VZCZCXRO9520
PP RUEHMA RUEHPA
DE RUEHUJA #1364/01 1990812
ZNR UUUUU ZZH
P 170812Z JUL 08
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 3370
INFO RUEHOS/AMCONSUL LAGOS 9598
RUEHLS/AMEMBASSY LUSAKA 0033
RUEHZK/ECOWAS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 04 ABUJA 001364 
 
SENSITIVE 
SIPDIS 
 
DEPT PASS TO USTR (AGAMA & GARDE) AND USPTO THICKEY 
TREASURY FOR PETERS AND HALL 
DOC FOR 3317/ITA/OA/KBURRESS, 3130/USFC/OIO/ANESA/DHARRIS AND CLDP 
NEZERA 
 
E.O. 12958:  N/A 
TAGS: KIPR ETRD ECON NI
SUBJECT: NIGERIA: GON IPR OFFICIALS ENTHUSIASTIC FOLLOWING USG 
WORKSHOP 
 
REF: LAGOS 242 
 
¶1. (U) Summary.  The United States Patents and Trademarks Office 
(USPTO) and the U.S Department of Commerce Commercial Law 
Development Program (CLDP) with sponsorship from the United States 
Agency for International Development (USAID) held two concurrent 
workshops from June 24 to 26 for GON intellectual property rights 
(IPR) officials covering intellectual property (IP) protection, 
enforcement, and adjudication, including trademark enforcement.  The 
workshops were USG deliverables from the December 2007 Trade and 
Investment Framework Agreement Council meeting.  High-level 
participation by the Minister of Commerce and Industry Charles Ugwuh 
and the Ambassador demonstrated renewed GON commitment to addressing 
Nigeria's poor IP record, along with U.S. support.  Also present at 
the workshops were attorneys from the Intellectual Property Law 
Association of Nigeria (IPLAN), judges from Nigeria and Ghana, and 
representatives from the Nigerian recording and film industry.  The 
participants were so energized by the workshops that they agreed to 
collectively draft an impromptu communiqu recommending private 
sector and GON IP enforcement agencies deepen collaboration, 
increase IP public awareness, improve inter-agency partnerships, 
amend and strengthen IP laws, and lastly, combine Nigeria's 
disparate IP agencies into one agency.  At the same time, 
comprehensive IP legislation remains a work in progress, and there 
is a long way to go to achieve better enforcement results.  End 
Summary. 
 
¶2. (U) Two concurrent three day workshops focusing on "Law, Policy 
and Enforcement of Intellectual Property and Trademark Examination" 
were held in Abuja from June 24 - 26.  The workshops were organized 
by the U.S Department of Commerce, Commercial Law Development 
Program (CLDP) Office of the General Counsel, and the United States 
Patent and Trademark Office (USPTO) with sponsorship from USAID, and 
in collaboration with the Nigerian Federal Ministry of Commerce and 
Industry (MCI).  The workshops were USG capacity building 
deliverables from the TIFA Council Meeting held in Abuja in December 
¶2007. 
. 
Opening Ceremony 
---------------- 
. 
¶3. (U) Opening remarks were provided by the Ambassador, Minister of 
Commerce and Industry Charles Ugwuh and a representative of the 
Director General of the National Agency for Food and Drug 
Administration and Control (NAFDAC).  The Ambassador emphasized the 
importance of IP protection in attracting foreign direct investment 
leading to economic growth and development.  She noted the dangers 
posed by counterfeit pharmaceuticals and automobile parts, and 
stressed the importance of IP protection in supporting public health 
and safety.  The Ambassador underscored the need for capacity 
building within IP agencies throughout the West-African sub-region. 
 
