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RR RUEHLH RUEHPW
DE RUEHIL #5103/01 3351043
ZNR UUUUU ZZH
R 011043Z DEC 07
FM AMEMBASSY ISLAMABAD
TO RUEHC/SECSTATE WASHDC 3575
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RUEHKP/AMCONSUL KARACHI 8242
RUEHLH/AMCONSUL LAHORE 4237
RUEHPW/AMCONSUL PESHAWAR 2805

UNCLAS SECTION 01 OF 02 ISLAMABAD 005103 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: EFIN ECON EINV PREL PK
SUBJECT: PAKISTAN OCR REVIEW RECOMMENDATIONS 
 
REF: A.  Islamabad 0836, B.  Islamabad 1091, C.  Islamabad 1836, D. 
Islamabad 1916, E.  Islamabad 2577, F.  Islamabad 2966, G. 
Islamabad 3462, H.  Islamabad 3714, I.  Islamabad 4891 
 
¶1.  (SBU) Summary:  Embassy Islamabad recommends that Pakistan 
remain on the Watch List (WL) at the conclusion of the current 
Special 301 Out-of-Cycle Review.  While Pakistan has yet to live up 
to its commitment to enact TRIPS-consistent data protection 
legislation, we believe that it should remain on the Watch List 
until we can see the final results of the amendment, which is due to 
be finalized before the end of the year.  Despite some raids this 
fall, we continue to push the Government of Pakistan (GOP) to make 
more progress on prosecution and sentencing for arrested pirates. 
The inclusion of IPR in the Strategic and Economic Dialogues this 
fall has elevated the issue within the GOP, which we hope, over 
time, will help make the Intellectual Property Organization (IPO) an 
effective institution. There have been some improvements in 
enforcement capacity, notably at the Federal Investigative Agency 
(FIA).  With the exception of progress on data protection, the IPR 
situation in Pakistan remains largely unchanged from the spring 2007 
Special 301 review.  End summary. 
 
Data Protection 
--------------- 
 
¶2.  (SBU) Pakistan promised to enact TRIPS-consistent data 
protection legislation in 2006.  The GOP is sprinting to the finish 
line on data protection, with the amendment to the 1976 Drugs Act 
anticipated by the end of the year.  GOP officials at the Health and 
Commerce Ministries are well aware of the importance of enacting 
TRIPS-consistent data protection legislation to the outcome of the 
Out-of-Cycle  and Special 301 reviews. 
 
¶3.  (SBU) Progress was been slow until mid-September, when this 
issue was raised at the Strategic Dialogue, chaired by Deputy 
Secretary of State Negroponte.  Then State Department Deputy 
 
SIPDIS 
Assistant Secretary of Economic, Energy and Business Affairs Chris 
Moore also raised the data protection issue during the economic 
growth breakout session and during his bilateral meetings. 
Following these meetings, the Ministry of Health has been more 
forthcoming in sharing the draft legislation with both the USG and 
local stakeholders, and has held two meetings with the Pakistani 
pharmaceutical sector.  The U.S. pharmaceutical companies have been 
pleased with progress to date. 
 
¶4.  (SBU) The Ministry of Health expects President Musharraf to sign 
an ordinance amending the 1976 Drugs Law before the end of the year. 
 However, we are not confident that this ordinance will be 
TRIPS-consistent, despite Embassy representations to senior 
officials at the Health Ministry, Ministry of Law, Higher Education 
Commission (which has an interest due to agricultural projects which 
produce intellectual property), IPO, and the Ministry of Commerce. 
IPO initially attempted to distance itself from data protection 
legislation, arguing that it was the responsibility of the Ministry 
of Health.  We have engaged in an educational process to explain the 
benefits to Pakistan's economy of data protection, and IPO appears 
to understand the importance of data protection for growth and 
innovating and is no longer distancing itself from Pakistan's WTO 
commitments. 
 
