VZCZCXRO0503
PP RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMA RUEHMR RUEHPA RUEHRN RUEHTRO
DE RUEHUJA #0396/01 0641045
ZNR UUUUU ZZH
P 051045Z MAR 09 ZDK
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 5428
INFO RUEHOS/AMCONSUL LAGOS 0909
RUEHGB/AMEMBASSY BAGHDAD 0088
RUEHZO/AFRICAN UNION COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC

UNCLAS SECTION 01 OF 03 ABUJA 000396 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT PASS TO USTR FOR AGAMA AND VETERE; PTO FOR HICKEY; LOC 
FOR USCO PPINHA; AID FOR GWEYNAND AND SLAWAETZ 
BAGHDAD FOR MCCULLOUGH 
TREASURY FOR PETERS, IERONIMO AND HALL 
USDOC FOR 3317/ITA/OA/KBURRESS AND 3130/USFC/OIO/ANESA/MCREED 
DOJ FOR MKOUAME 
 
E.O. 12958: N/A 
TAGS: ETRD KIPR ECON EINV EAID PGOV PREL NI
SUBJECT: NIGERIA - 2009 SPECIAL 301 REVIEW 
 
REF: A. STATE 8410 
 ¶B. ABUJA 98 
 C  08 LAGOS 484 
      ¶D. 08 ABUJA 2295 
      ¶E. 08 ABUJA 2177 
      ¶F. 08 ABUJA 2146 
¶G. 08 LAGOS 405 
 ¶H. 08 ABUJA 1364 
      ¶I. 08 ABUJA 1039 
      ¶J. 07 ABUJA 2059 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR DISTRO OUTSIDE USG 
 
¶1. (SBU) Summary.  Despite USG-sponsored training and capacity 
building efforts the Nigerian government (GON) in 2008 failed to 
curtail rampant, sustained and serious intellectual property rights 
(IPR) violations in Nigeria.  The U.S. Mission recommends that 
Nigeria be included in the "Special Mention" category of the 2009 
Special 301 list.  Despite the USG enjoying a positive working 
relationship with the various GON agencies and offices combating IPR 
violation, political will at the higher levels of the GON has been 
absent.  As a result, private sector stakeholders, government 
contacts and industry experts all conclude that in 2008 Nigeria was 
a more fertile ground for IPR pirates to operate and succeed.  The 
Mission calls for Nigeria to be included in the "Special Mention" 
category as a wakeup call that training and capacity building 
support so far delivered by the USG requires corresponding GON 
actions to effect substantial positive changes in the IPR 
environment.   End Summary. 
. 
International Commitments and Legislation 
----------------------------------------- 
. 
¶2. (U) Nigeria is a member of the World Intellectual Property 
Organization (WIPO), a party to the Universal Copyright Convention 
(UCC), the Berne Convention, the Paris Convention for the Protection 
of Industrial Property, and has signed the WIPO Copyright Treaty and 
the WIPO Performances and Phonograms Treaty.  In 1999, amendments to 
the Nigerian Copyright Decree incorporated trade-related aspects of 
intellectual property rights (TRIPS) protection for copyrights, 
except for provisions to protect geographical indications and 
undisclosed business information.  The U.S.-Nigeria Trade and 
Investment Framework Agreement signed in 2000 include mention of the 
importance of providing adequate and effective protection and 
enforcement of intellectual property rights. 
 
¶3. (SBU) Since 2006 there remains confusion within the GON regarding 
proposed legislation to combine the various intellectual property 
agencies under a single and uniform authority.  The USG, via USAID 
funding to the Commercial Law Development Program (CLDP), supported 
the drafting of a bill that would establish an Industrial Property 
Commission.  Contacts confirmed to us on February 28 that Senator T. 
¶U. Wada (Gombe State - Gombe South Area) plans to advocate for 
passage of the bill.  (Note: This bill would amend the Patents and 
Design Decree to make comprehensive provisions for the registration 
and proprietorship of patents and designs; amend the Trademarks Act 
to improve existing legislation relating to the recording, 
publishing, and enforcement of trademarks; and provide protection 
for plant varieties (including biotechnology) and animal breeds. 
End Note).  This bill has sat in the Senate since 2007.  At the same 
time, the Ministry of Commerce and Industry and the Ministry of 
Justice plan to submit similar bills to the National Assembly.  The 
USG has strongly advocated that only one comprehensive bill be put 
forward.  However, due to inter ministerial competition, the various 
bills have resulted in the status quo with legislative improvements 
languishing on the back burner.  The fate of this legislation is 
emblematic of the lack of inter ministerial cooperation since 2006. 
 
