VZCZCXRO5779
PP RUEHTRO
DE RUEHAS #0208/01 0551421
ZNR UUUUU ZZH
P 241421Z FEB 08
FM AMEMBASSY ALGIERS
TO RUEHC/SECSTATE WASHDC PRIORITY 5309
INFO RUEHEG/AMEMBASSY CAIRO 1002
RUEHFR/AMEMBASSY PARIS 2566
RUEHMD/AMEMBASSY MADRID 8819
RUEHRB/AMEMBASSY RABAT 2188
RUEHTU/AMEMBASSY TUNIS 7040
RUEHTRO/AMEMBASSY TRIPOLI
RUEHNK/AMEMBASSY NOUAKCHOTT 6239
RUEHNM/AMEMBASSY NIAMEY 1482
RUEHBP/AMEMBASSY BAMAKO 0431
RUEHCL/AMCONSUL CASABLANCA 3273
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHMFISS/HQ USEUCOM VAIHINGEN GE

UNCLAS SECTION 01 OF 03 ALGIERS 000208 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EEB/TPP/IP (BOGER) AND NEA/MAG (FLOWERS) 
STATE PASS FOR USTR (GROVES AND BURKHEAD) 
USDOC FOR ITA/MAC/OIP (PETERS), ITA/MAC/ONE (NATE MASON), 
ADVOCACY CENTER (REITZE) 
USDOC PASS FOR USPTO (ADAMS, BROWN AND MARSHALL) 
CASABLANCA FOR FCS (ORTIZ) 
CAIRO FOR FCS (MOEZIE) 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR AG
SUBJECT: ALGERIA: 2008 SPECIAL 301 REVIEW 
 
REF: A. 07 ALGIERS 236 
 
     ¶B. 07 ALGIERS 999 
     ¶C. ALGIERS 190 
     ¶D. 07 ALGIERS 1327 
     ¶E. STATE 9475 
     ¶F. 07 ALGIERS 1581 
 
¶1. (SBU) SUMMARY:  Since the 2003 enactment of 
TRIPs-compliant legislation, Algeria has demonstrated it is 
capable of active and prompt attention to intellectual 
property rights (IPR) disputes (ref B), but progress has been 
sporadic and inconsistent rather than systematic.  Although 
some Algerian government agencies and ministries have begun 
to understand the importance of IPR protection, support for 
IPR has still not grown into a consensus.  Algerian 
enforcement efforts led to an increased number of seizures in 
2007, but pirated optical media and software and counterfeit 
goods remain widely available.  In addition, there has been 
no progress on U.S. pharmaceutical companies' concerns with 
data exclusivity, patent protection, or Algerian policies 
that favor generic products.  In our view, Algeria warrants 
inclusion on the Special 301 Watch List, but we note that 
placement on the list may not significantly alter Algerian 
enforcement efforts.  We believe that WTO accession 
negotiations continue to provide the best forum to address 
weak enforcement and ongoing pharmaceutical company concerns. 
 END SUMMARY. 
 
MIXED MESSAGE ON IPR 
-------------------- 
 
¶2. (SBU) Although some Algerian government agencies and 
ministries have begun to understand the importance of IPR 
protection, support for IPR is still not widespread. 
Officials at the National Copyright Office (ONDA) state that 
IPR enforcement is a priority and that Algeria recognizes the 
importance of IPR protection to encourage greater 
international investment.  The Algerian government has begun 
to employ enforcement, education and training as means to 
curb IPR violations in both the public and private sectors. 
Government officials from ONDA, the national patent office 
(INAPI) and the Ministry of Justice, in particular, have been 
active participants in USPTO training programs.  However, 
pharmaceutical companies and the Embassy itself have had 
difficulty in generating a sustained dialogue with the 
Ministry of Health on ongoing IPR protection issues.  In 
addition, ICT companies such as Microsoft note that the 
estimated rate of software piracy increased slightly in 2007 
due to the lack of serious enforcement or engagement from the 
Ministry of Communication (ref C). 
 
COMPLIANCE WITH TRIPS AND OTHER INTERNATIONAL AGREEMENTS 
--------------------------------------------- ----------- 
 
¶3. (U) Algeria made significant legislative progress for IPR 
protection with the 2003 adoption of modernized IPR laws and 
subsequent reinforcing legislation in 2004 to comply with the 
TRIPs agreement as part of Algeria's WTO accession process. 
In 2005, the Algerian government adopted new implementing 
regulations related to copyrights, patents, trademarks and 
integrated circuits.  Algeria is also a signatory to several 
international agremeents such as the Bern and Paris 
Conventions.  Pharmaceutical companies note, however, that 
Algerian law does not explicitly protect data exclusivity. 
While the legislative base is strong, implementation and 
enforcement of these laws and their ensuing regulations have 
met significant obstacles. 
 
