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DE RUEHBU #0336/01 0771824
ZNR UUUUU ZZH
R 171824Z MAR 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 0480
RUCNMER/MERCOSUR COLLECTIVE
RUCPDOC/USDOC WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL

UNCLAS BUENOS AIRES 000336 
 
SIPDIS 
 
EB/TPP/IPE FOR RWATTS, RWALLACE AND CLACROSSE 
DEPT PLS PASS TO USTR JCGROVES, KDUCKWORTH 
DOC/ITA/MAC/OIPR FOR CATHERINE PETERS AND JENNIFER BOGER 
PLEASE PASS TO USPTO JURBAN AND LOC STEPP 
SAO PAULO FOR USPTO DMAZURKEVICH 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: KIPR ETRD ECON AR
SUBJECT: Embassy Buenos Aires' IPR Strategic Plan: 2007 Report Card 
and 2008 Goals 
 
REF: A. BUENOS AIRES 231 
     ¶B. 07 BUENOS AIRES 1720 
     ¶C. 07 BUENOS AIRES 927 
 
This cable contains sensitive information - not for internet 
distribution. 
 
------------------------ 
Summary and Introduction 
------------------------ 
 
¶1. (SBU) Post recently submitted our 2008 Special 301 recommendation 
that Argentina remain, for the 13th consecutive year, on USTR's 
Priority Watch List (Ref A).  Given the myriad challenges and 
deficiencies of the Argentine IPR regime, Post in 2007 developed a 
strategic plan (Ref C) to integrate efforts of all Mission elements 
to address specific deficiencies in IPR legislation, regulation and 
enforcement and to mobilize and coordinate Mission IP education, 
training and public outreach efforts.  This cable reviews our IP 
strategic plan performance in 2007, and outlines Post's goals for 
¶2008.  Our 2007 plan was ambitious and the results mixed: on 
legislation, though there was little progress in improving either 
patent or copyright protection laws, an AmCham IP Committee-drafted 
trademark bill was introduced into parliament, and it appears the 
GoA will draft and pass in 2008 an embassy-supported seed law which 
we hope will help ensure royalty payments for GMO products.  Post 
efforts to have the GoA publish regulations implementing a law 
authorizing Customs interdiction of any IPR violation failed, with 
the GoA instead submitting to parliament a proposal to narrow the 
law's scope.  Enforcement and education efforts were our most 
successful: with DoJ support, we brought together representatives of 
nine different GoA law enforcement entities plus key members of the 
private sector to draft a "best practices" manual for IPR case 
investigation and prosecution (Refs A & B), and notable numbers of 
pirated IPR goods were detained and destroyed.  Public outreach was 
also positive, with Post leveraging broad media coverage of a number 
of Ambassador's IP presentations and op-eds to broadly disseminate 
our message to the Argentine public. 
 
¶2. (SBU) In 2008, Post will continue actively engaging GoA 
executive, parliament, and enforcement officials as well as private 
sector and NGO players on IP issues.  An overarching priority for 
the coming year will be to further leverage Mission IP efforts by 
expnding contacts and ties to new individuals and organizations 
with IP interests and responsibilities, seeking allies to move 
forward on specific initiatives.  Our primary 2008 target areas are: 
working with the newly seated parliament to advance legislation and 
regulation of existing laws to win better trademark and 
pharmaceutical patent protection; working with federal, provincial, 
and the city of Buenos Aires governments to improve enforcement of 
copyright and trademark violations; producing and distributing the 
above noted "best practices" manual for IPR case investigation and 
prosecution; leveraging INL funds dedicated to IPR granted in FY 08 
to expand training for judges and prosecutors; and working with new 
and old contacts to get across the message that IP protection is 
very much in Argentina's own interest.  Finally, we have established 
an inter-agency Mission working group, chaired by IPR Officer, to 
enhance in-house coordination.  While we do not anticipate 
significant movement in any one of our target areas in 2008, we hope 
that small advances in several will add up to significant progress. 
END SUMMARY AND INRODUCTION. 
 
¶3. (SBU) Review of Strategic IPR Plan: 
 
¶I.  New Legislation: 
 
2007 Goals: We sought to (1) support a trademark law modification 
drafted by members of AmCham's IP Committee to increase deterrent 
penalties for violations and otherwise modernize a dated law; (2) 
sound out USG and GoA support for Argentine accession to the WIPO 
Patent Cooperation Treaty, which requires legislative action; and 
(3) explore implementation of data exclusivity.  Given a request by 
AmCham members that our Mission refrain from direct advocacy with 
parliament, we assumed this would be a difficult issue area to move 
forward. 
 
