VZCZCXRO9256
RR RUEHDE RUEHDH RUEHDIR
DE RUEHYN #0401/01 0631410
ZNR UUUUU ZZH
R 041410Z MAR 09
FM AMEMBASSY SANAA
TO RUEHC/SECSTATE WASHDC 1346
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 03 SANAA 000401 
 
SIPDIS 
 
DEPT FOR NEA/ARP ANDREW MACDONALD AND 
EEB/TPP/IPE TIMOTHY MCGOWAN 
PASS TO USTR FOR JENNIFER CHOE GROVES 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR YM
SUBJECT: YEMEN VOLUNTARY INPUT FOR 2009 SPECIAL 301 REVIEW 
 
REF: STATE 8410 
 
SUMMARY 
------- 
 
¶1. In response to reftel, Post input for the U.S. Trade 
Representative's 2009 Special 301 review follows. 
 
¶2. Yemen continues to face many obstacles to intellectual 
property rights (IPR), including a non-TRIPs-compliant IPR 
law, which it is seeking to amend.  Copyright protection of 
optical media is provided by the Ministry of Culture, which 
registers CD/DVDs and refers infringement cases to the 
judiciary, but piracy is still widespread.  No effective IPR 
protection of computer software and the internet exists. 
Pharmaceutical and agricultural products can be registered, 
but IPR enforcement is extremely limited.  IPR enforcement 
within the ROYG is hampered by lack of equipment and training 
of staff.  Post recommends continued USG technical assistance 
and training in the field of IPR.  END SUMMARY. 
 
BACKGROUND ON YEMEN'S IPR ENVIRONMENT 
------------------------------------- 
 
¶3. Yemen joined the Paris Convention for the Protection of 
Industrial Property in November 2006 and acceded to the Berne 
Convention for the Protection of Literary and Artistic Works 
in 2007. The ROYG recently applied to join the Gulf 
Cooperation Council's Patent Organization.  Yemen has had 
observer status in the World Trade Organization (WTO) since 
2002 and is in the process of applying for WTO accession. 
The last WTO Working Party meeting was held in Geneva in 
October 2008. 
 
¶4. Despite all of its efforts, Yemen has a record of 
inadequate protection of intellectual property rights (IPR), 
including patents, trademarks, designs and copyrights.  Its 
IPR Law Number 19 of 1994 is not TRIPS-compliant.  (Note: 
Yemen currently has only one law which addresses all areas of 
IPR, Law Number 19.  End Note.)  In order to strengthen IPR 
protection and enforcement, in 2007, the ROYG Ministry of 
Industry and Trade drafted new patents, trademark, design, 
and consumer protection laws with assistance from the World 
Intellectual Property Organization (WIPO).  (Note:  Yemen has 
been a member of WIPO since 1979.  End Note.)  In 2007, the 
ROYG Ministry of Culture drafted a new copyrights law, which 
was sent to the Parliament in 2008.  As of February 2009, 
Yemen's Parliament has still not yet passed the new IPR laws, 
despite the fact that the ROYG had pledged that the law would 
be passed by the end of 2008. 
 
LIMITED COPYRIGHT PROTECTION ON OPTICAL MEDIA 
--------------------------------------------- 
 
¶5. The ROYG Ministry of Culture handles issues related to 
copyrights of optical media (i.e. music CDs, video CDs, 
CD-ROMS, and DVDs), computer software, books and magazines. 
Manufacturers of CDs and DVDs can register their products at 
the Ministry of Culture, which then issues an identification 
number and an official letter to all CD/DVD manufacturers in 
Yemen alerting them of the new product.  The Ministry of 
Culture has twelve inspectors in Sanaa alone who investigate 
cases of CD/DVD copyright violations.  If an inspector 
determines that a violation has occurred, he or she then 
types up an official letter, investigates the case, and 
refers it to the Office of the Prosecutor and/or Ministry of 
Justice.  If a person is convicted of a copyright violation, 
penalties include a 6-month prison sentence and a 10,000 
Yemeni riyal fine (approximately USD 50).  Three cases 
resulted in convictions in 2007 and none in 2008, according 
to a working-level Ministry of Culture official. 
 
¶6. Piracy of optical media remains widespread in Yemen and 
near-perfect quality Southeast Asian-produced CD and DVD 
copies can be found in shops across town.  The ROYG claims it 
cannot control optical media piracy because any shop with a 
CD/DVD burner can produce counterfeit copies of the CD/DVD at 
will and Yemeni consumers are not able to tell the difference 
between genuine and counterfeit products.  The ROYG also 
blames a lack of public awareness about copyright protection 
or other fields of IPR, primarly due to the high illiteracy 
rate and low income of the people. 
 
