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Viewing cable 08BUENOSAIRES1336, Tri-Border and Argentina Public-Private Dialogue on

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Reference ID Created Released Classification Origin
08BUENOSAIRES1336 2008-09-25 13:50 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Buenos Aires
VZCZCXYZ0000
RR RUEHWEB

DE RUEHBU #1336/01 2691350
ZNR UUUUU ZZH
R 251350Z SEP 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 2110
RUCNMER/MERCOSUR COLLECTIVE
RUCPDOC/USDOC WASHINGTON DC
UNCLAS BUENOS AIRES 001336 
 
EB/TPP/IPE FOR RWATTS, RWALLACE AND CLACROSSE 
DEPT PLS PASS TO USTR JCGROVES, KDUCKWORTH 
DOC/ITA/MAC/OIPR FOR CATHERINE PETERS AND JENNIFER BOGER 
SAO PAULO FOR USPTO DMAZURKEVICH 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: KIPR ECON PREL ETRD AR
SUBJECT: Tri-Border and Argentina Public-Private Dialogue on 
Intellectual Property 
 
REF:      BUENOS AIRES 1302 
          07 BUENOS AIRES 1720 
 
------- 
Summary 
------- 
 
1. (SBU) Wayne Paugh, Department of Commerce Coordinator for 
International Intellectual Property (IP) Enforcement, delivered a 
positive message in support of IP protection during a series of 
events in Argentina.  Paugh met with the Argentine Customs Director, 
where both emphasized the importance of information-sharing among 
countries to identify IP and other violations, supported AmCham 
efforts to increase public awareness of the value of IP protection 
for Argentina, and lauded Post's effort to better train Argentine 
law enforcement on IP crime investigation.  Paugh also attended a 
ground-breaking public-private dialogue on IP enforcement which took 
place on the Argentine side of the tri-border area shared with 
Brazil and Paraguay.  Paraguayan government participation was wide 
and included the Minster of Industry.  Argentine and Brazilian 
government involvement was both less numerous and lower level, 
mainly working-level enforcement and prosecution.  Paraguayan 
participants, public and private, expressed interest in working 
together more closely on IP enforcement; Argentine participants also 
did so, but new dialogue seems unlikely.  End Summary. 
 
-------------------------------------------- 
IPR Enforcement Coordinator With GoA Customs 
-------------------------------------------- 
 
2. (SBU) In a September 22 meeting with Paugh in Buenos Aires, 
Argentine Customs Director Silvina Tirabassi stressed the importance 
of information-sharing for her agency to operate effectively.  She 
cited as a success story the Trade Transparency Unit (TTU) which 
exchanges data with their U.S. Immigration and Customs Enforcement 
(ICE) counterparts on shipments between Argentina and the U.S., 
noting that such information was also helpful in monitoring 
shipments from Miami which were transiting Argentina en route to 
Paraguay or Brazil.  Tirabassi expressed particular interest in 
obtaining such information from China, which she said would be an 
excellent tool to fight under-invoicing of Chinese imports.  She 
cited her agency's successes in fighting intellectual property 
violations, noting increased seizures of counterfeit goods (which 
she attributed not only the Customs Trademark Fraud program - Ref A 
- but also to her Customs office receiving "ex officio" GoA 
authority in December 2005 to detain shipments pending a 
determination of their legitimacy).  Tirabassi also noted IPR 
challenges, including the increasing quality of falsification of 
imported goods, which has made detection more difficult.  Paugh 
commented that increased public/private dialogue was one of the 
goals of the TBA conference, and such activity could result in more 
training for Customs personnel to help identify counterfeit goods. 
 
3. (SBU) Paugh also met in Buenos Aires with drafters of an IP 
enforcement manual (Ref B), the American Chamber of Commerce's IP 
Committee (AmCham), and the Charge d'Affaires, as well as had an 
interview with local press.  With the manual drafters, he discussed 
strategies to ensure the manual is broadly distributed to relevant 
Argentine enforcement officials.  Drafters decided to focus 
initially on getting the national police agencies (Federal Police, 
Prefectura, Gendarmeria) to formally approve the manual for official 
use by the agency, rather than trying to convince individual offices 
one by one.  With the AmCham, Paugh discussed best practice 
strategies to create greater public awareness of the negative 
effects of IP violations, such as AmCham's annual IP conference and 
annual IP essay contest for students and young professionals.  He 
suggested to the Charge that Post consider instituting an 
Ambassador's IPR Roundtable, on Embassy Beijing's model.  Press 
coverage of Paugh's visit was quite positive, with articles in the 
two leading dailies and two other economic-focused dailies. 
 
-------------------------------------------- 
Tri-Border IPR Conf: Public-Private Dialogue 
-------------------------------------------- 
 
4. (SBU) The Trans-Atlantic Business Dialogue (TABD) hosted 
September 18-19 what is believed to be the first public-private, 
multi-country dialogue held in and focusing on IP violations in the 
tri-border area (TBA) where Argentina, Brazil and Paraguay meet. 
Participation in the conference, which took place in Puerto Iguazu, 
Argentina, was varied, with high-level and numerous representatives 
of the Paraguayan government present, but fewer and lower-ranking 
Argentine and Brazilian officials.  Employees of private companies 
from all three countries in the region, as well as the U.S. and much 
of Europe, also attended and participated.  Paugh and EU officials 
 
 
were among the presenters. 
 
