VZCZCXRO7183
PP RUEHDE RUEHDH RUEHDIR
DE RUEHRH #1572/01 3281410
ZNR UUUUU ZZH
P 241410Z NOV 09
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC PRIORITY 1992
RUCPDOC/USDOC WASHDC 3051
INFO RUEHZM/GCC COLLECTIVE

UNCLAS SECTION 01 OF 06 RIYADH 001572 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR NEA/ARP, NEA/RA, AND EEB/TPP/IPE 
DEPT PLEASE PASS TO USTR 
 
E.O. 12958: N/A 
TAGS: ETRD KIPR SA
SUBJECT:  Saudi government input to U.S. Special 301 OCR 
 
Ref:  A. RIYADH 1550 
      ¶B. RIYADH 1544 
      ¶C. RIYADH 1543 
      ¶D. RIYADH 1493 
      ¶E. RIYADH 1459 
      ¶F. RIYADH 1441 
      ¶G. RIYADH 1426 
      ¶H. RIYADH 1423 
      ¶I. RIYADH 1375 
      ¶J. RIYADH 1366 
      ¶K. RIYADH 1202 
      ¶L. JEDDAH 297 
      ¶M. RIYADH 982 
      ¶N. RIYADH 793 
      ¶O. RIYADH 789 
      ¶P. RIYADH 575 
      ¶Q. RIYADH 524 
 
¶1. (SBU) Embassy received the following Saudi government input to 
the U.S. Special 301 out of cycle review for Saudi Arabia from the 
Chairman of the Saudi Ministry of Commerce and Industry Standing IPR 
Committee on November 22.  Begin text: 
 
Kingdom of Saudi Arabia 
Ministry of Commerce and Industry 
Intellectual Property Rights Standing Committee 
 
KSA Report on USTR Special 301 
Out of Cycle Review 
 
November 2009 
INPUT OF THE KINGDOM OF SAUDI ARABIA TO USTR's SPECIAL 301 OUT - of 
- CYCLE REVIEW 
November 2009 
 
The following is the summary of activities and efforts of government 
agencies of the Kingdom of Saudi Arabia responsible for 
implementation of IPR laws. 
 
The Kingdom has continued its sincere and vigorous efforts for 
implementation and enforcement of IPR laws and procedures during the 
year 2009. The Kingdom is fully committed to fulfill its promises 
and WTO commitments in good faith. No efforts are spared in the 
achievement of this objective. 
 
The attached information and statistics for each relevant agency 
testifies to the continuing improvement and success of our mission. 
The Kingdom sincerely believes that implementation and enforcement 
of its IPR laws is beneficial for its economy and thus in our own 
supreme interest.  IPR protection is a key component of Saudi 
Arabia's long-term commitment to implementing King Abdullah's vision 
to develop a knowledge-based economy. 
 
The efforts of Saudi Arabia have been duly recognized in the form of 
anti-counterfeiting and piracy awards to Saudi Arabia Customs by the 
World Customs Organization in 2009 for its work in raising awareness 
in the Middle East by organizing the first Pan-Arab conference on 
this issue and by its commitment to building the capacity of Customs 
and by translating WCO documents into Arabic.  Saudi Customs has 
also provided information about its extensive seizures to enforce 
trademark rules. 
 
The Kingdom has taken concrete action to build an effective IPR 
regime, and has worked closely with industry to not only ensure 
their concerns are addressed, but also to increase the capacity of 
government agencies with training.  Industry has recognized the 
Kingdom's progress, and continues to partner with the Saudi 
government to enhance IPR enforcement and awareness. 
 
The Kingdom is pleased to give below an account of some important 
developments during the year 2009, along the lines outlined in 
USTR's list of issues. 
 
Transparency in Copyright Enforcement: 
 
¶1. The website of the Ministry of Culture and Information giving 
information on raids data, hearing dates and decisions and penalties 
issued by the Violation Review Committee (VRC) is being updated. A 
good lot of new information has been posted, including 529 VRC cases 
to date. The English version of the website is being developed and 
it is expected to be in use in the first quarter of 2010.  Work is 
continuing and will be completed and updated very soon. 
 
