12 February 2001

TO: CIPR MEMBERS, COLLEAGUES AND FRIENDS

FROM: Peter B. Necarsulmer & James B. Clawson

RE: CIPR WINTER 2001 UPDATE

CIPR’s primary focus in 2001 is direct legislative and regulatory lobbying in the CIS countries, Baltic States and other nations of the former Soviet Union. These 15 countries comprise the exclusive geographic concern of the Coalition. CIPR’s research, technical assistance, public education, seminar management and media relations activities also continue at an aggressive pace, including a number of new initiatives underway summarized in this CIPR WINTER 2001 UPDATE.

In all of these activities, CIPR is leveraging its credibility and expertise as the leading voice for industrial property rights protection and enforcement in the region. The work of our team of on-the-ground lobbyists and IPR experts in Russia, Ukraine, Kazakhstan, Moldova, Latvia, Lithuania, Estonia, London, New York and Washington DC — in combination with the corporate, governmental and trade association members of our public-private partnership — is strengthened by CIPR’s unique status as official “Observer” both to the World Intellectual Property Organization (WIPO) and the CIS Interstate Council on Industrial Property Protection (CICIPP).

As always, please do not hesitate to be in touch with your questions, comments and suggestions. Please contact either of us directly or go to WWW.CIPR.ORG for more information and a complete list of CIPR email and telephone contacts. A calendar of selected upcoming CIPR events and activities appears at the conclusion of this update.

MEMBERS-ONLY JOINT MEETING WITH CIS INTERSTATE COUNCIL ON INDUSTRIAL PROPERTY PROTECTION (CICIPP) — 20 MARCH 2001. On 30 March 2001, in Chisinau, Moldova, CIPR’s Founding Members and Corporate Members will join with the Patent and Trademark Office General Directors of the eight CIS countries for an all-day joint meeting. Coordinated action on IPR enforcement and counterfeiting will top the agenda along with development of new legislation and regulations on well-known trademarks, geographic indications and patent protection. Other significant discussion items include defining CIPR’s and the Council’s opportunities for additional joint cooperation with CIPR’s Associate Members, as well as with organizations such as the UNECE Advisory Group, Russia Brands Protection Group, AIPPI, International Trademark Association and others organizations with IP interests in the countries of the former Soviet Union.

For more information, please contact Peter B. Necarsulmer, CIPR President, in The PBN Company’s Moscow office at 7-095-745-8700 or via email at peter.necarsulmer@cipr.org.

RUSSIAN FEDERATION. CIPR’s priority legislative and lobbying activities in the Russian Federation during 2001 include:

• Russian Federation IPR Legislative Package. CIPR continues to be the lead private sector contact for Rospatent and the Russian Federation Government on a pending comprehensive package of IP reforms involving industrial property protection. This package includes extensive amendments to the Trademark Law, Patent Law and Administrative, Criminal and Civil Codes (as well the law on Copyrights). Many of these reforms respond to private sector lobbying efforts led by CIPR as well as to the RF Government’s own efforts to rationalize this area of the law and accelerate the Federation’s accession to the WTO. At Rospatent’s request, CIPR and its Co-Counsel Eugene Arievich of Baker & McKenzie, continue to provide the latest Rospatent-approved English language translations of the amendments related to industrial property issues. CIPR will work closely with the Duma, Rospatent and the RF Government on the formal introduction, announcement and lobbying of these amendments upon their introduction to the Duma.

• WTO Accession & TRIPS Roundtable in Moscow — 20 February 2001. CIPR and its Associate Member, the Embassy Working Group on Intellectual Property and Shareholders Rights (EWG), are co-hosting a roundtable discussion on the status of the Russian Federation’s IP-related efforts to accede into the World Trade Organization (WTO). Special guest speakers include Maxim Medvedkov, First Deputy Minister of the Economic Development and Trade Ministry and, Head of the RF’s WTO Accession Negotiating Team; Dr. Alexander Korchagin, Rospatent General Director; and, Alexander Orlov, Head of Trade Policy and Multilateral Negotiations Department of the Ministry of Economic Development and Trade.

• Industry Meeting with Rospatent Delegation at U.S. Department of Commerce in Washington, DC— 22 February 2001. At the U.S. Department of Commerce’s request, is organizing a roundtable discussion between a Russian Government delegation of leading IP experts, USG officials and U.S. industry representatives. Rospatent Director General Alexander Korchagin and Rospatent Trademark Department Head Valentina Orlova will lead the Russian delegation. In addition to the industry roundtable, the delegation will be conducting bilateral discussions with U.S. Government officials on intellectual property rights issues related to WTO accession. The overall visit is sponsored by the U.S. Department of State.

