VZCZCXRO1844
RR RUEHDBU RUEHLN RUEHSK RUEHVK RUEHYG
DE RUEHNT #1816/01 2891136
ZNR UUUUU ZZH
R 160544Z OCT 09
FM AMEMBASSY TASHKENT
TO RUEHC/SECSTATE WASHDC 1422
INFO CIS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHBJ/AMEMBASSY BEIJING 0088
RUEHBUL/AMEMBASSY KABUL 0119
RUEHIL/AMEMBASSY ISLAMABAD 0297
RUEHKA/AMEMBASSY DHAKA 0232
RUEHKT/AMEMBASSY KATHMANDU 0229
RUEHLM/AMEMBASSY COLOMBO 0232
RUEHNE/AMEMBASSY NEW DELHI 0283

UNCLAS SECTION 01 OF 07 TASHKENT 001816 
 
SENSITIVE 
SIPDIS 
DEPARTMENT FOR SCA/CEN 
PASS TO USTR CLAUDIO LILIENFELD 
AND MICHAEL FELDMAN 
PASS TO USPTO KEVIN ROSENBAUM 
DEPARTMENT FOR EEB ANU PRATTIPATI 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR UZ
SUBJECT: UZBEKISTAN TO AMEND IPR LAWS IN RESPONSE TO IIPA PETITION 
 
REF: 09 STATE 84124 09 TASHKENT 285 
 
¶1. (SBU) SUMMARY.  On October 5 we met with GOU officials 
to discuss intellectual property rights (IPR) points 
raised in the interim General System of Preferences (GSP) 
demarche (Ref A).  Significantly, we learned that 
Uzbekistan is preparing to remove its reservations to 
Article 18 of the Berne convention and that IPR-related 
changes to the criminal and administrative codexes will 
be presented to the Uzbek parliament later this year. 
These amendments should be an important step forward in 
addressing issues raised by the International 
Intellectual Property Alliance (IIPA) during the 1999 GSP 
review.  END SUMMARY 
 
INTERIM GSP DEMARCHE DELIVERED 
------------------------------ 
 
¶2. (SBU) On August 14 we delivered the interim GSP 
demarche (ref A) to the GOU as a non-paper under cover of 
a diplomatic note.  In late September we received an 
invitation to come to the Uzbek Copyright Agency (UCA) to 
discuss those points related to the 1999 petition by the 
International Intellectual Property Alliance (IIPA). 
This meeting took place on October 5, with the Uzbek side 
represented by Ibragim Amanbaev, Acting Director of UCA, 
and Alisher Hafizov, Lead Specialist in the Department of 
Information Systems and Telecommunications at the Cabinet 
of Ministers.  Hafizov heads a working group within the 
Cabinet of Ministers that is charged with improving Uzbek 
IPR legislation. 
 
CAVEAT TO BERNE CONVENTION ARTICLE 18 TO BE RESCINDED 
--------------------------------------------- -------- 
 
¶3. (SBU) Hafizov led the discussion for the Uzbek side. 
Acknowledging receipt of the interim demarche, he told us 
that Uzbek legislation is evolving rapidly in ways that 
should satisfy many of the concerns in the IIPA petition. 
With a copy of the IIPA petition in his hands, Hafizov 
first addressed the eight recommendations for improving 
IPR in Uzbekistan that IIPA provided in 2005.  Most 
significantly, he said a decision removing Uzbekistan's 
caveats to Article 18 of the Berne Convention could be 
expected in the next several months, thereby addressing 
one of the most serious of IIPA's concerns regarding IPR 
in Uzbekistan. 
 
IIPA RECCOMENDATIONS POINT BY POINT 
----------------------------------- 
 
¶4. (SBU) Hafizov then moved on a point-by-point 
discussion of the twelve recommendations for legal 
reforms and treaty accessions that IIPA made in 2007: 
 
-- Point 1:  Discussions on joining the Geneva Phonograms 
Convention are ongoing.  At this point certain unnamed 
ministries continue to object to portions of the 
convention, but progress is being made. 
 
