VZCZCXRO3219
RR RUEHDE RUEHDH RUEHDIR
DE RUEHKU #1060/01 3131228
ZNR UUUUU ZZH
R 091228Z NOV 09
FM AMEMBASSY KUWAIT
TO RUEHC/SECSTATE WASHDC 4160
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE

UNCLAS SECTION 01 OF 02 KUWAIT 001060 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR NEA/ARP; EEB/IPE; STATE FOR JASON BUNTIN 
 
E.O. 12958: N/A 
TAGS: KIPR EIND EINT ETRD KU
SUBJECT: GOK AND CORPORATIONS HOST FIRST-EVER TRAINING 
SESSIONS TO COMBAT COUNTERFEITING 
 
 ¶1. (SBU) SUMMARY: On October 26 and 27, Kuwait's General 
Administration for Customs held its first-ever training 
sessions for customs inspectors designed to combat trade in 
counterfeit goods in collaboration with the Ministry of 
Commerce, the Brand Owners Protection Group, and 
American-based companies.  This pioneering training session 
was initiated in an effort to train roughly 150 customs 
inspectors from Customs and the Ministry of Commerce on how 
to identify imitation products, effectively communicate 
intelligence updates, and profile counterfeit product 
shipments.  In conversations with Econoff, officials from 
Kuwaiti Customs, the Ministry of Information, Microsoft and 
Ford Motor Company described a commitment to dealing with 
counterfeit goods.  Corporate representatives also detailed 
the financial commitment their companies are making to combat 
IPR violations in Kuwait.  END SUMMARY. 
 
SPIRIT OF ENFORCEMENT STRONG, BUT THE LAW IS WEAK 
 
¶2. (SBU) Econoff met with the GoK official responsible for 
seizing illicit materials, Tareq Al-Ajmi, Assistant 
Undersecretary for Press & Journalism Affairs, Ministry of 
Information on October 6 and Osama Al-Shami, the Kuwaiti 
Customs official responsible for organizing the training, on 
October 27.  Both Al-Ajmi and Al-Shami frankly discussed the 
trials and frustrations associated with disposing of 
materials confiscated during raids, dealing with corrupt 
inspectors, and their personal concerns about enforcing IPR 
codes that carry such light penalties for counterfeiters. 
Repeatedly each official expressed the view that the spirit 
of enforcement is present in Kuwait, but the weakness of the 
law prevents IPR codes from being effective. 
 
¶3. (SBU) Al-Shami expressed pride at the inaugural training 
sessions and declared the training of roughly 150 customs 
inspectors an overall success.  American-based companies such 
as Philip Morris, Nike and Ford sent materials and 
representatives to talk about brand integrity and 
anti-counterfeiting techniques specific to their brands. 
 
MICROSOFT: PIRACY ERODES INVESTOR CONFIDENCE 
 
¶4. (SBU) When Econoff spoke with corporate representatives 
from Microsoft and Ford Motor Company on October 22 and 28 
respectively, they also blamed counterfeit trade in Kuwait on 
light penalties.  Microsoft's Country Manager, Ehab Mostafa, 
claimed that 61% of all Microsoft software used in Kuwait is 
pirated.  Mostafa contended that he is combating piracy and 
counterfeit products on several fronts and is working with 
the Ministry of Information to conduct raids on piracy shops. 
 He detailed his plans for a USD 280,000 startup scholarship 
for a young Kuwaiti to establish an IT business and thus 
expand knowledge about how piracy erodes confidence levels in 
the investment environment.  Mostafa added that he is 
managing a study on the loss of competitive advantage by the 
GoK as a direct result of piracy.  Mostafa claims that 
Microsoft is investing five to six U.S. dollars of every 10 
U.S. dollars Microsoft makes in Kuwait, as a show of 
commitment to the GoK.  Echoing Mostafa's concerns, Kuwait 
Customs's Al-Shami separately acknowledged to Econoff that 
Microsoft had downgraded its presence in Kuwait as a 
consequence of rampant piracy. 
 
FORD: COUNTERFEITERS TARGET EXPIRED WARRANTY CAR OWNERS 
 
¶5. (SBU) Alexander Liske, Brand Protection Manager, Ford 
Middle East, told Econoff on October 28 that Ford just 
recently expanded its brand protection operations into 
Kuwait.  Liske detailed how Ford has hired lawyers, 
investigators and informants to work with him to target local 
mechanics selling counterfeit Ford products to car owners 
with expired warranties.  While Liske could not offer 
quantitative data, he did note that the prevalence of 
counterfeit products in Kuwait appears to be lower than other 
Gulf countries.  Ford sent Liske to determine how prevalent 
counterfeit products are in Kuwait.  Liske also noted that 
counterfeiters had many ways to disguise their goods.  They 
could price the knock-off product close to the authentic, so 
that consumers would not think they were purchasing a 
counterfeit product or could brand counterfeit items after 
they pass through customs.  Liske praised the Customs' 
training effort and looked forward to more opportunities in 
the future for corporate-GoK cooperation to raise awareness 
and improve IPR enforcement. 
 
¶6. (SBU) COMMENT:  Despite a commitment to enforcement, the 
limited legal consequences for violators continue to 
encourage IPR scofflaws.  Until such time as the GoK moves on 
the long-pending draft Copyright Law, however, increased 
 
KUWAIT 00001060  002 OF 002 
 
 
government-private sector cooperation on enforcement, as 
initiated in this training, may represent the best chance to 
strengthen the protection environment.  The private sector's 
interest and commitment could also help encourage the GoK to 
move on the law.  END COMMENT. 
 
********************************************* ********* 
For more reporting from Embassy Kuwait, visit: 
visit Kuwait's Classified Website at: 
 
http://www.intelink.sgov.gov/wiki/Portal:Kuwa it 
********************************************* ********* 
JONES