VZCZCXYZ0000
PP RUEHWEB

DE RUEHRH #0075/01 0131350
ZNR UUUUU ZZH
P 131350Z JAN 10
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC PRIORITY 2300
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHFJUSC/US CUSTOMS SERVICE WASHDC PRIORITY

UNCLAS RIYADH 000075 
 
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 
STATE FOR NEA/ARP, EB/TPP (BTA AND IPE), E FOR U/S ROBERT 
HORMATS 
 
E.O. 12958: N/A 
TAGS: ETRD KIPR ECON EINV PREL SA
SUBJECT: FIRST EVER COPYRIGHT CASE REFERRED FOR DETERRENT 
SENTENCING, SEVERAL EMR APPLICATIONS BEING PROCESSED 
 
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 
     ¶T. RIYADH 1626 
 
Summary 
------- 
 
¶1. (SBU) On January 5, Minister of Culture and Information 
Khoja referred the first-ever copyright violation case to the 
Board of Grievances (BOG), Saudi Arabia's tribunal for 
commercial dispute resolution.  The Ministry's Violations 
Review Committee (VRC) recommended the Board fine the repeat 
offender 150,000 Saudi riyals (USD 40,000) and sentence him 
to 15 days of imprisonment.  The VRC is actively pursuing a 
second case for referral to the Board, and is working with 
the police to complete the necessary judicial process.  Local 
industry representatives expect that this second case will be 
referred to the BOG by the end of January.  The Ministry of 
Commerce submitted a copy of Exclusive Marketing Rights (EMR) 
announcement to the official gazette January 11, and will 
place an announcement of the procedures for companies to 
follow to obtain protection under the EMR on its website by 
January 13.  The Ministry of Commerce also reported that 
KACST has received "several" EMR applications and is actively 
processing them.  Industry representatives said the EMR 
application process is straightforward, and they estimate it 
will be feasible to file applications for all of the 50 to 70 
pharmaceutical products likely to benefit from the EMR before 
the March 2010 deadline.  The Board of Grievances referral 
and active processing of EMR applications addresses the two 
conditions for removal from the 301 Watch List determined by 
the Out-of-Cycle Review Committee on December 22.  Post 
strongly recommends Saudi Arabia be removed from the Watch 
List during the January 21 Committee meeting. 
 
First ever copyright case referred to Board of Grievances 
--------------------------------------------- ------------ 
 
¶2. (SBU) Minister of Culture and Information Khoja referred 
the first-ever copyright violation case to the Board of 
Grievances, Saudi Arabia's tribunal for commercial dispute 
resolution, for deterrent sentencing on January 5.  The 
Ministry's Violations Review Committee (VRC) recommended the 
Board fine the repeat offender 150,000 Saudi riyals (USD 
40,000) and sentence him to 15 days of imprisonment (Note: 
this is at least the second fine that the VRC has imposed on 
this company.  End note).  Deputy Minister of Culture and 
Information Al-Hazzaa told Econoff the Ministry would 
announce the referral in several publications.  Al-Hazzaa 
also expressed his Ministry's hope that the referral address 
copyright industry concerns regarding IPR enforcement in 
Saudi Arabia. 
 
¶3. (SBU) The referred copyright case is one of two cases 
pending referral in the VRC.  Saudi IPR Committee Chairman 
Mohammad Al-Aiyash told Econoffs January 12 the Ministry was 
working hard to complete the judicial process to refer the 
second case.  The suspected pirate in the second case has not 
responded to the VRC's requests for a statement, a necessary 
step in the judicial process which, if overlooked, would 
jeopardize the Board of Grievances' acceptance of the 
referral.  The Ministry has asked the police to help secure 
 
the required statement from the suspect, he said.  Al-Aiyash 
assured Econoffs the case was "still hot," and simply needed 
time to complete the necessary due diligence for a solid 
referral to the Board.  Al-Aiyash stressed that the SAG wants 
to make sure the BOG accepts the first several copyright 
violation referrals to create a good precedent, which will 
help deter other violators.  For that reason, the SAG is 
being careful not to miss any procedural steps.  Local 
industry representatives are following this case carefully, 
and expect that the procedures will be completed in the 
coming week, allowing this second case to be referred to the 
BOG by the end of January. 
 
Several Exclusive Marketing Rights 
applications being processed 
---------------------------------- 
 
¶4. (SBU) Al-Aiyash shared a hard copy of the Exclusive 
Marketing Rights (EMR) announcement with Econoffs, which he 
said had been submitted to the official gazette January 11, 
and would appear on the Ministry of Commerce and Industry's 
website by January 13.  An industry representative said the 
gazette would likely publish the announcement in its January 
17 issue.  King Abdullah approved the mechanism to protect 
EMR on September 30, and the Ministry of Commerce and 
Industry, General Department of Industrial Property at King 
Abdulaziz City for Science and Technology (KACST), and Saudi 
Food and Drug Authority (SFDA) immediately developed a 
procedure for implementation and began accepting 
applications.  Al-Aiyash told Econoffs January 11 that KACST 
had received "several" EMR applications and was actively 
processing the applications.  The EMR announcement indicates 
all EMR applications must be submitted within six months from 
the date of the King's approval, or by the end of March 2010. 
 Al-Aiyash said once KACST sends approved applications to the 
SFDA, SFDA has already committed that there will be no 
additional processing required, and it will immediately grant 
companies their marketing rights. 
 
¶5. (SBU) A representative for several pharmaceutical 
companies told Econoff January 11 that the March 2010 
application window was reasonable for the 50 to 70 
pharmaceuticals likely to apply for EMR protection.  The 
representative said he had filed two applications to date, 
and expected to file another two applications by January 13. 
The representative said the two pending applications were 
initially rejected by KACST, but he immediately notified IPR 
Chairman Al-Aiyash who resolved the issue and facilitated 
resubmission within one day.  The representative said 
Al-Aiyash was very helpful, and noted that the EMR 
application was straightforward and the paperwork involved 
was not burdensome.  Al-Aiyash confirmed this account, and 
reiterated his commitment to work with companies and their 
lawyers to resolve any questions or problems immediately. 
 
Comment 
------- 
 
¶6. (SBU) The Out-of-Cycle Review Committee met on December 22 
and decided to keep Saudi Arabia on the Watch List, pending 
referral of at least one copyright violation case to the 
Board of Grievances and some further details on the 
procedures for American companies to follow to apply for 
protection under the EMR decree.  The January 5 Board of 
Grievances referral and active processing of EMR applications 
as confirmed by industry addresses these two issues and 
demonstrates Saudi commitment to IPR protection.  Post 
strongly recommends Saudi Arabia be removed from the Watch 
List during the January 21 Committee meeting as the SAG has 
met the remaining conditions for removal from the Watch List. 
SMITH