NO PROTECTION ON COMPUTER SOFTWARE AND THE INTERNET 
--------------------------------------------- ------ 
 
 
SANAA 00000401  002 OF 003 
 
 
¶7. Yemen's current IPR law does not cover computer software. 
Manufacturers, however, can register their products with the 
Ministry of Culture, which issues a certificate.  The 
Ministry of Culture still has only one inspector who covers 
computer software issues.  The only IPR protection for 
computer software inside Yemen is built-in protections from 
the computer companies  (e.g. a person with a counterfeit 
computer software program would not be able to download an 
update of the same program from the internet).  There is also 
no protection against internet piracy.  Although the Ministry 
of Telecommunications handles internet use in Yemen, IPR 
internet protection is weak. 
 
LIMITED PROTECTION FOR PHARMACEUTICAL AND AG PRODUCTS 
--------------------------------------------- -------- 
 
¶8. Pharmaceutical products in Yemen are covered under IPR Law 
No. 19 of 1994, which organizes the import and trade of 
pharmaceutical products, according to the Ministry of 
Industry and Trade.  Within the ROYG Ministry of Public 
Health and Population is a Supreme Committee of Drugs and 
Medical Appliances, which oversees data protection of 
pharmaceutical products and is in charge of registering 
pharmaceutical companies and drugs.  The Supreme Committee 
has 250 employees and has agents at every airport and seaport 
in Yemen.  If a foreign drug company wishes to export its 
products to Yemen, the company approaches the Supreme 
Committee, which first runs lab tests on the products, then 
registers the company and product and issues a certificate. 
The company then brings the certificate to the MOIT, which 
issues a trademark.  A company can also register its 
pharmaceutical products in Yemen through the Gulf Cooperation 
Council's Health Ministers Council Office in Riyadh.  Through 
this second method, companies' products would be registered 
in all six GCC countries, plus Yemen.  After the 
pharmaceutical product is registered, the Supreme Committee 
conducts random inspections of it in the marketplace. 
 
¶9. If the Supreme Committee discovers counterfeit 
pharmaceutical goods in the marketplace, it has the power to 
confiscate the goods and even to close down the companies. 
It then refers cases to the Office of Public Prosecution.  In 
reality, however, there are few serious consequences for 
producing counterfeit drugs.  A draft IPR law focusing on 
pharmaceutical products is pending in Parliament, as of 
February 2009. 
 
¶10. The process of data protection/registration for 
agricultural products follows the same procedure as 
pharmaceutical products, but takes place within the Ministry 
of Agriculture, which issues a certificate.  The owner of the 
agricultural product then takes the certificate to the MOIT, 
which issues the trademark. 
 
WEAK IPR ENFORCEMENT IN YEMEN 
----------------------------- 
 
¶11. The weak role of the ROYG in the field of IPR enforcement 
efforts is also demonstrated by the Ministry of Industry and 
Trade (MOIT) and the Customs Authority (CA).  The Ministry of 
Industry and Trade has a staff of 32 people who focus on 
three areas of IPR:  trademarks, patents and industrial 
designs.  The Intellectual Property Department at the 
Ministry of Industry and Trade describes itself as an 
"observer" which records complaints about counterfeit goods 
but has no enforcement powers.  Even though the MOIT can 
refer these cases to the judiciary, many judges are not 
knowledgable in the area of IPR. 
 
¶12. The Customs Authority (CA)'s role in IPR enforcement 
takes place at the 25 Customs entry points located along 
Yemen's long and porous border.  The CA claims that, like the 
MOIT, it does not have the right to arrest counterfeiters. 
The CA does have the right to confiscate and seize items and 
can refer counterfeit goods cases to the judiciary.  Most 
counterfeit goods in Yemen come from smuggling, especially in 
electronics, basic commodities and cigarettes, according to a 
CA official. 
 
COMMENT 
------- 
 
¶13. The lack of legislative action in Parliament, 
insufficient resources as the result of an ongoing ROYG 
budget crisis, and a lack of public awareness are all to 
blame for widespread IPR violations in Yemen.  A January 2009 
 
SANAA 00000401  003 OF 003 
 
 
attempt by the ROYG Tax Authority to implement a general 
sales tax that has been on the books since 2001 could create 
an incentive for the ROYG to scrutinize more closely the 
activities of manufacturers and retailers throughout the 
country in order to increase government revenues.  This 
scrutiny, in turn, could lead to a mechanism to clamp down on 
rampant IPR violations.  Post will continue to leverage 
Yemen's ongoing interest in full WTO membership to push for 
IPR legislation and implementation of existing IPR laws. 
Post agrees with the decision not to place Yemen on the 2008 
Special 301 Watch List or Priority Watch List and recommends 
doing the same in 2009.  End Comment. 
SECHE