UKRAINE. CIPR continues working to expedite the implementation of enabling regulations for the comprehensive alcohol and tobacco anti-counterfeiting and anti-contraband legislation enacted last year under CIPR’s guidance and coordination. Specifically, CIPR is lobbying to have the draft enabling regulations requiring physical destruction of seized counterfeit and contraband signed by the Prime Minister over the strenuous opposition of the Ukraine State Tax Administration. CIPR also continues to provide ongoing technical assistance to the chairman and senior experts of the Ukraine State Department for Intellectual Property. CIPR is helping develop new appeals board procedures, supporting the financial independence of the Department and, disseminating information about the Department’s essential work to government officials and news media as well as Ukrainian and international IP owners.

For more information, please contact Myron Wasylyk, CIPR Ukraine Representative, in The PBN Company’s Kyiv office at 38-044-464-1240 or via email at myron.wasylyk@cipr.org

KAZAKHSTAN. CIPR is closely monitoring developments following publication of a Presidential Decree during the last week of January 2001 in which President Nursultan Nazarbayev instructed the Government of Kazakhstan (GOK) to transfer the functions of Kazpatent and the Kazakhstan Copyright Agency to a newly formed Committee on Intellectual Property, to be established under the Ministry of Justice. This decision was not unexpected and CIPR has been in contact on this issue with Kazpatent Director Tolesh Kaudyrov and other GOK officials for the past several months. Although opposed by Kazpatent and other governmental agencies, the Decree will not necessarily be negative for IPR owners or the Republic of Kazakhstan in general. Everything will depend upon the Government's forthcoming resolution in response to the Presidential Decree, which will define the responsibilities of the new Committee on Intellectual Property. This resolution will be issued later in February and CIPR Corporate and Associate Members may be called upon for assistance and action.

For more information, please contact Alexander Shelemekh, CIPR Vice President, in The PBN Company’s Moscow office, at 7095-745-8700 or via email at alexander.shelemekh@cipr.org.

U.S. Government Activities. Two activities are the focus of CIPR’s recent and current efforts with the U.S. Government:

• Bush-Cheney Administration IP Briefing Paper on Russia. At the request of CIPR Associate Members the U.S.-Russia Business Council (USRBC) and the American Chamber of Commerce in Russia (AmCham), CIPR has prepared a detailed paper on IPR issues and recommendations for the new Administration’s U.S. policy toward Russia. USRBC and AmCham will utilize CIPR’s paper, in combination with input from other companies and organizations, for submission of a comprehensive briefing paper and policy recommendations on a range of commercial issues in Russia for the new Bush-Cheney Administration. A copy of the CIPR paper can be found at WWW.CIPR.ORG.

• Input for Special 301 Annual Review by the U.S. Trade Representative. Last year, several CIS and Baltic countries were placed on the Special 301 Watch List by the United States Trade Representative (USTR) for failing to protect adequately the rights of intellectual property holders. In response, CIPR wrote and disseminated press releases in response to USTR’s actions. This year, CIPR is writing its own submissions to USTR. These submissions will allow CIPR to identify areas for improvement as well as to recognize the achievements of governments in the region and their commitment to further progress. CIPR is focusing its attention and resources on the Russian Federation, Ukraine, Latvia, Lithuania and Kazakhstan. The Special 301 submissions will be available on CIPR’s website, WWW.CIPR.ORG.

For more information, please contact Paul Nathanson, CIPR Washington, DC Representative at 202-466-6210 or via email at paul.nathanson@cipr.org or Tom Thomson in The PBN Company’s Moscow office at 7095-745-8700 or via email at tom.thomson@cipr.org. You may also contact Jim Clawson or Courtenay Carr of JBC International at 202-463-8493 or via email at jclawson@moinc.com and ccarr@moinc.com

World Intellectual Property Organization (WIPO). CIPR will participate in Geneva-based WIPO activities in the Coalition’s capacity as accredited NGO Observer to the world’s most important intergovernmental IP organization. WIPO Meetings on CIPR’s schedule include a gathering of the Standing Committee on the Law of Trademarks, Industrial Designs and Geographical Indications in March; the Advisory Committee on Enforcement of Industrial Property Rights meeting in June; and the fall 2001 Assemblies of the Member States.