5. (SBU) Paugh's presentation highlighted the importance of IP 
protection for the U.S. economy, and noted that because IP 
violations continue to increase, the best way to combat them is to 
cooperate more closely.  He noted USG efforts acting alone, in 
partnership with the U.S. private sector, and jointly with trading 
partners - both government to government and private sector alone. 
As an example, he cited the first-ever joint US-EU Customs operation 
which took place in 2007 and snared 400 million counterfeit 
integrated circuits.  Paugh opined that IP violations thrive where 
laws against them are weak, the issue is a low priority, or both. 
Luc Devigne, head of the European Commission's IP unit, mentioned an 
OECD report which estimates annual international trade in 
counterfeit goods at USD200 billion.  He stated that the EU's 
strategy on IPR was to focus on bilateral cooperation, multilateral 
cooperation, capacity building, and cooperation with the private 
sector.  John Taylor of the EC's Taxation and Customs Directorate 
was the other EU speaker, addressing challenges in EU border 
enforcement. 
 
--------------------------------------------- -- 
Paraguay: Public Commitment to Fight Contraband 
--------------------------------------------- -- 
 
6. (SBU) Paraguay had a strong presence from both public and private 
sector representatives, with meaningful presentations in the legal, 
enforcement, and IPR policy areas.  Paraguay's Minister of Industry 
and Commerce, Martin Heisecke, spoke and publicly renewed his 
commitment to fight piracy and contraband.  District Attorney for 
Ciudad del Este Eber Ovelar emphasized the legal weaknesses in 
Paraguay, making explicit mention of the inadequate enforcement of 
Paraguay's Customs Office.  Paraguayan Director of IPR Policy Carlos 
Rufinelli outlined his plan to increase the transparency in and 
improve the negative image of the trademark and registration office. 
 Rufinelli was candid about the operational capacity limitations in 
his office, and asked for support from private sector.  The head of 
the IPR Special Investigative Unit (UTE), Coronel Cruz, raised the 
need for private sector support to train experts in identifying 
counterfeited and pirated goods.  He also described problems with 
the way in which expert witnesses are selected and used in Paraguay. 
 The argument for expert witness competence in the private sector 
was echoed by Ovelar.  Paraguayan officials projected a visible 
commitment to address IPR issues and fight piracy and contraband, 
and offered a balanced perspective of GoP strengths and weaknesses. 
 
7. (SBU) Despite several attempts, mainly initiated by private 
sector players, to establish public-private sector partnerships, 
Paraguay currently lacks a general strategic plan for private sector 
participation in IPR enforcement.  The event provided a tangible 
venue for Paraguayan officials to begin discussions with private 
sector representatives to develop such a strategy.  One of the 
recommendations was to host a similar event at the country level, 
and Paraguayan officials present expressed great interest in the 
initiative. 
 
--------------------------------------------- -- 
Argentina, Brazil, Private Sector Contributions 
--------------------------------------------- -- 
 
8. (SBU) Argentine and Brazilian government participation was at a 
lower level; GoA presentations were by Fabian Di Risio, the head of 
Argentine Customs' Trademark Fraud Unit, and Juan Carlos Tesoriero, 
a federal prosecutor who works in the province of Misiones (where 
the conference was held).  Di Risio highlighted recent successes of 
Customs' programs; Tesoriero echoed those claims.  Tesoriero also 
argued that a prosecutorial unit specializing in IP crimes would be 
beneficial, that Argentina also had a need for better system to 
choose expert witnesses, inter-government agency cooperation had 
much room for improvement, and that industry could help more by 
initiating more cases and cooperating to collect evidence.  The GoB 
was represented by Director of Compliance for Receita Federal 
(Brazilian Tax and Customs agency) Mauro Brito, who presented 
success stories in the TBA but not challenges faced, and by two 
federal police officials, both of whom displayed videos showing 
recent IP seizures. 
 
9. (SBU) Other presentations included an analysis of the legal 
regime in Paraguay by Hugo Mersan, the head of the Paraguayan 
Association of Trademark Agents, and in Argentina by Roberto Porcel, 
a long-time trademark attorney who is currently the Undersecretary 
for Planning in the Health Ministry of the Province of Buenos Aires; 
a primer on forensic science by an Interpol officer and a former 
Scotland Yard detective; discussion of asset tracing for civil 
proceedings by the Latin America Anti-piracy Coordinator for the 
 
 
International Federation of the Phonographic Industry and a private 
attorney from New York; and presentations on private sector 
technical assistance capabilities. 
 
10. (SBU) TABD organizers asked Econoff to lead a break-out group of 
about 15 participants which focused on strategies to improve customs 
and enforcement issues, and the importance of proper forensics 
techniques for building a criminal case; Econoff presented a summary 
of the discussion to all participants.  Other break-out groups 
analyzed global and regional IP challenges, the legal environment, 
and an EU case study. 
 
------- 
Comment 
------- 
 
11. (SBU) The Trans-Atlantic Business Dialogue conference broke new 
ground by bringing together public officials and the private sector 
from the three countries of the TBA - as well as the U.S. and EU - 
to focus on IP violations in the region.  It appears likely that 
expanded public-private dialogue in Paraguay - which sent the 
highest level and most robust delegation - will result.  Brazil, 
however, already has a forum for such activity, the National Council 
to Combat Piracy and Intellectual Property Crimes (CNCP), which is 
chaired by the federal government.  In Argentina, the government 
agency which has shown the most support for IP protection, Customs, 
already has a monthly dialogue with the private sector on how to 
improve its IP enforcement efforts.  Improving Argentine IP 
enforcement capacity continues to depend largely on the private 
sector, and Paugh's visit supported both Post and AmCham efforts to 
increase that capacity, as well as helped to increase public 
awareness of the benefits. 
 
12. (U) This cable was coordinated with the IP Officer in Asuncion 
and USPTO's Regional IP Officer in Rio de Janeiro, both of whom 
attended the conference; Paugh was unable to clear the cable. 
 
KELLY