VZCZCXRO2794
PP RUEHDE RUEHDH RUEHDIR
DE RUEHRH #1493/01 3130604
ZNR UUUUU ZZH
P 090604Z NOV 09
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC PRIORITY 1880
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHFJUSC/US CUSTOMS SERVICE WASHDC PRIORITY

UNCLAS SECTION 01 OF 03 RIYADH 001493 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO USTR FOR CHRIS WILSON, JASON BUNTIN 
STATE PASS TO DOC FOR STEVEN GARRETT 
DEPT FOR NEA/ARP, EB/TPP/BTA, E FOR U/S ROBERT HORMATS 
 
E.O. 12958: N/A 
TAGS: ETRD KIPR ECON EINV PREL SA
SUBJECT: SAUDI IPR WORKING GROUP REPORTS CONTINUED 
PROGRESS, STRONG DESIRE FOR TRAINING 
 
REF: A. RIYADH 524 
     ¶B. RIYADH 575 
     ¶C. RIYADH 789 
     ¶D. RIYADH 793 
     ¶E. RIYADH 982 
     ¶F. JEDDAH 297 
     ¶G. RIYADH 1202 
     ¶H. RIYADH 1366 
     ¶I. RIYADH 1375 
     ¶J. RIYADH 1423 
     ¶K. RIYADH 1425 
     ¶L. RIYADH 1426 
     ¶M. RIYADH 1441 
     ¶N. RIYADH 1459 
 
Summary 
------- 
 
¶1. (SBU) The U.S. - Saudi Arabia Intellectual Property 
Working Group met via digital video conference (DVC) November 
3 to discuss Saudi Arabia's preparations for the upcoming 
Special 301 Out-of-Cycle Review (OCR).  The IPR Committee 
Chair said AUSTR Chris Wilson's October 16 to 20 visit gave 
momentum to the Committee's work.  The Saudi government 
representatives emphasized that they are doing their utmost 
to prepare for the OCR, and highlighted specific progress on 
copyright protection, government software audits, and patent 
and data protection.  The Saudi representatives reiterated 
their government's need for USG and industry assistance to 
bring down piracy rates and expressed strong interest in 
additional training.  Ministry of Culture representatives 
also forecast a copyright violation case was likely to be 
referred to the Board of Grievances "very soon," meeting an 
important USG bench-mark.  Saudi officials also provided 
detailed information about improvements in a number of areas. 
 
¶2. (SBU) Chairman of the Saudi IPR Committee Mohammad 
Al-Aiyash, Deputy Minister of Culture and Information 
Abdulrahman Al-Hazzaa, Saudi Customs Authority Officer Khalil 
Al-Jihani, Director General of Trademarks and Commercial 
Agencies Mahmoud Roshdi, and the Director of the Copyright 
Department attended the DVC on the Saudi side. 
Representatives from USTR, the Department of Commerce, the 
U.S. Copyright Office, and the U.S. Patent and Trademark 
Office attended on the U.S. side. 
 
SAG Eager For Training 
---------------------- 
 
¶3. (SBU) Saudi representatives from several ministries noted 
that they had not seen invitations for IP-related training in 
the past year.  USPTO noted that one customs training program 
had been delayed and eventually canceled due to the high cost 
of translation services.  Several times, Deputy Minister of 
Culture and Information Al-Hazzaa said that his Ministry 
would cover translation and lodging expenses for U.S. 
officials traveling to the Kingdom to conduct training.  The 
Saudis also welcomed any regional training, particularly with 
other GCC countries, and expressed a strong interest in 
enforcement and internet piracy training with Dubai's IP 
officials. 
 
Copyright Protection 
-------------------- 
 
¶4. (SBU) Al-Hazzaa discussed his Ministry's copyright 
enforcement efforts since January.  In ten months the 
Ministry has seized 3.83 million items, conducted 2,000 
inspections, posted 529 Violations Review Committee (VRC) 
cases on the website, and fined two copyright violators the 
maximum penalty allowed in the VRC.  Six to eight inspectors 
have visited 5,000 vendors, highlighting the Ministry's need 
for additional inspectors.  Regarding a referral of a 
copyright case from the VRC to the Board of Grievances for 
deterrent sentencing, Al-Hazzaa said a referral was "coming 
soon."  He explained that the VRC applied the maximum penalty 
in two recent cases to pave the way for a successful referral 
to the Board. 
 
¶5. (SBU) Al-Hazzaa lamented that his requests for private 
sector assistance have not been fulfilled, and reiterated his 
Ministry's interest in inspector and internet piracy 
training, as well as assistance with a robust awareness 
 
RIYADH 00001493  002 OF 003 
 
 
campaign.  Media industry representatives have told Al-Hazzaa 
they would have an awareness campaign proposal, including 
funding, for his consideration by early December.  Al-Hazzaa 
welcomed revitalizing a USPTO copyrights training program, 
which had been proposed previously but postponed due to 
staffing changes at the Ministry.  Al-Hazzaa offered to cover 
accommodation expenses for USPTO and USTR officials who 
travel to the Kingdom for the proposed two day workshop. 
 
