VZCZCXYZ0002
RR RUEHWEB

DE RUEHGT #2388/01 3551628
ZNR UUUUU ZZH
R 211628Z DEC 07
FM AMEMBASSY GUATEMALA
TO SECSTATE WASHDC 4530

UNCLAS GUATEMALA 002388 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT PLS PASS TO USTR - JENNIFER CHOE GROVES 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR PGOV
SUBJECT: GUATEMALA SPECIAL 301 INITIATIVE UPDATE 
 
REF: A. STATE 158938 
 
     ¶B. STATE 107629 
 
¶1. (SBU) Summary: In 2007, Guatemala conducted a record 
number of raids against IPR violators and obtained 23 
convictions in IPR cases.  However, implementation of IPR 
laws remained weak due in large part to a lack of coordinated 
action by Guatemalan law enforcement authorities.  Guatemala 
met one of the main goals of the USG Special 301 intellectual 
property action plan when it suspended consideration of a 
rule that would have reduced the protection of medical test 
data submitted to obtain market approval.  While it is not 
yet clear how the incoming Colom Administration will address 
IPR enforcement when it assumes power in January 2008, GOG 
technical-level contacts developed through Special 
301-focused engagement and numerous U.S.-sponsored training 
classes in 2007 will continue to play an important role in 
strengthening IPR enforcement in Guatemala.  End Summary. 
 
IPR Prosecutions Lacking 
 
¶2. (U) The IPR Prosecutors Office in the Public Ministry (MP) 
gave us a report on December 13, 2007, noting that complaints 
of IPR violations increased 75 percent from the prior year, 
from 144 in 2006 to 252 in 2007.  From these complaints, 
Guatemalan authorities were able to conduct 52 raids focused 
on sellers of pirated CDs, DVDs, clothes, shoes, books, and 
medicines.  The raids resulted in 23 convictions with 
sentences ranging from 1 to 17 years in prison and fines 
between $6,500 and $9,000. 
 
¶3. (SBU) Industry sources believe that IPR enforcement was 
tepid and that the limited number of IPR raids and court 
cases in 2007 should have been considerably greater.  An 
apparent difficulty has been the inability of the MP and 
Ministry of Government (MG) to coordinate their actions to 
pursue large manufacturers and suppliers of counterfeit 
products.  Minister of Government Adela de Torrebiarte 
pledged in June 2007 to expand coordination between the 
National Civilian Police (PNC) and the MP to enforce IPR 
laws.  Industry reps, however, argue that cooperation between 
these two key ministries was lacking throughout the year. 
For example, in December 2007, the MP alleged that 
Torrebiarte denied a request by the IPR Prosecutor to 
initiate a raid against a large warehouse of counterfeit 
products citing lack of information and advance coordination. 
 
¶4. (SBU) In October 2007, a local IPR association, Fomento a 
la Propiedad Intelectual (FOMPI), expressed to us its 
frustration with the MP and MG,s lack of interest in IPR 
cases.  Ms. Norma Bonilla, the prosecutor assigned in August 
2007 to head the IPR enforcement office in the MP, reportedly 
stopped accepting evidQ of IPR violations provided by 
FOMPI.  Bonilla claimed duringQOctober 19, 2007 digital 
video conference (DVC) between IPR officials from the GOG and 
USG that industry was not providing sufficient evidence or 
experts to help pursue IPR cases.  In November, Embassy 
officials expressed concern to the MP,s technical 
coordinator Mario Falla over the lack of information and 
progress shown by IPR Prosecutor Bonilla and were informed 
that a replacement will be named in 2008. 
 
Health Ministry Moves Forward 
 
¶5. (SBU) The Guatemalan Ministry of Public Health (MOH) 
announced during the October 19th DVC that it had suspended 
consideration of a rule that would have reduced the 
protection of medical test data submitted to obtain market 
approval.  Had the rule been adopted, it would have 
undermined Guatemala's compliance with its CAFTA commitment 
to protect test data.  USG advocacy led to the eventual 
withdrawal of this proposed rule change. 
 
¶6. (U) The MOH has now gone a step further and is working 
Q6. (U) The MOH has now gone a step further and is working 
with pharmaceutical research companies in Guatemala to 
develop a database of medical patents that will help 
companies registering for approval of new drugs and products 
to more efficiently identify existing patents.  The MOH 
submitted the proposal to the Ministry of Economy; however, 
no formal response is expected before 2008. 
 
US Engagement Critical 
 
¶7. (U) The USG provided training for IPR officials throughout 
the year and helped to raise IPR awareness through 
consultations with ministerial and working level contacts. 
In January, Econoff worked with the USDOJ to organize an 
in-country workshop for IPR prosecutors, judges, and law 
enforcement officials that resulted in the creation of a 
handbook for combating IPR crimes.  In May, DHS/ICE hosted a 
number of GOG officials at a regional conference on IPR 
enforcement in El Salvador.  In September, two Guatemalan 
judges attended a training program for judges at the U.S. 
Patent and Trademark Office (USPTO) Global IP Academy in 
Virginia, and two customs officials attended a USPTO 
Roundtable on Border Enforcement of IPR in Miami, Florida. 
The American Chamber of Commerce launched a five-month 
training program for IPR judges and prosecutors in 
partnership with the USPTO and a local university.  The 
program will provide educational credit to participants.  In 
November, post sent the ranking professional staff member 
from the office of the IPR Prosecutor to attend a USPTO 
program focused on improving the investigation and 
development of IPR cases.  Most of the officials trained 
throughout the year should remain in their positions after 
the change of government in 2008. 
 
¶8. (SBU) Comment: While the MOH made progress toward 
improving enforcement of IPR laws in 2007, the Special 301 
initiative highlighted the lack of coordination between the 
two key GOG entities involved in the enforcement of IPR laws 
- the IPR Prosecutor's Office in the Public Ministry and the 
Ministry of Governance/Police that continues to be a problem. 
 The Embassy will engage the new IPR prosecutor and Ministry 
of Government to enhance coordination between their offices 
and build links to other IPR actors, such as the Tax 
Administration and Judicial Organization, to continue to 
strengthen enforcement of IPR laws in Guatemala. 
Derham