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Viewing cable 06WELLINGTON136, YEAR 2006 SPECIAL 301 REVIEW - NEW ZEALAND
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| Reference ID | Created | Released | Classification | Origin |
|---|---|---|---|---|
| 06WELLINGTON136 | 2006-02-22 06:27 | 2011-04-28 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Wellington |
VZCZCXRO4485
RR RUEHNZ
DE RUEHWL #0136/01 0530627
ZNR UUUUU ZZH
R 220627Z FEB 06
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC 2416
INFO RUEHBY/AMEMBASSY CANBERRA 4304
RUEHNZ/AMCONSUL AUCKLAND 0654
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC 0031
UNCLAS SECTION 01 OF 04 WELLINGTON 000136
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EB/IPE-CLACROSSE AND EAP/ANP-DRICCI
STATE PLEASE PASS TO USTR FOR JCHOE-GROVES
STATE PLEASE PASS TO USPTO FOR JURBAN
STATE PLEASE PASS TO LOC FOR STEPP
COMMERCE FOR JBOGER AND ABENAISSA/4530/ITA/MAC/AP/OSAO
E.O. 12958: N/A
TAGS: KIPR ETRD ECON PREL NZ
SUBJECT: YEAR 2006 SPECIAL 301 REVIEW - NEW ZEALAND
REF: A. STATE 14937
¶B. WELLINGTON 40
¶C. 05 WELLINGTON 334
(U) Sensitive but unclassified -- for U.S. government
channels only.
Summary
-------
¶1. (SBU) Post recommends that New Zealand remain off the
Special 301 List. Although the government has been
relatively slow in updating its intellectual property laws,
it is moving in the right direction. Moreover, New Zealand
in general already provides adequate and effective protection
of intellectual property rights.
¶2. (SBU) While the pharmaceutical industry urges that New
Zealand be placed on the list, post continues to believe that
the industry's restricted access to New Zealand's market
stems less from a failure to protect intellectual property
and more from the government's anti-competitive
drug-purchasing practices. In addition, we believe a Watch
Listing would not improve the industry's prospects. And,
while the music industry has legitimate concerns about New
Zealand's proposed exceptions to copyright protection, the
industry has noted that ongoing discussions with the
government may yet yield some of the changes the industry
seeks.
IPR in general
--------------
¶3. (U) Aside from a bill to establish a registration system
for geographical indications for wines and spirits, no
legislation related to intellectual property rights (IPR) was
introduced in the New Zealand Parliament in 2005. However,
New Zealand has several bills in the wings that would improve
its IPR regime. With few exceptions, the government is not
rolling back its protections of intellectual property.
¶4. (U) Proposed amendments to the Copyright Act 1994,
announced in June 2003, are intended to ensure that the act
reflects developments in digital technologies and
international developments in copyright. The amendments have
not yet been introduced in Parliament, and the timetable for
their submission is unknown. A draft Patents Bill was
released in December 2004. It would replace the Patents Act
1953 and is intended to bring New Zealand's patent law into
closer conformity with international standards. Public
submissions have been received, and the bill is being
revised.
¶5. (U) The Geographical Indications (Wine and Spirits)
Registration Bill would repeal and replace the Geographical
Indications Act 1994, which never came into force. The bill,
introduced in Parliament in June 2005, would establish a
registration system for geographical indications for wine and
spirits. It would put New Zealand in closer alignment with
the TRIPS agreement by using the agreement's definition for a
"geographical indication" and by clearly limiting
registration to geographical indications for wine and spirits
only.
¶6. (U) The Trade Marks Amendment Act 2005, containing minor
and technical changes to the Trade Marks Act 2002, came into
force in December 2005. The amendment act requires that the
applicant for registering a trademark be the "owner" of the
mark and clarifies provisions for revoking a trademark
registration for non-use.
¶7. (U) Meanwhile, New Zealand law continues to allow parallel
imports of certain copyrighted goods, which some U.S.
industries say complicates efforts to detect and combat
piracy and erodes the value of their products in the New
Zealand market. A ban on the parallel importation of films,
videos and DVDs for the initial nine months after a film's
international release -- enacted in October 2003 -- is
scheduled to sunset in 2008, unless extended.
