VZCZCXRO8429
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHGP #0311/01 0930631
ZNR UUUUU ZZH
R 030631Z APR 09
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 6565
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHNE/AMEMBASSY NEW DELHI 2275
RUEHHK/AMCONSUL HONG KONG 6472
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 03 SINGAPORE 000311 
 
SENSITIVE 
SIPDIS 
 
EAP/MTS - MG COPPOLA 
BANGKOK FOR JNESS 
NEW DELHI FOR JEHRENDREICH 
STATE PASS USTR FOR AUSTR BWEISEL AND DAUSTR RBAE 
 
E.O. 12958: N/A 
TAGS: KIPR EINT EINV ETRD ECON SN
 
SUBJECT:  SINGAPORE:  UPDATE ON INTELLECTUAL PROPERTY ISSUES 
 
REF:  A.) 08 SINGAPORE 1168 
B.) 08 SINGAPORE 1329 
C.) 09 SINGAPORE 186 
 
¶1.  SUMMARY:  (SBU) Econoffs met with officials from the 
Intellectual Property Office of Singapore (IPOS) March 26 to discuss 
progress made on intellectual property rights (IPR) issues since the 
October review of the U.S.-Singapore Free Trade Agreement (FTA) (Ref 
A), and urge IPOS to focus on resolving remaining issues.  While 
Singapore amended its law covering remuneration for Internet 
"simulcasts" last year (Ref B), industry is still in negotiations 
with broadcasters regarding fees.  IPOS is examining internet 
service provider (ISPs) codes of conduct established in other 
countries, but industry contacts complain that the GOS has been too 
slow in urging cooperation from ISPs.  Econoffs raised Verizon's 
Special 301 submission regarding trademark protections, and the 
Motion Picture Association's proposal to adopt legislation 
prohibiting in-theater "camcording."  Econoffs also urged IPOS to 
consider ways to increase deterrent penalties in cases of end-user 
software piracy, and focus attention on combating the transshipment 
of IP-infringing goods.  Post intends to have a series of such 
follow-up meetings with IPOS to continue to urge Singapore to bring 
local IP laws in line with FTA requirements.  End Summary. 
 
Progress on "Simulcasting" 
-------------------------- 
 
¶2.  (SBU) Econoffs expressed appreciation to IPOS for amending the 
Copyright Law to require remuneration for "simulcasting," i.e., the 
digital transmission of songs over the Internet (Ref B), and noted 
that music industry representatives had told us they were satisfied 
with the wording of the amendment.  However, negotiations are still 
ongoing between the music industry and broadcasters regarding the 
fees broadcasters must pay.  Econoffs noted that the outcome of 
those negotiations and the implementation of the amendment would 
determine whether the new protections afforded simulcasts would be 
adequate and meet industry's needs. 
 
¶3.  (SBU) IPOS is also following the progress of the simulcasting 
fee negotiations and agreed that at this stage it is a commercial 
matter for the music industry to work out with the broadcasters. 
IPOS will not intervene in the matter unless the talks break down 
and "things get ugly," ANG I-Ming, Director and Legal Counsel for 
IPOS, told Econoffs.  IPOS officials indicated that it was too early 
to tell whether the Copyright Tribunal would eventually be needed to 
settle the negotiations. 
 
¶4.  (SBU) Ahead of the meeting with IPOS, representatives from 
Recording Industry Singapore (RIS) and recording industry 
association IFPI told Econoff that fee negotiations have not been 
easy, as broadcasters are coming to terms with having to pay for 
something they previously got for free.  RIS and IFPI attempted to 
negotiate with SPH UnionWorks, which is owned by Singapore Press 
Holdings (SPH) and operates two channels, but SPH UnionWorks 
countered with fee amounts too low for RIS and IFPI to accept.  RIS 
and IFPI contacts told us that SPH UnionWorks refused to negotiate 
and has opted instead to simply stop streaming the music content and 
threatened to end other promotional privileges that record companies 
have received in SPH's other media outlets.  (NOTE:  RIS told us 
that all Singapore broadcasters have stopped streaming content 
temporarily until agreement is reached on the remuneration scheme. 
However, SPH UnionWorks seems to have opted for a permanent stoppage 
rather than meet the requirements of the amended law.  End note.) 
MediaCorp, the largest broadcaster in Singapore with 18 channels, 
has postponed meetings and delayed responding to RIS regarding fees. 
 RIS contacts said that the delays could be due to internal 
restructuring at the company.  RIS and IFPI are unsure whether 
negotiations with MediaCorp will be successful, considering its 
clout in the market. 
 
¶5.  (SBU) SAFRA Radio, which has two channels, has been the most 
responsive, and RIS hopes to conclude a fee agreement within the 
next few weeks, Barbara Wong, General Manager of RIS, told Econoff 
March 30.  Post will continue to monitor the situation and report 
any developments. 
 
Facilitating Cooperation between ISPs and Industry 
--------------------------------------------- ----- 
 
¶6.  (SBU) IPOS is studying different agreements and codes of conduct 
that are being established worldwide to address internet piracy and 
the role internet service providers (ISPs) must play.  Ang noted 
that no code of conduct has succeeded in resolving piracy, saying 
 
SINGAPORE 00000311  002 OF 003 
 
 
that even if ISPs take down a site or suspend an individual's 
account, infringers will pop up elsewhere.  Econoffs agreed that 
completely eradicating Internet piracy is a challenge, but pointed 
out that every effort needs to be made to make it more difficult and 
that Singapore must meet its FTA obligations.  Ang said that IPOS 
had a meeting scheduled with RIS and IFPI representatives to discuss 
the technical aspects of the piracy issue and how ISPs can 
contribute.  Barbara Wong later confirmed that the meeting took 
place, but RIS was disappointed that the meeting only involved GOS 
officials and did not include ISPs. 
 
¶7.  (SBU) Only recently, as other countries announced their own 
plans to work with ISPs, has Singapore appeared to be more open to 
addressing this issue.  Contacts from MPA and RIS complained to 
Econoff in several conversations that local ISPs were not responsive 
to the numerous notifications industry provided regarding infringing 
sites, and ISPs were not fulfilling their obligations to take down 
such sites.  RIS and IFPI provided Econoff with letters to IPOS and 
a timeline documenting several months of correspondence with the 
IPRB (Intellectual Property Rights Branch of the Singapore police) 
regarding a music-sharing site, Ayunite.  RIS first brought it to 
IPRB's attention in July 2008, but the site was just taken down in 
March of this year. 
 
¶8.  (SBU) Post will continue to report on this issue, but would 
welcome guidance on ISP codes of conduct that we could share with 
IPOS. 
 
Verizon's Concerns Regarding Trademark Protections 
--------------------------------------------- ----- 
 
¶9.  (SBU) During the 2009 Special 301 process, Verizon submitted its 
concerns that Singapore does not adequately protect famous or 
"well-known" marks (Ref C).  In discussions following the 301 
submission, local and U.S.-based legal counsel for Verizon told 
Econoff that there is a Singapore wood flooring firm called Verizon 
Wood International Pte Ltd., which has not registered the name 
Verizon, but is using it in commerce.  Verizon has consulted with 
outside legal counsel regarding what recourse it has against Verizon 
Wood.  Gregory Kahn, Assistant General Counsel, South and Southeast 
Asia for Verizon Business, told Econoff that one challenge Verizon 
faces is that Verizon Wood has not registered its name.  If it had, 
Verizon would have had an opportunity to block the registration. 
Moreover, outside legal counsel for Verizon told the company that it 
would be difficult to bring a case against Verizon Wood because 
Singapore's trademark law does not appear to adequately protect a 
"well-known" mark from use by a firm in an unrelated industry. 
Econoff has asked Verizon to provide a more detailed analysis of the 
Singapore law, the protections it does or does not provide, and what 
Verizon suggests IPOS change to bring the law in line with the FTA 
and other international standards. 
 
¶10.  (SBU) Econoffs alerted IPOS to Verizon's concerns, explaining 
that more information will be forthcoming.  IPOS could not explain 
in the March 26 meeting how it might address a case such as this in 
which the company alleged to be infringing has not registered for a 
trademark.  We will continue to work with Verizon and IPOS on this 
issue and report any developments. 
 
Restrictions Against In-Theater "Camcording" 
------------------------------------------- 
 
¶11.  (SBU) IPOS requires much more information regarding the problem 
of in-theater "camcording" of movies before it will adopt any 
changes to its existing laws, Ang said.  Although industry is aware 
of at least three cases of camcording that have occurred in 
Singapore, Ang said that only a few incidents did not constitute an 
alarming trend.  Ang said Singapore has criminalized the recording 
and distribution of pirated movies, but its laws do not conclude 
that anyone recording part of a film "for a laugh" intends to 
distribute and sell the recording on the black market.  Currently, 
theater workers can eject a customer caught recording a film, but 
there is no law in place giving police the authority to arrest and 
question someone caught recording, Ang said.  IPOS requested more 
information from Econoffs regarding laws and penalties in the United 
States against in-theater "camcording."  Ang acknowledged that MPA 
had provided IPOS with suggested edits to Singapore's law, but he 
did not indicate IPOS's position regarding MPA's suggested changes. 
IPOS officials noted that this issue is also under discussion within 
Anti-Counterfeiting Trade Agreement (ACTA) talks. 
 
Deterrent Penalties for End-User Software Piracy 
--------------------------------------------- --- 
 
SINGAPORE 00000311  003 OF 003 
 
 
 
¶12.  (SBU) IPOS officials told Econoffs that the law protecting 
copyrights and outlining penalties for software end-user piracy are 
sufficient, and it is up to the prosecutors to request a penalty 
that fits the crime.  In IPOS's view, a judgment in the case of PP 
v. PDM International,  a case in which the total value of the 
software pirated was far greater than the fines charged (Ref A), was 
based on mitigating factors, such as how cooperative the defendants 
were with authorities.  IPOS does not believe it has set a 
problematic precedent.  Econoffs conveyed to IPOS that one solution 
proposed by the Business Software Alliance (BSA) would be to give 
prosecutors the latitude to break up the infringement charges 
differently, so that they totaled a higher fine in aggregate.  IPOS 
needs to examine a range of cases in which the penalties were 
considered low before making any changes to the current system, Ang 
said. 
 
"Self-Help" Cases and Transshipment of Counterfeits 
--------------------------------------------- ------ 
 
¶13.  (SBU) BSA and other industry contacts oppose Singapore's 
reliance on a "self-help" model that puts a great deal of 
responsibility on industry to conduct investigations and build cases 
against IP-infringing companies or individuals.  Investigating and 
building a case is time-consuming and expensive, Andy Leck, an 
attorney with Baker & McKenzie, Wong & Leow, told Econoffs in a 
separate meeting.  He further noted that such "self-help" cases do 
not always lead to more effective enforcement.  Leck and others have 
argued that even in cases when industry has brought extensive 
evidence to Singapore police and customs officials, the authorities 
do not always act on it, nor do they inform industry of any actions 
taken. 
 
¶14.  (SBU) Econoffs urged IPOS officials to focus more on the issue 
of transshipped IP-infringing goods, and asked about what kind of 
customs recordal mechanism is currently in place.  Econoffs shared 
with IPOS that industry contacts told us that the Hong Kong port 
system allows companies and their IPR officials to share 
information, such as images comparing legitimate and counterfeit 
logos and locations of legitimate factories, with customs officials 
to help them target shipments more effectively and contact 
appropriate company officials in the event that customs interdicts a 
shipment of IP-infringing goods.  Leck and other industry 
representatives would like Singapore to adopt similar programs.  Ang 
agreed this is an issue that requires coordination with other GOS 
agencies, and indicated that he would try to find out what kind of 
system exists at Singapore's port. 
 
SHIELDS