Ron of 2Bangkok.com states:

Is "USA for Innovation" a fake lobbying group set up only to attack the current Thai government?

With perfect timing, this new lobbying effort has appeared and targeted the Thai military government. Practically overnight, a Google search returns 24,300 hits for "USA for Innovation" (as of the writing of this article) and they all appear to refer to the press releases this lobbying group has issued over the last few days.

USA for Innovation's sparse website has a news page with occasional press releases going back to 2005, but only the recent Thai patent issue has multiple press releases. There is also a gap, nearly a year long, between press releases from May 2006 to April 2007.

Pre-April 2007 press releases from USA for Innovation do not appear to have been released to PR Web or other press release websites. Pre-April 2007 press releases do not even appear on Google--perhaps indicating they were only recently placed on the website to give USA for Innovation a plausible history before this April. Archive.org shows no activity for the site either.

The broad sweep of issues addressed in both the USA for Innovation website and its Wall Street Journal ad is peculiar for a lobbying group that ostensibly is concerned with pharmaceutical issues. Taking the angle of "Slouching towards Burma" and "Radical new regime" could indicate a broader agenda than just focusing on protecting patents. Calling the PM a "Military Dictator," bringing up "targeted 'disappearances'" in the deep south, attacking military spending, and trying to highlight YouTube censorship seems to go far beyond what would be expected from a typical lobbying group attempting a diplomatic solution to a patent issue.

This PR initiative comes at a suspiciously opportune time as pro-Thaksin groups attempt to build on issues from the draft constitution to destabilize the government before the momentous rulings on disbanding the Thai Rak Thai party at the end of May.

According to SourceWatch, USA for Innovation's Executive Director Ken Adelman is also a senior counselor to Edelman. Edelman is the PR firm hired by former PM Thaksin Shinawatra.

You also have Korbasak at his personal website and in The Nation:

A top Democrat yesterday urged the government to respond swiftly to what he described as a coordinated attempt to discredit Thailand in the United States that is being orchestrated by former premier Thaksin Shinawatra.

Korbsak Sabhavasu, a member of the Democrat Party's executive board, was responding to an opinion piece by Ken Adelman - a former US ambassador to the United Nations and an adviser to Edelman Public Relations - in the Washington Times on Friday.

The article blasts the Thai government over its patent dispute with US drug firms.

"We've long regarded Thailand as a fine little country," Adelman wrote in the article that accuses Thailand's military of trying to steal US intellectual property (IP).

Thailand now belongs to what he calls "the axis of IP evil".

Korbsak said the tone of Adelman's article made it apparent that he was trying to discredit the government on behalf of Thaksin, although Adelman signed the article in his capacity as director of USA for Innovation, a group that lobbies for US pharmaceutical firms.

Edelman PR was hired by Thaksin earlier this year to launch a public relations campaign to help him return to the Kingdom, Korbsak noted.

COMMENT: One small point, I am not sure that USA for Innovation is a group that only acts in the interest of US pharmaceutical firms as the US for Innovation About us page states:

USA for Innovation is non-profit, non-governmental organization dedicated to educating the general public about the importance of innovation and the role that protection of intellectual property (IP) plays in encouraging American innovation.
...
Unfortunately, America is woefully uneducated on the importance of IP. American intellectual property, worth more than $5 trillion, suffers from a lack of protection in the global marketplace and is increasingly under threat from policymakers at home and abroad. This dangerous inattention to IP rights could not come at a worse moment: rapidly developing competitors like India, Brazil and China resist IP protections, refuse enforcement of paper provisions and cultivate activists to fight for the elimination of intellectual property rights in international organizations.

COMMENT: This to me suggests the group (dare I call them an NGO?) is interested in protecting intellectual property generally. 

Naturally, the inclination that that the attack must have been paid for by Thaksin is the suggestion. This commentator at TJTS sums it up:

But surely anybody that criticizes Thailand is secretly being bankrolled by Thaksin?

COMMENT: I mean, what other reason would the US for Innovation group, who would and at least appear to represent US organisations with intellectual property interests in Thailand, spend the last few weeks focusing on a campaign attacking the Thai government? There is a good reason on why the recent campaign as the Bangkok Post reported (cache) yesterday:

The Thai government's showdown with multinational drug companies over compulsory licensing could result in a downgrade on Washington's watch list of countries with poor intellectual property (IP) rights protection, trade sources say.

A downgrade could have consequences for Thai exports that enjoy low tariffs under the US Generalised System of Preferences (GSP).

Washington is due to release its annual report on IP protection under the so-called Special 301 section of US trade law at 9 pm tonight Thailand time. Sources say that Thailand could be downgraded from the Watch List to the Priority Watch List (PWL) of IP violators.

A downgrade would be the first in a decade for Thailand, which is among dozens of countries on the regular watch list, which reflects US displeasure over lax copyright and trademark enforcement.

Countries on list could face heavy sanctions, including losing trade privileges.