For more information, please contact Peter B. Necarsulmer, CIPR President, in The PBN Company’s Moscow office at 7-095-745-8700 or via email at peter.necarsulmer@cipr.org.

TRADEMARK LAWS Database. CIPR is near completion of its inventory and translation of the most current trademark-related IP legislation for all 15 countries of the region. In early March 2001, CIPR will post on its website at WWW.CIPR.ORG English translations of these trademark laws. CIPR’s Corporate Members will also receive this unique database in CD format.

For more information, please contact Paul Nathanson in The PBN Company’s Washington office at 202-466-6210 or via email at paul.nathanson@cipr.org.

IPR enforcement legislative analysis project. CIPR is undertaking a comparative analysis of the IPR enforcement schemes of all 15 countries in the region to identify their respective strengthens and weaknesses relative to the highest international standards. The project will result in specific recommended legislative and regulatory proposals, supported by coordinated lobbying and government relations programs for each country. The project will review and analyze relevant provisions of the countries’ laws on trademark, patent, appellations of origin and/or geographic indications, well-known marks, customs, consumer protection and unfair competition, among others. It will also analyze the countries’ relevant civil, criminal and administrative codes. The project is being directed and coordinated by The PBN Company and JBC International, with professional legal analysis provided by CIPR Co-Counsel Eugene Arievich of Baker & McKenzie and, Janet Hoffman of Fross Zelnick Lehrman and Zissu.

For more information, please contact Peter B. Necarsulmer, CIPR President, in The PBN Company’s Moscow office at 7-095-745-8700 or via email at peter.necarsulmer@cipr.org or Jim Clawson of JBC International at 202-463-8493 or via email at jclawson@moinc.com.

CIPR JUDICIAL MEMORANDA ON TRADEMARKS & GEOGRAHIC INDICATIONS. Last year, CIPR Co-Counsel Janet Hoffman and Eugene Arievich wrote comprehensive memoranda on famous trademarks for the countries of Latvia, Lithuania and Russia. These memoranda were published both in English and the countries’ native languages and were widely distributed to and used by key judicial officials. Additional memoranda on famous marks are in active preparation for the countries of Estonia, Ukraine and Moldova. In 2000, CIPR also published a thorough analysis of the laws and regulations relating to Geographic Indications and/or Appellations of Origin in many countries of the region. Copies of these memoranda are posted on CIPR’s website at WWW.CIPR.ORG.

Copies can also be obtained by calling or emailing Anna Voskhodova at 7095-745-8700 or anna.voskhodova@cipr.org.

OPINION RESEARCH IN THE BALTIC STATES. CIPR is conducting an opinion survey of international and regional businesses in all three Baltic States to quantify practices and views on intellectual property protection and enforcement. The research is similar to that executed by CIPR last year in Russia and Ukraine. The survey results will be instrumental to CIPR's cooperative efforts in Latvia, Lithuania and Estonia with the public and private sectors as well as international and regional organizations. The results will be announced in Spring 2001.

For more information, please contact Arnolds Karklis, CIPR’s Baltics States Coordinator, in The PBN Company’s Riga, Latvia office at 371-728-0759 or via email at arnolds.karklis@cipr.org.

COUNTERFEIT AND CONTRABAND STUDY IN UKRAINE. CIPR commissioned The International Center for Policy Studies in Ukraine to conduct research on the import and circulation of illegal tobacco products in that country, which was widely publicized in the news media last October. It is available on CIPR’s website at WWW.CIPR.ORG. The study examines the levels of contraband and counterfeit tobacco products in Ukraine; factors influencing the rise in illegal product imports and sales; losses to the state budget and corporate revenues; and, policy recommendations to be implemented that will reverse the rising trends. CIPR is actively lobbying the Government of Ukraine to implement these recommendations.

For more information, please contact Myron Wasylyk, CIPR Ukraine Representative, in The PBN Company’s Kyiv office at 380-44-464-1240 or by email at myron.wasylyk@cipr.org.

SEMINARS & EDUCATION

MOLDOVA JUDICIAL SEMINAR — 27 MARCH 2001.  CIPR is now conducting a series of consultative meetings with Supreme Court and Economic Court judges in a number of countries in the region.  The first of a series of special all-day CIPR seminars for senior justices of regional supreme courts, economic courts, PTO appeals boards and ministry of justice officials will be held in Chisinau, Moldova on 27 March (Tuesday).).  Judge Ingo Beckedorf, a panelist in CIPR’s Riga Seminar last October, will be a lead instructor.  Other presenters will include a representative of the American court system and CIPR experts on famous and well-known marks, IP enforcement, patent laws and related topics.