-- Point 2:  For the time being Uzbekistan will stick 
with its current 50 year guarantee of author's rights 
rather than increase it to the requested 70 years. 
 
-- Point 3:  Changes are being drafted to the Criminal 
Codex and to the Codex on Administrative Responsibility. 
These will be presented to the Uzbek parliament for 
ratification later this year.  The amendments will 
include the "neighboring rights" violations requested in 
point 3. 
 
-- Point 4:  The amendments will increase the penalty for 
IPR violations to 400 times the minimum wage for a first 
 
TASHKENT 00001816  002 OF 007 
 
 
offense and 800 times for a second. 
 
-- Point 6:  Changes have already been made to criminal 
procedures that permit the confiscation and destruction 
of equipment used to produce pirated material. 
 
-- Points 7-9:  The amendments provide ex officio 
authority to police officials, administrative 
authorities, and border officials to commence 
investigations. 
 
-- Point 10:  Ex parte search provisions will be provided 
in the criminal code, not the civil code. 
 
-- Point 11:  Uzbekistan intends to adhere to the WIPO 
treaties in 2010. 
 
-- Point 12:  Hafizov did not directly address this 
point, describing it as "somewhat repetitive." 
 
¶5. (SBU) Hafizov told us that the working group chaired 
by him has continued to have a good relationship with 
Microsoft, which has provided its comments during the 
drafting of the changes to the criminal and 
administrative codexes.  Nevertheless, despite having a 
representative in Tashkent, Microsoft does not market its 
products in Uzbekistan.  Rather, orders placed with the 
Microsoft representative are filled individually from a 
warehouse in Germany. 
 
¶6. (SBU) Hafizov continued that more licensed electronic 
media have appeared on the market in Uzbekistan this 
year.  In a country where 100 percent of all CDs and DVDs 
on sale a year ago were pirated, today licensed disks 
from both Sony and Warner Brothers are on sale in the 
Nirvana chain of stores.  Sales have been good, Hafizov 
said, because customers are impressed by the much higher 
quality and are therefore willing to pay a higher price. 
The only negative side to this improvement is that the 
disks are imported from Kazakhstan.  What the GOU wants, 
Hafizov added, is for publishers of electronic media both 
to enter the Uzbek market and to set up production in 
Uzbekistan. 
 
REQUESTS TO THE USG 
------------------- 
 
¶7. (SBU) Hafizov asked for assistance in establishing 
contact with those in the IIPA who drafted the 1999 
petition and who have since given testimony at the annual 
Special 301 reviews.  He said he would welcome the 
opportunity to speak one-on-one with knowledgeable IIPA 
experts who could help him and his working group better 
understand how to satisfy IIPA concerns. 
 
¶8. (SBU) Hafizov repeated the request we have heard 
previously (Ref B) for increased training through USPTO, 
the Department of Commerce, and other U.S. agencies.  He 
said that what would be particularly useful would be for 
one or more USPTO IPR specialists to conduct a training 
program in Tashkent. 
 
¶9. (SBU) Finally, Hafizov asked for help in influencing 
U.S. companies to enter the Uzbek market.  Although both 
Sony and Warner Brothers disks are now on sale, the 
market is still dominated by pirated goods.  As long as 
companies are unwilling to sell their goods in 
Uzbekistan, he said, piracy will continue to be the only 
avenue open to Uzbek consumers. 
 
COMMENT 
------- 
 
TASHKENT 00001816  003 OF 007 
 
 
¶10. (SBU) We continue to be impressed with the GOU's 
willingness to engage on the issue of IPR.  Although 
undermanned and underfunded, the UCA is doing what it can 
with what it has.  Hafizov participated in USPTO training 
in 2007, and he is using what he learned as he heads the 
Cabinet of Ministers' working group on IPR.  To us he is 
emblematic of a new, younger generation of GOU 
technocrats that is ready to engage in an open discussion 
of issues.  In a country where almost all Embassy 
communication is via diplomatic note, Hafizov brings a 
refreshing new approach:  he answers e-mails and reaches 
out for contacts. 
 