 
¶4. (U) Minister Ugwuh praised U.S efforts assisting Nigeria to build 
IP enforcement capacity and commended other ongoing collaboration 
between the U.S. and Nigeria.  Minister Ugwuh reported that the GON 
would continue implementing its economic reform program in line with 
the 7-Point Agenda of President Yar'Adua.  Part of this reform is a 
plan to ensure that goods are cleared at the ports within 48 hours. 
To achieve the 48-hour target, the GON plans to withdraw all 
agencies apart from the Nigerian Customs Service (NCS) from the 
ports to streamline processing.  Whenever the need arises, NCS could 
call on the other agencies to provide technical or professional 
advice, and in the longer term the GON plans to improve NCS capacity 
to handle all requests at the ports such as is done in developed 
countries.  Minister Ugwuh asked participants at the workshop to 
provide inputs to the proposed Customs policy and advise if the time 
is appropriate to implement the proposed reforms.  On the proposed 
creation of a one-stop GON IP agency that would be responsible for 
IP protection and enforcement, Ugwuh commented that the ongoing 
bickering among various GON agencies detracts from the common goal 
to protect IP and he hopes that Nigeria would follow best practices 
of other World Trade Organization (WTO) members by creating one 
agency. 
. 
Excellent Attendance 
-------------------- 
. 
¶5. (U) More than 140 participants drawn from various GON agencies, 
IPLAN, the private sector, and the Ghanaian judiciary were 
represented at the event.  The GON agencies that participated in the 
program included the Nigerian Copyright Commission (NCC), the 
 
ABUJA 00001364  002 OF 004 
 
 
Nigerian Customs Service (NCS), the Economic and Financial Crimes 
Commission (EFCC), Standards Organization of Nigeria (SON), National 
Agency for Food and Drug Administration and Control (NAFDAC), 
National Office for Technology Acquisition and Promotion (NOTAP), 
National Drug Law Enforcement Agency (NDLEA), and the Trademarks, 
Patents and Designs Registry under the Ministry of Commerce and 
Industry (MCI). 
 
¶6. (U) Other participants included judges from the Nigerian and 
Ghanaian judiciary, attorneys from IPLAN, and representatives from 
the Nigerian film and recording industry.  Subject matter experts at 
the workshop came from the USPTO; U.S. Copyright Office; CLDP; World 
Intellectual Property Organization (WIPO); an attorney from the law 
firm of Spoor and Fisher, based in Pretoria, South Africa; and the 
British American Tobacco company. 
. 
Final Communique Recommendations 
-------------------------------- 
. 
¶7. (U) The participants were so energized by the workshops that they 
agreed to collectively draft an impromptu communiqu making the 
following recommendations: 
-- Increased inter-agency cooperation among GON IP agencies; 
-- Increased cooperation between the U.S. and Nigeria in IP capacity 
building; 
-- Amendment of current IP legislation to accommodate new 
developments in IP and better protect IP; 
-- Closer cooperation between IP right holders and GON IP agencies 
to increase public awareness; 
-- More robust funding for GON IP agencies; 
-- Incorporation of the various IP agencies into a single agency; 
-- The NCS should develop a framework on the enforcement of IP; 
-- The NCS should improve border enforcement to combat smuggling of 
pirated and counterfeit goods; and 
-- The private sector should develop a strategy to support GON 
efforts in combating counterfeiting and piracy. 
. 
Domestic Legal Framework Update 
------------------------------- 
. 
¶8. (U) Nigeria is a signatory to the Bern, Paris, Rome, and WIPO 
Conventions.  Bankole Sodipo of IPLAN and other participants 
highlighted the inadequacies of the present IPR legal regime.  They 
lamented that laws on patent and trademarks legislation are 
outdated, were enacted in the 1960s, are mostly an adoption of 
British legal statutes that existed at the time, and that these laws 
cannot accommodate current developments in IP such as the use of the 
internet.  It was also disclosed that a franchising law does not 
exist; rather, such transactions are treated under contract law.  A 
hindrance to legal action is that in civil suits the Nigerian court 
system does not award legal fees to the party that wins, thereby 
discouraging stakeholders without deep pockets.  Of the agencies 
represented only NCC and NAFDAC have the enabling legislation to 
prosecute pirates. 
 
