C O N F I D E N T I A L RIYADH 000030
SIPDIS
STATE FOR NEA/ARP AND EEB
STATE PASS TO USTR FOR JASON BUNTIN
USDOC FOR TYLER HOFFMAN
E.O. 12958: DECL: 09/17/2017
TAGS: ECON, ETRD, EINV, KIPR, PREL, SA
SUBJECT: INDUSTRY GROUP HAS MIXED FEELINGS ON SPECIAL 301
REF: A. RIYADH 1870
B. RIYADH 1271
Classified By: Deputy Chief of Mission David Rundell for reasons 1.4 (b
) and (d).
1. (C) Summary: Although the International Intellectual
Property Alliance (IIPA) is preparing to recommend that Saudi
Arabia be placed on the Special 301 Priority Watchlist,
representatives in Riyadh said they feel "handcuffed" into
this recommendation, and would prefer to recommend a more
favorable rating. Saudi Arabia is currently on the
Watchlist, and SAG officials have communicated a strong
desire to be removed. In 2008, IIPA recommended to USTR that
Saudi Arabia be downgraded to the Priority Watchlist.
Econoff met with IIPA representatives who revealed the
group's intention to make the same recommendation in 2009
claiming little tangible progress made since last year.
However, as the SAG has gained momentum and motivation to
combat IPR violations in recent months, IIPA fears that a
negative recommendation, while "required" under their
methodology, will do more harm than good. End Summary.
2. (C) On December 28, Econoff met with Scott Butler, CEO of
the Arab Anti-Piracy Alliance (AAA), and Ayman Takrori,
Partners Group Director for Microsoft Arabia. Butler is the
de facto regional representative for the International
Intellectual Property Alliance (IIPA) which is a private
sector coalition formed to represent U.S. copyrights-based
industries in USG efforts to improve international protection
of copyrighted materials. Saudi Arabia has been on the
Special 301 Watchlist for several years. In 2008, the IIPA
recommended that the Kingdom be downgraded to the Priority
Watch List.
3. (C) In recent months, Post, AAA and IIPA have successfully
engaged a senior SAG official, Abdul Rahman Al-Hazzaa, Deputy
Minister for Internal Information at the Ministry or Culture
and Information. Al-Hazzaa has demonstrated a strong
commitment to improving IPR protection and enforcement in the
Kingdom, and has already mobilized his employees to work on
legislation and raids on street vendors (ref A). Butler said
his concern was that given no observable improvements, IIPA
would be "handcuffed into making the Priority Watchlist
recommendation." He said IIPA wants to support al-Hazzaa's
positive efforts and does not want him to fail nor does it
want to be perceived as punishing Saudi Arabia when the
Kingdom is beginning to make forward strides towards
combating piracy.
4. (C) Butler said IIPA is looking for ways to positively
reinforce SAG efforts while still maintaining its
institutionalized standards. To that end, he described to
Econoff an action plan that, in IIPA's view, might result in
a better ranking for Saudi Arabia. According to Butler, if
the SAG took action against street vendors and fully
populated the website of ongoing cases maintained by the
Ministry of Culture and Information (MOCI) (ref B), the IIPA
would be prepared to offer a recommendation that Saudi Arabia
remain on the Watchlist. He claimed that if Saudi Arabia
took specific additional steps (prosecute IPR violations,
enforce severe deterrent penalties for piracy, conduct a
public awareness campaign, and decrease SAG use of unlicensed
software), IIPA would recommend that USTR remove Saudi Arabia
from the Watchlist entirely.
5. (C) Comment: In the past several months IIPA officials
and the SAG have begun to see eye-to-eye regarding IPR
enforcement. IIPA acknowledges that the Saudi bureaucracy
inherently impedes progress; however, in spite of this and
other limitations, progress is being made, and we judge that
the more collaborative approach that IIPA is considering may
work if the Saudis are informed of the IIPA's new long-term
vision. Nevertheless, the SAG certainly knows that IIPA's
recommendation is only one of many that the USG considers.
End comment.
FRAKER