About 4,600 Thai products are eligible for the GSP scheme that Washington has provided for Thailand since 1976. More than 1,000 items obtained the privileges last year, saving producers an estimated US$4.25 billion through reductions or elimination of import tariffs that normally range from 1% to 25%.

An international trade source said that Thailand's overall record on IP protection this past year had not been any better or worse than in previous years. However, the Thai government has outraged the politically powerful and deep-pocketed pharmaceutical industry.

At issue has been the military-backed government's decision to issue compulsory licences to override patents on some HIV/Aids and heart medications. Thailand contends it can do so under provisions in the World Trade Organisation.

Last week, a business lobby group calling itself "USA for Innovation" placed an alarmingly worded full-page advertisement in the Wall Street Journal, claiming among other things that Thailand "stole" three drugs produced by American and European companies.

Late last week, around 100 health activists rallied at the Commerce Ministry to protest the actions of Abbot Laboratories, one of the affected companies, in withdrawing the planned introductions of new drugs into the country. The activists said such conduct could violate the law.

Abbot retaliated because Thailand decided to issue a compulsory licence for Kaletra, its key Aids drug.

The US last placed Thailand on its PWL from 1989 to 1992. At the time, it cut import tariff privileges under the GSP for 19 products, mostly agricultural goods, exported from Thailand.

Thanks to improvements in IP protection in Thailand, Washington upgraded Thailand to its watch list in 1993.

Under the Special 301 Act, Washington can take trade action or seek dispute settlements against countries on either the PWL or the WL. In practice, countries on the PWL are much more vulnerable.

A Commerce Ministry official said he was optimistic that the situation would not deteriorate further. He expressed hope that no trade action would be taken to remove GSP privileges, which would hurt about 20 key products.

"These products used up more than half of the total GSP privileges the country enjoyed from the US market last year," he said.

However, he was not sure whether the ministry would take trade action itself in response, adding that publicity about IP problems could damage Thailand's reputation.

The Nation also reports:

Tariff downgrade over violations will hit Thai exporters.

Many Thai exports to the United States are expected to lose tariff privileges today, when Washington places the Kingdom on its intellectual-property Priority Watch List.

An announcement of the downgrade was expected early this morning Thailand time and comes in the wake of inadequate protection of intellectual-property rights.

The downgrade comes with stiff trade retaliations.

The US Embassy in Bangkok is scheduled to hold a news conference later today.

However, local officials expect Thailand to be downgraded to priority-watch status, because of conflicts between the Public Health Ministry and US drug companies following the Kingdom's decision to invoke World Trade Organisation rules allowing it override patent protection on selected drugs.

In addition, worsening copyright violation of audio-visual products further hamper Thailand's chance of being spared retaliatory action, says international-trade experts.

Commerce Minister Krirk-krai Jirapaet believes Thailand will be downgraded, because influential companies are pressuring the US government. These companies accuse Thailand of being slow in stamping out intellectual-property violations.

Many US companies and trade groups - including Levi Strauss, Philip Morris, the Cable Broad-casting Satellite Association of Asia and the American Apparel and Footwear Association - are urging Washington to punish Thailand for growing product counterfeiting. Of most concern are brand-name apparel and accessories and audiovisual products.

The Washington-based US-Asean Business Council yesterday expressed concern that the downgrade would hit US investors and their trading partners.

Krirk-krai said council president Matthew Daley was afraid Thailand would be downgraded as a result of the compulsory licensing of drugs.

Daley and other US businessmen in Thailand - particularly new entrants - are anxiously awaiting final wording of amendments to the Foreign Business Act.

"Most American businessmen are looking forward to the final agreement, so they can understand clearly the policies of the government towards foreign investors," Daley explained.

The US Trade Representative categorises 63 trading partners into four groups in descending order of intellectual-property infringement: priority country, priority watch, watch and monitoring. Each is subject to different degrees of trade protection.

Thailand has held watch-list status since 1992, following improvements in property-rights protections. It was on priority watch from 1989-92.

Krirk-krai accepts that the US government must respond to corporate demands to protect domestic businesses. If Thailand is downgraded today, he will seek to mitigate the effects on exports in negotiations with Washington.

A downgrade to priority watch could see the loss of tariff privileges on exports under the Generalised System of Preferences (GSP). The US is scheduled to announce revisions to this by midyear.

Exports at risk of losing GSP benefits include jewellery, tyres, electric appliances and plastic goods. These products receive the most GSP benefits.

At present, 18 per cent of exports enjoy duty-free status, compared with normal tariffs of 2-14 per cent.

A Commerce Ministry source who asked not to be named confirmed the likelihood of a downgrade and cited the influence of US drug companies in Washington.

The source said tariff retaliation would be because Bangkok invoked compulsory licensing of American drugs, which was costing manufacturers profits.

Between late last year and early this year, the government invoked compulsory licensing on some US-made HIV/Aids drugs and an anti-coagulant, sparking annoyance in Washington over the effect on patents and copyright.

Another concern that may lead to a downgrade is the September 19 coup.