¶2. The dates of adjudication of IPR cases in the VRC are set in 
coordination with the rights-holders thus giving them adequate 
advance notice to attend hearings. 
 
IPR Enforcement: 
 
RIYADH 00001572  002 OF 006 
 
 
 
¶3. Raids on the street vendors of pirated and counterfeit goods have 
been intensified. Statistics are given in Annexes A through C. 
 
¶4. The Ministry of Culture and Information opened a VRC branch in 
Jeddah.  Another branch in Dammam is expected to open in 2010. 
 
¶5. The VRC has imposed the maximum penalty of Saudi Riyals 100,000 
in some cases.  The VRC is currently considering two cases which 
will be referred to the Board of Grievances with a recommendation of 
deterrent sentencing once the VRC concludes its proceedings. 30 
decisions were issued to compensate rights holders where 
compensations reached up to SR (70,000), and it was decided to close 
the store for different periods. 
 
¶6. The Ministry of Culture and Information is conducting a study in 
collaboration with the Communications and Information Technology 
Commission (CITC) to devise suitable procedures to block websites 
that sell pirated or counterfeit goods on the internet. The study 
would also devise ways and means to take action against infringing 
websites. In addition, we have requested WIPO for an expert to 
provide advice and help on this issue, including advice on legal and 
technical matters in relation to adherence to internet treaties 
 
¶7. As for satellite signal piracy, Ministry of Culture and 
Information now has the authority to control the import and use of 
receivers with decoding capacity. The Ministry would thus be able to 
license and monitor their use which would go a long way in curbing 
satellite signal piracy. 
 
Government Use of Legal Software: 
 
¶8. As the lead agencies responsible for IPR protection, the Ministry 
of Commerce and Industry and the Ministry of Culture and Information 
are jointly drafting the text of a proposed decision to be issued by 
His Majesty the King asking all Ministries, Departments and Agencies 
to carry out and complete software asset management audit. 
 
¶9. The software asset management audit by the Ministry of Commerce 
and Industry is expected to be completed in the first quarter of 
¶2010.  The Ministry of Culture and Information has an active 
software management program which meets international standards. 
 
Data Protection: 
 
¶10. The Saudi Food and Drug Administration (SDFA) has confirmed its 
commitment to the Saudi legislation on the Protection of Commercial 
Trade Secrets. The Chairman of Saudi IPR Committee has held 
discussion on this matter with Pharma and then with SDFA to clarify 
some technical points. It was also agreed that this matter requires 
some technical assistance and the need to hold a seminar or a 
workshop. Incidentally, a workshop on the Protection of Confidential 
Commercial Information was held in Riyadh in June 2009. Pharma is 
looking into the possibility of organizing another similar workshop 
with specific focus on the implementation issues and on the 
practices of different countries. In addition Ministry of Commerce 
and Industry is seeking assistance from the WIPO on this matter. 
 
¶11. King Abdullah approved the Exclusive Marketing Rights (EMR) 
proposal in October 2009.  The Ministry of Commerce and Industry, 
SFDA, King Abdulaziz City for Science and Technology (KACST), and 
Ministry of Health have agreed on a procedure to implement the EMR. 
KACST's General Directorate of Industrial Property is prepared to 
consider applications which request EMR protection immediately. 
 
Public Awareness Campaign: 
 
¶12. The public awareness campaign against piracy and counterfeiting 
is continuing through the print and electronic media and the 
response is encouraging. It was also requested that the private 
sector take a major part in this and they promised to do so by the 
first quarter of 2010. 
 
Legislation: 
 
Saudi Arabia has requested for an expert from the WIPO on 
implementation of the provisions of the WCT and WPPT. 
 
Summing Up: 
 
The foregoing narration and the attached statistical tables show the 
commitment, attention, action and achievements of the Kingdom of 
Saudi Arabia in implementing and enforcing its IPR obligations. 
These are bearing fruit and this process will continue and will be 
further enhanced. 
 