¶5.  (SBU) Pakistan's foreign pharmaceutical companies believe that 
imperfect data protection is better than none at all, and are 
reassured that they will have additional opportunities to strengthen 
data protection through the issuance of implementing regulations and 
renewal of the ordinance every four months.  An ordinance may be 
amended prior to renewal.  We understand that negotiations with the 
foreign and domestic (generic) stakeholders continue to be 
difficult.  The domestic companies wield considerable political 
power and maintain that data protection is already sufficiently 
covered in existing Pakistani legislation. 
 
IPO ineffective 
--------------- 
 
¶6.  (SBU) The IPO has been increasingly ineffective over the past 
six months, despite the Embassy's efforts to include senior IPO 
management in training, organization of awareness seminars and other 
activities. The Board of Directors has not met for over a year, but 
we hope that a new Chairperson (the third since 2005) and Deputy 
Director will breathe new life into the organization, which 
continues to cite past achievements. IPO has not pushed for 
institution of a patent linkage system 
 
Progress on enforcement capacity building 
----------------------------------------- 
 
¶7.  (SBU) The Federal Investigative Agency (FIA) has been very 
 
ISLAMABAD 00005103  002 OF 002 
 
 
proactive in developing their IPR crimes investigation capabilities 
over the past year, but has yet to reap results.  FIA has set up IPR 
enforcement units in Islamabad, Lahore, Karachi and Rawalpindi, and 
hired a dedicated Director to oversee the four offices.  FIA has 
aggressively pursued international training opportunities; most of 
the unit attended a U.S. Embassy organized program on Cyber Crimes 
Investigations with the FBI, Microsoft, and IFPI in mid-August. 
 
¶8.  (SBU) The FIA reports that it has conducted four raids on 
factories since the training that produced Hindi content cassettes. 
Although there has been some progress made in enforcement over the 
past year, the FIA has not conducted raids at the level it once did 
in 2005. In 2007, 8 arrests were made, and 173,150 CDs/DVDs seized. 
Laws are weak compared to the will of the FIA and lack of concern in 
the judicial system eradicates the FIA's efforts. 
 
Lack of prosecution and sentencing for pirates 
--------------------------------------------- - 
 
¶9.  (SBU) However, lack of prosecution and sentencing for pirates 
continues to plague IPR protection and enforcement.  FIA continues 
to be frustrated that retailers still openly sell pirated optical 
discs throughout Pakistan.  Known counterfeiters are not brought to 
justice because the laws currently in place do not give FIA and the 
police the proper authority to arrest and prosecute IPR criminals. 
The judicial system continues to see IPR cases as a minor offense 
with no punishment more severe than those served to shoplifters, if 
at all.  Many who file complaints against IPR violators do not come 
forward which makes prosecution increasingly difficult. IFPI has 
been very complimentary regarding optical disk enforcement in 
Pakistan, and have indicated in meetings with the former Prime 
Minister and DCM its members' interest in investing in Pakistan. 
 
IPR awareness low 
------------------ 
 
¶10.  (SBU) IPR awareness continues to be low among law enforcement 
officials, the judiciary, and the general public.  Law enforcement 
officials and the judiciary question why IPR violations are a crime. 
 The Embassy is organizing its first IPR awareness seminars for 
early 2008 in Islamabad, Lahore and Karachi in early 2008.  IPO's 
efforts in this area have been inadequate, and we believe that they 
have not taken advantage of the international resources available, 
instead concentrating their public outreach on conferences on book 
publishing and TRIPS flexibility, rather than on sensitizing the 
Pakistani public to the need for IP protection. 
 
 
Comment 
------- 
 
¶11.  (SBU) Comment: We recommend that Pakistan remain on the Watch 
List until we can see the outcome of the long-awaited data 
protection amendment.  If the amendment and/or its implementation 
are not consistent with TRIPS, then the interagency committee should 
revisit Pakistan's Special 301 status during the spring Special 301 
regular review.  We will continue to pursue opportunities to provide 
training and increase IPR protection awareness among the general 
public and GOP officials.  We are hopeful that a new government 
following the January 8 national elections will breathe new blood 
into the IPO and continue to maintain FIA's momentum on increased 
IPR enforcement.  End comment. 
 
PATTERSON