VZCZCXRO0153
OO RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHPG #0293/01 0791135
ZNR UUUUU ZZH
O 201135Z MAR 07
FM AMEMBASSY PRAGUE
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8771
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE IMMEDIATE
RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE

UNCLAS SECTION 01 OF 02 PRAGUE 000293 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR/NCE EFICHTE AND EB/IPE JBOGER 
STATE PASS USTR FOR JCHOE-GROVES AND WMOORE 
COMMERCE FOR 4232/ITA/MAC/MROGERS 
COMMERCE PASS USPTO 
STATE PASS LIBRARY OF CONGRESS 
 
E.O. 12958: N/A 
TAGS: KIPR ETRD ECON EZ
SUBJECT: CZECH REPUBLIC: AMBASSADOR PUSHES IPR PROTECTION 
AND BUSINESS CLIMATE IMPROVEMENTS WITH NEW MINISTER OF 
INDUSTRY AND TRADE 
 
REF: A. PRAGUE 274 
 
     ¶B. PRAGUE 160 
     ¶C. PRAGUE 244 
     ¶D. STATE 7944 
 
¶1. (SBU) SUMMARY AND COMMENT: The Ambassador focused his 
introductory meeting with the new Minister of Industry and 
Trade (MPO) on intellectual property rights (IPR).  MPO has 
the lead on enforcement of WTO and EU IPR legislation, and 
the  Minister was well aware of the piracy issues at markets 
on the Czech border.  This was the first time the Ambassador 
engaged a Minister-level official in the Czech Government on 
IPR issues, and the meeting laid the necessary ground work 
for the Ministry and the USG to work together on a Czech 
action plan to combat IPR violations.  The Ambassador is also 
meeting with the Minister of Justice, the Minister of the 
Interior, and the Prime Minister this week.  IPR will feature 
prominently in each of the meetings to get a political 
commitment for a "zero tolerance policy" on IPR violations. 
END SUMMARY AND COMMENT. 
 
--- 
IPR 
--- 
 
¶2. (SBU) During his March 20 introductory call on new 
Minister of Industry and Trade Martin Riman, the Ambassador 
stressed the importance of elevated GOCR action to combat IPR 
violations.  The Ambassador highlighted USG and industry 
concerns regarding IPR violations at the Czech border 
markets.  He urged Minister Riman to be proactive and 
formulate a Czech "Action Plan" to combat IPR violations, 
which includes the adoption and public declaration of a "zero 
tolerance policy."  The Ambassador stressed the importance of 
being proactive and said and offered to work with the 
Ministry on its action plan. 
 
¶3. (SBU) Minister Riman replied that it was not/not in the 
interest of the Czech Republic to be on the Special 301 Watch 
List.  He then turned to the Ministry's action person on IPR 
issues Adela Pristasova and asked her to brief on Czech 
efforts to combat piracy.  Pristasova expressed "serious 
concern" about IFPI's Special 301 submission and noted that 
upon his return from Washington where he discussed IPR with 
both USTR and the Department of Commerce, Deputy Minister 
Martin Tlapa convened the interagency IPR committee (ref A). 
The GOCR is currently receiving input from other ministries, 
police, and customs to reply to the recording industry.  The 
formal response will be ready March 23, and will be shared 
with the Embassy.  Minister Riman welcomed working closely 
with the Embassy on this issue and offered to hold a DVC with 
Washington to discuss the matter further. 
 
--------------- 
ENERGY SECURITY 
--------------- 
 
¶4. (SBU) In response to the Ambassador's question about the 
Minister's most pressing issues, Minister Riman replied that 
energy security was most pressing -- both internal Czech 
policy and the EU policy.  Internally, he explained that the 
current coalition government which includes the Green Party 
was divided on the nuclear and coal mining issue.  He 
described the EU renewable energy target as "a very expensive 
hysteria" and said it was a political target that is not/not 
achievable in reality.  He said that the Czech Republic's 
greatest vulnerability was in the gas sector (vice oil and 
electricity), and the Czech energy security situation is not 
as bad as the newspapers make it out to be. 
------------------ 
INVESTMENT CLIMATE 
------------------ 
 
¶5. (SBU)  The Ambassador inquired about the possible merger 
between the government investment promotion authority 
CzechInvest and government export promotion authority 
CzechTrade.  Noting the widely shared view among U.S. 
investors that CzechInvest provides significant value added 
services that stand out in the region, the Ambassador asked 
when and how the merger is expected to affect FDI inflows. 
Minister Riman said he wanted to merge the two institutions 
because he believes it would have synergistic effects. 
However, since CzechInvest's mandate is written into the law, 
 
PRAGUE 00000293  002 OF 002 
 
 
to change it would require a new legislation. 
 
------------ 
TRANSPARENCY 
------------ 
 
¶6. (SBU) The Ambassador noted the link between transparency 
and investment climate and said he wanted to continue 
dialogue on this important topic.  He said while the economy 
is doing quite well now, corruption could have negative 
impact on FDI inflows in the future.  He also stressed the 
importance of involving the private sector in any 
transparency initiative.  Minister Riman agreed with the 
Ambassador on the importance of transparency and involving 
the private sector.  He questioned whether the situation was 
really as bad as the newspapers claimed. (NOTE: a recent poll 
said corruption was the number one issue on people's minds in 
the Czech Republic. END NOTE) Minister Riman noted how 
difficult it was to know exactly how bad corruption was 
because it's all under the table, but that government and the 
private sector needed to learn that honesty is good for 
business. 
GRABER