• Letter from the Committee on Intellectual Property Rights of the Ministry of Justice,
  Republic of Kazakhstan. Read

Summary of Results From the Kazakhstan Republic's "Intellect" Campaign
(The PBN Company Unofficial Translation)

October 6-24, 2003

Intellect, a national campaign on intellectual property (IP) rights held by the Republic of Kazakhstan's Ministry of Justice (the Committee) on October 6-24 of this year, in accordance with the Justice Minister's decree of September 30, 2003, was aimed at studying the cause for the high incidence of piracy and developing an appropriate strategy for protecting IP rights in Kazakhstan.

The campaign was held with the following objectives:

• Raise public awareness on property rights issues;
• Generate dissatisfaction among the public with piracy and other illegal activities violating IP rights;
• Develop methods of strengthening the working relationships between various state authorities concerned with IP rights, and improve law enforcement practices;
• Solicit suggestions for improving IP legislation.

1. Campaign Planning

The plan for the campaign was developed by the Committee and provided for a number of events in Astana and other cities in the Republic of Kazakhstan. Justice departments in all of these cities were sent a copy of the plan.

The Ministry of the Interior, the Customs Agency, the Financial Police Agency and representatives of international and public organizations participated in the campaign.

A campaign staff was organized to coordinate the campaign and consisted of representatives of above-mentioned government organs, public organizations including the Forum of Entrepreneurs of Kazakhstan, the Kazakhstan Copyright Society, and the Kazakhstan Association for the Protection of Copyright and Neighboring Rights. Staff members were stationed in regional justice departments. Working groups were formed, consisting of employees of justice departments, interior ministry departments, the financial police and customs departments. The working groups responded to incoming calls on the 119 helpline and otherwise.

The International Federation of the Phonograph Industry, the Eurasian Patent Organization, a number of C.I.S. states and other international organizations praised the importance of the campaign, noting that this was a first of its kind campaign for the C.I.S. A representative of the Coalition for International Property Rights in Central Asia also played an active role in the work of the staff.

The Committee drafted and printed informational materials (posters, banners, business cards, etc.) and instructional materials (pamphlets, brochures, etc.) for distribution. A pamphlet entitled "In Help of the Gifted," which included the main regulations of intellectual property legislation (copyright laws, patent laws, trademarks, etc.), was specially created for citizens.

A special questionnaire was made to examine public opinion and public awareness of securing intellectual property rights.

Video clips were filmed and the mass media was employed for coverage of the campaign.

Active informational support was provided by national T.V. and radio stations: Khabar Agency, Kazakhstan, KTK, Rakhat T.V., NTK, Channel 31, Mir Broadcasting Company, news agencies: KazToday Agency, Interfax, Reuters; and printed publications: Egemen Kazakhstan, Kazakhstan Pravda, Law Newspaper, and others.

2. Carrying out the Campaign

The Intellect campaign became the first outreach and preventive action in the field of protecting intellectual property rights in Kazakhstan. The campaign evoked a lively response from the population and earned the approval of public associations.

The campaign carried out the following actions:

• A survey was held in which 63% of the population heard and expressed agreement with the necessity to hold this type of campaign;
• 112 responses, including calls on the 119 helpline, were examined;
• Two lawsuits were filed against alleged illegal use of trademarks under 199 Part I the Republic of Kazakhstan Civil Code;
• Lectures were given in 60 universities, as well as colleges and schools (more than 700 students in Astana alone);
• Twelve meetings were held with associations of writers, artists, architects (including an exhibit of paintings by handicapped children in the Astana Museum of Modern Art);
• Thirty-four round-table discussions were held, in which representatives of small business, public associations, and artist groups participated;
• A series of appearances were made on television, including participation in five live television programs in Astana;
• Computer companies, including Microsoft Kazakhstan, signed a declaration of compliance with copyright law on October 10;
• A national seminar, addressing questions of protecting manufactured property rights, was held in Karagan on October 15-16;
• A celebratory gathering on Almaty's central square with a public display of destructing pirated goods and performances by Kazakhstan show business stars was held on October 18; public displays destructing counterfeit goods were held in almost all regional centers of Kazakhstan;
• A raid was conducted by a special 'fast response' force of the main division of the Ministry of the Interior in collaboration with officers of the Financial Police Department; 4265 copies of pirated goods valued at 659,300 tenge were confiscated.

The Committee's website, www.intellkaz.nursat.kz, is available in three languages - Kazakh, Russian and English. The site offers visitors access to:

1) basic information about legislation and regulations affecting intellectual property rights;

2) statistical data;

3) database of legal counsel who offer services in applying for patents and copyrights;

4) database of patents and copyrights for receiving information about their registration, authors and patent holders.