Software Audit Progressing 
-------------------------- 
 
¶6. (SBU) IPR Committee Chairman Mohammad Al-Aiyash described 
the Commerce Ministry's software audit, which is being 
conducted by an independent contractor.  Microsoft Riyadh has 
met with the Commerce Ministry's IT department and has 
acknowledged that the audit meets international standards. 
The contractor currently is upgrading the Ministry's 
hardware, and will commence the software audit in the 
January/February timeframe.  The audit should take two months. 
 
¶7. (SBU) Al-Aiyash also noted the Culture Ministry committed 
to conducting its own audit during AUSTR Wilson's visit.  IT 
managers from the Culture and Commerce Ministries have since 
met and discussed writing a letter to the King recommending a 
software audit program for all Ministries.  Al-Aiyash said 
this proposal will carry more weight if both the Commerce and 
Culture Ministries first complete their respective audits. 
He also noted it would help if Microsoft provides promised 
language outlining the benefits of software audits. 
 
 
Internet Piracy 
--------------- 
 
¶8. (SBU) Al-Hazzaa said that Rotana, Saudi Arabia's largest 
media company, had recently provided the Culture Ministry 
with over 100 IP addresses of websites selling pirated DVDs 
and music.  He explained that the Culture Ministry was 
working with the Ministry of Interior and the Communications 
and Information Technology Commission (CITC), the Saudi 
telecom and internet regulator, to develop a procedure for 
blocking websites selling pirated material.  Al-Hazzaa 
discussed his Ministry's longer-term, one million SAR e-media 
project to regulate and license websites by mid-2010.  Until 
the program is launched, the Culture Ministry will continue 
to cooperate with Rotana. 
 
¶9. (SBU) The Saudis welcomed USPTO's proposal to hold a DVC 
with the Culture Ministry's copyright office and CITC focused 
on internet piracy.  Al-Aiyash said they had requested a 
World Intellectual Property Organization (WIPO) legal expert 
visit Riyadh to advise on staffing and implementation of the 
treaty, and noted they had good collaboration with WIPO. 
 
Patent and Data Protection 
-------------------------- 
 
¶10. (SBU) Asked about the recently approved Exclusive 
Marketing Rights (EMR) agreement, Al-Aiyash said the Saudi 
Food and Drug Authority (SFDA) had been informed, and that 
the Ministry of Health, Ministry of Commerce, SFDA, and King 
Abdulaziz City for Science and Technology (KACST) would meet 
in November to agree on an implementation strategy for the 
decree.  Asked if the SFDA could fully implement the EMR 
decree by November 23, Al-Aiyash said he would "try his 
best."  Deputy Minister of Commerce Al-Hamoudi plans to send 
a copy of the EMR decree to the USG via official letter. 
 
¶11. (SBU) Al-Aiyash said he would confirm up to seven names 
of attendees for the November 15 to 18 Patent and Trademark 
Program in Muscat, Oman.  (Note: Al-Aiyash sent four nominees 
to USPTO on November 4 and noted more nominations from 
KACST's Patent Office were forthcoming.  End note.)  In 
response to a 2007 request from KACST, USPTO is organizing an 
advanced patent program with Arabic translation February 16 
to 19 in Washington.  Al-Aiyash recommended that KACST 
attend, and welcomed the availability of Arabic translation. 
Al-Aiyash also invited PhRMA to co-organize a second Data 
Exclusivity Workshop with the Ministry of Commerce and 
Industry in the January 2010 timeframe, which would help SAG 
officials understand and enforce the regulation. 
 
 
RIYADH 00001493  003 OF 003 
 
 
GCC Trademark and Trade Secrets Laws 
------------------------------------ 
 
¶12. (SBU) Asked about Saudi Arabia's comments on the Gulf 
Cooperation Council (GCC) Trademark Law, Al-Aiyash said they 
studied U.S. FTAs with Bahrain and Oman before submitting 
their comments.  Saudi officials believe USTR may have an 
earlier draft law, which does not, according to Al-Aiyash, 
include Saudi Arabia's comments as they were sent in October. 
 Asked about the GCC Trade Secrets Law, Al-Aiyash said the 
latest draft law was very extensive and included 5 years of 
data protection. 
 
Comment 
------- 
 
¶13. (SBU) Despite technical difficulties, the overall tone of 
the DVC was positive and constructive on both sides.  The 
Saudis' repeated offers to cover translation and 
accommodation costs for U.S. experts traveling to the Kingdom 
underscore the sincerity of their requests for assistance and 
the urgency they attach to addressing remaining deficiencies. 
 SAG partnership with industry, such as Rotana and PhRMA, is 
notable.  The USG needs to complement these partnerships with 
training programs so that continued progress can be made 
towards the larger goal of deepening our trade relationship 
with Saudi Arabia. 
SMITH