The pharmaceutical issue
------------------------
¶8. (SBU) The pharmaceutical industry has a number of
legitimate complaints about its treatment in the New Zealand
market, and we continue to press for an improvement in this
WELLINGTON 00000136 002 OF 004
situation. However, the industry's concerns are not, at
heart, IPR problems. Rather, they are related to the process
by which the government decides which medicines are
subsidized and to the government's limited budget for drug
purchases (ref B). Post believes this market-access barrier
should be dealt with as such and not treated as a failure to
protect intellectual property. Even the industry's trade
association, Researched Medicines Industry Association of New
Zealand (RMI), concedes that the government's practices do
not violate its TRIPS commitments.
¶9. (SBU) The government also has mostly defined the issue as
a matter of ensuring affordable pharmaceutical prices for all
New Zealanders. Listing the country on the Watch List would
only enable the government to claim to the New Zealand public
that its policies protect the population against an
avaricious pharmaceutical industry. RMI also believes that
the likelihood of changes in the drug-purchasing system has
increased over the past year, especially with the
government's agreement after the September 17 elections to
review its medicines policy (ref B).
¶10. (SBU) It is true that the government's draft Patents Bill
fails to meet two of the industry's objectives in New
Zealand: (1) It does not allow patent protection for
diagnostic, therapeutic and surgical methods involving the
treatment of humans, as allowed under the TRIPS agreement,
and (2) it fails to extend the effective patent life of
drugs. The effective patent life (the period following
marketing approval, when patent holders have exclusive
control of their inventions) averages seven years in New
Zealand. Moreover, the draft bill leaves in place an
amendment to the Patents Act that allows competitors to begin
the process required for regulatory approval of a generic
product while a proprietary drug still is under patent.
¶11. (SBU) Although the draft is unsatisfactory, we believe
that listing New Zealand because of the draft legislation
would reduce our ability to influence the bill's final
provisions. We continue to press New Zealand government
officials with our concerns with the draft bill.
Format- and time-shifting
-------------------------
¶12. (U) Proposed amendments to the Copyright Act 1994 include
provisions that would allow format-shifting, or the
duplication of sound recordings to another format for a
purchaser's private use without the copyright owner's
permission. The amendments also would extend to all
communication works a provision in the Copyright Act that
permits time-shifting, or the recording of a broadcast or
cable program for private use solely for the purpose of
viewing or listening to the recording at a more convenient
time or for making a complaint.
¶13. (SBU) The industry contends that such exceptions to
copyright protection send the wrong message to consumers,
undermine efforts to curb unauthorized copying of CDs,
discourage innovation and cost the industry in sales and
profits. The government and industry continue to discuss
these exceptions, and the government has said it would be
flexible on this issue and aim for a conclusion satisfactory
to the industry, while also addressing the government's
concerns regarding fairness to consumers. We will continue
to encourage this dialogue. With such discussions ongoing,
we believe a Special 301 listing over this issue would be
premature and counterproductive.
Optical media piracy
--------------------
¶14. (U) While New Zealand does not have any regulations
specifically addressing optical media manufacturing, the
Copyright Act 1994 -- including protections and sanctions for
copyright infringement -- applies to optical media. We are
not aware of significant problems with optical media piracy
in New Zealand.
Use/procurement of government software
--------------------------------------
¶15. (U) New Zealand has no specific guidelines relating to
government use or procurement of software, but it does have
general rules pertaining to protection of intellectual
property in the public sector.
WELLINGTON 00000136 003 OF 004
TRIPS compliance
----------------
¶16. (U) The draft Patents Bill would help align New Zealand's
patent law with that of other developed countries. The draft
would keep the maximum patent term at 20 years, but would
tighten the criteria for issuing a patent, requiring that a
patentable invention be new anywhere in the world (instead of
new in New Zealand), involve an inventive step and be useful.