A memorandum "On Interaction and Cooperation in Intellectual Property" identified models of practical interaction between government organs and public organizations on preventing illegal activities with intellectual property, including the creation of a working group that represents both sides in formulating suggestions.

3. Conclusions and Suggestions

The campaign produced an analysis of the state of intellectual property rights protection, a study of international experience and a collection of suggestions on improving national legislation. These results enabled the Committee to name a few causes for the low level of protection of intellectual property rights and to develop a list of first steps, including improving legislation.

The first and perhaps main reason for the existing problems in the area of intellectual property is the lack of education and active participation by those whose rights are being violated (authors, inventors and others).

According to the survey results, 40 percent of the population does not know what exactly property rights are. Of the 36 percent of the population who have encountered infringement of their rights, only five percent approached the appropriate state organ for protection.

The second, and no less important, reason is the absence of adequate measures of responsibility for violations of intellectual property, as well as the imperfection of existing regulations.

For example, for the illegal dubbing and distribution of music the guilty party may face a penalty in the form of a fine equal to three monthly wages or 2616 tenge (872 x 3). At the same time, profits from sales of a piece of music could be hundreds of times larger than that sum. In the end it works out that it is more profitable for the guilty party to violate the law than to turn down this "business opportunity."

The imperfection of criminal law makes prosecution for criminal responsibility practically impossible.

Thus, to date only one person has been convicted of criminal charges for illegal use of property protected by intellectual and related rights.

The third reason is the presence of a multitude of gaps in legislation, the absence of regulations necessary for control over the circulation of audio and audiovisual products and computer media.

Disunity among public organizations, resulting from each organization deciding common problems on its own, and the lack of coordination of the actions of both public organizations and authorized state organs have affected the state of affairs of protection of intellectual property rights. A pressing need has thus appeared for cooperation among both these organizations and involved government organs.

Lawbreaking and crime in the area of intellectual property significantly threaten the economies of these countries and culture as a whole.

A number of working groups focusing on international experience and improvement of national legislation met as part of the campaign.

At present there are many suggestions for work in these areas. A list of specific first steps and measures, including changes to legislative regulations, has been made.

Among the suggestions made are:

1. Strengthening administrative and penal responsibility for violations of intellectual property rights.

2. Creating a research center at the National Institute for Intellectual Property.

3. Declaring the 7th of each month (regardless of which day of the week that may be) a day for supporting beginning entrepreneurs and inventors.

4. Forming a special interdepartmental commission coordinated by the federal government to deal with questions on intellectual property protection.

5. Ratifying bylaws on questions of intellectual property, including rules on labeling and circulating audio and audiovisual products and computer media.

The national campaign Intellect has been completed. Its completion marks the end of the first stage of advancing and successive actions by the state in this area.

Information on Measures Taken in 2003 to Guarantee Intellectual Property Rights

To guarantee the protection of intellectual property rights, in 2003 the Committee paid special attention to improving the regulatory legal foundation in this area, especially to changes required to adhere to international conventions and agreements. It also focused on raising public awareness, working collectively with law enforcement agencies, public organizations and international organizations, fighting piracy through the mass media and planning and conducting seminars on questions of protecting intellectual property rights.

1. The draft law "On the introduction of changes and amendments to Republic of Kazakhstan legislative acts in the area of intellectual property" was written, providing for the introduction of changes and additions into a number of legislative acts that regulate issues of protecting intellectual property, including the Republic of Kazakhstan law "On copyrights and related rights." The introduction of retroactive protection of rights to works, expanding the law's applicability to works that were created before the adoption of the law, was one of the law's primary changes.

The period of protection for copyrights was increased from 50 years to 70 years. Article 47 of the law was amended, giving the Committee, as an authorized government organ, the authority to review the activities of economic entities that use objects of intellectual property and demand from them required information.

The above-mentioned draft law is presently under consideration by the Parliament of the Republic of Kazakhstan. We expect that the amendments to this law will be passed this year.

2. Draft legislation proposing that the Republic of Kazakhstan join the treaties under the World Intellectual Property Organization (WIPO) - WIPO Copyright Treaty and WIPO Performances and Phonograms Treaty - was prepared and submitted for consideration by the government of the Republic of Kazakhstan with the aim of guaranteeing the rights of authors, performers and producers of digital recordings.

3. Draft government regulations "On the appointment of government organs responsible for carrying out the agreement on collaboration in intercepting violations of IP rights" were developed in an effort to establish agreement on and realization of methods of collaboration in the area of intellectual property rights protection.