¶9. (U) A Nigerian Industrial Property Commission (NIPCOM) bill is 
currently at the National Assembly.  The NIPCOM bill contains 
provisions for comprehensive registration of Patents and Designs, 
Plant and Animal Varieties, and Animal Breeders Rights.  The bill 
proposes creating an Industrial Property Commission that would be 
responsible for all IP issues except copyrights.  The NIPCOM bill is 
a private-member bill drafted by IPLAN and sponsored by Senator Wada 
of the National Assembly.  (Note: A USG inter-agency team met with 
Senator Wada at the time of the December 2007 TIFA Council and later 
sent to the Senator USG comments on the draft bill.  End Note) 
 
¶10. (SBU) Bickering among various GON IP agencies led to IPLAN 
taking the initiative to push the NIPCOM legislation.  There is an 
ongoing supremacy tussle between the NCC which is supervised by the 
Ministry of Justice (MOJ) and the Ministry of Commerce and Industry. 
 While stakeholders would like to have a one-stop agency on IP, the 
NCC insists it should be the lead agency on IP.  During the last 
administration it maneuvered to get an executive order for the 
creation of a Nigerian Intellectual Property Commission; however, 
there is no enabling legislation.  The MCI argues that under WTO 
best practices Trade Ministries should be responsible for IP issues 
and Nigeria should not be different.  President Yar'Adua has 
instructed both the Ministers of Justice and Commerce and Industry 
to harmonize their views and come up with a way forward.  (Comment: 
It is likely that if the MOJ and MCI could reach an agreement and 
come up with an executive bill on a one-stop GON IP agency, the 
present NIPCOM bill would be withdrawn.  End Comment) 
 
ABUJA 00001364  003 OF 004 
 
 
. 
Enforcement - Nigerian Customs Service 
-------------------------------------- 
. 
¶11. (U) A large contingent from NCS attended and was very much 
engaged during all three days.  In its presentation the NCS 
acknowledged the dangers of counterfeiting and piracy.  It admitted 
the problems it faces in ensuring that only legitimate products come 
into Nigeria through the borders.  NCS enumerated its action plan 
for IP enforcement to include making an official request to the GON 
Tariff Technical Committee to amend a portion of the proposed tariff 
book to state that "all counterfeit materials or articles including 
base or counterfeit coin of any country are prohibited".  According 
to NCS, this will give it wider powers to combat counterfeiting and 
piracy because presently only counterfeit coins are recognized as 
counterfeit items in the existing Customs and Excise Management Act 
(CEMA). 
 
¶12. (U) The NCS also plans to reach out to right holders to 
highlight distinguishing signs and marks for identifying their 
original products to enable NCS to combat fakes and counterfeits 
effectively.  NCS will create a recordation system that will assist 
in creating a database of genuine products.  An IP unit will be 
instituted within the NCS and there are plans to improve the level 
of awareness on IP within the NCS.  NCS representatives were 
outspoken in supporting inter-agency cooperation and close ties to 
the private sector. 
. 
EFFC Involvement in IP Enforcement 
---------------------------------- 
. 
¶13. (U) A speaker from the EFCC provided insights into raids that 
had been conducted on several illegal optical disc (OD) replicating 
plants in Lagos.  The EFCC rep estimated that 80% of international 
music CDs and 40% of domestic music CDs in Nigeria were pirated.  He 
said the raided plants were run by Asians and the workers arrested 
in the premises were also from Asia.  The EFCC rep lamented that at 
one of the raided plants, local policemen had been hired to guard it 
and had tried to prevent the EFCC from conducting the raid; however, 
the raids were successful.  In follow-up to his recent return from a 
USG sponsored program at the UPPTO Global Intellectual Property 
Academy in Virginia, the EFCC rep expressed encouragement because a 
Zambian classmate had told him about a Zambian IP Task Force.  He 
urged his colleagues in the GON to support creation of their own 
inter-agency IP Task Force that would also include the Nigerian 
Police Force. 
. 
NCC's Mixed Reviews on Enforcement 
---------------------------------- 
. 
¶14. (U) The NCC is currently implementing the Optical Disc 
Regulation, and it reported that more OD plants have been 
registered.  Between 2005 and 2007 the NCC conducted 115 raids, 
arrested 373 people, and prosecuted 15 cases, which resulted in four 
convictions.  The NCC rep highlighted the challenges faced by the 
NCC in its enforcement efforts - long and tortuous judicial process, 
and inadequate budget funding.  It is estimated that it costs 
between 5 million naira ($42,700) to 10 million naira ($85,400) to 
conduct a raid, which is major limitation for the financially 
strapped agency. 
 