. 
USG Technical Assistance 
------------------------ 
. 
¶4. (SBU) In 2008 the USG spent more than $150,000 on training for 
300-plus Nigerian intellectual property (IP) officials.  The United 
States Patent and Trademark Office (USPTO), the U.S. Department of 
Commerce's CLDP, the Department of Justice (DOJ), Department of 
Homeland Security (DHS), Federal Bureau of Investigations (FBI) and 
International Narcotics and Law Enforcement Affairs Office (INL) 
have funded and supported USG technical assistance.  The USG funded 
 
ABUJA 00000396  002 OF 003 
 
 
more than 20 GON IP officials to attend Global Intellectual Property 
Academy programs.  CLDP held an IP workshop for Nigerian judges in 
January 2008 in Abuja.  The USPTO held two concurrent IP workshops 
in June 2008, one on IPR enforcement and the second a trademark 
examiner's course.  In August 2008, another IP workshop was held in 
Lagos focusing on optical disc enforcement.  In addition, the World 
Intellectual Property Organization (WIPO) hosted a training program 
in Nigeria in 2008.  All of the USG/WIPO workshops highlighted the 
importance of inter-agency cooperation in the fight against piracy. 
 
 
¶5. (SBU) The Nigerian Copyright Commission (NCC), Registrars Office 
of the Ministry of Commerce and Industry (MCI), Standards 
Organization of Nigeria (SON), Nigerian Customs Service (NCS), 
Economic and Financial Crimes Commission (EFCC) and National Police 
Force (NPF) have received technical assistance on IP protection. 
Despite these efforts to encourage inter-agency cooperation and 
coordination among the GON IP agencies and enforcement, little or no 
progress has been achieved in terms of actual enforcement.  A 
disturbing setback was witnessed in August 2008 when a GON agency 
made blatant attempts to sabotage other GON agencies' participation 
in a USG-supported IP workshop in Lagos. 
. 
Bright Spots - NAFDAC & NCS 
--------------------------- 
. 
¶6. (U) One positive aspect in 2008 was progress in combating 
counterfeit medicine, as well as patent and trademarks abuse in the 
pharmaceutical sector, mainly due to the efforts by the National 
Agency for Food and Drug Administration and Control (NAFDAC).  Until 
December 2008 that agency was lead by Dr. Dora Akunyili, who 
spearheaded GON efforts to combat counterfeit drugs.  Efforts were 
categorized by numerous market raids, seizures of counterfeit goods 
and an active public awareness campaign.  NAFDAC was able to reduce 
the number of counterfeit pharmaceuticals consumed in Nigeria, 
apprehending counterfeit pharmaceutical imports at the borders, and 
closed down factories manufacturing sub-standard pharmaceuticals. 
Dr. Akunyili demonstrated the high-level political will to tackle 
pirates.  On December 17 Dr. Akunyili was appointed Minister for 
Information and Communications and replaced on Janaury 11 by Dr. 
Paul Orhi.  EconDep spoke with DG Orhi on February 19 at U.S. 
Mission National Day Celebration.  Orhi pledged to continue to work 
closely with the USG. 
 