The proposed amendments to the Copyright Act 1994 aim to
ensure the act encompasses developments in digital
technology. For example, the definition of "copying" would
be clarified to include digital works. A draft Plant Variety
Rights Amendment Bill, released in August 2005, is intended
to give rights owners enhanced exclusive rights over their
protected plant varieties, in line with the 1991 revision of
the International Convention for the Protection of New
Varieties of Plants. The amendment aims to address
significant advances in plant breeding techniques, as well as
international developments. The Trade Marks Amendment Act
2005, which came into force in December 2005, contains minor
and technical changes to the Trade Marks Act 2002 (see
Paragraph 5).
¶17. (U) New legislation introduced in Parliament in 2005
included the Geographical Indications (Wine and Spirits)
Registration Bill (see Paragraph 5).
¶18. (U) We are unaware of any new legislation related
specifically to domestic protection of traditional knowledge
or expressions of folklore. However, the proposed changes to
the Patents Act 1953 include a provision to set up a Maori
consultative committee that would advise the patents
commissioner on whether a patent application pertains to an
invention that is derived from Maori traditional knowledge,
indigenous plants or animals and whether the commercial
exploitation of such an invention would be contrary to Maori
values.
¶19. (U) Under the Medicines Amendment Act 1994, New Zealand
provides data exclusivity -- a period during which government
officials respect the confidentiality of data submitted to
them in applications for marketing approval for medicines --
for five years. Such data exclusivity does not extend to new
uses or formulations of old active ingredients.
¶20. (U) New Zealand Customs can confiscate and destroy
pirated products if the holder of the trademark or copyright
has requested that Customs detain the goods. That request is
valid for five years and can be renewed. However, Customs
does not have the power to prosecute. Rights holders can
pursue relief through civil lawsuits and have 10 working days
to do so. Otherwise, the goods are released or, at the
importer's request, destroyed. The provisions apply only to
trademarks and copyright registered in New Zealand. Customs
has no authority to detain infringing IP goods from being
exported. Customs detained 101,734 goods for bearing
infringing marks or signs in 2005, down from a 10-year high
of 142,055 in 2001. However, the number of shipments
investigated by Customs has risen steadily over the last
decade, from one in 1995 to 683 in 2005. Almost all the
infringing goods originated in Asia, particularly China, and
most of the intercepted and investigated goods were clothing,
footwear and headwear. The number of pirated CDs and DVDs
intercepted by Customs has declined sharply, after peaking in
early 2005. It appears that CDs and DVDs increasingly are
being copied to order within New Zealand, making detection of
local production difficult. The New Zealand Department of
Internal Affairs has had some success, however, in stemming
domestic sales of pirated and counterfeit products by closing
down e-auction sites. In January, 97 sites were shut down.
Enforcement
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¶21. (U) The New Zealand government is committed to adequately
and effectively enforcing its IPR-related laws, as reflected
by the creation of new criminal offenses for trademark
infringements and the increases in penalties for copyright
infringements under the Trade Marks Act 2002, which entered
into force in August 2003. In most instances, the government
responds to complaints raised by rights holders rather than
initiating action against IP infringers. Those complaints
have been relatively few, and so the government does not
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track enforcement-related statistics, such as civil and
criminal penalties. The government lacks a central body to
coordinate the sharing of information on illegal IP
activities and enforcement efforts.
WCT/WPPT
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¶22. (U) Amendments to the Copyright Act 1994, proposed in
June 2003, would make the act more consistent with the World
Intellectual Property Organization Copyright Treaty (WCT) and
Performances and Phonograms Treaty (WPPT). If the proposed
amendments are passed, the government would decide whether to
accede to the WCT and WPPT.
Training
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¶23. (U) New Zealand has close relations with the Pacific
Islands, providing them with disaster relief, development aid
and, in a few cases, peacekeeping assistance. It could play
a larger role in helping the Pacific Islands strengthen their
IPR regimes. At least one New Zealand program aims to combat
piracy in Pacific Island nations (ref C). New Zealand might
benefit from "training the trainer"-type programs, equipping
New Zealanders to help the islands improve IPR enforcement.
McCormick