VZCZCXYZ0000
PP RUEHWEB

DE RUEHMS #0189/01 0570924
ZNR UUUUU ZZH
P 260924Z FEB 07
FM AMEMBASSY MUSCAT
TO RUEHC/SECSTATE WASHDC PRIORITY 7852
INFO RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS MUSCAT 000189 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARP, EEB/IPE 
STATE PASS USTR FOR JBUNTIN 
COMMERCE FOR ITA COBERG 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR MU
SUBJECT: OMAN RESPONSE TO 2007 SPECIAL 301 REVIEW 
 
REF: STATE 7944 
 
------- 
Summary 
------- 
 
¶1. (U) Over the past year, the Omani government has taken 
significant steps to protect intellectual property, including 
the undertaking of extensive revisions to its intellectual 
property protection regime in advance of implementation of 
the U.S.-Oman Free Trade Agreement (FTA).  Given these 
efforts, Embassy Muscat recommends that Oman not be placed on 
the "Watch List," as proposed by the Pharmaceutical 
Researchers and Manufacturers of America (PhRMA), or the 
"Special Mention List," as proposed by the International 
Intellectual Property Alliance (IIPA).  End Summary. 
 
------------------------- 
Addressing PHRMA Concerns 
------------------------- 
 
¶2. (U) In response to PhRMA's concerns regarding patent 
protection for U.S. pharmaceutical products in Oman, the 
Ministry of Health's Directorate of Rational Drug Use has 
been cooperative in working with the Embassy in the context 
of the recently ratified FTA.  On November 7, 2006, Econoff 
met with Dr. Batool Jaffer Suleiman, the Ministry's Director 
of Rational Drug Use, to discuss the process by which U.S. 
pharmaceutical products will be registered and protected in 
Oman.  Suleiman commented that once the U.S.-Oman Free Trade 
Agreement (FTA) comes into effect, the Ministry would 
recognize all U.S. pharmaceutical product patent expiration 
dates.  In this regard, she remarked that the Ministry will 
ask U.S. pharmaceutical companies, through their 
representatives in Oman, to submit a master list of the 
products they produce, to include trade name, chemical name, 
first filing date, strength, patent expiration date, and a 
copy of the original U.S. patent. 
 
¶3. (U) During the December 6 U.S.-Oman FTA Awareness 
Conference, the Embassy organized a panel discussion on the 
importance of protecting intellectual property, which 
featured Dr. Suleiman, her supervisor, Dr. Sawsan bint Ahmad 
Jafar, and representatives from PhRMA, including Pfizer's 
Mohammed Roushdy and PhRMA's Samir Mansour.  During the 
discussion, Suleiman reiterated her government's commitment 
to honoring the provisions of the Agreement related to 
intellectual property, including the protection of U.S. 
pharmaceutical products until their U.S. patent expiration 
date. 
 
¶4. (SBU) On January 30, Econoff arranged for a teleconference 
with Suleiman, PhRMA Chairman Nidal Fakhoury (also General 
Manager of Merck Middle East), and Mansour.  During the 
teleconference, Suleiman again noted that the Ministry of 
Health would be the focal point in recognizing the validity 
of U.S.-patented pharmaceuticals until a patent registration 
system was established in Oman.  She informed Fakhoury that 
the Ministry would require information outlined in paragraph 
2 of this message.  While noting that patent protection for 
products already on the market in Oman would not be 
retroactive, Suleiman agreed to review the status of those 
generic products granted registration while FTA negotiations 
were proceeding. 
 