¶11. (SBU) Based on our discussions at the UCA, we believe 
the GOU is poised to make significant progress in 
addressing concerns raised in the 1999 IIPA petition.  We 
encourage and request IIPA to engage directly with UCA to 
expedite this process. 
 
TEXT OF CHANGES TO CRIMINAL AND ADMINISTRATIVE CODEXES 
--------------------------------------------- --------- 
 
¶12. (SBU) Hafizov provided us with a draft of the 
amendments to the criminal and administrative codexes. 
The Russian language text is available upon request from 
the Embassy Tashkent Pol/Econ office 
(McCutcheonRA@state.gov).  The following is an unofficial 
translation. 
 
BEGIN TEXT OF CODEX CHANGES -- 
 
ARTICLE 1. Introduce the following changes and additions 
into the Administrative Code of the Republic of 
Uzbekistan, approved by the law of Uzbekistan dated 
22 September 1994 No.2015 - XII (Bulletins of Upper 
Council of Uzbekistan, 1995, No. 3, article. 6; Bulletins 
of Oliy Majlis of Uzbekistan, 1995, No. 9, article. 193, 
No. 12, article. 269; 1996, No. 5-6, article . 69, No. 9, 
article. 144; 1997, No. 2,  article  56, No. 4-5, article 
126, No. 9, article 241; 1998, No. 3,  article 38, No. 5- 
6, article  102, No. 9, article  181; 1999 , No. 1, 
article  20, No. 5, article  124, No. 9, article 229; 
2000 , No. 5-6, article 153, No. 7-8, article 217; 2001, 
No. 1-2, article 23, No. 9-10, articles 165,182; 2002, 
No. 1, article 20, No. 9, article 165; 2003, No. 1, 
article 8, No. 5, article 67, No. 9-10, article 149; 
2004, No. 1-2, article 18, No. 5, article 90, No. 9, 
article 171; 2005., No. 1, article 18; Bulletins of the 
Chamber of Oliy Majlis of Uzbekistan, 2005, No. 9, 
article 312, No. 12, articles 413, 417, 418; 2006, No. 6, 
article 261, No. 9, article 498, No. 10, article 536, 
No. 12, articles 656, 659; 2007, No. 4, article 158, 159, 
164, 165, No. 9, article 416, 421, No. 12, article 596, 
604, 607; 2008, No.4, article 181, 189, 192: 
 
1) Exclude point four in article 155. 
 
2) Article 177 should be written as follows: 
 
"Article 177. Violation of copyrights and neighboring 
rights. 
 
Illegal use of works or objects covered by neighboring 
rights, as well as production, play, distribution, 
introduction to the general population, storage, 
transportation of counterfeited items or objects covered 
by neighboring rights for the purpose of sale or 
presenting false information on the products about the 
manufacturer, place of manufacture, as well as about the 
copyright holders and neighboring rights, are equal to 
other violations of copyrights and neighboring rights and 
will result in -- 
 
TASHKENT 00001816  004 OF 007 
 
 
Penalty to citizens in the amount of 15 to 20 times the 
minimal salary, along with confiscation of counterfeited 
copies of works and objects covered by neighboring 
rights, including materials and equipment used for 
production and distribution, including other devices used 
in the violation, and penalizing corporate officials from 
30 to 40 times the minimal salary along with confiscating 
counterfeited copies of works and objects covered by 
neighboring rights, including materials and equipment 
used for production and distribution, and other devices 
used in the violation"; 
 
3) Add the following articles 177-1, 177-2, 177-3, 177-4, 
177-5 and 263-1 to the Code: 
 
"Article 177-1.  Refusal to present necessary data about 
income and presenting false information about income 
received from use of works and objects of covered by 
neighboring rights 
 
Refusal to present to authorized agencies documents 
documenting permission to use works and objects covered 
by neighboring rights and true data on income received 
from using it, will result in -- 
 
Penalty to a citizen in the amount of 5 to 10 times the 
minimal salary and to corporate officials in the amount 
of 7 to 15 times the minimal salary; 
 
The same violation, committed again during a year in 
which the administrative penalty has been applied, will 
result in a penalty of 10 to 15 times the minimal salary, 
and for corporate officials in the amount of 15 to 20 
times the minimal salary. 
 
