VZCZCXYZ0000
OO RUEHWEB

DE RUEHRH #1626/01 3491405
ZNR UUUUU ZZH
O 151405Z DEC 09
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2070
INFO RUEHRC/DEPT OF AGRICULTURE WASHDC IMMEDIATE
RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE
RUEAWJA/DEPT OF JUSTICE WASHDC IMMEDIATE
RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
RHMFIUU/HOMELAND SECURITY CENTER WASHINGTON DC IMMEDIATE 0295
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY

UNCLAS RIYADH 001626 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO USTR FOR CHRIS WILSON, JASON BUNTIN 
STATE PASS TO DOC FOR STEVEN GARRETT, TOM SAMS, CHERIE 
LOUSTANAU, MICHAEL ROGERS, AND ANDREA CORNWELL 
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 REMOVAL FROM IPR WATCH LIST DURING 
OUT-OF-CYCLE REVIEW ESSENTIAL 
 
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 
     ¶O. RIYADH 1493 
     ¶P. RIYADH 1543 
     ¶Q. RIYADH 1544 
     ¶R. RIYADH 1550 
     ¶S. RIYADH 1572 
 
Summary 
------- 
 
¶1. (SBU) The Saudi government continues to make progress on 
copyright and patent protection, including recent accession 
to two significant patent treaties, following their November 
23 on-time submission to the Special 301 Out-of-Cycle Review 
(OCR) committee.  Upon return from the Eid holiday, key SAG 
officials reiterated their commitment to IPR protection and 
eagerness to move ahead with our bilateral partnership, in 
cooperation with the private sector, to pursue constructive, 
tangible activities like the March 2010 data exclusivity 
workshop.  Post is eager to pursue an ambitious bilateral 
trade and investment agenda, and failure to remove Saudi 
Arabia from the Watch List now would damage partnerships key 
to implementing our interagency IPR agenda.  Removal will 
help us move beyond a confrontational dialogue about 
problems, and towards a discussion about increasing U.S. 
investment and jobs in IP-dependent industries here. 
 
Saudis committed to IPR partnership... 
-------------------------------------- 
 
¶2. (SBU) Saudi IPR Committee Chairman Mohammad Al-Aiyash told 
Econoffs December 15 that the Saudi government remains 
committed at the highest levels to protecting and enforcing 
intellectual property rights.  He said the SAG greatly 
appreciates its partnership with the private sector and the 
USG, emphasizing that "We are one team, working towards the 
same goals."  Al-Aiyash said his government was awaiting a 
positive outcome from the 2009 OCR, which would help his 
ministry make further progress in copyright and patent 
enforcement. 
 
... And eager for industry to submit EMR application 
--------------------------------------------- ------- 
 
¶3. (SBU) Local industry representatives lauded Saudi Arabia's 
October approval of the Exclusive Marketing Rights (EMR) 
proposal as a significant demonstration of the SAG's 
commitment to protecting intellectual property in December 14 
meetings with Econoff.  Al-Aiyash told Econoffs December 15 
the IPR Committee was eager to see a company submit an 
application for EMR protection to King Abdulaziz City for 
Science and Technology's (KACST) Patent Office.  Al-Aiyash 
asked to be personally informed once an application was 
submitted so that he could shepherd the application through 
the process.  He reiterated the guidance he provided in 
November that companies need to specifically apply for EMR 
protections, which is different and separate from a regular 
patent application (ref Q).  Asked when the six month window 
for filing applications commenced, Al-Aiyash said the window 
started when King Abdullah approved the EMR proposal, since 
the relevant agencies immediately determined an 
implementation process.  He emphasized repeatedly that KACST 
is ready to accept EMR applications immediately, and 
indicated he is puzzled they have not already filed an 
application. 
 
Saudi joins two patent treaties 
 
------------------------------- 
 
¶4. (SBU) The Saudi Ministerial Council on December 14 
approved the Kingdom's accession to both the Intellectual 
Property Owners Association Patent Cooperation Treaty (PCT) 
and its Implementing Regulations and the Patent Law Treaty 
(PLT) adopted by the Diplomatic Conference in Geneva on June 
1, 2000.  Local industry representatives said joining these 
two treaties was an important development in the patent 
system of Saudi Arabia.  Pharma's chief local patent attorney 
explained that accession to these two treaties are a 
significant advance for patent protection in Saudi Arabia. 
Accession to the Patent Cooperation Treaty is a significant 
improvement for foreign companies, as this treaty streamlines 
the patent application, examination and searching processes 
among the 140 member countries to the treaty.  The treaty 
also allows companies to indicate which other countries they 
might want to file applications in when they file an initial 
patent application in one member country (e.g., in the U.S.); 
they then have 18 months to file the necessary applications 
in these other countries to gain complete protection.  The 
lawyer explained that this treaty will give foreign companies 
significantly more time to process their patent applications 
in Saudi Arabia.  The lawyer also noted that it is welcome 
news that Saudi Arabia acceded to the second treaty, although 
this is not yet effective in many jurisdictions. 
 
