in Turkey, the companies 
conceded that the claim for data protection of the molecule was 
questionable. 
 
--  Regarding patent linkage, FTU argued that Turkey's system is 
similar to that of the EU and several other countries and that 
implementing a system similar to that of the U.S. is not an 
international obligation.  It also pointed to the Turkish Patent 
Institute's (TPI) recently implemented computerized database, which 
is accessible by the public through their website, and the regular 
reports sent by TPI to MOH listing recently approved pharmaceutical 
patents.  They added that there has not been a case since that of 
Eli Lilly's where a generic of a product with a valid patent in 
Turkey was granted marketing approval. 
 
--  The Ministries of Justice, Culture and Tourism, the Customs 
Undersecretariat and the Turkish National Police have continued 
their combined campaign against pirated goods, and the MOJ provided 
updated statistics on seizures.  In addition, they described efforts 
to disseminate computerized information about counterfeit books to 
law enforcement, prosecutors and judges in real-time. 
 
--  According to Turkey's chapter of the Business Software Alliance 
(BSA) the situation has improved since the governmental decree 
calling for the use of licensed software in all government agencies. 
 While anecdotally, government use of pirated software is still 
high, BSA representatives and member companies in Turkey believe 
that the government is acting in good faith to improve the 
situation.  BSA is also working with the Ministry of Culture and 
Tourism to implement public awareness campaigns. 
 
--  Finally, the Ministry of Justice allocated additional resources 
in 2006 to help alleviate the backlog of IPR cases and more 
efficiently prosecute offenders.  The number of specialized IPR 
courts increased to 12, including two additional courts in Istanbul. 
 In addition, judges, prosecutors and law enforcement officials 
continue to participate in GOT, EU, and U.S. training programs. 
 
¶3. (U) More detailed responses to the questions raised in ref A are 
listed below to correspond with the original talking points: 
 
¶4. (U) "Continue the process of reviewing all applications for 
marketing approval submitted prior to 01.01.05, and ensure that no 
approvals are granted for molecules under patent protection." 
 
(SBU) In FTU's written submission, it noted that data exclusivity 
for pharmaceutical products is a commitment for Turkey in accordance 
with its EU Association Agreement.  Regulations on this issue have 
been prepared in accordance with the EU requirements.  Turkey 
introduced data exclusivity for pharmaceutical products on Most 
Favored Nation basis to all of its trading partners.  Therefore, 
data exclusivity is not limited to original products licensed in EU 
member countries.  Acquiring a license in any country after January 
1, 2001, is sufficient for data exclusivity if no generic 
manufacturer had applied for licenses in Turkey as of January 1, 
¶2005.  The term of exclusivity is limited to the duration of the 
drug patent or to six years after the date of licensing, which is 
 
ANKARA 00000128  002.2 OF 003 
 
 
the same system used by the EU. 
 
(SBU) Concerning the outstanding generic applications that were 
submitted prior to January 1, 2005, MOH stated that these 
applications are still being examined.  However, FTU added that this 
does not necessarily mean that licenses will be issued for all of 
the applicants.  Applications that do not meet the necessary 
criteria will be rejected.  FTU added that to date, only one such 
application has been approved (for a copy of one of Danish firm 
Lundbeck's product), and that the pharmaceutical companies conceded 
in meetings with FTU that the product that was approved was not 
necessarily an exact copy of Lundbeck's protected molecule. 
 
¶5. (U) "Implement a system of coordination between health and patent 
authorities to prevent the issuance of marketing approvals for 
authorized patent-infringing copies of pharmaceutical products." 
 
(SBU) FTU asserted that Turkey utilizes a system similar to the EU's 
in which a firm applying for licensing of a product must prove that 
the new product has not been licensed nor has been patented in 
Turkey.  For example, a generics manufacturer would have to include 
information in its application showing that the product has not been 
patented in Turkey.  In 2006, the Turkish Patent Institute (TPI) 
created a searchable database website that permits users to search 
for patented, copyrighted, and trademarked material in Turkey.  The 
TPI also sends regular reports to the MOH about recently-approved 
health-related patents (including pharmaceuticals), the last of 
which was sent in November 2006.  Between reports, MOH officials can 
search the patent database.  The TPI does not, however, provide 
information to outsiders about patent applications that have not yet 
been approved.  FTU added that since the highly publicized case in 
which copies of Eli Lilly's product Zyprexa were granted licenses 
while it had a valid patent, there have been no subsequent cases of 
this type in Turkey. 
 
¶6. (U) "Continue the campaign against book piracy and provide 
statistical readouts of success." 
 