H125 
 
 
RIYADH 00001572  003 OF 006 
 
 
------------- 
Annex - A 
------------- 
 
Ministry of Culture and Information 
 
The Efforts of the Copyright General Department 
 
First: In the Field of Cases 
The Copyright General Department (CGD) has adopted a procedure 
whereby if a case on initial examination is found to be within the 
competence of the Department, it is put on the Department's website, 
with a number, in order to enable the holder of the right to follow 
his case through the internet, without the need to contact the 
Department, until the decision by the Committee. 
 
The cases on the website up till now are 529. Decisions have been 
made in some of them while decisions on the remaining cases are in 
process. 
 
Visits made by the Department to the market during the period from 
1/1/2009 to 30/9/2009 were 2106 and during these visits about 4912 
sites and establishments were visited and 3,838,975 violating 
materials and equipments were seized. 
 
The Violations Review Committee under the provisions of Copyright 
Protection Law is chaired by the Assistant Deputy Minister of 
Domestic Media. 
 
The Committee has made during the past three months more than 128 
decisions. Punishments in these decisions range from warnings to 
fines up to SR (100,000), in addition to closure of outlets from ten 
days to two months. For repeated violations, one of the stores was 
fined SR 270,000, and it was decided to close the store. 
 
30 decisions were issued to compensate rights holders where 
compensations reached up to SR (70,000), and it was decided to close 
the store for different periods. 
 
Second: In the Field of Awareness: 
 
The Department designed symposia and printed pamphlets giving 
warnings for not respecting the law. Also fatwas by famous Islamic 
scholars against copyright violations were published on the website. 
The Department has supported and encouraged symposia and lectures 
organized by the private sector with good participation. 
 
The Department has encouraged the private sector to make information 
and awareness campaigns. 
 
Moreover, The Department has initiated TV and Radio programs to 
create awareness about copyright protection. 
 
Third: In the Field of Training: 
 
The Department has stepped up its training program. Every Monday, a 
lecture is given by specialists to train the employees on how to 
perform their tasks. The private sector participates in these weekly 
lectures. 
 
The Department took part in workshops organized by international 
organizations in the field of intellectual property, specially the 
World Intellectual Property Organization WIPO. The Department now 
has qualified persons bearing certificates in the field of 
intellectual property. 
 
Also, the Department sent some of its officials to foreign countries 
to participate in courses, seminars and workshops on IPR. 
 
A number of employees working in CGD participated in most of the 
local and international IPR conferences and workshops. 
 
------------- 
Annex - B 
------------- 
 
Statistics In Respect of Counterfeited Goods for ( 
1/1/2009-30/9/2009) 
 
Ministry of Commerce & Industry 
General Department for Combating Commercial Counterfeit 
 
-- 48 cases violating Combating Commercial Counterfeit Law that were 
transferred to Commercial Counterfeit Settlement Committee. 
-- 361 cases violating Commercial Trademarks Law that were 
transferred to the Investigation & Public Prosecution Bureau. 
-- 815 import shipments were reported to customs for their violation 
of Combating Commercial Counterfeit Law & Trademarks and Commercial 
 
RIYADH 00001572  004 OF 006 
 
 
Data Law. 
-- Seizure of 290,977 packs of counterfeited accessories, perfumes 
and cosmetics. 
 
------------- 
Annex - C - 1 
------------- 
 
Table of Some Customs Committees' Decisions on Counterfeit Goods 
Violating IPR Issued  from 1/1/2009 to 30/9/2009 
 
Customs committee 1 
------------------- 
Handbags, Footwear & Wallets:  397 cartons of handbags, 
                               8346 handbags, 3209 wallets 
Pens, Watches, Glasses & Lenses:  1255 glasses 
Clothes, Fabric & Cosmetics:  12380 packages of shampoo 
Electrical and Household Appliances:  500 cartons 
Cell Phones:  -- 
Sanitary ware & locks:  3031 cartons, 32 cartons of locks 
Vehicle Spare Parts:  7913 cartons, 4001 batteries 
Others:  7380 pillowcases and quilts 
Number of Cases and Suspects:  34 
Fine (SR):  664,223 
 
