VZCZCXRO8056
PP RUEHLN RUEHVK RUEHYG
DE RUEHKB #0172 0580537
ZNR UUUUU ZZH
P 270537Z FEB 08
FM AMEMBASSY BAKU
TO RUEHC/SECSTATE WASHDC PRIORITY 4826
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 2663
RUEHGV/USMISSION GENEVA SZ PRIORITY 0319
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS BAKU 000172 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT PLEASE PASS TO EUR/CARC, EEB/IPE 
 
E.O. 12958: N/A 
TAGS: ETDR ECON KIPR USTR WTRO PGOV PREL AJ
SUBJECT: AZERBAIJAN: 2008 SPECIAL 301 REPORT SUBMISSION 
 
REF: A) STATE 9475 B) 07 BAKU 1489 
 
SENSITIVE BUT UNCLASSIFIED. NOT FOR INTERNET DISTRIBUTION. 
 
¶1. (U)  Based on the GOAJ's endeavors to improve intellectual 
property rights (IPR) legislation,  enforcement, and human 
capacity in 2007, and the lack of nominations and complaints 
from the private sector, Embassy Baku recommends that 
Azerbaijan remain off the Special 301 Watch List in 2008. 
Building on their efforts in 2007 (reftel B), in early 2008, 
the GOAJ continued to fund GOAJ employees' travel to the 
United States for U.S. Patent and Trademark Office (USPTO) 
training, submitted additional IPR legislative drafts to the 
World Trade Organization (WTO) and U.S. Trade Representative 
(USTR) for review, continued efforts to improve IPR 
enforcement, and have committed to host one local and one 
international IPR conference in the spring. 
 
¶2. (U) American companies operating in Azerbaijan like 
Coca-Cola, Proctor and Gamble, and SilverKey confirmed that 
it is increasingly difficult to find counterfeit products in 
Azerbaijan, although some counterfeit software and optical 
media is still easily purchased in some locations in Baku. 
(Note: The owner of Azerbaijan's two largest optical media 
chain stores requested Embassy assistance to purchase 
licensed media.  Despite his attempts to reach out to 
companies, many remain unresponsive because of Azerbaijan's 
relatively small market.)  Some U.S. and foreign companies 
credit specific GOAJ agencies for improving enforcement; 
however, others assert that while the GOAJ is increasingly 
aware of IPR, official efforts are motivated by corruption 
rather than respect for IPR, and legitimate efforts are 
limited by lack of understanding, lack of capacity and lack 
of IPR public education. 
 
Understanding and Benefiting from IPR 
------------------------------------- 
 
¶3. (SBU) Azerbaijan's Copyright Agency, which is responsible 
for drafting much of Azerbaijan's new IPR legislation aimed 
at strengthening administrative, civil law and court 
procedures to improve IPR in Azerbaijan, is attempting to 
play an international role by addressing what it alleges is 
an violation of musical copyright based on a CD produced in 
the U.S. and labeled as "Armenian" rather than "Azerbaijani." 
 Since appeals to the World Intellectual Property 
Organization (WIPO) have gone unanswered, the Copyright 
Agency corresponded with the Embassy about the case, and 
later  announced to the media that it intends to pursue a 
civil law suit in the U.S. as the USG recommended.  (Comment: 
While the GOAJ's primary goal in filing this suit likely was 
related to the ongoing Nagorno Karabakh conflict, the 
agency's press announcement highlighted for the general 
public the importance and benefits of IPR.) 
 
Comment 
------- 
 
¶4. (U) Azerbaijan has contributed resources and taken steps 
towards improving the IPR situation in the country. In 2008, 
the Embassy will continue to monitor passage into law of the 
IPR draft legislation, enforcement efforts, and public 
awareness events.  The GOAJ has requested training from U.S. 
IPR experts to be hosted in Azerbaijan to reach a wider 
audience, including both officials and the public.  The 
Embassy would welcome and support a USG-sponsored and 
locally-hosted training seminar. 
 
 
 
 
DERSE