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Cablegate: Embassy Beijing Response to Gao Ipr Report

VZCZCXRO3761
RR RUEHCN RUEHGH RUEHVC
DE RUEHBJ #3433/01 3570815
ZNR UUUUU ZZH
R 230815Z DEC 09
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 7352
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 BEIJING 003433

SIPDIS

STATE FOR EEB/IPE CLaCrosse, TMcGowan
STATE PASS USTR FOR KAlvarez
USDOC FOR PTO EWu, NKremer
STATE PASS COMMERCE FOR MAC ESymanski, NMelcher

E.O. 12958: N/A
TAGS: KIPR ECON ETRD CH
SUBJECT: EMBASSY BEIJING RESPONSE TO GAO IPR REPORT

REF: STATE 118266
1. (U) Summary. The China Mission is actively working to implement
the recommendations put forth by GAO in its September 2009 report.
The Mission's interagency IP Task Force, established in 2005,
convenes a monthly meeting to share information on IPR activities in
country and in home offices. The Task Force, led by the IPR
attach, is currently developing a Mission-wide strategy that will
guide IP efforts in China while addressing challenges identified in
the GAO report. End Summary.
2. (U) The U.S. Mission to China (Post) already implements some of
the recommendations set forth in the September 2009 GAO report,
"Enhanced Planning by U.S. Personnel Overseas Could Strengthen
Efforts." The Mission's IPR Task Force, under the authority of the
Chief of Mission and coordinated and led at his discretion by the
Senior IPR Attach for the US Patent and Trademark Office (USPTO),
endeavors to effectively manage activities already in existence.
The PTO attach office, in close coordination with its home agency
management and in cooperation with other agencies at post,
interfaces on IPR matters with host government organs in China. The
attach office advises the USPTO home office and, on request or when
otherwise appropriate, other US agencies, on planning and developing
their future activities and strategy for intellectual property
issues relating to China.
Establishing the Post IPR Focal Point
--------------------------------------------- -
3. (U) The GAO report noted several common factors that were
important to enabling IP attachs to serve as effective focal points
in overseas mission. The China mission is in the process of
defining roles and responsibilities of the IP team, including the IP
attach; we are also looking at establishing compatible policies,
procedures, and other means to operate across agency boundaries.
The attach has asked each embassy section and agency to designate
one representative and a backup person to act as clearing official
for IPR-related communications and decisions when discussion during
regular IPR Task Force meetings is not feasible; additional
procedures will be developed as needs are identified. One
preliminary discussion has been held with the PTO. At present,
USPTO commonly works with the Economic Section and USTR to
coordinate Post's IPR message with Chinese government
representatives. Requests for coordination with and clearance
through USPTO regularly originate with the working level personnel
in these offices. The attach also advises the Commercial Section
how to assist U.S. companies to protect their IP. Talking points and
briefing papers on IPR at the embassy are either drafted by, or at
least cleared through, the IP attach.
IPR Strategy
-----------------
4. (U) The GAO report recommends that Posts with an IP attach work
to develop annual IP interagency work plans with input from the
relevant agencies. The IP attach is interviewing each agency and
consulate, plus consular sections with IP-related work or
responsibilities, to identify areas of mutual interest and
responsibility to incorporate into the mission's annual IPR
strategy. Once this assessment is complete, the IP attach and the
IPR Task Force will develop a Mission-wide strategy to ensure
overall effectiveness of USG efforts. The Task Force will revamp
the "Ambassador's Roundtable," a forum which has previously brought
together the US and Chinese governments and US industry for a
comprehensive discussion of IP issues. Revamping may include
reducing the size and scope of the meeting while increasing the
frequency of the event to twice a year in different Chinese cities,
including provincial and local-level discussion forums and
educational and media outreach. The 2010 IPR strategy will also
include recommendations for and programs directed at increased
technical training of patent and trademark examiners and initiatives
aimed at reducing problems associated with junk patents and bad
faith trademark filings; coordinated technical discussions,
programs, and joint legislative analysis by USPTO and its
counterpart foreign IPR offices located in China and host government
offices, enabling all IP offices to dialogue with Chinese offices
from a common "best international practices" standpoint whenever
possible; and identification and leveraging opportunities for
increased interagency enforcement activities in the IPR activities
in and outside of China. We expect a draft will be circulated to
the IPR Task Force for comment in January, 2010.
The Mission's IPR Taskforce
---------------------------
5. (U) The Mission's IPR Task Force was initially formed in 2005.
The IPR Task Force currently meets monthly at the Beijing embassy,
and it includes representatives from the State Department (Economic
Section; Environmental, Science and Technology Section; Public
Affairs), other USG agencies (DHS, USTR, DOJ, USDA, FDA, IRS), and
consular personnel (via teleconferencing) from Guangzhou and
Shanghai. The IPR Task Force meetings have been chaired by the IPR
attach on a monthly basis since October; during the past year when
the Beijing attach position was vacant, the Economic section led
the Task Force meetings. At these meetings, Emboffs discuss recent

BEIJING 00003433 002 OF 002


activities throughout the Mission with regards to IPR and the latest
legislative developments relevant to China IP issues. They also
plan training and capacity building efforts. This sharing of
information ensures all members of the group are well-informed.
IP Outreach
------------
6. (U) Post is making a concerted effort to coordinate with its
consulates in Guangzhou, Chengdu, Shenyang, Shanghai, and Wuhan on
IP matters and to do as much outreach as possible with counterparts
in both the Chinese government and other governments that share
concerns about IP in China. Emboffs have begun meeting on a regular
basis with IP representatives at the European Commission and Japan,
exploring avenues for common work and discussion. The IPR Task Force
is also working to revive the common database of training activities
for public access to EU, Chinese, Japanese and US interested
parties. The team believes it could be of great value to all
parties if completed and launched.

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