Customs committee 2 
------------------- 
Handbags, Footwear & Wallets:  19766 shoes, 
                               6048 handbags, 275 wallets 
Pens, Watches, Glasses & Lenses:  6635 watches 7601 glasses 
Clothes, Fabric & Cosmetics:  3420 shawls, 5097 yards of cloth 
Electrical and Household Appliances:  1900 heaters, 
                                      1725 cartons of lamps 
Cell Phones:  739 cell phones 
Sanitary ware & locks:  996 cartons, 7526 keys 
Vehicle Spare Parts:  15463 cartons 
Others:  7813 aluminium sheets, 
         10000 pieces of computer fittings 
Number of Cases and Suspects:  43 
Fine (SR):  885,994 
 
Customs committee Jeddah 
------------------- 
Handbags, Footwear & Wallets:  2961 cartons 
Pens, Watches, Glasses & Lenses:  6069 watches, 3285 glasses 
Clothes, Fabric & Cosmetics:  613 packages of clothes, 
                              1716 pieces of clothes, 
                              2400 packages of shampoo 
Electrical and Household Appliances:  2040 cartons 
Cell Phones:  168 cell phones 
Sanitary ware & locks:  2386 cartons, 600 cartons of locks 
Vehicle Spare Parts:  1218 cartons 
Others:  1839 cartons of lighting fittings, 
         1808 cartons of perfume 
Number of Cases and Suspects:  60 
Fine (SR):  501,114 
 
Customs committee Dammam 
------------------------ 
Handbags, Footwear & Wallets:  69 cartons of wallets, 
                               10740 shoes 
Pens, Watches,  Glasses & Lenses:  -- 
Clothes, Fabric & Cosmetics:  -- 
Electrical and Household Appliances:  -- 
Cell Phones:  248 cell phones 
Sanitary ware & locks:  -- 
Vehicle Spare Parts:  1218 cartons 
Others:  2018 prepaid charging cards 
Number of Cases and Suspects:  3 
Fine (SR):  15,709.30 
 
Customs committee Haditha 
------------------------- 
Handbags, Footwear & Wallets:  -- 
Pens, Watches,  Glasses & Lenses:  -- 
Clothes, Fabric & Cosmetics:  9528 headgears 
Electrical and Household Appliances:  -- 
Cell Phones:  -- 
Sanitary ware & locks:  -- 
Vehicle Spare Parts:  -- 
Others:  200 cartons of chocolate 
Number of Cases and Suspects:  6 
Fine (SR):  186,250 
 
Customs committee Halat Ammar 
----------------------------- 
Handbags, Footwear & Wallets:  -- 
Pens, Watches,  Glasses & Lenses:  325 glasses 
 
RIYADH 00001572  005 OF 006 
 
 
Clothes, Fabric & Cosmetics:  -- 
Electrical and Household Appliances:  -- 
Cell Phones:  -- 
Sanitary ware & locks:  -- 
Vehicle Spare Parts:  -- 
Others:  2 packages of computer memory, 12 CDs 
Number of Cases and Suspects:  3 
Fine (SR):  28,770 
 
Customs committee Batha 
----------------------- 
Handbags, Footwear & Wallets:  247 handbags, 
                               30 cartons of shoes 
Pens, Watches,  Glasses & Lenses:  7128 watches, 
                                   481 cartons of watches 
Clothes, Fabric & Cosmetics:  130 cartons of clothes, 
                              4600 shampoo 
Electrical and Household Appliances:  2574 cartons 
Cell Phones:  279 cell phones 
Sanitary ware & locks:  5216 cartons 
Vehicle Spare Parts:  983 cartons 
Others:  6307 cartons of perfume, 
         18588 bottles of perfume, 
         140 DVDs 
Number of Cases and Suspects:  27 
Fine (SR):  677,744 
 
