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Cablegate: Visit of Stop! Delegation to Paris June 10

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 03 PARIS 004566

SIPDIS

DEPT FOR EB/IPE - PACETO AND EUR/AGS
DEPT PLS PASS USTR FOR VESPINEL
COMMERCE FOR SJACOBS
JUSTICE FOR MSTANSELL-GAMM
DHS/CBP FOR MARICISH
DEPT PLS PASS USPTO FOR WU

E.O. 12958: N/A
TAGS: ETRD KIPR FR
SUBJECT: VISIT OF STOP! DELEGATION TO PARIS JUNE 10

1. Summary: The visit of the interagency STOP delegation
to Paris June 9-10 helped raise the profile of IPR issues
with the French government and by extension with local
industry. While we found fundamental interest in
cooperation on the STOP initiatives, few concrete
commitments were made during this initial exchange.
Nevertheless, GOF officials pointed to common interests as
demonstrated by work on the proposed G-8 paper on
intellectual property. Both sides agreed that joint efforts
and increased transparency could potentially be keys to
effectively combating IPR violations. A general acceptance
of the need for a multifaceted approach to IP issues was
also noted. Both sides agreed to compare public awareness
efforts and further discuss best practices. End Summary.

ACTION ITEMS FROM VISIT
-----------------------

2. The following were the action items from the STOP
delegation's discussions.

-- Customs risk targeting. French customs is interested; it
already uses some simpler, more general methods.

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-- Exchange of information on customs audits.

-- IPR hotline. French side interested in establishment of
a hotline; they are on the verge of creating a similar
service and questioned US delegation on the specifics of the
US hotline operation.

-- Common website of enforcement success stories. French
expressed interest in sharing information.

-- Coordination on training efforts. No substantive
response from French side beyond informal field coordination
of IP attaches.

-- Education and assistance for SMEs in intellectual
property and counterfeit issues is essential.

-- Industry guidelines to keep fakes out of supply chains.
French side expressed interest.

-- Best practices in enforcement. USTR asked the DGTPE for
detailed reactions and suggestions for changes or additions.
DGTPE agreed to provide this.

STOP DELEGATION MEETS WITH FRENCH GOVERNMENT
--------------------------------------------

3. The STOP team led by acting A/USTR Victoria Espinel, met
June 10 with a French interagency group led by Vincent
Guitton, of the General Direction of the Treasury and
Political Economy (DGTPE).These included Wilfrid Roge, of
the Finance Ministry's Customs Service; Jean-Baptiste
Mozziconacci, French National Institute for Industrial
Property, bilateral affairs and international cooperation
chair; Marion Guth, secretary-general of the CNAC (National
Antipiracy Council); Police Commissioner Philippe Menard of
the Judiciary Police, Ministry of the Interior; Anne
Fauconnier, Consumer Fraud Enforcement at the Ministry of
Economy; Marie-Jose Semence, of the DGTPE; Eric Poulain,
WTO office DGTPE, recently named trade attach at the French
Embassy in Washington D.C.

4. The US STOP team included:
- Shaun Donnelly, EB Principal Deputy Assistant Secretary
of State, Department of State;
- Stephen Jacobs, Deputy Assistant Secretary of Commerce
for Trade Agreements and Compliance, International Trade
Administration, Department of Commerce;
- Martha Stamsell-Gamm, Chief, Computer Crime and
Intellectual Property Section, Department of Justice;
- Anne Maricich, Director, Trade Management Division,
U.S. Customs and Border Protection, Department of Homeland
Security;
- Elaine Tung-Lin Wu, Attorney-Advisor, Office of
International Relations, U.S. Patent and Trademark.
-
They were accompanied by Emboffs including Legal Attache and
Customs Attache.

COOPERATION ON G-8 PAPER
------------------------


5. Guitton laid out the importance of IPR for France and
French business, citing the 30,000 jobs that had been lost
because of this problem. Guitton pointed to the almost 42
Intellectual Property attaches covering 75 countries
overseas that France has co-located with French Embassies
and French state-sponsored chambers of commerce and
industry. The IP attaches provide information to the GOF
and industry, promote IP rights in country, guide the GOF's
aid program in country, and put on seminars and encourage
dialogue. Some of them, he noted, are already working
informally with their USG counterparts, for example in
China. French efforts are also devoted to intra-European IP
problems, for examples in Italy, Spain and Poland. Guitton
pointed positively to U.S.-French cooperation on the
proposed G-8 paper on intellectual property.