(SBU) The MOJ provided the following statistics on seizures 
resulting from operations against IPR violators conducted between 1 
April 2004 and 7 December 2006: 
 
                       2004       2005       2006 
                  ---------  ---------  --------- 
# of Ops              2,844      3,442      3,562 
# Prosecuted          3,824      3,611      4,712 
SEIZED MATERIALS 
Unreg. CD/VCDs    2,020,370  2,893,357  4,133,385 
Unreg. DVDs          59,346    316,954    401,611 
Unreg. Books        274,527    240,335    156,914 
Unreg. Video Cass.      675        128      1,512 
Unreg. Tape Cass.    55,202     45,590     69,987 
Reg. CD/VCDs          4,649        659      1,201 
Reg. DVDs                 -        419        520 
Reg. Books            3,783      1,480      1,840 
Reg. Tape Cass.       3,623      3,489      3,582 
TOTAL SEIZURES    2,422,175  3,502,411  4,770,552 
 
(SBU) In addition to seizures, in May 2006, a web-based banderole 
automation system was established in order to provide judges, 
prosecutors, security forces, business associations and copyright 
holders with real-time information regarding pirated goods. 
 
(SBU) Plans for the future include an Optical Disk Investigation 
Center which, based on the model of IFPI laboratories, will provide 
law enforcement with the ability to quickly identify counterfeit 
material.  The MOJ also plans to establish IPR offices in each of 
the provinces and to provide additional training to raise the 
awareness of the police and officials responsible for fighting 
piracy in the provinces.  As additional encouragement, a draft bill 
was sent to Parliament providing bonus compensation for law 
enforcement officials who seize pirated goods.  It has been approved 
by the relevant Parliamentary Sub-Committee and will be submitted 
for approval by the General Assembly. 
 
¶7. (U) "Provide feedback on the success of the governmental decree 
mandating the use of licensed software in governmental agencies. 
Address rampant business software piracy in the private sector and 
by individuals by initiating enforcement actions and public 
awareness campaigns." 
 
(SBU)  The Ministry of Culture and Tourism created a public 
awareness campaign in cooperation with Turkey's chapter of the 
Business Software Alliance (BSA) that includes newspaper and TV 
advertisements explaining the illegality and penalties associated 
 
ANKARA 00000128  003.2 OF 003 
 
 
with using pirated software and showing the logo of the MOCT and 
BSA. 
 
(SBU)  As noted in ref A points, the GOT requires that all software 
used on government computers be licensed.  However, Turkey's chapter 
of BSA has heard anecdotally that the estimated piracy rate on 
government computers is approximately 50 percent.  They emphasized 
to us, however, that they believe that the government is acting in 
good faith and trying to eliminate pirated software use by 
government officials.  Comment:  The head of the Turkey office of a 
major U.S. software producer told us that he doubts the utility of 
such proclamations in relatively more-developed countries like 
Turkey and agreed that the Government is working to reduce internal 
piracy.  He also said that an agreement had more symbolic than 
practical value, given that there is no centralized point for 
government software procurement.  In 2006, Microsoft CEO Bill Gates 
visited Turkey and announced his plans to support a techno-park in 
Istanbul and invest more in Turkey, which he characterized as a 
regional technological base.  Microsoft and other companies, like 
Cisco, have close cooperative relationships with the government of 
Turkey.  End comment. 
 
¶8. (U) "Provide the judiciary with more resources to increase 
efficiencies (process cases more quickly) and take concrete steps 
(e.g., sentencing guidelines) to encourage judges to impose 
deterrent sentencing." 
 
(SBU) The Ministry of Justice (MOJ) recently increased the number of 
IPR courts in Turkey to 12, seven of which are civil courts and five 
of which are criminal.  This increase added two additional IPR 
courts in Istanbul to reduce the backlog.  The MOJ is also working 
on creating additional courts in Istanbul to further increase 
efficiencies and to locate additional warehouses in which seized 
goods can be stored while the trial is proceeding. 
 
(SBU) The MOJ, in cooperation with the EU, has provided a number of 
training seminars for judges, prosecutors and law enforcement 
officials.  For example, 8 IPR judges and prosecutors participated 
in a 10 month training program in the EU IPR-related agencies.  In 
addition, an IPR Documentation Center was established at the 
University of Ankara Faculty of Law.  This Center provides 
centralized information related to IPR international law and best 
practices.  The MOJ has also developed a computerized network that 
links the IPR Courts, the Documentation Center, the MOJ, the TPI and 
the Customs Administration. We also continue to send Turkey's IPR 
judges on IV programs to the U.S. 
 
(SBU) The following MOJ information shows the average duration of 
IPR cases: 
 
TYPE OF CRIME     DURATION W/O           DURATION W/ 
                     APPEAL                 APPEAL 
-------------     --------------         ----------- 
 
Trademark          3 - 7 months             2 years 
Patent             3 - 10 months            2 years 
Utility Model      2 - 10 months            2 years 
Copyright: 
  Moral rights     3 - 10 months            2 years 
  Financial rights 3 - 8 months             2 years 
  Other offences   3 - 10 months            2 years 
  Related rights   3 - 8 months             2 years 
  Banderole crimes 3 - 6 months             2 years 
Seizure            1 - 2 days 
 
WILSON