VZCZCXRO4757
RR RUEHDBU RUEHLN RUEHSK RUEHVK RUEHYG
DE RUEHNT #0235/01 0610839
ZNR UUUUU ZZH
R 020839Z MAR 09
FM AMEMBASSY TASHKENT
TO RUEHC/SECSTATE WASHDC 0553
INFO CIS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHBJ/AMEMBASSY BEIJING 0042
RUEHBUL/AMEMBASSY KABUL 0044
RUEHIL/AMEMBASSY ISLAMABAD 0177
RUEHKA/AMEMBASSY DHAKA 0139
RUEHKT/AMEMBASSY KATHMANDU 0136
RUEHLM/AMEMBASSY COLOMBO 0139
RUEHNE/AMEMBASSY NEW DELHI 0170
RUEHNT/AMEMBASSY TASHKENT

UNCLAS SECTION 01 OF 02 TASHKENT 000235 
 
SENSITIVE 
SIPDIS 
SENSITIVE 
DEPARTMENT FOR SCA/CEN 
PASS TO USTR JENNIFER CHOE 
GROVES 
DEPARTMENT FOR EEB/TPP/IPE 
TIMOTHY R MCGOWAN 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR UZ
SUBJECT: UZBEKISTAN:  SPECIAL 301 REVIEW RECOMMENDATION 
 
REF: a) 08 TASHKENT 239 
 
TASHKENT 00000235  001.2 OF 002 
 
 
REFERENCES:  08 Tashkent 239 
 
¶1. (SBU) SUMMARY:  Uzbekistan made little noticeable 
progress in development and enforcement of IPR 
legislation in 2008.  It is difficult for a consumer 
to find music, video, and software products that can 
with confidence be identified as licensed; pirated 
versions are still the norm.  We are encouraged, 
however, that at the end of 2008 the Government of 
Uzbekistan (GOU) created a working group 
specifically to study IPR issues and propose new 
legislation.  This could improve IPR protection in 
Uzbekistan in the years to come. 
 
¶2. (SBU) Post recommends that Uzbekistan remain on 
the Special 301 watch list but that General System 
of Preferences (GSP) privileges remain in place. 
End summary. 
 
COPYRIGHT ENFORCEMENT STRIDES? 
------------------------------ 
 
¶3. (SBU) In 2008 we have seen little direct evidence 
of measures taken by Uzbekistan to implement its 
2006 "Law on Copyright and Related Rights."  The 
closure of the Nirvana music store chain following 
seizure of pirated CDs early in the year (reftel) 
was short lived.  Within weeks the Nirvana stores 
were back in business with what appeared to be 
pirated CDs on their counters.  Authorities also 
shut down the CD section in the Yangiabad bazaar, 
the largest flea market in Tashkent, but new shops 
marketing pirated CDs were opened quickly in other 
parts of the city, including in large downtown 
shopping centers. 
 
¶4. (SBU) Microsoft is continuing its technical 
assistance to the national copyright authority from 
its office in Almaty to help develop effective 
strategies to combat piracy.  Earlier the Copyright 
Agency had agreed to prevent pirated Microsoft 
software sales in Tashkent, but official 
distributors charging $300-350 USD for Microsoft XP, 
Vista, and Office have a hard time competing with 
hardware dealers who offer pirated Microsoft 
software as a free option to consumers purchasing 
new PCs.  As we reported previously (reftel), 
authorities say a major problem in piracy 
enforcement is the lack of "reasonably priced" 
licensed goods for local markets. 
 
IS IT POSSIBLE TO BUY LEGAL PRODUCTS IN UZBEKISTAN? 
--------------------------------------------- ------ 
 
¶5. (SBU) The individual consumer will find it very 
difficult to find music, video, and software in 
Tashkent that is without a doubt licensed.  In a 
random survey, our Pol/Econ FSN tried to find 
licensed products in Tashkent stores, but he found 
only a very limited selection of music CDs that to 
him appeared definitely to be licensed.  From the 
labeling he surmised that even these licensed CDs 
for the most part had been brought into Uzbekistan 
by black market dealers who avoid high Uzbek import 
tariffs by trucking in products illegally from 
neighboring countries. 
 
¶6. (SBU) Legal Microsoft products do not seem to 
exist in Tashkent stores.  There are several 
Microsoft-approved vendors, but these exist mainly 
to serve government and other official institutions. 
When our FSN contacted these vendors to ask where he 
 
TASHKENT 00000235  002.2 OF 002 
 
 
 
could buy licensed Microsoft software for home use, 
the response was one of surprise that an individual 
would even try to buy licensed software. 
 
¶7. (SBU) Despite this less than ideal situation, 
Alexander Strakh, Law and Corporate Affairs Group 
IPR Attorney for Microsoft in Moscow, told us that 
the Copyright Agency of Uzbekistan is working to 
improve IPR legislation.  In early February, 2009, 
the Copyright Agency asked him to come to Tashkent 
to participate in a working group on IPR issues that 
was mandated by government decree at the end of 2008 
and is chaired by Alisher Hafizov.  According to 
Strakh, the Uzbek criminal code punishes plagiarism 
but not copyright violation.  He continued that the 
Uzbek working group has already developed new draft 
IPR legislation but that it, too, is inadequate. 
Strakh concluded that the best route for Uzbekistan 
would be to adapt existing IPR legislation from 
Russia or Kazakhstan.  He said he hoped he could 
persuade the GOU, but he was not sure if he would be 
invited back for the next working group meeting. 
 
SALE, NOT PRODUCTION, OF PIRATED GOODS 
-------------------------------------- 
 
¶8. (SBU) As we indicated last year (reftel), 
Uzbekistan is a market for packaged pirated goods, 
most of them from outside the country.  It is not a 
large producer of pirated goods, though vendors do 
produce one-off copies of software and music on 
demand.  Losses to copyright owners are probably 
relatively small, as Uzbek consumers' purchasing 
power is severely limited, and few licensed goods 
are available. 
 
KEEP UZBEKISTAN ON WATCH LIST; MAINTAIN GSP 
PRIVILEGES 
--------------------------------------------- ------- 
-- 
 
¶9. (SBU) The Government of Uzbekistan continues to 
face challenges in developing and implementing IPR 
legislation.  We have seen no significant 
improvement in enforcement efforts since last year, 
although occasional small raids continue to be 
conducted.  The availability of pirated music, 
video, and software appeared just as great at the 
end of 2008 as at the start. 
 
¶10. (SBU) The most encouraging IPR development in 
Uzbekistan in 2008 was the formation of a government 
working group specifically to address IPR issues. 
Although the Copyright Agency continues to be 
sparsely funded and staffed, the existence of this 
working group shows that IPR protection has gotten 
the attention of the GOU. 
 
¶11. (SBU) Uzbekistan should remain on the Special 
301 Watch List, but GSP privileges should remain in 
place. 
BUTCHER 
 
To view the entire SMART message, go to URL http://repository.state.sgov.gov/_layouts/OSS SearchResults.aspx?k=messageid:d4266892-9b33- 44fb-8f04-c50d0dcbd525