But a US Embassy source said Washington was most concerned trading partners satisfied demands for property-rights protection. The source said patent protection was of greater priority than was the military overthrow of the Thaksin Shinawatra government. The source noted there was a coup in 1991, two years before the country was upgraded to watch-list status as a result of improved intellectual-property protections.

The embassy source suggested any downgrade would be a consequence of slow progress in suppressing violations of intellectual-property rights, especially films and optical discs.

Public Health Minister Mongkol na Songkhla reported after a separate meeting with the business council's Daley that corporate America was most concerned about widespread violations of intellectual-property rights, especially films and computer software and games. Mongkol conceded compulsory licensing of pharmaceuticals was relevant.

He said that while his ministry had informed the US of its intentions, "businesses said we should have negotiated with drug companies before imposing compulsory licensing. I have explained our reasons. Everything is in the White Paper", he said.

He added the drug moves were taken to save the lives of patients needing the drugs involved.

He said his ministry was now looking for cheaper leukaemia drugs, citing the requirement of about 10 per cent of the country's sufferers for the treatment called Gleevec made by Novartis. The patented version costs Bt3,600 a day.

Food and Drug Administration secretary-general Siriwat Thiptharadol said it recently asked four drug companies to reduce prices on vital treatments.

MSD (Thailand) makes efavirenz (brand name Sustiva), US-based Abbott Laboratories makes Kaletra, France's Sanofi-Aventis manufacturers Plavix and Novartis holds the patent for Gleevec.

 Negotiations will start on May 14, Siriwat said.

COMMENT: I can't find mention on 2Bangkok.com or Korbsak.com on this following fact which The Nation (yes, they are now always bad) reported about Edleman PR:

The Chicago-based firm also represents Abbott Laboratories, which is involved in a patent dispute with Thailand over its life-saving Aids drug Kaletra.

COMMENT: I wonder how many other firms with intellectual property interests are represented.

btw, it has now been confirmed that Thailand, along with India and China and some other countries, have been downgraded to "priority watch" so the PR/lobbying campaign was successful. AP reports more fully:

The United States criticized Thailand on Monday for steps it took to override patents of two HIV/AIDS drugs, but stopped short of threatening action at the World Trade Organization.

The U.S. Trade Representative's office, in an annual report on how well countries protect U.S. intellectual property rights, said it was elevating Thailand to its "priority watch list" because of an "overall deterioration in the protection and enforcement" of intellectual property rights there.

"In late 2006 and early 2007, there were further indications of a weakening of respect for patents, as the Thai Government announced decisions to issue compulsory licenses for several patented pharmaceutical products," the USTR said.

The Doha declaration adopted by WTO members in November 2001 reaffirmed that countries have some flexbility under international trade rules to ensure their populations have access to life-saving medicines.

Those include compulsory licenses requiring drug patent holders to allow others to produce their drugs.

"While the United States acknowledged a country's ability to issue such licenses in accordance with WTO rules, the lack of transparency and due process exhibited in Thailand represents a serious concern," the USTR said.

Victoria Espinel, assistant U.S. trade representative for intellectual property, told reporters the United States' concern stemmed from compulsory licenses issued by Thailand for two HIV/AIDS drugs and one heart medication.

Espinel refused to say whether the United States believed Bangkok's actions violated WTO rules and also would not comment on any future steps Washington could take.

Shortly after Prime Minister Thaksin Shinawatra was ousted last September, Thailand declared compulsory licenses to make or buy generic equivalents of an AIDS drug owned by Merck & Co <MRK.N>. Then it overrode patents on another AIDS drug owned by Abbott Laboratories <ABBT.KA> and a heart disease drug owned by Sanofi-Aventis <SASY.PA>, prompting an outcry from the companies and praise from HIV patient rights groups.

Abbott has been criticized for the high prices of its AIDS drugs in developing countries and the company initially said it would stop launching new drugs in Thailand to protest the Thai government's decision override drug patents.

Last week, Abbott offered to sell a new heat-stable form of an AIDS drug in Thailand for $1,000 per patient per year, matching an offer it made earlier in the month to about 40 low- and middle-income countries.

The drug patent issue is just one of the many reasons the United States decided to put Thailand on its priority watch list this year along with 11 other countries, Espinel said.

Thailand's copyright legislation and trademark rules need to be strengthened and "very serious enforcement concerns have existed for some time and don't appear to be getting any better," Espinel said

COMMENT: I imagine one of the reasons for the intensified lobbying over Thailand was it was a touch-and-go issue whether to downgrade Thailand. I wonder whether without the compulsory licenses there would have been any downgrade? My guess is probably not.

I dare say the negotiations will not start in earnest by the Thai authorities to reverse this decision. The pharamaceuticals companies now have some strength although this might depend on how the government and the CNS play it politically in Thailand. Will they play the US bogeyman card? I don't think most members of the government will, but I am not so sure about the CNS. Oh, of course Sondhi will, but I don't think anyone doubts that. It will be interesting to watch everything play out.

Expect the usual suspects to come out blame this as some nefarious Thaksin plot because as we know Thaksin is the "source of all evil". Yawn.

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