VZCZCXYZ0008
RR RUEHWEB

DE RUEHKA #0284/01 0511037
ZNR UUUUU ZZH
R 201037Z FEB 07
FM AMEMBASSY DHAKA
TO RUEHC/SECSTATE WASHDC 3262
INFO RUEHNE/AMEMBASSY NEW DELHI 9656
RUEHIL/AMEMBASSY ISLAMABAD 1503
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS DHAKA 000284 
 
SIPDIS 
 
SIPDIS 
 
STATE PASS USTR (JENNIFER CHOE GROVES) 
EB/TPP/IPE (JENNIFER BOGER) 
COMMERCE FOR ITA/MAC/OIPR (CASSIE PETERS) 
 
E.O. 12958: N/A 
TAGS: ETRD ECON KIPR BG
SUBJECT: 2007 SPECIAL 301 REVIEW - BANGLADESH 
 
REF: STATE 07944 
 
¶1.  Summary:  Bangladesh is establishing the legal framework 
needed to comply with its obligations under the TRIPS 
agreement, but has not yet implemented the patent or 
trademark provisions of TRIPS.  Although new laws have been 
drafted, they have not been enacted.  Enforcement of 
intellectual property rights is lax.  Bangladesh is 
predominantly a consumer of counterfeit and unlicensed 
intellectual property.  The five-week old interim government 
established following the declaration of a state of emergency 
has moved swiftly to address underlying governance issues 
that contribute to IPR infringement.  Post recommends against 
listing Bangladesh under the established Special 301 
categories.  End summary. 
 
¶2.  The immediate past parliamentary government's term 
expired in October, 2006.  In accordance with the 
constitution, a Caretaker Government was formed to organize 
and hold elections within 90 days.  In response to growing 
political instability and the threat of violence during the 
elections, the President of Bangladesh declared a state of 
emergency under the constitution on January 11, 2007.  The 
initial Caretaker Government resigned and was replaced by a 
new Caretaker Government.  Elections scheduled for January 22 
were canceled.  The current Caretaker Government has pledged 
to create the conditions necessary for free, fair and 
credible elections and to hold elections as soon as possible; 
however, it has not announced a specific timeframe for 
elections. 
 
¶3.  Bangladesh is a signatory of the Uruguay Round 
agreements, including the WTO's Agreement on Trade-Related 
Aspects of Intellectual Property Rights (TRIPS), and was 
obligated to bring its laws and enforcement efforts into 
TRIPS compliance by January 1, 2006.  However, according to a 
November 2005 WTO decision, Bangladesh has until July 2013 as 
an LDC to bring its laws and enforcement efforts into TRIPS 
compliance. The Government of Bangladesh (GOB) enacted a 
Copyright Law in July 2000, updating its copyright system and 
bringing the country's copyright regime into compliance with 
TRIPS.  The GOB drafted new patent and trademark laws in 2005 
to further comply with WTO requirements.  These draft laws 
have not yet been enacted.  It is unclear whether these laws 
could be enacted prior to the election of a new parliament. 
There is no legislation specifically addressing protection of 
traditional knowledge or expressions of folklore or related 
to genetic resources and access and benefit sharing. 
 
¶4.  Piracy of intellectual property is nonetheless 
widespread.  Optical media (CDs, VCDs, DVDs, and software) 
sold in Bangladesh is almost exclusively pirated.  Current 
imported pirated DVDs are widely available for an average 
price of US $1.45 a disk.  Although typically lacking special 
features and high-end audio tracks, the feature presentation 
is usually of good quality.  These DVDs do not appear to be 
mastered and produced locally; rather, most are imported from 
Asia and South Asia by wholesalers and distributed to 
retailers.  In 2006, shops began selling locally produced 
copies of imported, pirated DVDs at a twenty percent discount 
(approximately $1.15 per disk).  These disks are produced 
using consumer-grade DVD burners and low quality recordable 
disks.  Post has received isolated reports of commercial 
grade optical media production facilities in Bangladesh and 
is working with industry to verify these reports.  Industry 
representatives have expressed continued concern that 
improved IPR enforcement in Pakistan is prompting relocation 
of illegal production facilities to Bangladesh. 
 