ENFORCEMENT 
----------- 
 
¶4. (SBU) Enforcement of Algeria's generally sound legislative 
 
ALGIERS 00000208  002 OF 003 
 
 
framework remains the significant weakness in IPR protection. 
 ONDA reports seizing 289,000 articles in 2007, up from 
195,000 in 2006.  The Ministry of Justice reported that 76 
cases were brought before the courts in 2007, resulting in 
prison time for several of the defendants.  In 2007, an ad 
hoc interagency committee on IPR protection was formed with 
participation from ONDA, Customs, the Ministry of Justice and 
other government stakeholders.  The formalization of this 
interagency committee should facilitate enforcement efforts 
and enhance cooperation, but absent strong political will 
from all agencies, enforcement efforts are likely to remain 
limited.  The Ministry of Commerce's Market Control Division 
underscored that given the number of government agencies 
involved, coordination must be improved and formalized in 
order to improve enforcement. 
 
OPTICAL MEDIA AND SOFTWARE PIRACY RAMPANT 
----------------------------------------- 
 
¶5. (SBU) Optical media and software piracy in Algeria remains 
widespread.  Pirated optical discs are readily available in 
both retail establishments and in street markets.  According 
to the latest Business Software Alliance survey, the rate of 
software piracy is estimated at 85 percent, a slight increase 
from 84 percent in 2006.  In 2005, the Algerian government 
required government agencies to use registered software.  As 
a result of the law, the number of registered programs jumped 
from zero to 10,000 in four months.  Nevertheless, government 
use of unlicensed software continues and Algerian enforcement 
of software licensing remains limited at best (ref C). 
 
COUNTERFEIT GOODS 
----------------- 
 
¶6. (U) Counterfeit products remain widely available 
throughout Algeria, with some of our business lawyer contacts 
speculating that the variety of counterfeit goods has 
actually increased during the past year.  The latest 
government survey showed that 50 percent of car parts, 30 
percent of cosmetics, 30 percent of clothes, and 12 percent 
of electronic goods in the Algerian market are counterfeit. 
The Ministry of Commerce noted that it does not have accurate 
statistics regarding counterfeit products or their origin. 
In 2006, the Ministry of Commerce estimated that roughly 60 
percent of counterfeit goods were imported, with the 
remaining 40 percent made locally.  China represents the 
leading source of imported counterfeit goods, followed by the 
UAE, Turkey and Italy. 
 
PHARMACEUTICALS 
--------------- 
 
¶7. (SBU) Foreign pharmaceuticals firms have ongoing concerns 
with IPR protection in Algeria and report no progress in 
¶2007.  With regard to Algeria's TRIPs obligations, Algeria 
made some progress by canceling "Instruction Number Five," 
which was intended to stop the importation of pharmaceutical 
products that were locally produced to encourage domestic 
production.  However, the Ministry of Health continues to 
encourage generic production by registering generic 
pharmaceuticals and licensing generic imports. 
Pharmaceutical companies operating in Algeria note that the 
government provides reimbursement only up to the value of a 
product's generic equivalent, providing a disincentive to use 
brand-name products.  Pharmaceutical products patented in 
their country of origin prior to 2003 are not currently 
afforded patent protection in Algeria; therefore, 
pharmaceutical companies have no recourse before the judicial 
system.  Pharmaceutical companies also note that current laws 
do not include data exclusivity protection.  During EEB PDAS 
Elizabeth Dibble's September 2007 meeting with Minister of 
Health Amar Tou, Tou defended the Algeria's generic policy 
 
ALGIERS 00000208  003 OF 003 
 
 
and was not responsive to U.S. pharmaceutical data 
exclusivity concerns (ref D).  In an effort to improve 
dialogue with the Ministry of Health, a group of foreign 
pharmaceutical companies, including U.S. companies such as 
Pfizer, requested authorization to form an association. 
Algerian government authorization is still pending. 
 
COMMENT 
------- 
 
¶8. (SBU) Despite a solid legislative framework for IPR 
protection, Algerian enforcement efforts have been sporadic 
and IPR infringement may even have increased in the case of 
software and counterfeit products.  U.S. companies in the 
pharmaceutical and ICT sectors not only report significant 
monetary losses, but also a lack of serious engagement by the 
concerned ministries.  We believe that these factors warrant 
placement of Algeria on the Special 301 Watch List.  Although 
we recommend listing Algeria, we note that placing Algeria on 
the list may not have a significant impact on Algeria's 
enforcement of IPR.  Algeria's WTO accession negotiations 
continue to present the best forum to address weaknesses in 
its IPR protection regime. 
FORD