Participation in the judicial seminar is by invitation only.

For more information, please contact Alexander Shelemekh, CIPR Representative, in The PBN Company’s Moscow office at 7-095-745-8700 or via email at .

The Authentication & Counterfeiting Protection Conference and Trade Show — 14-16 march 2001. CIPR has been invited to make a presentation on counterfeit issues in the countries of the former Soviet Union at this international conference.  It will be held 14-16 March 2001 at the Corinthian Towers Hotel Prague, the Czech Republic.

For more information, please contact Jenny Fehrenbach, Events Coordinator at Pira International, at 44-01372-802-047 or by email at , or Tom Thomson in The PBN Company’s Moscow office at 7-095-745-8700 or by email at tom.thomson@cipr.org.

BALTIC CONFERENCE ON INDUSTRIAL PROPERTY — 26-27 APRIL 2001.  The Baltic Conference on Industrial Property, co-hosted by the Lithuanian State Patent Bureau, its Director Rimvydas Naujokas, and Lithuania’s National Group of AIPPI, will be held in Vilnius, Lithuania, April 26-27, 2001.  CIPR is a sponsor along with the International Association for the Protection of Industrial Property, International Federation of Industrial Property Attorneys, European Communities Trade Mark Association, American Chamber of Commerce in Lithuania, American Intellectual Property Law Association, European Federation of Pharmaceutical Industries and Associations, and the Intellectual Property Constituency of the ICANN Domain Name Supporting Organization.  CIPR is organizing a panel for the event entitled Enforcement of Intellectual Property Protection Laws.  The CIPR panel will be moderated by CIPR President Peter Necarsulmer and includes Daniel Q. Greif, Trademark Counsel, Coca Cola; Dangute Ambrasiene, Justice, Supreme Court of Lithuania; Jonas Miskinis, Deputy Director Lithuanian Customs Department; and, Tom Thomson, CIPR Vice President. 

For more information, please contact Marius Jakulis Jason, President, Lithuanian Group of AIPPI at 3702-613232 or by email at , or Tom Thomson in The PBN Company’s Moscow office at 7-095-745-8700 or by email at .

IACC Annual Conference.  “AntiCounterfeiting 2001:  Attacking the Global Menace” — 2-4 MAY 2001.   The IACC Annual Conference will be held in Napa, California, 2-4 May 2001.  Speakers and panelists will provide timely, critical information concerning on-line piracy and counterfeiting – from both the industry and law enforcement points of view, legal updates, international cooperation among enforcement agencies and more.

For more information, please go to WWW.IACC.ORG or contact Tim Trainer, IACC President, at 202-223-6667 or via email at .

INTA’s 123^rd Annual Meeting — 5-9 MAY 2001. INTA’s annual meeting is the largest gathering of trademark professionals in the world.  It will be held in San Francisco, California from 5-9 May 2001. CIPR will have an informational booth at the trade show.  CIPR President Peter Necarsulmer will continue to provide support to INTA programs in the region through his participation in INTA’s East European/CIS Subcommittee.  CIPR Co-Counsel Janet Hoffman is the chairperson and CIPR members Eileen Jenner and Mikhael Doubinsky are also members of the Subcommittee.

For more information about INTA’s 123^rd Annual Meeting, please go to WWW.INTA.ORG. For information about CIPR’s participation, please contact Peter B. Necarsulmer, CIPR President, in The PBN Company’s Moscow office at 7-095-745-8700 or via email at .

WIPO SEMINARS.  CIPR anticipates continuing its tradition of participation in various WIPO-sponsored regional seminars throughout 2001. This past fall, Alexander Shelemekh, CIPR Vice President, presented to the WIPO-Kyrgyzstan Workshop on Border Measures Concerning the Infringement of Intellectual Property Rights organized by WIPO and the State Agency of Intellectual Property of the Kyrgyz Republic.  He also presented at a WIPO-Georgia Workshop on Enforcement of Intellectual Property Rights organized with the National Intellectual Property Center (Sakpatenti) of Georgia.

For more information, please contact Alexander Shelemekh, CIPR Vice President, in The PBN Company’s Moscow office at 7-095-745-8700 or via email at .

CALENDAR OF SELECTED CIPR & OTHER IMPORTANT IP EVENTS
As of 27 February 2001