VZCZCXRO2379
PP RUEHCHI RUEHDT RUEHHM
DE RUEHJA #1037/01 1020740
ZNR UUUUU ZZH
P 120740Z APR 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 4304
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHBK/AMEMBASSY BANGKOK 7860

UNCLAS SECTION 01 OF 03 JAKARTA 001037 
 
SIPDIS 
 
FOR EAP/MTS; EB/TPP/IPE JBOGER, CLACROSSE 
COMMERCE FOR 4430/BERLINGUETTE AND PETERS 
COMMERCE PASS USPTO FOR URBAN AND FOWLER 
DEPT PASS USTR FOR DKATZ, JGROVES, RBAE, CCOLLEY 
EMBASSY BANGKOK FOR JNESS 
 
SIPDIS 
 
E.O. 12598: N/A 
TAGS: KIPR ETRD KCOR ID
SUBJECT: INDONESIA - 2007 IPR PROJECT PROPOSALS 
 
REF: Jakarta 475 
 
¶1.  Summary:  Embassy Jakarta requests $640,000 in INL/EB funding to 
support the continued employment of our two DOJ-ICITAP Senior IPR 
Technical Advisors for a second and final year.  The success of 
these advisors has been critical to Indonesia's recent improvements 
in IPR protection and enforcement as well as to our ability to 
leverage the Special 301 process.  Their continued efforts on the 
ground will be all the more important as we approach a critical 
juncture where the GOI must act on mounting forensic evidence 
against optical disk factories.  Without their continued presence, 
we fear the GOI will lack the capacity and imperative to take these 
hard steps, and we may lose an important opportunity to build on 
current momentum. End Summary. 
 
¶2.  With FY 2005 INL/EB Intellectual Property Rights funding, 
Embassy Jakarta's Econ Section and its DOJ-ICITAP offices have 
employed and co-managed two senior IPR technical advisors.  For 
roughly the last six months the two advisors have provided technical 
assistance and training to the Indonesia Ministry of Industry (MOI) 
and National Police on implementation of Indonesia's 2004 Optical 
Disk Regulations.  Both advisors are foreign experts who have 
brought with them years of experience on IPR protection and 
enforcement in Indonesia, as well as long-established relationships 
with key Government of Indonesia (GOI) and intellectual property 
(IP) industry contacts.  From their first weeks on the job last 
August and September, both were able to engage the GOI effectively 
and produce tangible results quickly. 
 
Optical Disk Monitoring Team Advisor 
------------------------------------ 
 
¶3.  While both advisors coordinate their efforts closely and share 
some responsibilities, the MOI advisor has focused his efforts 
primarily on the further development and training of the GOI's 
recently established Optical Disk Monitoring Team (ODMT).  During 
the past six months, he has achieved a number of impressive 
accomplishments: 
 
-- Provided training and other capacity building to members of the 
ODMT, including 16 hours of theory and 60 hours of field training at 
registered optical disk (OD) factories; 
 
-- Coordinated with IFPI to secure source identification codes for 
the MOI to assign to registered factories; 
 
--  Held public awareness seminars and other events for the media 
and owners of Indonesia's 29 registered OD factories to inform them 
of the requirements of the new OD regulations; 
 
--  With assistance from IPFI, organized, training inspection visits 
to OD factories in which four separate teams visited all registered 
factories to assess their compliance and collected large numbers of 
exemplars from 147 registered CD and/or DVD production lines. IFPI 
is now examining these exemplars at its forensic lab in London and 
preliminary results are providing some clear evidence of piracy at 
some factories; 
 
-- Refined the ODMT's data base to include allow for the recording 
of more detailed and useful information related to OD factory 
inspections; 
 
-- Established an ODMT office within the MOI with computers, digital 
cameras, inspection kits, storage other ancillary equipment, and one 
full-time administrative assistant to enter data from factory 
inspections in the ODMT database; 
 
-- Convinced the MOI to assign four full-time staff to lead the ODMT 
and coordinate with other team members and agencies, such as the 
police; 
 
-- Convinced the MOI to place tamper proof seals on equipment that 
factories claim remain idle; 
 
-- Established procedures whereby the MOI now sends warning letters 
to factories suspected of piracy and, in the future, will sanction 
factories that remain non-compliant; 
 
-- Collaborated with the other IPR senior technical advisor for the 
police in organizing a workshop for the cabinet and working 
officials of the National IPR Task Force on OD regulation 
implementation and other broader IPR topics.  Those attending the 
event included IP industry representatives, as well as IPR 
enforcement officials from neighboring countries; 
 
Police Advisor 
 
JAKARTA 00001037  002 OF 003 
 
 
-------------- 
 
¶4.  During the last six months, the senior technical advisor for the 
police has had equally important successes in working directly with 
the police -- once the weakest link in the GOI's interagency IPR 
enforcement efforts -- as well as other key GOI and industry 
players: 
 
-- Identified targets for retail, distributor and factory raids, 
including for newly discovered factories and burner operations; 
 
-- Advised police on conducting raids and arrest, case investigation 
and management, rules of evidence, and other IPR enforcement related 
matters. (Note: As a result of Indonesia police human rights 
violations, the USG currently requires special vetting procedures 
for training for Indonesia's police.  This has slowed to some degree 
the pace of police trainings, but they should intensify in the 
coming months. End Note); 
 