Article 177-2.  Violation of the right of the copyright 
holder to receive a royalty 
 
Refusal by the user of works and objects covered by 
neighboring rights to pay the royalty for a public 
performance or other use of works or objects covered by 
neighboring rights or violation of the set deadlines for 
paying royalty will result in -- 
 
Penalty to a citizen in the amount of 10 to 20 times the 
minimal salary and to corporate officials from 15 to 25 
times the minimal salary. 
 
Article 177-3.  Violation of rights for invention, useful 
model, industrial sample, selection achievement, topology 
of integrated microchips 
 
Illegal use of an invention, useful model, industrial 
sample, achievement in selection, topology of integral 
microchips; disclosure before the official publication 
date and without the consent of the author or claimant 
about the essence of the invention, useful model, 
industrial sample, achievement in selection will result 
in -- 
 
Penalty to a citizen in the amount of 15 to 20 times the 
minimal salary and to corporate officials from 30 to 40 
times the minimal salary; 
 
Article 177-4.  Illegal use of trademarks, service mark, 
name of place of origin of goods 
 
Illegal use of trademarks, service marks, name of place 
of origin of goods or of similar goods that could be 
taken for the original goods or services will result in 
- 
 
Penalty to a citizen in the amount of 10 to 15 times the 
 
TASHKENT 00001816  005 OF 007 
 
 
minimal salary, along with confiscation of items with the 
illegal trademark, service mark, place of origin, and to 
corporate officials in the amount from 20 to 30 times the 
minimal salary. 
 
Article 177-5.  Illegal use of warning marks in regard to 
objects of intellectual property 
 
Illegal use of warning marks in regard to objects of 
intellectual property that are legally protected in the 
Republic of Uzbekistan based on registration in 
accordance with legislation will result in -- 
 
Penalty to a citizen from 10 to 15 times and to corporate 
officials from 20 to 30 times the minimal salary. 
 
Article 263-1.  Uzbek Agency for Copyrights. 
 
The Uzbek Agency for Copyrights is delegated to cover 
cases of administrative violation envisaged in articles 
177, 177-1 - 177-2. 
 
The General Director of the Copyright Agency and his 
deputies have the right on behalf of the Agency to review 
cases of administrative violation and apply 
administrative penalties. 
 
4) In the first part of article 245 the number "177" is 
to be excluded, after the number "176-3" the numbers 
"177-3, 177-4, 177-5" are to be added." 
 
 
ARTICLE 2. Introduce the following changes into the 
Criminal Code of Uzbekistan as allowed for by the laws of 
Uzbekistan dated 22 September 1994 No. 2012-?II (Bulletin 
of the Upper Council of Uzbekistan, 1995 , No. 1, article 
3; Bulletin of Oliy Majlis of Uzbekistan, 1996 , No. 9, 
article  144; 1997, No. 2, article  56, No. 9, article 
241; 1998, No. 5-6, article  102, No. 9, article 181; 
1999, No. 1, article 20, No. 5, article 124, No. 9, 
article 229; 2000, No. 5-6, article 153; 2001 , No. 1-2, 
article 23, No. 9-10, article 165; 2002 , No. 9, article 
165; 2003 , No. 1, article 8, N 9-10, article 149; 2004, 
No. 1-2, article 18, No. 9, article 171; Bulletin of 
Chamber of Oliy Majlis of Uzbekistan, 2005 , No. 9, 
article 314, No. 12, articles 417, 418; 2006 , No. 6, 
article 261, No. 12, article 656; 2007, No. 4, articles 
158, 166, No. 6, article 248, No. 9, article  416, 422, N 
12, article  607; 2008, No. 4, articles 187, 188, 189): 
 
1) In part four of article 17 after the number "146" add 
the numbers "149, 149-1, 149-2, 149-3". 
 
