VZCZCXRO6220
PP RUEHLMC
DE RUEHLM #0754/01 1450345
ZNR UUUUU ZZH
P 250345Z MAY 07
FM AMEMBASSY COLOMBO
TO RUEHC/SECSTATE WASHDC PRIORITY 6113
INFO RUCPDOC/USDOC WASHDC
RUEHNE/AMEMBASSY NEW DELHI 0998
RUEHKA/AMEMBASSY DHAKA 0138
RUEHIL/AMEMBASSY ISLAMABAD 7119
RUEHKT/AMEMBASSY KATHMANDU 5214
RUEHGP/AMEMBASSY SINGAPORE 5693
RUEHCG/AMCONSUL CHENNAI 7705
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION

UNCLAS SECTION 01 OF 02 COLOMBO 000754 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR SCA/INS, EB/TPP/IPE C LACROSSE 
MCC FOR S GROFF, D TETER, D NASSIRY AND E BURKE 
 
E.O 12958: N/A 
TAGS: ECON ETRD KIPR CE
SUBJECT:  PROJECT PROPOSALS, 2007 IPR ENFORCEMENT TRAINING FUNDS 
PROGRAM, SRI LANKA. 
 
REF:  SECSTATE 55928 
 
¶1.  SUMMARY:   Post is pleased to submit a proposal to obtain funds 
to conduct three IPR law enforcement training sessions for 
magistrates and customs officials at a total cost of USD 16,500. 
The training sessions will repeat as well as expand a highly 
successful workshop recently developed by the American Chamber of 
Commerce of Sri Lanka.   The objective will be to enhance the 
enforcement capacity of judges of the magistrate courts which have 
criminal jurisdiction over IPR violations and the Sri Lanka Customs. 
 End Summary 
 
BACKGROUND 
 
¶2.  U.S. companies in Sri Lanka experience problems due to 
Intellectual Property Rights (IPR) piracy of music, software, 
movies, clothing, pharmaceuticals and personal care products.  For 
instance, Sri Lanka exports USD 3 billion worth of apparel annually. 
 Most of these garments are branded apparel owned by US companies. 
Counterfeit apparel products are commonly available at retail 
outlets, and occasionally found in export cargo.  Another glaring 
example of IPR violations is the easy access to pirated software, 
music CDs and movie DVDs.  Most of the rights holders are now 
playing a pro-active role and have formed an IPR working group under 
the auspices of the American Chamber of Commerce (AmCham).  The 
group has drawn attention of the government of the importance of IPR 
protection.  The group launched a high profile public awareness 
campaign on Intellectual Property Rights and organized a seminar 
recently for magistrates, the judicial officers in Sri Lanka 
authorized to rule on IPR cases. 
 
¶3.  Although there are sufficient laws to protect IPR, the 
importance of IPR is not well understood by enforcement officials 
from police and Customs to the judicial ranks.  For example, when 
judging IPR pirates guilty, judges frequently awarded damages 
insufficient to discourage repeated offenses. 
 
SUCCESS STORY - SEEKING FURTHER SUCCESS 
 
¶4.  AmCham, in collaboration with the National Intellectual Property 
Office (NIPO), conducted a basic IPR enforcement training program 
for a group of 35 magistrates in February 2007.  This was the first 
formal IPR training received by Sri Lankan magistrates since 
introduction of a new IPR law in 2003.  The trainers included senior 
judges as well as private sector rights holders.  The workshop 
covered criminal sanctions, civil litigation and appropriate 
procedural processes.  It highlighted the socio-economic costs of 
IPR violations.  The workshop concluded with a collective accord by 
the magistrates to be stringent in enforcing Sri Lankan IPR laws. 
One member of the AmCham working group reported a significant 
increase in the size of fines magistrates gave to IPR violators 
following the training. 
 
PROPOSAL 
 
¶5.  We propose to repeat and expand the above training program: to 
run (a) a basic training in IPR law enforcement for magistrates who 
didn't attend the initial training, (b) a basic IPR enforcement 
training for Sri Lanka Customs officials, and (c) a two day advanced 
training course for magistrates who have undergone the basic 
training.  The programs will be held in Colombo, Sri Lanka.  The 
Director General of the National Intellectual Property Office, 
Customs officials, senior judicial officials and industry 
specialists will address the seminars.  We propose to invite a 
resource person from the USPTO for the advanced workshop for 
magistrates.  These proposals have the full support of the National 
Intellectual Property Office, which will liaise with the Chief 
Justice, the Judges' Institute and Sri Lanka Customs.  The seminars 
will be organized by the AmCham. 
 
