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RR RUEHLH RUEHPW
DE RUEHIL #2632/01 2181358
ZNR UUUUU ZZH
R 051358Z AUG 08
FM AMEMBASSY ISLAMABAD
TO RUEHC/SECSTATE WASHDC 8204
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHNE/AMEMBASSY NEW DELHI 3611
RUEHLH/AMCONSUL LAHORE 5876
RUEHKP/AMCONSUL KARACHI 0134
RUEHPW/AMCONSUL PESHAWAR 4662
RUEAIIA/CIA WASHDC
RHMFISS/CDR USCENTCOM MACDILL AFB FL
RHMFISS/HQ USCENTCOM MACDILL AFB FL
RUEKJCS/SECDEF WASHINGTON DC

UNCLAS SECTION 01 OF 02 ISLAMABAD 002632 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EFIN EINV KIPR PGOV PK
SUBJECT: PAKISTAN IPR UPDATE 
 
REF: A) ISLAMABAD 996 B) ISLAMABAD 1898 
 
Summary 
- - - - 
 
¶1. (SBU) The following is an update on IPR issues in Pakistan. 
Given energy and food shortages, rampant inflation, and an unstable 
security situation, IPR falls low on the GOP list of priorities.  No 
progress has occurred on TRIPS-compliant data protection legislation 
since the coalition government took office in March.  Working with 
the U.S. Patent and Trademark Office, Post has sent several GOP 
officials to judicial, copyright, patent and trademark training in 
the United States.  Post successfully organized its first IPR public 
awareness seminar in Lahore in May 2008.  Pakistan's Federal 
Investigation Agency has been active against book piracy in recent 
months, although successful prosecution of piracy cases remains low. 
 End summary. 
 
IPR Awareness Seminar 
- - - - - - - - - - - 
 
¶2. (U) Post held its first IPR public awareness seminar in Lahore in 
May 2008 attracting over 100 participants (Ref. B).  The seminar 
focused on copyright issues and was well received by the audience - 
which included members of government and the business community, 
academics and students - and also received good coverage by the 
local press.  Speakers were drawn from government, the business 
community and regional USG experts who all expressed their 
appreciation and desire to see more IPR seminars. 
 
Training and Capacity Building 
- - - - - - - - - - - - - - - - 
 
¶3. (U) Working with the U.S. Patent and Trademark Office (USPTO) and 
DOC's Commercial Law Development Program (CLDP), Post identified 
candidates and facilitated travel for participants for seven 
different training programs, including two programs for judges, as 
well as copyright, trademark and patent programs.  Post continues to 
work with USPTO and CLDP to identify effective training programs and 
find travel funding for potential participants. 
 
FIA Still Active 
- - - - - - - - - - 
 
¶4. (U) The Federal Investigation Agency (FIA) remains a relative 
bright spot in Pakistan's otherwise bleak IPR enforcement landscape. 
 FIA has raided six book retailers in past months and seized 20,000 
pirated books in the most recent raid alone.  In 2005 and 2006, FIA 
made considerable headway in the area of optical disc piracy (over 
400,000 pirated discs seized and six pirate optical disc 
manufacturers shut down in 2005 alone) but despite repeated requests 
Post has not received any information on recent raids.  In 2007 
activity slowed and FIA only filed 8 cases, however,  FIA has filed 
10 new cases thus far in 2008.  (Comment: Case prosecution 
statistics demonstrate the need for judicial capacity building.  Out 
of over 50 cases filed by FIA since 2005, only a handful have 
resulted in convictions, and of those, the fines are usually in the 
range of USD 500, which hardly provides any deterrent against IPR 
crime.) 
 
Data Protection 
- - - - - - - - 
 
¶5. (U) Pakistan first promised to pass TRIPS-consistent data 
protection legislation in 2006, but since the new coalition 
government has taken office, the amendment to the 1976 Drugs Act has 
completely stalled.  Disagreements remain between the Ministry of 
Health (MOH), Ministry of Law (MOL) and various industry 
stakeholders about the definition of "new chemical entity."  In 
early January, the Ministry of Law sent draft amendments to a newly 
formed ministry, the Planning and Development Division, which had 
previously not been involved with IPR.  The Ministry of Law 
requested a stakeholders meeting to be held on or before March 1, to 
include both domestic and foreign pharmaceutical companies, in order 
to discuss the definition of "new chemical entity."  The meeting did 
not take place, and no further action has occurred.  Post repeatedly 
warned the GOP that failure to pass this amendment could lead to 
elevation to the USTR 301 Report Priority Watch List (Ref. A), but 
since the April announcement that Pakistan was indeed elevated to 
the Priority Watch List, there has been no progress on the data 
protection amendment.  Post has emphasized to GOP officials that 
passage of this amendment would go far in rebuilding trust and 
 
ISLAMABAD 00002632  002 OF 002 
 
 
momentum on IPR issues and would be an important step towards 
getting Pakistan off the Priority Watch List. 
 
¶6. (SBU) A Post contact in the pharmaceuticals industry said the 
amendment seemed to have been "put in a box and forgotten."  Lack of 
progress on the amendment combined with concerns over local pricing 
and production has prompted some foreign pharmaceutical 
manufacturers to begin questioning expansion and current levels of 
investment in Pakistan.  Pharmaceutical company representatives 
continue to press the GOP on the data protection issue. 
 
¶7. (SBU) Pakistan's Intellectual Property Organization (IPO) 
continues to be ineffectual and has shifted ownership of the data 
protection issue entirely to the Ministry of Health.  IPO has little 
to no public visibility on any other IPR related issues.  (Comment: 
There is speculation that the current Director General, Yasin Tahir, 
may retire this fall, which could open the way for new blood and a 
fresh mandate for the organization.  End comment.) 
 
Comment 
- - - - 
 
¶8. (SBU) The announcement of Pakistan's elevation to USTR's 301 
Priority Watch List has been met with apathy from the GOP overall 
and frustration from officials in FIA which has continued its 
anti-piracy efforts, and has been particularly demoralized by the 
listing.  The new government has not made any comment on the 
elevation nor announced a formal position on IPR issues, and it too 
often seeks to assuage USG concerns by highlighting enforcement 
actions against manufacturers and sellers of such items as fake 
shoes and beverages - items with low research and 
development-related costs.  Post continues to press the GOP on data 
protection.  Post will use the upcoming Economic Dialogue to engage 
with the GOP on the importance attached to IPR and to encourage the 
GOP to move ahead expeditiously with IPR reforms.  End comment. 
 
BODDE