VZCZCXRO7012
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBD #0040/01 0690055
ZNR UUUUU ZZH
P 100055Z MAR 09 ZDS
FM AMEMBASSY BANDAR SERI BEGAWAN
TO RUEHC/SECSTATE WASHDC PRIORITY 4445
INFO RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS SECTION 01 OF 02 BANDAR SERI BEGAWAN 000040 
 
SENSITIVE 
 
SIPDIS 
 
C O R R E C T E D COPY (SUBJECT LINE) 
 
DEPARTMENT PASS FOR EAP/MTS/COPPOLAMG, EEB/TPP/IPE/URBANJ 
STATE PASS TO USTR WEISELB, EHLERK, BAER 
STATE PASS TO USPTO 
STATE PASS TO COMMERCE 
STATE PASS TO TREASURY 
SINGAPORE FOR FINATT BAKERS 
BANGKOK FOR FCS/NESSJ 
 
E.O. 12958: N/A 
TAGS: KIPR ECON ETRD EINV USTR WTRO BX
 
SUBJECT:  BANDAR SERI BEGAWAN 2009 SPECIAL 301 REVIEW - RECOMMEND STATU 
CHANGE 
 
REF:  A) STATE 8410 
  B) EHLER/COPPOLA/MCINTYRE EMAILS 
  C) 08 BANDAR SERI BEGAWAN 69 
 
BANDAR SER 00000040  001.3 OF 002 
 
 
SUMMARY 
-------- 
¶1. (SBU) In response to Ref A request, Post recommends changing 
Brunei's current Special 301 status in 2009. After careful review of 
the Government of Brunei (GoB) delayed Special 301 submission, 
assessment of the International Intellectual Property Alliance 
(IIPA) recommendations, discussions per Ref B, and assessing the 
limited progress since the last 301 review (Ref C), post recommends 
Brunei be placed on the Special 301 Watch List.  Video and music 
piracy dominate the entire, albeit small, commercial market. 
While there has been limited progress, especially in enforcement 
training and public awareness, the GoB has had limited success or 
sustained programs to protect Intellectual Property Rights (IPR). 
However, post recommends that a status review be conducted after six 
months. End Summary. 
 
 
SUFFICIENT TIME GIVEN, RECOMMEND STATUS CHANGE 
--------------------------------------------- --- 
¶2. (SBU) As noted in Ref C, there has been repeated requests to give 
Brunei extra time to assess its ability and will to enforce 
Intellectual Property Rights (IPR).  After three years, while there 
has been some progress, it is limited and not sustained.  Post 
recommends that Brunei is placed on the Special 301 Watch List. 
Brunei has been given sufficient time to take credible action. Post 
does not/not believe placement on the Priority Watch List is 
appropriate.  In addition, post recommends a review of Brunei's 
status after six months if there is improvement in IPR protection 
and enforcement. 
 
PIRACY DOMINATES DISC MARKET BUT SOME PROGRESS 
--------------------------------------------- - 
¶3. (SBU) Video and music piracy dominates almost the entire 
commercial market in Brunei.  It is difficult, if not impossible, to 
find a retail outlet that sells IPR protected digital or music 
discs.  Post does not believe Brunei is a major manufacturing hub 
but is a destination point for pirated discs.  While the disc market 
is almost completely saturated with pirated goods, post has observed 
some progress in enforcement against pirated computer software. 
There have been police raids and seizure of pirated software. 
Brunei's movie theaters prominently display anti-piracy/recording 
warnings.  In addition, there have been arrests made for the 
smuggling of pirated discs. However, these arrests, mostly by 
Customs officials, have been as a result of larger scale smuggling 
operations which happened to include pirated discs. 
 
COOPERATION AND TRAINING: NEXT STEPS 
------------------------------------ 
¶4. (SBU) As noted in Ref B and in the GoB's Special 301 submission, 
there has been ongoing and sustained cooperation from Department, 
Post, USTR, DHS-Customs, USPTO, FCS, and other USG agencies with the 
GoB ministries.  Training has been given to numerous GoB ministries 
(Customs, National Police, Attorney General's Chambers (AGC)) on a 
variety of topics, but especially focused on IPR enforcement.  Ref C 
noted that the GoB requested additional training. These requests 
have and continue to be met. However, the training focus should 
shift to case work and prosecution, in addition to more sustained 
public awareness campaigns.  While some ministries have demonstrated 
a willingness to move forward on IPR protections, others have 
demonstrated significant reluctance to take positive steps. 
 
LEGAL FRAMEWORK AND RIGHTS HOLDERS 
----------------------------------- 
¶5. (SBU) Prosecution has been limited by requirements that rights 
holders file complaints with the police and the AGC. In addition, 
lack of in-country representation by rights holders has been noted 
as a reason why the AGC and other GoB ministries have not been more 
active in IPR enforcement.  This assertion is countered by the few 
companies who have in-country representation, file complaints, and 
still do not receive adequate enforcement. In addition, as noted in 
Ref C, there remains a justifiable concern that rights holders will 
file complaints but no action will be taken. The AGC and other GoB 
ministries also are legitimately concerned that they will move 
forward with cases but not receive rights holders support. This lack 
of trust by both parties can be addressed if there was more direct 
and open communication.  Department (EAP/MTS), Embassy, and USTR 
have strongly urged the GoB to seek more direct contact and 
 
BANDAR SER 00000040  002.3 OF 002 
 
 
interactions with rights holders and various industry associations. 
The GoB could make significant progress by simply talking with 
industry representatives on a regular basis. 
 
COMMENT: STATUS CHANGE NEEDED BUT PROGRESS CAN BE MADE 
--------------------------------------------- ---------- 
¶6. (SBU) There is no question that Brunei has been given ample time 
and support from the USG to address IPR issues, most especially disc 
piracy.  To date, the progress has been limited.  However, there is 
recognition in Brunei that IPR can and must be addressed in a 
sustained manner.  The TransPacific Partnership (TPP) provides 
another catalyst to encourage Brunei to move forward with increased 
IPR protections.  Senior GoB officials recognize this, however the 
importance and political will to enforce IPR protections has not 
permeated throughout the GoB. Post concurs with Department 
assessment that a Special 301 Watch List placement could spur 
further action. Brunei will make progress on IPR issues when the 
highest levels of government and the business community fully 
support enforcement. Post believes that once these decisions are 
made, progress can and will be swift. If and when the demonstrated 
progress is made, Post encourages a status review. 
 
 
TODD