Cablegate: Portugal: Special 301 Watch List Not Recommended

VZCZCXRO3348
RR RUEHPD
DE RUEHLI #0441 0520737
ZNR UUUUU ZZH
R 210737Z FEB 08
FM AMEMBASSY LISBON
TO RUEHC/SECSTATE WASHDC 6635
INFO RUEHPD/AMCONSUL PONTA DELGADA 0403
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS LISBON 000441

SIPDIS

SIPDIS

STATE FOR EB/TPP/IPE
STATE FOR EUR/WE KEVIN OPSTRUP
COMMERCE FOR ITA/MAC/OIPR

E.O. 12958: N/A
TAGS: ECON ETRD KIPR PO
SUBJECT: PORTUGAL: SPECIAL 301 WATCH LIST NOT RECOMMENDED

REF: STATE 8475

1. (SBU) Post recommends that Portugal remain off the 2008
Special 301 Watch List. Overall, intellectual property rights
(IPR) protection in Portugal is adequate and IPR legislation
is generally consistent with WTO rules, EU directives, and
the trade-related intellectual property (TRIPS) provisions of
GATT, with the exception of pharmaceutical industry
complaints outlined below.

2. (SBU) The pharmaceutical industry is the only industry to
have brought IPR issues to the Embassy's attention. In
December 2007, the Pharmaceutical Research and Manufacturers
of America (PhRMA) Local American Working Group (LAWG) issued
a white paper to the Portuguese Government, which it shared
with the Embassy. The LAWG has asked the Embassy not take
any actions related to USTR's Special 301 Watch List. The
White Paper makes the following accusations:

a) that Portugal is not complying with Part III of TRIPS,
Article 41 which covers expeditious remedies to prevent
infringements and remedies which constitute a deterrent to
further infringement, and Article 50 that provides for prompt
and effective provisional measure to prevent infringement.

b) that Portugal has not completely and effectively
transposed the European Union's IPR Enforcement Directive
(2004/48/EC) which should have been completed by April 2006,

c) and that the new Medicines Code, approved by Decree-Law
176/2006, does not contain legal language similar to its
predecessor, providing for authorization of generic drugs
following the expiry of the IPR in respect to the active
substances or the process of manufacture.

3. (U) Post is not aware of any other industry complaints.

4. (SBU) In an effort to strengthen targeted groups'
understanding of the economic benefits of IPR protection,
post is actively encouraging greater Portuguese participation
in training programs at the USPTO's Global Intellectual
Property Academy (GIPA). Lack of funding often prohibits
Portuguese participation in GIPA programs. As such, post has
solicited the Luso-American Development Foundation (FLAD) to
fund up to four host-government officials to attend GIPA
programs per year starting in 2008.

Stephenson

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