Cablegate: Focused On Special 301: Alongkorn Promotes Thailand's
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TAGS: ECON ETRD KIPR PREL TH
SUBJECT: FOCUSED ON SPECIAL 301: ALONGKORN PROMOTES THAILAND'S
INTELLECTUAL PROPERTY AGENDA
REF: A. BANGKOK 2848 (PREPARING FOR LOCKE-ALONGKORN MEETING)
B. BANGKOK 2768 (PRIME MINISTER MEETS APCAC)
C. BANGKOK 1338 (NEW INTELLECTUAL PROPERTY STRATEGY)
D. BANGKOK 1203 (PATPONG RAID)
E. BANGKOK 379 (RIGHT MOVES ON IPR)
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1. (SBU) SUMMARY: In a meeting on November 9, Deputy Commerce
Minister Alongkorn Ponlaboot and new Director General of
Intellectual Property Pajchima Tanasanti emphasized to emboffs,
visiting USTR official Rachel Bae and State Department IP official
JoEllen Urban that the Abhisit Administration remains very serious
about strengthening the protection and promotion of intellectual
property rights through its "Creative Thailand" strategy -- ever
hopeful that USTR will seriously consider moving Thailand off of the
Special 301 Priority Watch List in 2010. Alongkorn trumpeted
Thailand's September 24 accession to the Patent Cooperation Treaty,
detailed a set of proposed amendments to the Copyright and Trademark
Acts, and signaled the government's intent to implement an
anti-camcording law. Alongkorn lamented the challenges he has had
with the Ministry of Public Health when discussing IPR but agreed
that the government needs to establish a better mechanism to improve
its dialogue with the pharmaceutical industry. END SUMMARY.
2. (SBU) COMMENT: The Abhisit government appears to be more
committed to IPR protection than any previous Thai Government in
recent history, and is laying the foundations for positive long-run
changes in Thailand's perception of the importance of IPR. While we
applaud Alongkorn's initiative and dedication overall, concerns
remain that the RTG may not be taking sufficient concrete steps to
respond to complaints by a number of U.S. industry groups. END
COMMENT.
Rising Up Through the Ranks
---------------------------
3. (SBU) Deputy Commerce Minister Alongkorn Ponlaboot introduced
Pajchima Tanasanti, the new Intellectual Property Director General
in a November 9 meeting with Rachel Bae, Director for Intellectual
Property and Innovation at the Office of the U.S. Trade
Representative. In an unusual personnel shift, Pajchima Tanasanti,
who most recently was the Deputy Director General for Enforcement at
the Department of Intellectual Property (DIP), was hand-selected by
Alongkorn to replace Puangrat Asavapisit, who retired on September
30 after reaching the mandatory retirement age of 60. According to
several contacts, Alongkorn strongly pushed for Pajchima's candidacy
as Director General, even though under the Ministry of Commerce
traditions a Deputy Director General is rarely promoted to become
the Director General of the same department. (NOTE: Deputy Director
General Wiboonlasana Ruamraksa, who has been an important contact of
the Embassy and USTR during her five year tenure at the Department
of Intellectual Property, was recently transferred to the Department
of Foreign Trade. Duangporn Rodphaya, formerly a DDG at the
Department of Foreign Trade, replaced Wiboonlasana at DIP. END
NOTE.)
4. (SBU) Foreign and Thai rights holders have indicated that they
are pleased with Pajchima's promotion to Director General. Pajchima,
who has spent the majority of her career at the Department of
Intellectual Property, began as an examiner more than 20 years ago
and has since served as the Director of the Copyright Office, the
Director of the Trademark Office, and most recently, the head of
DIP's enforcement operations.
Thailand (Finally) Accedes to Patent Cooperation Treaty
--------------------------------------------- ----------
5. (U) Alongkorn proudly described to Bae, Urban and emboffs his
September 24 trip to Geneva to deposit Thailand's instrument of
accession to the Patent Cooperation Treaty (PCT). The PCT is a
mechanism for inventors to seek patent protection simultaneously by
filing a single international patent application that can be used in
all PCT signatory countries. The PCT also enables patent authorities
to conduct an international patent search for documents that may
affect the patentability of a particular invention. Thai and foreign
patent owners have long sought Thailand's accession to the PCT as it
saves the patent filers money and time when submitting their
applications. Thailand's membership in the PCT will also greatly
improve the ability of a Thai inventor to seek patent protection
around the world. The Department of Intellectual Property plans to
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open its PCT Receiving Office on December 24. USPTO provided
assistance to help Thailand join the PCT and is in the process of
determining the scope of future assistance.
6. (SBU) Alongkorn added, "The next step will be to accede to the
Madrid Protocol." Similar to the PCT, the Madrid Protocol provides a
mechanism for a trademark owner to seek protection in multiple
countries by filing one application directly with the national
trademark office. While Alongkorn noted the importance of Madrid,
Thailand's potential accession will face domestic pressures from the
legal community, as it may lead to a significant loss of revenue for
the law firms who file trademarks for domestic and international
owners.
Promotion and Protection Go Hand in Hand
----------------------------------------
7. (SBU) Alongkorn emphasized that the key to success of Thailand's
"Creative Thailand" campaign (ref C) will be a stronger intellectual
property regime. Prime Minister Abhisit Vejjajiva launched the
government's Creative Thailand campaign on August 31 to promote the
country's creative and innovative industries. Abhisit allocated
approximately $590 million from a recent stimulus package to support
these projects over the next three years with the goal of boosting
the economic contribution of Thailand's creative industries from the
current 12 percent of GDP to 20 percent by 2012.