2007 Performance:  Limited success. 
 
--  We hoped to leverage a visit by Congressional Research Service 
Specialist Jeff Hornbeck in April to make key contacts, but the 
Argentine congress was on recess and he was only able to meet with 
staffers.  The trademark law modification by AmCham was presented 
 
 
formally by a Senator, but has made no further progress. 
 
--  USG working-level contacts in EEB and USTR supported our goal to 
have Argentina accede to the multilateral WIPO Patent Cooperation 
Treaty, which is also an EU IPR priority.  In Argentina, INPI 
resists accession both on grounds of reduced sovereignty in patent 
decisions and over concern about the increased number of 
applications they would receive. 
 
--  Econ contacts in the GoA and the local international 
pharmaceutical industry advise us that the thorny issue of data 
exclusivity will only be addressed via a legislative fix, and that 
the GoA will only undertake such a fix if forced to by a WTO 
decision.  Our pharmaceutical company and international chamber 
contacts tell us their headquarters are hesitant to push for a WTO 
case to be filed based on the possible worldwide consequences of an 
unfavorable decision. 
 
--  FAS ensured that a proposed new seed law (which would ensure 
technology owners, including the U.S.'s Monsanto, receive payment 
for their products) was discussed in a September meeting between 
U.S. Acting Agriculture Secretary Conner and GoA Agriculture 
Secretary de Urquiza, and a November meeting between de Urquiza and 
 
SIPDIS 
now-House Agriculture Committee Chairman Peterson.  The law was also 
discussed in November by Peterson and Argentine Congresswoman Ana 
Maria Berraute, then head of the Agriculture Committee in the 
Argentine House of Diputados, who made it clear that her committee 
will approve whatever is presented by the GoA.  (The 2008 Committee 
Chair has not yet been named.)  Congressional passage of such a law 
would encourage development of new technology and investment in 
Argentina, and would end Monsanto's longstanding dispute over 
Roundup Ready soy.  The law has not yet been fully drafted, but our 
GoA Secretary of Agriculture contacts expect it to be presented in 
Congress early in 2008 and easily passed by the current 
administration's majority in both houses. 
 
2008 Recommendations:  Local research-based pharmaceutical chamber 
CAEMe's IP committee plans to approach newly appointed parliamentary 
upper and lower house chairs of Economy, Industry, Penal Code, and 
Health committees, all of which have broad influence on IP issues. 
At a December 2007 CAEMe Board meeting, the Econ section agreed to 
work with CAEMe, the EU, PhRMA and other interested parties to 
develop a coordinated legislative approach and parliamentary 
education strategy.  (07 BA 2267 suggested that President Cristina 
Fernandez de Kirchner's (CFK's) service in the Senate may make her 
amenable to pursue the legislative route more often than her husband 
did.)  Some pharmaceutical firms are considering linking improvement 
in GoA IP protection to future investment in clinical research in 
Argentina, and have even raised the possibility of not introducing 
new medications in Argentina unless IP disciplines are strengthened. 
 To highlight these concerns and possible consequences of continuing 
poor IP enforcement, we will explore having Ambassador host a 
round-table discussion with appropriate GoA officials, company reps, 
and perhaps Ambassador's EU and Swiss counterparts.  AmCham has not 
requested any specific support for their trademark proposal, but 
will do so if they identify a way they believe we can be helpful. 
The Motion Picture Association (MPA) has also requested embassy 
support for their proposed law on protecting digital video content, 
and will coordinate with Mission IP team. 
 
II.  Regulation/Implementation of Existing Legislation: 
 
2007 Goals:  We sought to encourage issuance of regulations of Law 
25.986 (passed in 2004) that would give the GoA Customs agency the 
authority to detain incoming shipments on the presumption of an IP 
violation, and hold shipments long enough to obtain an official 
determination.  (Just as the U.S. Code of Federal Regulations 
interprets and guides application of the United States Code, Customs 
needs regulations in order to apply the law.)  The GoA Customs' 
trademark fraud alert program already in effect implements a portion 
of this law.  (NOTE: Law 11.723, Argentina's primary copyright law, 
criminalizes the importation and sale of pirated products.  Law 
22.362, the main law regarding trademarks and patents, does not 
address imports of violating products but only the sale of same. 
Therefore, implementation of the law would, in practice, increase 
import/export protection only for patented products.) 
 