¶7. (SBU) In another positive area, following sustained USG advocacy, 
the NCS successfully changed regulations in the  2008-2012 tariff 
policy book released in September 2008, which now empower it to 
seize pirated works and prosecute offenders.  Though the NCS has 
received some WIPO-sponsored and USG-sponsored training, it admits 
that the technical capacity of its officers needs to be enhanced for 
it to be able to combat piracy effectively, and also calls for 
collaboration with industry in providing training for its officers 
in identifying genuine products of industry stakeholders.  EconDep 
spoke with new Comptroller General Nwadialo on February 19 at U.S. 
Mission National Day Celebration.  Nwadialo thanked the Mission for 
its support in 2008 and confirmed that NCS will work closely with 
the USG in 2009. 
. 
Pirates Having a Field Day 
-------------------------- 
. 
¶8. (SBU) Optical disc piracy, software piracy, and counterfeit 
pharmaceuticals are major problems in Nigeria.  Piracy of digital 
media continues to increase despite various trainings provided by 
the USG to the NCC.  The NCC has conducted few raids on alleged 
copyright infringers, and no major pirates have been convicted. 
Enforcement and prosecution are not a deterrent to piracy.  Inter 
ministerial cooperation is spotty.  GON agencies refuse to cooperate 
to form an inter ministerial taskforce to better coordinate and 
marshal resources.  Ongoing bureaucratic squabbles have only 
benefited pirates. 
 
¶9. (SBU) The Nigerian and American recording and film industries 
have raised serious concerns about optical disc (OD) replicating 
plants mostly owned by Asian investors located in Nigeria.  Despite 
the introduction of the Copyright (Optical Disc Plants) Regulations 
in December 2006, optical disc piracy continues to increase. 
Contacts have told us that more than 15 optical disc productions 
plants operate in Nigeria and that many are manufacturing hundreds 
 
ABUJA 00000396  003 OF 003 
 
 
of millions of pirated discs per year. 
 
¶10. (SBU) The OD regulations prescribe a registration process for 
all optical disc replicating and duplicating plants in Nigeria; 
prescribe the use of personal identification numbers and source 
identification codes; make it mandatory for every plant to maintain 
a register for all works produced by them showing the name of the 
author, title of work, year of production, and quantity produced. 
In 2007 the NCC highlighted the regulation as one of its 
achievements towards combating copyright infringement.  Industry 
stakeholders allege that the NCC only implements the regulation 
because the license fee is a source of revenue and also allege that 
known copyright infringers have been licensed under the new 
regulation.  They also claim that the NCC does not monitor the 
operations of the optical disc plants once licensed, which gives 
room for some plants to produce both legal and pirated disks from 
the same machines. 
 
¶11. (SBU) The "notorious" Alaba International market in Lagos is 
known for the sale of pirated optical discs, yet the NCC and 
national police have not been able to curtail sales.  Contacts claim 
that CDs with more than 300 songs of music by local and 
international artists are sold in markets for less than one dollar. 
 
¶12. (SBU) Software piracy is also a serious problem.  Though the use 
of unlicensed software is rampant, the NCC requires that the 
rights-holder make a formal complaint before it can conduct a raid 
on the premises of the software pirate.  The "notorious" Computer 
Village in Ikeja, Lagos State, is known for the sale of pirated 
software and pirates operate there unimpeded.  Microsoft and the NCC 
have been able to ensure that some high profile violators, such as 
banks, obtain the required software license. 
. 
Special Mention Category 
------------------------- 
. 
¶13. (SBU) The International Intellectual Property Alliance (IIPA) 
has recommended that Nigeria be categorized as "Special Mention" on 
the 2009 Special 301 list and the Mission concurs.  The piracy 
situation has not improved in 2008 and according to IIPA may have 
worsened.  The IIPA claims that there is evidence that Chinese and 
Southeast Asian criminal networks are working together with Nigerian 
criminals.  The GON needs to be put on notice that it is not 
providing the necessary support in the USG/GON partnership to combat 
IPR violations.  Despite numerous USG resources devoted solely to 
Nigeria, progress has been absent. 
 
¶14. (SBU) The NCC, NCS, SON, MCI and others have offered a number of 
excuses for this woeful record.  They blame the long and tortuous 
judicial processes and inadequate budget resources.  All Nigerian 
agencies operate in this same environment and these hurdles have not 
stopped NAFDAC from making major progress.  Industry stakeholders 
point to the lack of political will on the part of the NCC, and also 
allege complicity.  Without immediate steps taken by the GON to 
create an IPR task force to foster inter ministerial cooperation, 
increased raids, seizures and prosecutions, 2009 will be another 
bonanza for pirates operating in Nigeria. 
 
¶15. (U) This cable was coordinated with ConGen Lagos. 
 
SANDERS