2) In part one of article 66-1 the wording "article 149 
(violation of copyrights and innovation rights" should be 
changed to "article 149 (violation of copyrights and 
neighboring rights)" and the following words should be 
added "article 149-1 (violation of innovation and patent 
rights), and article 149-2 (illegal use of trademark, 
service mark, name and place of origin)" 
 
3) Article 149 should be edited in the following way: 
 
Article 149.  Violation of copyrights and neighboring 
rights 
 
The illegal use of works or objects covered by 
neighboring rights -- such as performance, distribution, 
disclosure to the general public, storage, transportation 
of counterfeited products for profit -- or if on these 
works and or on objects covered by neighboring rights is 
placed  false information about the manufacturer, place 
of manufacture, as well as about rights holders, as well 
 
TASHKENT 00001816  006 OF 007 
 
 
as other violations of copyrights and neighboring rights, 
which resulted in substantial losses or that were 
committed again within the same year after administrative 
penalties were imposed will result in - 
 
Penalty in the amount of 200 to 400 times minimal salary 
or imprisonment for up to 2 years with confiscation of 
counterfeited works and objects covered by neighboring 
rights, as well as materials and equipment used for their 
performance and distribution and other devices used in 
the violation. 
 
Actions covered in the first part of the current article, 
if committed a second time either by a group of people by 
preliminary agreement or by an organized group will 
result in -- 
 
Penalty of 300 to 600 times minimal salary, arrest from 
four to six months, or imprisonment from two to five 
years with confiscation of counterfeited works and 
objects covered by neighboring rights along with 
materials, equipment, and other devices used for this 
violation." 
 
4) Add articles 149-1, 149-2 and 149-3 to the Codex with 
the following content: 
 
"Article 149-1.  Violation of rights for invention, 
useful model, industrial sample, selection achievement, 
topology of integral microchips 
 
Illegal use of an invention, useful model, industrial 
sample, topology of integral microchips, disclosing the 
essence of an invention without the consent of the author 
or claimant, useful model, industrial sample and 
selection achievements prior to the official publication 
of data on them -- if committed again within the same 
year after administrative penalties were applied or if 
incurring substantial losses - will result in -- 
 
Penalty in the amount of 50 to 100 times minimal salary 
or imprisonment for up to two years. 
 
The same actions committed a second time by a group of 
people by preliminary agreement or by an organized group 
will result in -- 
 
Penalty from 100 to 200 times minimal salary, arrested 
for four to six months, or imprisonment of up to five 
years. 
 
Article 149-2.  Illegal use of trademark, service mark, 
name of place of origin 
 
Illegal use of trademarks, service marks, name of place 
of origin of goods or of similar goods that could be 
taken for the original goods or services -- if committed 
again after administrative penalties were applied or if 
incurring substantial losses -- will result in 
 
Penalty from 50 to 100 times minimal salary or loss of 
certain rights up to five years, correctional work up to 
two years, or arrested up to four months. 
 
Illegal use of warning marks in regard to trademarks not 
registered in Uzbekistan or in regard to the name of 
place of origin, if they caused substantial losses will 
result in -- 
 
Penalty from 50 to 100 times minimal salary or loss of 
certain rights for up to two years or correctional work 
up to one year. 
 
TASHKENT 00001816  007 OF 007 
 
 
Article 149-3.  Misappropriation of copyright 
 
Misappropriation of copyright or forcing co-authorship on 
works, inventions, useful models, industrial samples, 
selection achievements, or topologies of integral 
microchips will result in -- 
 
Penalty in the amount of four hundred to seven hundred 
times minimal salary or imprisonment of from two to five 
years with confiscation of counterfeited works and 
objects covered by neighboring rights, as well as 
materials and equipment used for their performance and 
distribution and other devices used in the violation." 
 
 
ARTICLE 3.  This law will enter into force from the day 
of its official publication. 
 
 
END TEXT OF CODEX CHANGES. 
NORLAND