2007 Performance:  Unsuccessful.  Far from expanding GoA Customs' 
authority to detain shipments on the presumption of IP violations, 
the GoA is attempting to limit Customs' interdiction authority to 
only copyright and trademark violations, whereas the passed version 
of the bill includes all intellectual property rights.  The GoA 
proposal was sent to Congress on March 23 (but unbeknownst to us 
until May), shortly before we finalized the plan on March 27. 
Then-Secretary of Industry Peirano was especially unhelpful in this 
area: on March 26, we asked him about the regulation of this law and 
he feigned ignorance, though the proposal submitted the week before 
(signed by then-Minister Miceli, as well as then-Health Minister 
Gonzalez and Chief of Cabinet Alberto Fernandez) would likely not 
have moved forward without his blessing. 
 
2008 Recommendations:  The GoA proposal to limit the GoA Customs 
agency's authority advanced in Congress and has been passed by the 
Diputados full chamber as well as by relevant Senate committees.  As 
we understand the legislative process, the Diputados' vote remains 
in effect for the entire 2008 session, but is void if the full 
Senate doesn't vote on the matter by the end of 2008.  Mission will 
encourage Customs to aggressively push its case within the CFK 
administration.  The Econ and Immigration and Customs Enforcement 
(ICE) sections will consult with GoA Customs Director Echegaray to 
affirm Customs' strong support for broader Customs IP authority and 
to ask for his guidance on how we can best support. 
 
III. Enforcement: 
 
2007 Goals:  We sought to organize (with Department of Justice 
support) a conference to develop a "best practices" manual for 
Argentine law enforcement and prosecutors to use in investigating IP 
crimes.  We also sought to support Customs in its efforts to 
establish a new trademark fraud interdiction program, and to support 
MPA's local enforcement activities. 
 
2007 Performance:  Successful.  Our single most significant IPR plan 
success this year was the DOJ-sponsored conference.  Not only is the 
draft manual nearly finished, but it resulted in public/private and 
inter-agency cooperation on IP which did not exist previously.  With 
ICE cooperation, the Econ section encouraged DHS/Washington to offer 
informal assistance to Customs on trademark fraud procedures. 
Argentine Customs has not followed up on DHS' offer.  Likewise, 
local MPA counsel has yet to take us up on our offer for greater 
Embassy engagement on MPA enforcement efforts.  ICE has cooperated 
with Customs on a significant seizure of contraband goods (many of 
them trademark violations) which entered Mendoza from Chile.  Per 
Ref A, total seizures of counterfeit and pirated goods by GoA police 
forces in 2007 were substantially higher than in 2006.  According to 
data provided by Argentine Customs, the total retail value of 
trademark violations that agency seized was US$ 32.9 million - an 
over 800% increase over the value of such seizures in 2006. 
 
2008 Recommendations: 
 
--  Next step on the GoA inter-agency best practices manual project 
is for the original conference participants to meet again 
(tentatively set for March 26) to finalize the manual, publish, and 
distribute it.  DOJ has committed $2,000 for printing, and Econ will 
ask for LegAtt's assistance to obtain formal Public Ministry support 
for the publication.  We will also encourage the manual drafting 
working group to seek permission to continue to meet and address 
other issues. 
 
--  We will work with Argentine Customs to follow up on DHS' offer 
of informal assistance to Customs on trademark fraud procedures and 
work with local MPA counsel to pursue our offer for greater Embassy 
engagement on MPA enforcement efforts. 
 
--  EEB's IPE office is considering initiating a tri-country (Arg, 
Brazil, Paraguay) tri-border multi-year enforcement initiative; we 
could offer to host the launch.  Embassy BsAs ICE has also expressed 
interest in coordinating an IP-based training conference designed to 
inform Argentine and other Southern Cone customs, Treasury agencies 
on international best practices. 
 
--  In general, seek closer cooperation with new provincial and city 
governments.  For example, LegAtt will consult with new BA Province 
Minister of Security Carlos Stornelli to encourage him to address 
the La Salada market. 
 
--  Letters from Ambassador to Ministers/appropriate authorities on 
occasions of large IP-related seizures/enforcement actions. 
 
