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Viewing cable 07KYIV1417, PROJECT PROPOSAL FOR 2007 IPR ENFORCEMENT TRAINING

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Reference ID Created Released Classification Origin
07KYIV1417 2007-06-08 08:38 2011-08-24 16:30 UNCLASSIFIED Embassy Kyiv
VZCZCXRO9569
PP RUEHBI
DE RUEHKV #1417/01 1590838
ZNR UUUUU ZZH
P 080838Z JUN 07
FM AMEMBASSY KYIV
TO RUEHC/SECSTATE WASHDC PRIORITY 2645
INFO RUEAWJA/DEPT OF JUSTICE WASHDC
RUCPDOC/USDOC WASHDC
RUEHMO/AMEMBASSY MOSCOW 0173
RUEHBI/AMCONSUL MUMBAI 0049
UNCLAS SECTION 01 OF 03 KYIV 001417 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EUR/UMB AND EB/TPP/IPE 
STATE PLEASE PASS TO USTR FOR LMOLNAR/JGROVES 
USDOC FOR 4231/ITA/OEENIS/NISD - CLUCYCK 
COMMERCE PLEASE PASS TO USPTO 
MUMBAI FOR WKLEIN 
 
E.O. 12958: DECL: N/A 
TAGS: ETRD KIPR ECON EAID UP
SUBJECT: PROJECT PROPOSAL FOR 2007 IPR ENFORCEMENT TRAINING 
FUNDS PROGRAM: CREATING A SUSTAINABLE UKRAINIAN IPR 
TRAINING CAPABILITY 
 
REF: A. STATE 55928 
 
     B. KYIV 449 
 
1. Summary: Post proposes a project entitled "Creating a 
Sustainable Ukrainian IPR Training Capability" to be funded 
as part of the 2007 IPR Enforcement Training Funds Program. 
Improving IPR enforcement in Ukraine remains a serious USG 
priority.  Since 2004 there has been progress toward good 
governance in Ukraine, and the GOU has demonstrated the 
political will to take IPR enforcement seriously.  The GOU 
would be a stakeholder in the proposed project and 
therefore would be committed to its realization.  Our 
project would build on recent USG assistance efforts aimed 
at improving the GOU's capacity to provide IPR enforcement 
training and to strengthen its information technology and 
forensic capabilities.  The project would enable Ukraine to 
extend training opportunities to officials on the local 
level who rarely have access to discrete internationally 
sponsored training programs abroad.  End Summary 
 
Project Description 
------------------- 
 
2. For the 2007 IPR Enforcement Training Funds Program (ref 
A), Post proposes conducting a technical assistance project 
aimed at enhancing the Government of Ukraine's capacity to 
train national and regional officials on the enforcement of 
intellectual property rights (IPR).  The Department of 
Commerce's Commercial Law Development Program (CLDP) is 
currently completing work on a comprehensive IPR training 
manual in Ukrainian and English for officials of Ukraine's 
State Department of Intellectual Property (SDIP).  With its 
current funding, CLDP will conduct a "train the trainer" 
seminar for SDIP officials, with the goal of creating a 
corps of Ukrainian IPR trainers who can then work with 
other branches of the GOU. 
 
3. Post's proposal is to bolster these efforts by funding a 
series of five joint CLDP-SDIP follow-on training sessions 
for key target audiences -- customs officials, law 
enforcement, and judges.  CLDP would be the implementer of 
the project, organizing the follow-on training sessions in 
cooperation with SDIP.  CLDP would include U.S. and other 
foreign experts to enhance the effectiveness of the 
training sessions.  During the sessions, SDIP officials 
would begin training Ukrainian officials themselves, with 
oversight and critique by CLDP.  Post's proposal would both 
train approximately 125 Ukrainian officials directly 
involved in IPR enforcement, and develop the SDIP training 
corps. 
 
Estimated Budget 
---------------- 
 
4. Total: $125,000 
 
Based on previous CLDP budgets, Post estimates that 
conducting each of the five training sessions would cost 
$25,000. Here is an estimated breakdown of costs: 
-- Training materials for participants: $3,000 
-- Simultaneous interpretation: $3,000 
-- Meals, Coffee breaks, etc: $5,000 
-- Miscellaneous: badges, notebooks, pens, etc.: $1,000 
-- Travel, per diem, and lodging for foreign experts: 
   $7,000 
-- Travel for Ukrainian officials: $2,000 
-- Conference Room (if necessary): $4,000 
 
Improving IPR Enforcement in Ukraine is a USG Priority 
--------------------------------------------- --------- 
 
5. Between 2002 and 2005, prior to a January 2006 Special 
301 Out-of-Cycle Review by the Office of the U.S. Trade 
Representative (USTR), Ukraine was the only country in the 
world on USTR's list of Priority Foreign Countries for its 
shortcomings in protecting intellectual property rights. 
IPR enforcement remains a serious concern, and in 2007 
Ukraine remained on the Special 301 Priority Watch List 
among the countries of most concern to the USG.  U.S. 
industry reports losses in the hundreds of millions of 
dollars due to IPR infringement in Ukraine.  In addition, 
weak IPR enforcement enables trans-border smuggling and 
 
KYIV 00001417  002 OF 003 
 
 
other illegal operations, directed in some cases by 
organized criminal (OC) groups.  Industry groups report 
that almost all production of counterfeit and copyrighted 
goods in Ukraine has ceased, and Ukraine is now a major 
destination and transshipment point for illicit traders, 
who are often directed by OC groups. 
 
