VZCZCXRO2880
PP RUEHAG RUEHAP RUEHDE RUEHDF RUEHGI RUEHHM RUEHLZ RUEHMA RUEHMR
RUEHPA RUEHPB RUEHRN
DE RUEHAD #0298/01 0520940
ZNR UUUUU ZZH
P 210940Z FEB 07
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC PRIORITY 8360
RUEHDE/AMCONSUL DUBAI 6866
INFO RUCNWTO/WORLD TRADE ORGANIZATION COLLECTIVE
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 02 ABU DHABI 000298 
 
SIPDIS 
 
DEPT PASS TO USTR 
 
STATE FOR EB/IPE FOR BOGER 
PASS TO USTR JCHOE-GROVES, DOC CPETERS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KIPR PREL ETRD AE
SUBJECT: EMBASSY ABU DHABI COMMENTS ON SPECIAL 301 REVIEW 
 
REFS:A) SECSTATE 1800821 
 
 B) ABU DHABI 231 
 C) 06 ABU DHABI 3417 
 D) 06 DUBAI 6928 
 E) 06 DUBAI 3360 
     F) 06 DUBAI 326 
 
ABU DHABI 00000298  001.2 OF 002 
 
 
¶1. (SBU) Summary:  The UAE Government remains strongly committed to 
protecting intellectual property rights (IPR).  The UAE continues to 
enforce copyright, trademark, and patent laws passed in 2002 to 
protect U.S. intellectual property, and remains committed to the 2002 
agreement providing TRIPS-plus levels of protection to U.S. 
pharmaceuticals.  In 2006, the UAE enacted the E-Commerce law and the 
Anti-Information Technology Crimes law to combat counterfeiting of 
websites used in phishing schemes. Additionally, the UAE conducted a 
number of high-profile raids to arrest merchants involved in all 
forms of piracy.  In 2006, the Ministry of Economy met with the 
Arabian Anti-Piracy Alliance, Econoff and stakeholders to discuss 
ways to increase protection of IPR.  Some property rights holders 
have expressed concern about the use of the UAE as a transshipment 
point for IPR counterfeit products.  UAEG officials have also 
expressed the same concern.  The Mission has engaged on behalf of 
rights holders, and the USG has provided IPR training for UAE 
officials.  Post recommends that the UAE not be included in the 
Special 301 Watch list this year.  End summary. 
 
 
TRIPS Compliance 
---------------- 
 
¶2. (U) In 2006, the UAEG continued to expand the scope of the 
copyright, trademark, and patent laws issued in 2002 (that exceed the 
UAE's TRIPs obligations) by issuing two new regulations: the 
E-Commerce law and the Anti-Information Technology Crimes law to 
combat counterfeiting of websites used in phishing schemes. 
 
Enforcement 
----------- 
 
¶3. (SBU) Stakeholders have told Post that the UAEG has conducted 
numerous raids on pirated compact discs and business software 
throughout the UAE based on information provided to local authorities 
by the individual stakeholders.  AAA reported to Econoff that at 
least 169,453 pirated DVDs were seized by the UAE in 2006.  Periodic 
articles in the local newspapers of raids and arrests of 
counterfeiters indicate that the authorities take seriously their 
responsibility to reduce the trade of counterfeit goods in the UAE 
and do not hesitate to publicize the results of enforcement actions. 
The following are a few examples of reports appearing in local media: 
 
-- In March 2006, the Dubai Court sentenced an owner of an 
electronics store to three months in jail and fined him $14,000 for 
breaching the UAE's IPR laws.  The owner of the store was convicted 
for selling receivers that unblock scrambled TV satellite channels. 
The Court also ordered the store's closure for three months and 
confiscated the cards and receivers used in the piracy. 
 
-- In May 2006, The IPR section of Dubai Customs, in collaboration 
with the Ministry of Health, confiscated "significant quantities" of 
counterfeit Panadol. 
 
-- In June 2006, UAE Customs officials seized counterfeit goods worth 
more than $2 million; including electronics, spare parts, cosmetics, 
and medicines.  According to the press, the total amount of goods 
seized since February 2006 until June 2006 was $3.5 million. 
 
-- In July 2006, Dubai Customs seized counterfeit goods worth over 
$3.8 million. 
 
In addition, Post is aware of other raids throughout 2006 that were 
not reported in the press that AAA and industry stakeholders 
coordinated with UAEG officials. 
 
¶4. (U) In an effort to crack down on door-to-door vendors selling 
optical media, the Dubai Department of Economic Development continued 
to impose fines on restaurant and caf owners if it found vendors 
selling pirated CDs in their establishments.  Many restaurants have 
warning signs, with the Dubai police logo, highlighting the penalties 
for sales of pirated CDs. 
 
¶5. (U) According to statistics from the Intellectual Property Rights 
and Intervention Departments of Dubai Customs, between February and 
June of 2006, Dubai Customs seized 2,212,147 cartons containing 
counterfeit goods.  The bulk of the containers were intercepted at 
the Customs centers at the Jebel Ali Port and Dubai International 
 
ABU DHABI 00000298  002.2 OF 002 
 
 
Airport.  The majority of the goods came from the Far East, followed 
by Central Asia and Africa. 
 
Industry Officials Pleased with UAE Progress 
-------------------------------------------- 
 
¶6. (SBU) Copyright industry officials have generally expressed 
pleasure with progress the UAE has made in the realm of IPR 
enforcement.  The CEO of AAA (which represents the Motion Picture 
Association of America) said he would oppose placing the UAE on the 
Special 301 watch list.  He said that placing UAE on the watch list 
would provide a disincentive to other countries in the region from 
making improvements.  He explained that he needs to be able to make 
the point to other countries that by addressing IPR concerns, they 
can be removed from the watch list, and he points to UAE as an 
example. 
 
¶7. (SBU) AAA's CEO said the UAE is actively involved in fighting 
piracy and that tremendous strides have been made in the UAE in 2006 
with numerous raids being conducted and pirates being shut down.  AAA 
is very pleased with the coordination between the Ministry of 
Economy, police, customs and stakeholders to fight piracy throughout 
the UAE.  AAA estimates that the copyright piracy rate in the UAE is 
34 percent, by far the lowest in the region.  AAA holds the UAE as a 
model in the region and wishes other countries would follow the UAE's 
lead in fighting piracy. 
 
Recommendation: No Watch list 
---------------------------- 
 
¶8. (SBU) Embassy officials believe that the UAE should remain off the 
Special 301 Watch list. We agree that there is room for improvement. 
We support the idea of encouraging the UAEG to provide IP owners 
information that would permit them to pursue the producers and 
manufacturers of pirated goods in source countries.  However, we note 
that the UAE has taken considerable strides in enforcing IPR 
regulations, prosecuting violators, and publicizing law enforcement 
actions.  In 2006, several UAEG officials attended IPR trainings 
conducted by the U.S. Patent and Trademark Office demonstrating their 
commitment to improving their knowledge and performance on IPR 
issues.  The UAE is a solid partner in IPR enforcement, and we want 
to continue to work with the government and industry and to encourage 
them to further their efforts. The U.S. and the UAE made good 
progress on IPR issues during FTA negotiations and are looking for 
ways to solidify that progress. 
SISON