TWINNING LIGHT PROJECT FICHE

1. Basic Information

1.1 Programme: IPA 2012

1.2 Twinning Number: MN 12 IB FI 01 TWL

1.3 Title: Enhancing the protection of Intellectual Property Rights in Montenegro

1.4 Sector: Intellectual Property Rights (IPR)

1.5 Beneficiary country: Montenegro

1.6 Maximum Budget 250.000 €

2. Objectives

2.1 Overall Objective(s):

The overall objective of this project is to enhance the level of protection of Intellectual Property Rights (hereinafter: IPR) in Montenegro to a level similar to that which exists in the European Union.

2.2 Project purpose:

To strengthen the institutional and administrative capacity of the IP active authorities in Montenegro in relation to protection of IPR.

2.3 Contribution to the National Intellectual Property (IP) Strategy 2012-2015 and the action plan and the requirements outlined in the latest EU Progress Report.

The objectives of this project are in line with the priorities outlined in the National IP Strategy for Montenegro which was adopted in December 2011. The priorities of the project are:

1) Institution Building;2) Legal Alignment;3) Capacity Building; and4) Public Awareness.

The project will support the implementation of the action plan presented in the National IP Strategy and will specifically interlink with the following priorities from the action plan;

1) Consolidation of IP legislative and Enforcement Framework;2) Improve institutional capabilities; and3) Promoting wider understanding of impact of IP1.

1 Intellectual Property in Montenegro; A Strategic Approach – December 2011 p.25-26 (National IP Strategy for Montenegro)

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It is envisaged that the legal alignment and the capacity building will primarily concentrate on issues related to IP Enforcement. This is in line with the recommendations from the latest EU Progress Report for Montenegro, which was published in October 2012 by the European Commission.

3. Description

3.1 Background and justification:

IPR protection is globally important for companies operating in market economies. If a company does not protect its innovation everyone is free to copy it and profit from it. Making entrepreneurs and inventors aware of the importance of IPR protection is an important task in which the national IP offices play a key role.

Over the last two decades the level of infringements, piracy and counterfeiting has increased globally. These violations pose a serious threat to private companies and innovators whose existence solely depends on the surplus they make through their innovation. In case this trend continues it will pose a serious threat to the global economy. As protection of IPR only serves a purpose if infringers are subsequently punished for their violations, it is vital, that a functional and efficient enforcement infrastructure is in place.

In addition, counterfeiting of products such as pharmaceuticals or aircraft spare parts poses a major risk to health and safety of their consumers/users.

The overall objective of this project is to enhance the level of protection of IPR in Montenegro to a level similar to that which exists in the EU.

After gaining independence in September 2006, Montenegro officially applied for EU membership in December 2008. In May 2010, the Stabilization and Association Agreement (SAA) between Montenegro and the EU entered into force and in December 2010 EU candidate status was granted to Montenegro. With accession negotiations having started in June 2012, the need to align the Montenegrin level of IPR protection to EU standards has become even more urgent.

The conclusion of the 2012 EU progress report is that; “some progress can be reported in the area of intellectual property. Further efforts are needed to align with the acquis in this area and to implement it effectively in the medium term. Overall, preparations are moderately advanced.”

Furthermore, conclusions of the Screening report on Chapter 7 – Intellectual Property Rights emphasise that "Montenegro has to strengthen its administrative capacity by providing more specialised training courses and – in a longer perspective – employing more staff on IPR issues. IT systems of several institutions (e.g. courts and market inspectorate) should be upgraded and relevant databases established and made operational. The cooperation and exchange of information between different institutions involved in the IPR enforcement should be formalised and occur on a more systematic and permanent basis." In addition, it mentions that "Montenegro still has to demonstrate that it has the necessary administrative capacity to implement the acquis. The administrative capacity in the area of copyright should be further strengthened, especially as regards the understanding and practical implications of the copyright law provisions." A number of regulations related to both industrial property rights and copyright and related neighbouring rights have been

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adopted indicating that progress has already been made in order to align the Montenegrin legislation to EU standards. However the legal framework on enforcement needs to be streamlined and further aligned with the EU Acquis.

