VZCZCXRO0588
PP RUEHDE RUEHDH RUEHDIR
DE RUEHRH #0524/01 0961421
ZNR UUUUU ZZH
P 061421Z APR 09
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC PRIORITY 0558
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 RIYADH 000524 
 
SIPDIS 
SENSITIVE 
 
USTR FOR JASON BUNTIN 
USDOC FOR STEVEN GARRETT 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EINV KIPR SA
SUBJECT: FIRST MEETING OF U.S. - SAUDI ARABIA INTELLECTUAL 
PROPERTY WORKING GROUP YIELDS POSITIVE RESULTS 
 
REF: A. RIYADH 290 
     ¶B. RIYADH 83 
     ¶C. RIYADH 40 
     ¶D. 2008 RIYADH 1682 
     ¶E. 2007 RIYADH 2193 
 
SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTERNET DISTRIBUTION. 
 
Summary 
------- 
 
¶1. (SBU) The first meeting of the U.S. - Saudi Arabia 
Intellectual Property Rights (IPR) Working Group occurred 
March 4-6 in Washington, DC, on the margins of the Trade and 
Investment Framework Agreement (TIFA) Council Meeting 
(septel).  Some private rights-holders also participated in 
the meetings.  The creation of the Working Group was outlined 
in USTR's 2008 IPR Action plan presented to the SAG in 
September.  Representatives from both the U.S. and Saudi 
delegations welcomed the meeting as a positive development in 
cooperation to increase IPR enforcement.  The talks focused 
heavily on IPR enforcement and government compliance with 
software use.  At the end of the meeting, the SAG committed 
to increased transparency in IPR prosecutions and government 
use of software.  The Saudis additionally agreed to the 
pharmaceutical Exclusive Marketing Rights Proposal (ref E) 
and said a Royal Decree is forthcoming.  Finally, the SAG 
expressed frustration at trying to negotiate a GCC wide 
data-exclusivity law.  The SAG is hosting two training 
seminars in conjunction with USPTO this spring.  End summary. 
 
Stakeholders discuss Saudi progress on IPR 
------------------------------------------ 
 
¶2. (SBU) As suggested in the IPR Action Plan of 2008, the 
US-Saudi Arabia IPR Working Group held its first meeting 
March 4-6 in Washington, DC.  Led by Mohammed al-Aiyash, 
Chairman of the Saudi IPR Committee at the Ministry of 
Commerce and Industry (MoCI), the Saudi delegation included 
members from the Ministry of Culture and Information (MoC), 
the King Abdulaziz City for Science and Technology (KACST) 
and others.  The U.S. delegation was made up of officials 
from USTR and the Department of State.  Aiyash said the SAG 
hopes to improve cooperation between the public and private 
sector on Saudi Arabia's IPR enforcement regime, especially 
on working together on training and knowledge transfer.  He 
noted that all Saudi officials are willing to meet with 
Emboffs and rights-holders at any time.  He said the SAG 
website maintained by the Violations Review Committee (VRC) 
is up and running and cited the opening of a new VRC in 
Jeddah as yet another step towards increased enforcement(ref 
b). 
 
¶3. (SBU) Eric Smith, President of the International 
Intellectual Property Rights Association (IIPA) lauded the 
developments in enforcement over the past year, in particular 
the efforts of Deputy Minister of Culture and Information 
Al-Hazzaa, and said the Ministry is sending a clear message 
that transparency is critical.  He also welcomed the news of 
increased street raids and said he had heard of "massive 
reductions" in street vending, particularly of those vendors 
who approach cars at red lights and intersections.  However, 
he pointed out that the information on the website is 
incomplete and only in Arabic, and he bemoaned the fact that 
more cases are not being prosecuted to begin with, citing the 
United Arab Emirate's Zero Tolerance Policy as a model in the 
region.  (Note:  In our view, these reports of "massive 
reductions" in street vending are overstated, but so is 
Smith's implied allegation of widespread illegal street 
vending.  The sale of illegal software in Riyadh is 
concentrated around the main "computer souk," sold by a 
couple of dozen mainly Bangladeshi expatriates who approach 
cars and pedestrians with small stacks of pirated software 
titles, taken from small warehouses and production facilities 
hidden above the souk's warren of computer equipment shops. 
Econoffs visiting this area have found vendors increasingly 
skittish from previous months, but still in business. 
Western movies are sold most visibly in another single area, 
with pirated and non-pirated DVDs available side by side in 
the same shops.  End note.) 
 