CUSTOMS
-------
6. Wilfrid Roge noted that French Customs already use some
indicators similar to those described by DHS/CBP to target
seizure of counterfeit goods. When faced with possible
violations, the French system looks at value, destination
and typical good exported by the enterprise. The French
system also uses visual clues such as color to quickly
indicate the origin of a shipment. He added that the French
customs look at more than the twenty factors described by
the CBP risk model. Both countries agreed that post-entry
audit techniques are an important complement to traditional
examinations in stopping trade in counterfeit goods.

7. One issue of concern for the French is the increasing
number of counterfeit goods that are purchased via the
Internet. This has complicated enforcement because there are
greater numbers of smaller shipments to be examined by
customs. Smaller shipment sizes means the gross number of
seizures of counterfeits by customs increased in the past
year, even though the total volume of counterfeit good
seized is roughly stable.

8. French legal practice emphasizes civil over criminal
remedies for trademark infringements. The STOP team
countered that U.S. does not advocate a shift from civil to
criminal actions, but we also see a growth of large
transnational criminal organizations being involved in
counterfeit goods trade. This is something that private
rights holders cannot deal with only through civil actions.
Moreover, criminal sanctions serve as a strong deterrent to
IP violations. Overall the US would like to have a stronger
ability to pursue perpetrators of IPR crimes.

9. DOJ stressed the importance of speed in working across
borders to combat digital piracy and computer crime through
operations like Operation Fastlink. The US also stressed
that the DOJ would also assist French authorities in
stopping IPR crimes that occur on US soil or involve US
citizens. The French side expressed a particular interest in
cooperation in fighting cyber crime and digital piracy.

10. The French government's interagency anti-piracy effort
is loosely organized around the National Antipiracy Council
(CNAC or Conseil National Anti-Contrefacon). It is headed
by an elected member of the National Assembly. It's
taskings are provided by the CNAC's "action plans". The
Most recent action plan (2003-2004) is dubbed the Sarkozy
plan, issued while Nicolas Sarkozy was Economy Minister.
Guth cited the three elements of the plan: awareness,
sanctions and cooperation. The CNAC is directly involved in
a series of public awareness campaigns. The budget for the
next campaign is five million Euros. The CNAC is also
coordinating efforts to set up a hotline that responds to
consumers and business. Guth noted she would appreciate
knowing more about the USG experience.

POLICE: SPECIAL BRIGADE
----------------------
11. Police Commissioner Menard explained the operations of
a special French IPR brigade that combats IPR violations
both domestically and abroad. The focus of this brigade is
on preventing trade in counterfeit items, corresponding to
the US "No trade in fakes" effort. This brigade also
provides training to officers abroad, including a recent
session with Vietnamese officers. The French delegation
highlighted the necessity of interagency domestic
cooperation.

12. State's Donnelly and Commerce's Jacobs noted our
interest in possibly mobilizing embassies to cooperate in
addressing IPR problems in key countries. The US delegation
expressed a desire to increase the number of personnel
abroad (DOS and DOC) who are trained in IPR issues. They
also encouraged U.S. and French embassy personnel to further
cooperate in the field. Jacobs mentioned the "tool kit" for
business, which interested the French.
EDUCATING THE PUBLIC AND COMPANIES
----------------------------------
13. Both French and US delegates agreed that SMEs and youth
were two crucial target groups for IPR information. SMEs in
particular are in need of IPR guidance. Both countries have
training seminars and information available for SMEs. The
French customs representative, M. Boucard, questioned his
United States counterpart on general costs of obtaining and
protecting a patent. He cited the low costs of such action
in France as a way to help SMEs combat IPR violations.

FRENCH CUSTOMS "IMAGE" SEARCH ENGINE
------------------------------------
14. The STOP delegation also met with representatives of
the French National Institute for Industrial Property,
headed by bilateral affairs and international cooperation
chair Jean-Baptiste Mozziconacci to view a demonstration of
France's image search engine. The system, being tested in a
number of European countries, relies on information provided
by industries and the patent and trademark database. USG
officials expressed some concern about the danger of working
with proprietary information in the database.

15. This cable has been cleared by the delegation.
WOLFF

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