GOU Has Political Will to Tackle Problem 
---------------------------------------- 
 
6. Since the transformational impact on governance of the 
2004 "Orange Revolution," Ukraine has demonstrated the 
political will to improve its IPR regime, most notably 
through the passage of critical Optical Disk Legislation in 
2005.  As recently as May of this year, Ukraine has made 
additional, important legal changes as part of its 
commitment to join the WTO as soon as possible.  There has 
also been a significant increase in the number of arrests 
and convictions for IPR-related crimes (ref B).  The 
Ministry of Internal Affairs reported that there were 812 
IPR-related criminal investigations in 2006, up 68% from 
2005.  Of these cases, 462 went to court (up 235% from 
2005), and 115 led to convictions (up 311% from 2005). 
Statistics from early 2007 indicate continuing progress. 
The GOU meets regularly to review IPR enforcement issues 
with industry representatives and U.S. officials through 
the Enforcement Cooperation Group, and Ukraine maintains a 
similar dialogue with the European Union.  SDIP, Ukraine's 
lead agency for IPR issues, has demonstrated that it is 
competent and committed to improving IPR protection in the 
country. 
 
7. Post has developed this proposal in consultation with 
SDIP.  SDIP officials themselves have identified the target 
audience -- customs, law enforcement, and judges -- and 
Post concurs with their assessment.  SDIP has also pledged 
to provide suitable locations for each of the sessions 
(assuming its conference rooms will meet space 
requirements), and to fully fund the involvement of its 
training personnel.  SDIP officials, including the 
Department's Chairman Mykola Paladiy, have specifically 
requested assistance in upgrading their own training 
capability, and SDIP will therefore have a real sense of 
ownership of this project. 
 
Project Holds Real Opportunity for Success 
------------------------------------------ 
 
8. The USG has invested substantial resources into 
bolstering IPR protection in Ukraine.  These efforts, 
combined with the emergence of serious political will on 
the Ukrainian side, have led to significant progress in 
recent years.  Ukraine now has the capacity to achieve 
measurable success, as there exists a group of 
knowledgeable officials within key national-level 
institutions who are committed to combating IPR 
infringement.  The need is now to impart this IPR 
experience and commitment to officials at the local levels, 
and to be sure it is sustainable.  This project provides 
the best opportunity to take IPR enforcement in Ukraine to 
that next level. 
 
9. The project will also provide a more systematic approach 
to improving IPR enforcement than a single training session 
ever could.  CLDP's training manual provides a good 
framework with which GOU trainers can operate, and this 
project would multiply its impact. 
 
Project Meets Broader U.S. Foreign Policy Goals 
--------------------------------------------- -- 
 
10. Bolstering IPR protection is part of larger U.S. 
objectives to improve the rule of law and to encourage 
political and economic reform in the country.  World-class 
IPR enforcement is necessary for Ukraine to accede to the 
WTO and to integrate with the Euro-Atlantic community -- 
both core U.S. foreign policy objectives for Ukraine. 
 
Strong Project Oversight 
------------------------ 
 
11. CLDP has extensive experience in running IPR-related 
 
KYIV 00001417  003 OF 003 
 
 
training sessions in the former Soviet Union, in particular 
in Ukraine, and has the organizational capacity necessary 
to do so.  Post believes that CLDP is best placed to serve 
as the project implementer.  Post has consulted with CLDP 
in developing this proposal. 
 
12. CLDP would provide detailed accounting of the use of 
all funds, just as it has done for past training seminars. 
Post would also maintain oversight of the project, with an 
Embassy representative attending some, if not all, of the 
sessions.  Post's Economic Officer responsible for trade 
issues would also maintain a continual dialogue with CLDP 
to monitor progress. 
 
13. The most measurable benchmark to track the project's 
progress would be the number of government officials 
trained on IPR enforcement issues.  Other important 
benchmarks, although harder to calculate and/or to 
attribute directly to the project, would include -- the 
number of IPR-related arrests and convictions, the number 
of IPR-infringing goods seized at the border, the number of 
IPR-infringing goods destroyed or properly disposed of, and 
the stiffness of sentencing for IPR-related convictions. 
 
TAYLOR