¶5.  Piracy of printed material is also widespread.  Although 
some stores in more affluent districts carry legitimate 
copies of fiction and non-fiction books, textbooks used in 
public and private universities are widely duplicated and 
distributed to students.  Duplication generally takes the 
form of photocopies of an original, master text. Printing and 
copying shops near universities are widespread and almost all 
textbooks used in schools and universities are widely copied. 
 
¶6.  Theatrical print piracy is also prevalent and has been 
implicitly sanctioned by the GOB film censor board, which has 
approved obviously pirated prints of films for distribution 
in Bangladesh.  Industry sources believe most pirated 
theatrical prints are produced in India from legitimate 
prints, and smuggled into Bangladesh across its long boarder 
with India. 
 
¶7.  The GOB does not ensure that government offices, 
 
 
 
state-owned enterprises and semi-government organizations use 
only licensed software or that they obtain sufficient 
licenses for all copies of software in use by the GOB. 
 
¶8.  The GOB does not devote adequate resources to the 
enforcement of IPR in Bangladesh.  Lack of technical 
expertise and capacity to enforce remain significant problems 
for relevant government agencies.  Copyright and trademark 
offices are under-staffed and overburdened and most personnel 
lack necessary expertise.  The government has expressed 
genuine interest in attending the Global Intellectual 
Property Academy; however, funding is a limiting factor.  In 
addition, systemic problems in the courts prevent effective 
enforcement of much of Bangladesh's laws, including 
protection of property rights generally and enforcement of 
IPR in particular.  The magistrate and trial courts are 
seriously overburdened and rife with corruption.  In the rare 
cases when judgments are obtained, enforcement of the 
judgments is itself problematic.  Police and judges do not 
have the necessary training to handle IPR violations.  There 
are, however, rare cases of police raids on DVD and software 
shops that produce illegitimate works. 
 
¶9.  Companies have reported receiving cooperation from the 
Bangladesh Standards and Testing Institute (BSTI), a 
government agency with responsibility for standards and 
labeling regulation.  BSTI has used its authority to regulate 
deceptive labeling and trade practices to address IPR 
violations in the misbranding of consumer goods.  While BSTI 
has been willing to investigate specific complaints, it has 
insufficient resources to pursue a proactive campaign against 
IPR violations in consumer goods. 
 
¶10.  During its first five weeks in office, the current 
interim government has undertaken a highly publicized 
campaign against corruption.  Many high-level officials, 
including former ministers and members of parliament, are 
under arrest as are many businessmen with a notorious 
reputation for corruption and collusion with allegedly 
corrupt officials.  The government has announced it will sign 
the United Nations Convention Against Corruption.  It has 
requested and received the resignation of the members of the 
Anti-Corruption Commission, which was widely acknowledged to 
be ineffective, and is undertaking a comprehensive review of 
legislation governing the commission and addressing 
corruption generally.  The government has also concluded 
procedures to transfer control over the lower courts from the 
executive department to the High Court, a legally independent 
branch of government. 
 
¶11.  Comment:  Post shares industry's concerns about 
widespread piracy of IPR in Bangladesh.  We do not, however, 
concur with industry's recommendation that Bangladesh be 
included on the watch list.  Piracy of IPR is still largely 
an issue of domestic consumption of pirated materials 
produced elsewhere.  While duplication of textbooks and other 
printed material is widespread, the quality is poor and 
appears to be intended primarily for domestic consumption. 
Industry's allegations of optical media production plants are 
disturbing; however, production apparently remains focused on 
the domestic market at this time. Post is working with 
industry to seek government action against these plants. The 
response of the new interim government to these allegations 
will be an important factor for next year's Special 301 
review. 
 
¶12.  The proactive steps taken by the new interim government 
to address core governance and law and order issues evidence 
a new commitment to enforcing the rule of law.  In doing so, 
the government is addressing important underlying conditions 
that have contributed to an environment in which IPR 
infringement has flourished.  While lack of expertise and 
capacity to enforce existing IPR laws will continue to be a 
significant problem, the new emphasis on enforcement is a 
welcome change that may carry-over to the enforcement of 
existing IPR legislation.  Bangladesh continues to work to 
meet the new deadline for compliance with its TRIPS 
obligations.  Under these conditions, we doubt a "name and 
shame" approach will effectively motivate the government of 
Bangladesh to improve the protection of IPR in Bangladesh. 
End Comment. 
BUTENIS