--  Recommend, with authorities at all levels, organizing 
"demonstration" raids/seizures which attract attention, and 
therefore send deterrent message. 
 
--  Seek ways to better support internet enforcement issues.  CAPIF 
is a leading actor in Argentina in this area. 
 
IV.  Education/Training: 
 
2007 Goals:  We sought to take advantage of existing resources - 
particularly within the USG - to offer IP training opportunities to 
GoA law enforcement, INPI and Customs officials and to encourage 
better integration of GoA inter-agency IP law enforcement efforts. 
 
2007 Performance:  Mostly successful. 
 
--  In response to our request for financial support from INL to 
further our training of judges and prosecutors, INL approved $15,000 
for FY 08.  Funding remains pending INL confirmation, but can be 
spent through FY 10. 
 
--  Post nominated two officials who received USPTO training: one 
from Customs for a border enforcement course, and one from INPI for 
advanced patents. 
 
--  The Econ section also obtained approval for 10 GoA officials 
from five agencies to attend (9 did so) an INL Intl Law Enforcement 
Academy (ILEA) IPR course in Lima in July. 
 
--  Extensive efforts by the Econ section and ICE to secure 
participation by Customs in a USPTO-sponsored tri-border conference 
in Paraguay in May went for naught, as AFIP never gave formal 
approval.  (Contacts attribute this to tiff between the head of AFIP 
and the head of Customs.) 
 
--  On a trip for nine Argentine journalists funded by Monsanto in 
August, FAS arranged meetings with USDA, USPTO, FDA and EPA 
officials to discuss biotechnology and regulatory issues, including 
intellectual property protection.  FAS also funded one LES to 
accompany group. 
 
2008 Recommendations: 
 
--  Key question is how best to use/leverage $15,000 in expected INL 
monies.  Sending GoA officials to the U.S. for training is 
relatively expensive.  INL funding could probably be best leveraged 
by bringing U.S. experts to Argentina.  One thought is to arrange 
travel for U.S. IPR judges to provide multiple training 
opportunities for local judges and prosecutors.  IPR Officer will 
consult with EEB/IPE to help identify appropriate trainers.  INL 
funds could also support a series of videoconferences to be held in 
the PAS conference room or AmCham offices.  USPTO's regional IP 
officer posted in Sao Paulo, Dorian Mazurkevich, is willing to 
conduct training/outreach here, or could do so via videoconference. 
Dorian was a featured speaker at this year's annual AmCham IPR 
Conference and after being posted in Brazil for the past year, and 
plans to travel to Argentina more extensively in 2008.  We will 
propose to the GoA Supreme Court that the upcoming international 
Supreme Court justices conference they are sponsoring include an IP 
aspect.  We have a strong indication of interest in supporting IPR 
training efforts from the World Justice Project and Proyecto Acceso 
- an NGO which promotes rule of law in Latin America. 
 
--  INL monies could also be used to fund to deployment of CBP 
advisory personnel to Argentina to train Customs personnel with the 
identification and interdiction of potential IPR violations.  Though 
specific to Argentine Customs, this would have regional implications 
as Argentine serves as a major consolidation point for IPR-suspect 
cargo being shipped into the TBA.  CBP, through the coordination of 
DHS/ICE, has already undertaken "capacity building" country survey 
visits to Uruguay and Paraguay at the conclusion of FY 2007.  The 
goal of these visits was to identify potential customs and 
immigration border enforcement training opportunities in both 
countries. 
 
--  Work with new Minister of Health (Graciela Ocana) and her staff 
(including continuing head of GoA FDA equivalent ANMAT, Manuel 
Limeres) to arrange training and/or seminars on safety and 
therapeutic equivalence evaluations of generic medications. 
 
--  FAS has proposed a Cochran Fellowship program on IPR and seeds 
for 2008, via a course offered by Michigan State University.  FAS 
and Econ will collaborate to identify a candidate. 
 
¶V.  Public Outreach: 
 
 
2007 Goals:  We sought to use appropriate outreach events as 
opportunities to emphasize the value for Argentina, a nation with 
notable human capital resources, to better protect the rights of 
innovators.  We explored the possibilities of having Argentines in 
the creative industries collaborate with us to draw attention to the 
anti-piracy/falsification theme. 
 