In regard to IP enforcement, the Government adopted the National Intellectual Property Strategy 2012-2015 in December 2011, where one of the priorities is to enhance the enforcement of IP in Montenegro. For obvious reasons, it is not sufficient to establish a framework for IP protection if measures are not in place to subsequently enforce the IP rights in situations where they are infringed. As resources in public sector are limited and the IP active institutions (hereunder the courts and the enforcement agencies) have competing priorities it is vital that cooperation and exchange of information/intelligence between these institutions is optimized to increase efficiency and effectiveness.

Another important priority, according to the Strategy, is capacity building within the IP active institutions. There is a need for enhanced capacity and new knowledge in the IP active institutions in relation to IP enforcement and training of public officials in issues related to IPR should be prioritized.

The Strategy also stresses the importance of promoting IP culture in society and the importance of understanding the damaging effects of counterfeiting and piracy to society as a whole.

The project presented below aims to target the following challenges:

Institution building and interagency cooperation on IP enforcement; Legal alignment in relation to the enforcement code; Capacity building on IP enforcement - targeting officials in IP active institutions; and Awareness raising on IP.

3.2 Linked activities:

IPA National 2009; “Strengthening Intellectual and Industrial Property Policies in Montenegro.” (2010-2012) Total Budget 450.000 € - Implemented by the EPO

Main objectives:

- To complete the alignment of the Montenegrin IP legislation (laws and by-laws) to European standards; and

- To enhance the capacity of Intellectual Property Office of Montenegro (IPOM) staff through on the job trainings and seminars.

The European Patent Office (EPO) has started installation of a database of patents which will replace the Industrial Property Automation System (IPAS) module originally planned. This database will improve workflow management and working procedures. Improvements have also been made to the system of electronic archiving.

Cooperation with the World Intellectual Property Organization (WIPO)

Montenegro is a member of WIPO and have signed all relevant treaties and conventions administered by this UN organisation.2 With support from WIPO a number of different

2The World Intellectual Property Organization (WIPO) is the United Nations agency dedicated to the use of intellectual property (patents, copyright, trademarks, designs, etc.) as a means of stimulating innovation and creativity

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activities have been implemented in the later years and it is envisaged that further activities will be supported by WIPO in the years to come.

Furthermore WIPO has assisted IPOM with the installation of IPAS. It will take one year to complete this work. Efforts targeting improvements of workflow management and the working procedures are postponed until the system is in place.

In 2011 WIPO has also supported Montenegro through:

- Implementation of a national seminar on the Madrid system;- Participation of IPOM officials at the WIPO Intergovernmental Committee on Intellectual

Property (Generic Resources, Traditional Knowledge and Folklore);- Attendance of WIPO officials at selected conferences and committee meetings arranged by

WIPO; and- Participation of one IPOM official at an Interregional seminar on the Hague system

3.3 Results:

At the end of the project, the following results are expected to be achieved;

The interagency cooperation between the IP active institutions in Montenegro enhanced via the introduction of a formalized model for cooperation;

The legal code related to IP enforcement has been assessed and aligned to EU standards;

A minimum of 134 officials from IP active institutions obtains knowledge about IP enforcement;

Selected officials from the IP active institutions gain knowledge of how to raise awareness on counterfeiting and piracy in the general public and participate in preparation of awareness materials.

3.4 Activities:

a) Project Planning and Coordination

In order for the primary stakeholders3 to get acquainted with each other and to make sure that consensus is reached between EU Member State (MS) and Beneficiary Country (BC) management regarding the detailed programming of the project it is important that the Project Leaders meet with the primary stakeholders during the project. Three Steering Committee Meetings (SCM) are envisaged during the lifetime of the project; one in month 1, one in month 4 and one in month 6 of the project. It is expected that the task manager from the EUD will also attend the SCM’s.

Deliverables:

- