VZCZCXYZ0015
PP RUEHWEB

DE RUEHSJ #0390/01 1322229
ZNR UUUUU ZZH
P 122229Z MAY 09
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC PRIORITY 0827
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY

UNCLAS SAN JOSE 000390 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EEB/TPP/IPE JURBAN AND SKEAT AND WHA/EPSC SGARRO; 
PLEASE PASS TO USTR AMALITO, DOLIVER AND GVETERE; PLEASE 
PASS TO DHS MMDUDEK; PLEASE PASS TO DOC AWILSON; PLEASE 
PASS TO DOJ JZACHARIA AND BLIPMAN; PLEASE PASS TO DOL 
MPETTIS; PLEASE PASS TO LOC PPINHA; PLEASE PASS TO NSC DBELL 
 
E.O. 12958: N/A 
TAGS: CS ECON ETRD KIPR PGOV PREL
SUBJECT: COSTA RICA DISAPPOINTED BY WATCH LIST STATUS 
 
REF: A. STATE 42002 
     ¶B. SAN JOSE 168 
 
¶1.  (SBU) SUMMARY: On April 29, we delivered to the Ministry 
of Foreign Trade (COMEX) the news that Costa Rica would 
continue on the Special 301 Watch List (Reftel A). 
Disappointed COMEX staff listened patiently, then countered 
with a litany of reasons  why the USG should elevate Costa 
Rica's IPR status.  Key reasons included the implementation 
of intellectual property rights (IPR) legislation as part of 
the entry-into-force of CAFTA-DR, COMEX's view of a 
"softening" in attitude (i.e., less opposition) toward IPR 
enforcement by the GOCR's recalcitrant Fiscal General, and an 
appointment of an individual in the office of the Fiscal 
General  to the National (inter-agency) Commission of 
Intellectual Property.  In response, we emphasized the 
importance of IPR cases matriculating in the judiciary to 
prosecution.  We also discussed  training for private sector 
attorneys -) in response to COMEX's concern of IPR 
inexperience in the private sector -- and tracking IPR cases 
in the judicial system.  END SUMMARY. 
 
--------------- 
OPENING REMARKS 
--------------- 
 
¶2.  (SBU) Econ Chief Mark Kissel presented the results of the 
2009 Special 301 Report to COMEX on April 29.  He discussed 
Costa Rica maintaining its status as a Watch List country and 
elaborated on Post,s IPR strategy (reftel B).  COMEX 
interlocutors Esteban Aguero, Maria Jose Cordero, and Jessica 
Ward Campos initially offered a tepid response and then 
expanded by expressing their disappointment in the USG,s 
decision. 
 
------------------------------------- 
A REWARD FOR CAFTA-DR IMPLEMENTATION? 
------------------------------------- 
 
¶3.  (SBU) COMEX believed that Costa Rica deserved to be moved 
off  the Watch List for six reasons: 
 
-- the passage of CAFTA-DR implementing legislation marked a 
significant advancement in the IPR legal environment in Costa 
Rica, plus the "implementation was more strict (in Costa 
Rica) -) legally ) than in any other country in Central 
America"; 
 
-- controversial Fiscal General (Attorney General) Francisco 
Dall,Anese had not made recent remarks re-enforcing his low 
ranking of IPR enforcement as a judicial/law enforcement 
priority; 
 
-- Dall,Anese,s office had made &internal8 changes to 
facilitate IPR enforcement; 
 
-- prosecutors in the Fiscalia General were receiving ongoing 
IPR training; 
 
-- Maribel Bustillo Piedra had been appointed as the Public 
Judiciary Ministry's (i.e. the judiciary branch's) 
representative to the National Commission of Intellectual 
Property, marking a key step forward for IPR enforcement; and 
 
-- Bustillo actively participated in the Commission's 
activities, including weekly meetings. 
 
----------------------------- 
PRIVATE SECTOR (IN)COMPETENCE 
----------------------------- 
 
¶4.  (SBU) Econ Chief stressed the need for the USG to see 
results in the form of judicial processing of cases.  COMEX 
replied that the private sector is where the process needs to 
start.  However, the hurdle to this first step, according to 
COMEX, is the "laziness" of private sector attorneys. 
Private sector attorneys know how to file a patent form, but 
do not know the IPR legal code in Costa Rica.  COMEX further 
contended that companies who filed complaint letters (e.g. 
Levi Strauss) in the Special 301 electronic case file are 
unaware of the available procedures and remedies. 
 
¶5.  (SBU) Econ Chief then turned the conversation in the 
direction of training for private sector attorneys.  In order 
to produce case files, the private sector needs to (1) know 
how to construct and manage a case and, frankly, (2) 
understand the potential to generate fees in a "new line" of 
legal business.  COMEX staff agreed to cooperate on training 
for private sector attorneys.  (NOTE:  We have already 
received an inquiry from a private sector firm requesting 
training opportunities.).  In addition, Econ Chief suggested 
that COMEX compile a "case roster" which it could share and 
further develop with the Embassy. 
 
----------------------------------- 
COMMENT: FORM OVER SUBSTANCE, AGAIN 
----------------------------------- 
 
¶6.  (SBU) COMEX,s reaction once again reflects Costa Rica's 
unwavering yearning for special attention due to its "better 
than the others" exceptionalism.  COMEX wanted a &reward8 
simply for putting in place the framework for stronger IPR 
enforcement.  This progress is welcome, but it is form, not 
substance. Vigorous IPR investigations and prosecutions are 
still lacking, as we have seen in tepid Costa Rican law 
enforcement in other areas, such as TIP and fisheries. 
Despite the due political credit the GOCR deserves for 
winning the political battle to ratify and implement 
CAFTA-DR, it is IPR case results that will elevate Costa 
Rica,s Special 301 status in the future.  We will work with 
the GOCR on IPR enforcement guidance and training, as this is 
a major component of Post,s overall law enforcement 
strategy, but we cannot do their work for the. 
CIANCHETTE