2007 Performance:  Successful.  The Public Affairs section 
highlighted Ambassador's addresses to four IPR conferences in 2007 
and coordinated the timing and placement of linked op-eds under the 
Ambassador's name to good effect.  Combined efforts with AmCham - 
World IP Day, the annual AmCham IPR conference, IP contest award - 
proved especially positive.  Argentina's two leading print dailies, 
La Nacion and Clarin, proved willing allies in this effort, giving 
prominent space to Ambassadorial editorials, Mission-supported IPR 
events, and other IP issues. 
 
2008 Recommendations: 
 
--  Continue Working with AmCham: The Econ section and Foreign 
Commercial Service (FCS) will continue to work closely with AmCham 
and  make IP Day and their annual IP conference permanent areas of 
cooperation. 
 
--  Joining Forces with Other Chambers: We will also look beyond 
AmCham for allies.  Other professional chambers - including the CAC 
(Argentine Chamber of Commerce), which has an anti-piracy program, 
and other bilateral business chambers with strong IP interests - are 
good candidates and their assistance could also prove very useful in 
areas such as support for new legislation and appropriate regulation 
of existing IP legislation. 
 
--  Working with Argentine Public Figures:  Charly Alberti of local 
rock mega-group Soda Stereo, who spoke at the DoJ seminar in favor 
of music copyright protection, has expressed interest in further 
joint IP efforts.  Pablo Sonne, CEO of Argentine clothing firm Rever 
Pass (and panelist at AmCham's conference) has also expressed 
interest.  One possible way to cooperate would be for these and/or 
others to publish editorials promoting the value for Argentina of 
protecting IP. 
 
--  Find Outside Editorial Material:  The Econ section will ask 
EEB/IPE to identify good English editorials (preferably by non-USG 
individuals) on the subject, and work with them to obtain permission 
to translate the works and publish them in select other countries. 
 
--  Counterfeit Auto Parts Publicity:  With assistance from PAS, 
encourage at least one car manufacturer (local GM rep has 
substantial information) and/or ADEFA to publish editorial about the 
dangers and other problems of counterfeit auto parts. 
 
--  Book Fair:  U.S. author Tom Wolfe has agreed to participate in 
the annual May Argentine Book Fair.  The Public Affairs section will 
sound him out about addressing IP themes in his presentation. 
 
--  Visits of senior USG IPR Officials:  We will request a visit of 
IPR AUSTR Chris Wilson, which would include appropriate outreach and 
media coverage.  Chris Israel, the Department of Commerce's 
International IPR Enforcement Coordinator, has also expressed 
interest in a visit. 
 
--  PAS Programming:  Regional or single country International 
Visitor programs on specific IPR themes and/or host periodic DVCs on 
IPR themes. 
 
--  Film Showings with MPA:  Expand on 2007 MPA coordination efforts 
with targeted pre-screening or post-screening IPR messages. 
 
--  Regional Efforts:  Through the intra-region USG IP mailing list 
the Econ section created this year, we can share editorials we have 
used and solicit input from other Southern Cone posts.  The AmCham 
contest is also an idea which could be shared regionally, as a 
suggestion in places where nothing similar has been done, and to 
solicit different contest ideas where it has. 
 
--  Publicity for Raids:  Work with press to ensure broad coverage 
of "demonstration" raids (see "III. Enforcement," final "2008 
Recommendation.") 
 
NEW AREA for 2008: Seek Increased Cooperation with Other Entities 
 
This will be a primary, overarching focus of our 2008 efforts. 
 
Greater links will be sought with various diplomatic missions in 
Argentina (including the EU and Swiss missions), bilateral business 
chambers other than the AmCham, other private business chambers in 
Argentina such as the CAC and CIRA (Importers' Chamber), and new 
administrations of the city and province of Buenos Aires.  The 
purpose will be to establish common ground on IP issues, identify 
areas of potential cooperation and put that cooperation into 
practice. 
 
NEW AREA for 2008: Create Inter-Agency IP Working Group at Embassy 
 
Create a group which will meet quarterly (and at specific other 
times, if appropriate) to discuss progress of this plan and other IP 
activities.  The group will be chaired by IPR Officer and should 
have representation from ICE, FCS, LegAtt, FAS, PAS and POL.  Group 
will seek to expand focus beyond domestic and TBA IP issues to 
ensure that problems at borders with Bolivia and Chile are 
addressed. 
 
WAYNE