8. (SBU) Alongkorn remarked that while "promotion" is the focus of
the Creative Thailand campaign, "protection" is the flipside of the
coin. He elaborated on the government's six-month plan on the
prevention and suppression of IPR violations, a plan approved by
Cabinet in July (ref C). The plan focuses on six areas: law
enforcement, judicial processes; patent registration process;
internet piracy; legal amendments; and improved cooperation with the
private sector. (NOTE: We will report septel about specific
developments under each of these areas. END NOTE.)
9. (SBU) Alongkorn also highlighted that the latest Department of
Intellectual Property data show an increase in enforcement
operations in 2009. The Department of Intellectual Property has
since provided data that demonstrates between January and August the
government made 5,521 arrests on IPR-related charges, a reported 40
percent increase over the same period in 2008. More than 4 million
items were seized in raids over this same period, a reported 16
percent increase over 2008. Alongkorn presided over the destruction
of more than 120 tons of these counterfeit and pirated goods in a
ceremony on September 29. The goods, with an estimated street value
of 621 million baht (approximately $18 million), were seized in
raids by the Royal Thai Police, the Customs Department, and the
Department of Special Investigations. (COMMENT: The government's
data indicating an increase in enforcement this year does not track
with what we hear from U.S. rights holders and IP law firms. We will
continue to review this data closely and will report septel on any
developments. END COMMENT.)
Legal Improvements On Track
---------------------------
10. (SBU) Alongkorn described his proposed landlord liability
amendments to the Copyright and Trademark Acts (ref C). The existing
copyright and trademark laws only stipulate punishment for persons
who manufacture, distribute, obtain for distribution, or import
counterfeit products. Buyers and landlords are both overlooked.
Alongkorn had hoped to push a buyer liability provision alongside
the landlord liability amendment, but he has since given up after
even the Prime Minister urged him to "review the issue more
carefully." In early October, Abhisit returned the draft amendments
to the Ministry of Commerce, stating that law enforcement should
focus on the producers and distributors of pirated and counterfeit
goods, rather than those who purchase the items on the streets.
11. (U) The landlord liability amendments will broaden the scope of
punishable offences to include those who own or rent a building or
space to support the manufacturing, storage, or sale of infringing
goods. Alongkorn pointed out this provision could also be used to
prosecute website owners who operate or provide e-commerce services
for pirated goods. Under the most recent draft of the trademark
amendments, the penalty for landlord-related offenses would be a
fine ranging from 50,000 to 200,000 baht (approximately $1,500 to
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$6,000). This penalty provision varies slightly under the copyright
amendments, which impose fines between 30,000 and 300,000 baht
(approximately $900 to $9,000). Alongkorn plans to resubmit the
amendments to Cabinet within one month, after which drafts will be
sent to the Council of State for additional scrutiny. The amendments
could be presented to Parliament by early 2010.
Supportive of Anti-Camcording Law
---------------------------------
12. (SBU) After several years of advocacy by USG and the Motion
Picture Association of America, the Thai government now appears
supportive of legislation that would criminalize the act of illegal
camcording of films. Alongkorn told Bae that the Department of
Intellectual Property would present a study on the anti-camcording
laws of the U.S., Canada, and Hong Kong, as well as recommendations
for a Thai law, at a seminar on November 23. (NOTE: We spoke with
several attendees of the November 23 event who told us that, based
on the study, the Ministry of Commerce now plans to draft a specific
anti-camcording law that will be separate from the Copyright Act and
other IP laws. END NOTE.)
13. (SBU) According to Motion Picture Association of America
investigations, between January and August 2008, Thailand was
reported to be the source of 32 illegal camcords of Hollywood films.
However, over that same period in 2009, only one such case was
reported. MPA remains concerned about the illegal capture of Thai
language audio recordings at theaters in Thailand. These audio
recordings are then combined with videos from other sources. In the
first eight months on 2009, MPA noted 12 audio-only recordings of 11
Hollywood films in Thailand and on Thai internet sites. While the
number of camcords of Hollywood titles appears to have dropped
significantly, nearly 70 percent of all Thai film titles released
between January and August of this year were reported to have been
camcorded, packaged, sold in pirated goods markets in Thailand. MPAA
has joined arms with the Federation of National Film Association of
Thailand which is also strongly advocating for an anti-camcording
law.
PhRMA: Still No Seat the Table
------------------------------
14. (SBU) Rachel Bae expressed concern that the Pharmaceutical
Research and Manufacturers of America (PhRMA) still does not have a
meaningful dialogue with the government on pharmaceutical and health
issues affecting their industry, despite some gestures in recent
years. Alongkorn stated that the Prime Minister remains committed to
a stronger dialogue with the pharmaceutical industry, but
unfortunately, NGOs and many at the Ministry of Public Health "still
have hostile views" toward PhRMA. He jokingly likened the process to
the Six-Party Talks on North Korea, remarking that coordination with
all the related agencies, NGOs, and industry groups is not an easy
task. However, he agreed that the government needed to improve the
consultative dialogue with PhRMA.
15. (U) This cable was cleared by USTR and EEB/IPE.
JOHN