¶4. (SBU) Obaidallah al-Obaidallah, Director of Copyrights 
from the MoC, said the SAG is working hard and pointed to the 
creation of the new VRC in Jeddah and the 
soon-to-be-operational VRC in Dhahran as signs of Saudi 
commitment.  He said many cases of street piracy are 
difficult to prosecute because the vendors have been able to 
 
RIYADH 00000524  002 OF 002 
 
 
out-run police but the MoC is currently drafting a proposal 
to the Ministry of Interior to get police officers and the 
Motor Vehicles Department to cooperate on IPR enforcement. 
He also said that because many of the street vendors come 
from South Asia, his team will receive appropriate language 
training.  Obaidallah expressed optimism that with increased 
man-power and cooperation, enforcement will be improved. 
 
¶5. (SBU) MoC participants agreed to stay in contact with IIPA 
and the Embassy on continuing developments.  Regarding the 
website, IIPA agreed to the SAG suggestion that they fund an 
independent webmaster to upload all the case information in 
both Arabic and English. 
 
Proposal to audit Saudi government computers 
-------------------------------------------- 
 
¶6. (SBU) Representatives from the Business Software Alliance 
(BSA) said that they focus on ending user piracy rather than 
prosecution. They described an awareness campaign to be 
implemented in the coming weeks whereby they will send 
letters to several hundred businesses in Riyadh, Jeddah, and 
Dhahran.  Microsoft representatives echoed this sentiment, 
estimating that even 75-90% of Saudi government computers may 
not be licensed.  (Note:  It is unclear what information this 
estimate is based on.)  Aiyash responded that the true extent 
of the problem is unknown and is difficult to determine, 
especially since each Ministry is independent (i.e., 
stovepiped).  Microsoft representatives suggested the SAG 
hire a third-party contractor to do an audit.  Aiyash 
responded that many of the Ministries would not allow it for 
fear of privacy violations, but he offered that if the 
rights-holders wished to pay, he could arrange for an audit 
in his own Ministry of Commerce, as a way of setting an 
example, and simultaneously send letters to all the other 
Ministries reminding them of their commitments. 
 
Pharmaceuticals and "Data Exclusivity" 
-------------------------------------- 
 
¶7. (SBU) After many months of stalemate, the SAG delegation 
agreed to the original Exclusive Marketing Rights (EMR) 
Proposal first put forth by the USTR in 2007.  The Ministry 
of Health representative Ali Zawawi claimed a Royal Decree 
will be forthcoming. 
 
¶8. (SBU) The SAG delegation mentioned ongoing efforts to 
negotiate a GCC-wide data exclusivity law, and a GCC-EU Free 
Trade Agreement.  The SAG said they are feeling caught 
between conflicting demands by the United States and the EU. 
Representatives from USTR offered technical assistance for 
the drafting of the data exclusivity law.  The delegation 
also announced that in cooperation with USPTO, the SAG will 
be hosting two training workshops on data-exclusivity in the 
spring in Riyadh and Jeddah. 
 
¶9. (U) Saudi Members of the IPR Working Group: 
 
Abdulilah al-Suleiman, Director of the 5th Court 
Board of Grievances 
 
Mohammed al-Aiyash, Chairman of the IPR Committee 
Ministry of Commerce and Industry 
 
Mahmoud Roshdi, Director General of Commercial Licensing 
Ministry of Commerce and Industry 
 
Obaidallah al-Obaidallah, Director General of Copyrights 
Ministry of Culture and Information 
 
Khalil al-Jihani, Legal Advisor 
Customs Authority 
 
Ali Al-Zawawi, Director General of Medical Licenses and 
Pharmacy 
Ministry of Health 
 
Khalid al-Aqeel, Director General for Industrial Property 
King Abdulaziz City for Science and Technology 
RUNDELL