¶5. (U) On February 21, Econoff and Fakhoury met to discuss 
the outcome of his meeting with Suleiman earlier in the day. 
Fakhoury said that Suleiman reiterated her government's 
position that U.S. pharmaceuticals would be protected once 
the FTA entered into force.  She confirmed that, in reviewing 
the material submitted by U.S. pharmaceutical companies, she 
would use an on-line registration confirmation system to 
verify the patent.  Suleiman also renewed her offer to review 
the status of those generics of U.S.-patented products 
granted registration approval during the course of FTA 
negotiations.  Fakhoury told Econoff that he asked Suleiman 
not to revoke the registration of these generics, but rather 
to withhold marketing approval until the U.S. patent expired. 
 Suleiman appeared to be amenable to the suggestion. 
 
------------------------ 
Addressing IIPA Concerns 
------------------------ 
 
¶6. (U) The Omani government has worked extensively with USG 
counterparts to revise its already strong intellectual 
property regime in advance of the implementation of the FTA. 
The government is finalizing revisions to its industrial 
property and copyright laws, which will provide increased IPR 
protection for copyrights, trademarks, geographical 
indications, and patents.  Oman will also improve enforcement 
and protection of undisclosed test data from unfair 
commercial use. 
 
¶7. (SBU) In previous discussions on this issue, the Director 
of Intellectual Property at the Ministry of Commerce and 
Industry highlighted recent collaborative efforts of the 
Ministries of Commerce and Industry, Information, Heritage 
and Culture, and the Royal Oman Police (ROP) in conducting 
extensive sweeps of Muscat's commercial districts, which 
netted over 40,000 counterfeit media products.  He also has 
been receptive to Econoff's delivery of industry concerns on 
the extent to which cable splitting had permeated military 
installations, private sector facilities, and apartment 
residences.  The Director also took on-board the recent trend 
of selling encrypted signals over broadband lines, as well as 
satellite receiver box manufacturers selling units that 
by-pass security access codes.  He remarked that he stood 
ready to assist, but required further information from the 
industry in order to raise these issues with the ROP.  The 
Director expressed concern about the quality of information 
received from private industry, noting that the Minister had 
received blowback from private sector-identified recipients 
of Ministry "cease and desist" letters. 
 
¶8. (U) On computer software usage, the Omani government 
recently concluded a three-year agreement with Microsoft for 
the use of the company's licensed products.  Under the 
agreement, the Omani government will pay Microsoft USD five 
million per year for the use of 22,500 desktop software 
licenses, which will enable the government to upgrade its 
Windows platform and Microsoft Office applications.  In turn, 
Microsoft will invest USD two million per year in training 
programs for government employees and the general community. 
Microsoft's country manager noted that the Omani government's 
approval of the partnership agreement signified its 
commitment to protecting intellectual property.  He also 
remarked that it is now generally more difficult to purchase 
pirated software in Oman. 
 
----------------------- 
Receptive to Assistance 
----------------------- 
 
¶9. (U) The Omani government is very open to receiving 
technical assistance programs to enhance its intellectual 
property protection efforts.  The U.S. Patent and Trademark 
Office (USPTO) held a successful intellectual property rights 
(IPR) seminar for Arab prosecutors in Muscat from January 
22-24, which featured a presentation on intellectual property 
from an Omani Supreme Court justice.  USPTO also held 
seminars December 3-4 and December 5-6 in Muscat on 
intellectual property for judges and prosecutors, and 
investigators and customs officials, respectively.  The Omani 
government regularly nominates officials for participation in 
USPTO-sponsored programs at its headquarters in Alexandria. 
 
------- 
Comment 
------- 
 
¶10. (SBU) With the extensive work that Oman has expended 
during the past year on improving its intellectual property 
protection regime in anticipation of the FTA, the USG would 
send the wrong message by placing Oman on the "Watch List" or 
"Special Mention List" for 2007.  The Omani government has 
worked closely with U.S. intellectual property counterparts 
to strengthen its legal framework and create intellectual 
property awareness among the various ministries.  Moreover, 
it continues to show sustained interest in and commitment to 
its IPR protection regime.  For these reasons, Embassy Muscat 
strongly recommends excluding Oman from these lists.  End 
Comment. 
GRAPPO