Total Cost for three programs: USD 16,500 
 
a) One day basic IPR training for magistrates: cost USD 2,300. 
--No of participants (trainees and trainers): 40 
--Conference hall/equipment hire: USD 900 (note: USD 20 per 
participant) 
--Travel allowance for participants (who live outside Colombo): USD 
1,200 
--Training material: USD 200 
 
b) One day basic IPR training for Customs officials: USD 1,800 
 
COLOMBO 00000754  002.2 OF 002 
 
 
--No of participants (trainees and trainers): 30 
--Conference hall/equipment hire: USD 700 
--Travel allowance for participants: USD 900 
--Training material: USD 200 
 
c) Two day workshop on advanced IPR enforcement methodology for 
magistrates: USD 12,400 including USPTO resource person. (USD 3,400 
without a USPTO resource person) 
--No of participants (trainees and trainers): 30 
--Conference hall/equipment hire: USD 1,400 
--Travel allowance for participants: USD 1,800 
--Training material: USD 200 
--Cost (air ticket, hotel and per diem) of USPTO resource person: 
USD 9000 
 
PROJECT EVALUATION METRICS 
 
¶7.  The proposed project meets the metrics listed reftel in the 
following manners: 
 
--Targeted to U.S. priorities:   The U.S. runs a USD 1.9 billion 
trade deficit with Sri Lanka.  The USG is interested in increasing 
U.S. exports to Sri Lanka.  Protection of IPR to promote economic 
growth and prosperity has been a Mission Performance Plan goal 
during the past several years.  The project is aimed at ensuring 
U.S. exports are not impeded by intellectual property theft.  The 
proposal will synergize resources:  AmCham, the Government of Sri 
Lanka's National Intellectual Property Office, Sri Lanka Customs, 
and the Judges' Institute will be implementing partners. 
 
--Strong support of host government entity:  The Government of Sri 
Lanka requested USG support for IPR enforcement and trade capacity 
building during bilateral trade talks under the U.S.-Sri Lanka Trade 
and Investment Framework Agreement in November 2006.  The 
government's National IPR Office strongly supports the project 
proposal and has undertaken to liaise with the Chief Justice, the 
Judges' Institute and Sri Lanka Customs to facilitate program.  The 
head of the National IPR Office will also participate as a resource 
person. 
 
--Address key gaps in Sri Lanka's strategy to improve IPR 
enforcement:  Sri Lanka passed a new IPR law in 2003.  However, 
enforcement has been spotty due to lack of enforcement training. 
Under the new law, Magistrate Courts have criminal jurisdiction over 
IPR claims, issue search warrants and hear cases.  There are about 
200 magistrates in Sri Lanka.  With the exception of the 30 
magistrates in the initial training program, the magistrates have 
not been trained in IPR law since its passage in 2003.  They are 
generally unaware of the IPR law and the nature of IPR violations. 
Most have limited understanding of the economic and social impacts 
of counterfeit trade.  Customs officials also play a key role in 
combating IPR. 
 
--Capacity to make near term, measurable success with clear 
benchmarks:  After the first training for magistrates, AmCham and 
the National IPR Office report higher fines in IPR cases.  The 
National IPR Office and the Amcham IPR group are committed to 
follow-up on the workshop to ensure the desired goals are met. 
 
--Strong oversight and accountability measures:  The Embassy works 
frequently with AmCham programs.  The current AmCham executive 
director has demonstrated during his two years in office an ability 
to plan and deliver clear-cut, well presented programs.  The 
implementation of this program will be consistent with this 
tradition.  One of Embassy's Economic Officers, who sits on the 
AmCham Board, will be designated to review accounting for these 
seminars and ensure that the program is implemented.  Embassy will 
report on the seminars as they take place. 
 
¶8.  COMMENT:  With a relatively small amount of funding, we 
anticipate seeing significant results.  This grant envisions 
expanding upon an already effective one-time program.  It will 
enable more Sri Lankan judicial and law enforcement officials to 
understand Sri Lankan IPR laws and its importance to their own 
nation. 
 
BLAKE