Data exclusivity workshop to inform GCC new law 
--------------------------------------------- -- 
 
¶5. (SBU) Al-Aiyash understood the importance of data 
exclusivity for companies, and reiterated Saudi Arabia's 
willingness - indeed eagerness - to learn from the example of 
how other countries address this issue.  The Ministry of 
Commerce and Industry has continued working closely with the 
pharmaceutical industry to organize a second workshop on data 
exclusivity protection in March 2010.  The workshop, to be 
focused on data exclusivity implementation issues, will help 
the Gulf Cooperation Council (GCC) draft its data exclusivity 
law, Al-Aiyash said.  He said the GCC had already started 
drafting the law and had formed a committee, all of whom will 
be invited to attend the March 2010 workshop.  Al-Aiyash 
lamented that this workshop did not take place last November, 
as SAG officials were ready and looking forward to it. 
 
Referral of copyright case to Board of Grievances 
--------------------------------------------- ---- 
 
¶6. (SBU) Following AUSTR Chris Wilson's October 16 - 20 
visit, the Saudi Ministry of Culture and Information worked 
quickly to deliver on the promise to refer a copyright case 
to the Board of Grievances (BOG).  Within three weeks the 
Ministry conducted raids on two repeat copyright violators, 
brought both cases to the Violations Review Committee (VRC), 
conducted investigations, and determined both cases merited 
referral to the Board of Grievances for deterrent sentencing. 
 The VRC must hear the testimonies of the accused, who failed 
to appear three times before the Eid holiday (November 23 to 
December 5), before they can present the case referrals to 
Minister of Culture and Information Khoja for approval and 
transfer of the cases to the Board. 
 
¶7. (SBU) Deputy Minister Abdulrahman Al-Hazzaa, who chairs 
the VRC and leads the Ministry's copyright enforcement 
efforts, returned from Eid and an international intellectual 
property conference on December 10.  Al-Hazzaa and IPR 
Committee Chairman Mohammad Al-Aiyash ensured the 
participation of two Board of Grievances judges in the 
international conference, which Al-Aiyash said included 
several discussions of the importance of strong deterrent 
sentencing in preventing piracy.  Al-Hazzaa told Econoff 
December 12 that the copyright referrals would be his top 
priority following the GCC summit in Kuwait, which ends 
December 15. 
 
Ministry of Commerce and Industry software audit ongoing 
--------------------------------------------- ----------- 
 
¶8. (SBU) The Ministry of Commerce and Industry's hardware 
upgrade and software audit is ongoing and due to conclude in 
 
the first quarter 2010 (refs H, I, K, O, R, S).  The Ministry 
of Commerce and Industry and the Ministry of Culture and 
Information agreed to draft a letter for the King's signature 
recommending all ministries conduct software audits once the 
Commerce Ministry's audit is complete.  Several SAG entities, 
including the BOG, Ministry of Culture and Information, and 
SAGIA have already taken steps to ensure they only use legal 
software. 
 
Ambassador's Note 
----------------- 
 
¶9. (SBU) The Ambassador strongly recommends Saudi Arabia's 
removal from the 301 Watch List during the 2009 OCR to 
promote continued progress and further our bilateral trade 
and investment agenda.  Our Saudi partners have made it clear 
they would interpret removal as recognition of the effort 
they have put in this year to advance IPR protection.  Far 
from letting them off the hook for continued progress, Deputy 
Minister Al-Hazzaa often comments that exit from the Watch 
List will only make his job busier.  Removal will help us 
move beyond a dialogue about problems and towards a 
discussion about partnership to increase U.S. investment and 
jobs in IP-dependent industries here.  Waiting until the 
regular 301 season in April 2010 will undercut the ambitious 
cooperative trade and investment agenda that we are building 
including the February Jeddah Economic Forum, the April 
Entrepreneurship Summit, and the April Business Forum in 
Chicago.  Failure to remove Saudi Arabia from the Watch List 
during the OCR will also damage key partnerships required to 
tackle the next area we would like to address in IP, 
improving our partnership on patent issues.  Moreover, the 
Ambassador believes the next major engagement area by Econ is 
a focus on contracts, an effort which could pay tremendous 
dividends if we build on the partnership developed during the 
IP immersion.  Post cannot move to this engagement until the 
301 Watch List is resolved.  It is critical to the success of 
our broader trade and investment agenda that agencies support 
removing Saudi Arabia from the Watch List at the December 22 
OCR meeting. 
SMITH