¶15. (U) Workshop participants chided the NCC for the paltry number 
of convictions it has architected, and questioned the NCC's 
investigative competence.  In his response, the NCC rep reiterated 
the challenges faced by the NCC and advised that the successes he 
highlighted were achieved only between 2005 and 2007.  He said 
participants should view the successes from the context of the NCC 
scorecard prior to 2005, which he adjudged not commendable.  On 
investigative competence, there is room for improvement and NCC 
would welcome more training for enforcement officers.  To speed 
prosecutions, the NCC suggests the establishment of commercial 
courts to adjudicate copyright cases. 
. 
NAFDAC Seeks USG Support on Counterfeiting 
------------------------------------------ 
. 
¶16. (U) NAFDAC underscored problems with counterfeit medicines 
imported from India and Asia into the West African sub-region. 
According to NAFDAC, some countries regulate domestic production of 
medicines but do not regulate medicine exports to other countries, 
including India and China and that this double-standard should be 
addressed at the World Health Assembly (WHA) and other international 
 
ABUJA 00001364  004 OF 004 
 
 
forums.  NAFDAC advocated for more stringent regulations on 
counterfeiting worldwide and requested USG support at the next WHA. 
. 
Private Sector Stakeholders Frustrated 
-------------------------------------- 
. 
¶17. (U) Bankole Sodipo of IPLAN commented that IP enforcement in 
Nigeria has not achieved much in prosecuting IP infringers, and that 
existing laws need to be amended to reflect current realities and 
developments.  He listed two major challenges to IP enforcement: 
-- Rights holders' poor understanding of the laws, which includes 
the false belief that it is the primary responsibility of the 
government to enforce IPR; 
-- The cost of enforcement is high, while IP agencies are not 
adequately funded. 
Sodipo also stressed the need for continuous training of enforcers 
and the judiciary.  He agreed with previous speakers that 
inter-agency cooperation among the various IP agencies and 
cooperation with rights holders is very important.  In conclusion he 
suggested producing a documentary on the ills of piracy with 
well-known actors and airing it on television as a first step 
towards public enlightenment. 
 
¶18. (U) A rep from the Nigerian recording industry complained that 
IP enforcement was poor.  He noted that the Alaba market in Lagos 
has for sale pirated CDs with 100 tracks for as little as 35 naira 
(29 cents) and that his industry is being decimated.  The domestic 
recording industry is taking action and has gone to the management 
of the Alaba market to stop the sales of pirated CDs.  His 
association is trying to put pressure on other marketers, such as 
sellers of furniture, appliances, electronic goods etc to close down 
or remove the pirated CDs.  He is so far encouraged by the 
discussions with the market and plans to sign an MOU to establish an 
anti-piracy task force in it.  He lamented the growth in illegal 
optical disk replicating plants from 5 in 2003 to 18 in 2008.  He 
estimated that OD plants are producing more than local demand and 
are now exporting pirated ODs.  He hinted that high-level political 
ties to the pirates have led to the growth. 
. 
Comment 
------- 
. 
¶19. (U) The level of enthusiasm among GON IP agencies is high, and 
the USG has contributed significantly to achieving this.  The 
proposed inter-agency working group/task force will go a long way in 
making more progress in IP enforcement.  However, it is important 
for the GON to increase public awareness on IPR and for the private 
sector to collaborate with the GON to fight piracy and 
counterfeiting.  Following the workshop, members of IPLAN and other 
stakeholders were interested in partnering with the Mission to 
develop an IP public awareness campaign using USG funding.  The 
Mission will work with IPLAN and other stakeholders to put forward a 
plan using State EEB/TPP/IPE and R/PPR funding for IPR outreach. 
End Comment.