-------------------------------- 
Total cases & suspects:  149 
Total fine:  2,282,060 SR 
 
------------- 
Annex - C - 2 
------------- 
 
Goods Violating IPR Seized by Customs Ports during 1/1/2009 - 
30/9/2009 
 
Product          Quantity       Value (SR) 
------------------------------------------ 
Clothes           157,561          355,748 
Handbags and 
wallets, of 
leather            45,179          794,192 
Vehicle 
spare parts       237,481        1,616,273 
Plumbing articles 152,490          186,868 
Medical appliances 21,350          870,665 
Watches            19,909          511,239 
Shoes               2,136          210,067 
Electrical 
appliances          6,833          320,741 
Perfumery             851          157,897 
Accessories        46,718           50,854 
Glasses and 
pens               43,674           67,981 
Miscellaneous 
goods              15,424        1,310,964 
------------------------------------------ 
Total             749,606        6,409,489 
 
------------- 
Annex - D - 1 
------------- 
 
King Abdulaziz City for Science and Technology 
General Directorate of Industrial Property 
 
Activities Relating to Patent and Industrial Designs for 2009 
(from 1/1/2009 to 11/10/2009) 
 
Patent Application Statistics for 2009: 
 
Action                                Number 
-------------------------------------------- 
Filed patent applications.               592 
Granted patents.                         114 
Rejected patent applications.            268 
Forfeited (lapsed) patent applications.  451 
Withdrawn patent applications.           0 
 
Industrial Designs Application Statistics for 2009: 
 
Action                                Number 
-------------------------------------------- 
Filed Industrial Design applications.    340 
Granted Industrial Designs.              124 
Rejected Industrial Designs applications. 89 
 
RIYADH 00001572  006 OF 006 
 
 
Forfeited (lapsed) Industrial 
Designs applications.                     141 
Withdrawn Industrial Designs applications.  0 
 
Recruitment: 
5 employees have been recruited as follows: Archiving clerk - 
Secretary - translator - accountant - legal researcher. 
 
 
 
Action                                Number 
-------------------------------------------- 
Abroad training in the field of patents.   9 
Abroad training in the 
field of plant varieties.                  5 
Abroad training in the field of 
intellectual and industrial property.      9 
Abroad training in scientific subjects.    4 
Regional and international participation.  8 
Participating in exhibitions.             10 
 
------------- 
Annex - D - 2 
------------- 
 
King Abdulaziz City for Science and Technology 
Patent and Industrial Designs Complaints Committee 
 
Statistical Data on Lawsuits for 2009 
(from 1/1/2009 to 12/10/2009) 
 
Action type               Patents   Industrial Designs 
Appeals against decisions 
of the General Directorate 
of Industrial Property.      330      15 
Infringement Lawsuits.        22       8 
Cases Closed.                270      14 
 
-- Total number of cases since the establishment of the committee is 
(375). 
-- Total number of decisions since the establishment of the 
committee is (284). 
-- Total number of unfinished cases (91). 
 
---------- 
Annex - F 
---------- 
 
Board of Grievances 
 
Actions and Activities from the Beginning of January to the End of 
October 2009 Relating to Intellectual Property Rights 
 
Case Statistics: 
 
 
Number of Cases   Case Category 
------------------------------- 
369               Trademarks 
31                Patents 
7*                Copyrights 
 
Number of Cases   Status 
------------------------------- 
32   Canceling of the Decisions 
115  Cases Dismissed 
24   Cases Inadmissible on Grounds of Formalities 
29   Expiration of Lawsuit 
2    Guilty 
5    Not Guilty 
 
Sample of Final Decision Resulting of Fines: 
Number of Cases   Case Category 
------------------------------- 
1   Guilty and Fined SAR 50,000 
1   Guilty and Fined SAR 50,000 
 
* The Board of Grievances hears copyrights appeals cases.  All of 
these cases were appeals cases referred to the Board by the 
Violations Review Committee. 
 
End text. 
 
Smith