The draft regulations have been submitted to the government of the Republic of Kazakhstan for consideration.

4. With the aim of increasing penalties for violating IP rights, work has begun on the drafting of legislation on the implementation of changes and amendments in criminal and administrative law. The legislation is to be considered by the interdepartmental commission in 2004.

A program has been developed to withdraw Kazakhstan from the Watch List of interagency Special 301 Review. The program's objectives are: to create conditions for guaranteeing effective protection of intellectual property rights in the Republic of Kazakhstan; to improve IP legislation, law enforcement practices, and mechanisms of customs control over the transfer of goods containing intellectual property across customs borders; to advancing the qualifications of those who deal with IP issues; to enhance cooperation with public organizations; to improve work preventing and avoiding violations of intellectual property rights.

6. In order to decrease the incidence of the distribution of counterfeit goods, work is being done to develop regulations that dictate conditions for sales of audio and audio-visual products, computer software, and their labeling.

7. To prevent the import and export of counterfeit goods it is planned to amend the Customs Code. The functions of customs organs in the control of goods that contain objects of intellectual property crossing customs borders of the Republic of Kazakhstan will be expanded.

8. On the order of the Minister of Justice the "119" helpline has been activated. Anybody may call on this line and register a complaint against a violation of intellectual property rights and receive practical assistance from a state entity.

9. Requests to provide information on criminal cases related to breaches of IP rights were sent to the Ministry of the Interior and the Financial Police agencies in order to work out a single law enforcement practice.

10. On September 15, 2003 the Ministry of the Interior issued an order to create special departments on IP rights in local Justice divisions. This measure will put into practice a check on persons who use IP goods in their administrative activities, and will make possible public awareness campaigns.

11. Four hundred thirty five checks of individuals and legal entities that use IP goods in their activities were conducted as part of the campaign aimed at combating counterfeiting. During the checks, 125, 057 copies of counterfeit goods worth 36, 774,815 tenge were confiscated.

As a result of the checks 288 cases were filed for illegal use of goods protected by copyrights and (or) related rights (Article 129 of the Republic of Kazakhstan's Code of Administrative Offenses). The courts declared the offenders guilty, ruled for a fine of 1, 198, 404 tenge and issued a decision to seize the property.

12. Measures are being taken to bring guilty parties to criminal justice. Joint checks by the Ministry of Justice and law enforcement organs have resulted in the filing of charges for violating IP laws for the first time this year.

There were 25 suits filed over the period reviewed. Eleven are still being investigated. Nine are now being reviewed by the courts. Four have been dropped and in one suit the guilty party has been convicted of illegal use of an object of intellectual property (clauses 184 and 199 of the Republic of Kazakhstan Criminal Code) and fined in the amount equal to four monthly wages.

13. To improve legal conditions, in 2003 the Committee held the following seminars:

• Protecting rights to computer programs and databases," an international seminar organized together with Microsoft, Astana, March 27-28;
• International seminar on protecting rights to biotechnology and genetic resources, Almaty, April 29-30 (The seminar was a joint project with the World Intellectual Property Organization. The Almaty justice department and the National Patent Office of the Republic of Kazakhstan, a National Public Enterprise Institute, also participated.);
• Regional seminar for music artists, phonogram manufacturers, and live and cable broadcasting companies, Taraze, June 26-27;
• Regional seminar "Small and medium businesses: protecting commercial property rights," Aktau, August 19-20;
• National seminar on collective management of authors' property rights, Almaty, September 18-19;
• National seminar on protecting commercial property rights, Karaganda, October 15-16.

Representatives of international organizations, law enforcement and customs agencies, regional justice departments, copyright and related right holders, patent holders, the mass media, scientific-research centers, universities, as well as individuals and entrepreneurs who use IP goods - were all active participants in these seminars.

14. The campaign worked to establish the concept of protecting IP rights by making audio and audiovisual clips ordered by the Committee about the battle against piracy, which were played on national television and radio stations.

15. To eradicate contradictions in the national practice of protecting intellectual property, the Committee has established permanent contacts with the World Intellectual Property Organization (WIPO), the Coalition for Intellectual Property Rights (CIPR), and the International Federation of the Phonographic Industry (IFPI).

16. Considering the importance of joining the World Trade Organization, in January of this year the first anti-piracy organization in Kazakhstan was created. The Association for the Protection of Copyright and Related Rights works closely with the Committee in the field of guaranteeing IP rights. The National Institute of Intellectual Property has also begun work, creating special departments for innovation and commercialization of objects of intellectual property, and copyright issues.

The Committee on Intellectual Property Rights,
the Government of the Republic of Kazakhstan