-- In collaboration with Embassy's Resident Legal Advisor (RLA), 
approached the Indonesia's Attorney General's Office (AGO) to 
establish an IPR task force within the AGO with specially designated 
prosecutors as members.  One the task force is established, the 
advisor will hold joint workshops on case development and 
prosecution for the ODMT, police, prosecutors and judges.  (Note: 
INL/EB has provided Embassy RLA with $100,000 in FY 2006 INL/EB 
funds to support the creation of the task force and related capacity 
building programs. End Note); 
 
-- Through IFPI forensic evidence, and other sources, developed a 
map showing key individuals involved in piracy in Indonesia, and the 
linkages between them and others; 
 
-- Working with IFPI and the Indonesian Police to establish an 
in-country forensic lab for the GOI, which will most likely be 
housed at the Metropolitan Police Special Crimes Division; 
 
GOI at a Turning Point 
---------------------- 
 
¶5.  As noted in Embassy's recent Special 301 submission (ref A), GOI 
leadership continues to demonstrate the political will to improve 
IPR protection and enforcement.  The Police Chief has made IPR 
enforcement and raids a top ten priority, and President Yudhoyono 
has called for the legalization of all GOI software.  More recently, 
we learned from Ministry of Justice Directorate General for IPR 
Abdul Bari Azed that the GOI is working with a private Jakarta-based 
University to launch on April 19 a one-year Masters program in IP. 
According to Bari, the program will train future academics, law 
enforcement and GOI officials, technical advisors and attorneys. 
 
¶6.  The coming year will likely be a make-or-break year in terms of 
the GOI's longer-term resolve to address piracy and other IP 
violations.  Specifically, as forensic and other evidence against OD 
factories mounts, the GOI will come under increasing pressure to 
act.  Given the powerful interests involved, GOI interagency 
coordination will be critical to a successful outcome, and our MOI 
and Police 
advisors and work with the AGO will be invaluable.  With our 
technical support in these three key areas, and the incentives from 
the Special 301 process, the GOI will find itself in a position 
where, if it does not act, it can blame only itself.  However, 
without our ongoing support during the coming year, particularly 
that of our two technical advisors, the GOI will likely lack the 
technical assistance and perhaps even the sense of imperative to 
take these next, hardest steps. 
 
Request to Retain Technical Advisors for Second Year 
--------------------------------------------- ------- 
 
¶7.  Based on the successes to date of our two IPR senior technical 
advisors and the critical juncture at which we have arrived, Embassy 
Jakarta urges INL and EEB to consider funding for these two 
positions for another year.  (Note: The MOI position terminates in 
August and the Police position in September. End Note.)  The 
positions and their achievements represent a creative approach to 
the unique IPR challenges in Indonesia.  They have been critical to 
our successful efforts over the past two years to leverage the 
Special 301 process (including two consecutive Out-Cycle-Reviews), 
and they will be equally important for this upcoming critical 
period. 
 
¶8.  DOJ-ICITAP reports that the base salaries and benefits for both 
positions would be roughly $440,000 for a second year.  In addition, 
we would hope that some programming resources, perhaps as much as 
$200,000, could also be attached to the positions to support their 
 
JAKARTA 00001037  003 OF 003 
 
 
work and supplement the $100,000 already allocated to Embassy's RLA. 
 Those programming funds would be employed as follows: 
 
Those programming funds would be employed as follows: 
 
-- Two Senior Technical Advisors, four locally employed Indonesian 
staff & Program support -- $442,000. 
 
-- Program deliverables, capacity building training, 
limited equipment donations and participant travel -- $198,000 
 
¶9.  This budget will serve to facilitate continuity of current term 
achievements and provide a means to conclude the programs, while 
addressing requests for extended assistance from the GOI. 
 
The goals and objectives for the second term include: 
 
IPR Program: 
 
A) Support guide and assist the GOI in establishing an Optical Disk 
forensic facility. 
 
B) Mentor police with long term enforcement strategies and sustained 
outcomes. 
 
C) Assist police with identifying illegal, unregistered OD 
factories. 
 
D) Assistance and capacity building with border control 
authorities. 
 
E) Assist in developing liaison between police, prosecutors and the 
AGO. 
 
F) Provide advice to IPR stakeholders. 
 
G) Assist the ODR program as required. 
 
ODR program: 
 
A) Mentor and assist the Department of Industry inspection team 
further in carrying out regular compliance inspections of OD 
factories. 
 
B) Provide guidance and Assistance in methods of collection and 
storage of exemplars from OD production lines to support a forensic 
database. 
 
C) Support the DOI in updating the database of factory information 
and mentor the team in reporting techniques and following up on 
non-compliance issues. 
 
D) Guide and mentor the DOI inspection team towards having all 
registered factories fully compliant with the OD regulations by 
project end. 
 
E) Mentor and train the full time inspection team members to be 
capable of replicating training and best business practice for OD 
factories. 
 
F) Provide input and assistance to the IPR program on issues 
relating to OD regulation. 
 
G) Compile a complete Guideline book of all training materials and 
provide this to the DOI and DGIPR. 
 
HEFFERN