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Viewing cable 06PARIS5655, POSSIBLE CHINA IPR CASE: DEMARCHE TO FRANCE

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Reference ID Created Released Classification Origin
06PARIS5655 2006-08-24 06:43 2011-08-24 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Paris
VZCZCXRO9441
PP RUEHAG RUEHDF RUEHIK RUEHLZ
DE RUEHFR #5655 2360643
ZNR UUUUU ZZH
P 240643Z AUG 06
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC PRIORITY 0609
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 1304
RUCPDOC/USDOC WASHDC
UNCLAS PARIS 005655 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR EAP/CM-CHASE, EB/TPP/BTA-SAEGER, AND 
EB/TPP/IPE-FELSING 
 
STATE PASS USTR FOR POSNER, WINTER, AND MCCOY 
 
E.O. 12958: N/A 
TAGS: ECON ETRD AORC KIPR EURM WTRO CH FR
SUBJECT: POSSIBLE CHINA IPR CASE: DEMARCHE TO FRANCE 
 
 
1.  (U) Economic Minister-Counselor met August 22 with Philippe 
Pegorier, technical advisor in the cabinet of Trade Minister 
Lagarde, and Bertrand Walckenaer, Finance Ministry desk officer 
for China, to deliver reftel demarche. 
 
2.  (SBU) The GOF is very focused on intellectual property (IP) 
enforcement in China and, in fact, has assigned an IP attache to 
their embassy in Beijing (from the French National Institute for 
Intellectual Property, INPI).   Pegorier stressed that the issue 
of IP protection is raised at every bilateral economic gathering 
with the PRC, including at the Ministerial level.  French 
company losses due to counterfeiting, piracy and other IP 
infringement in China amount to over a billion dollars per year. 
 (Italy, however, according to Pegorier, is the number one 
French IP infringer.) 
 
3.  (SBU) Despite the extent of the IP problem in China, the GOF 
sees some progress being made by the PRC authorities to improve 
the legal and regulatory framework for IP protection, and to 
increase public awareness of its importance.  Lackluster 
enforcement at the local level and weak institutional capacity 
remain major challenges.  The GOF has taken a number of 
initiatives in recent years:  operating a technical assistance 
program with the Chinese trademark office and the State 
Intellectual Property Office SIPO, training Chinese IP officials 
in France, organizing training and seminars for judges and 
custom officials, etc.  A major Franco-Chinese 
anti-counterfeiting symposium is being organized by INPI and 
SIPO in 2007. 
 
4. (SBU)  In responding to our call for GOF and EU support for a 
possible joint WTO case, Pegorier said that, in the choice 
between carrot and stick, the GOF believes that more will be 
achieved in the long run by working with PRC authorities on 
collaborative programs to build institutional capacity, improve 
enforcement resources, and expand public awareness.  Both 
Pegorier and Walckenaer claimed that there have been few 
specific complaints from French firms about the issue of 
value/volume thresholds for criminal prosecution, although both 
admit that this is a problem area. 
 
5. (SBU) COMMENT.  Pegorier stopped short of saying that France 
would not support EU co-filing of a WTO case, although it seems 
clear that such a move will not get a favorable push from Paris. 
 He promised to brief Trade Minister Lagarde, who returns to 
Paris on August 24. 
 
ROSENBLATT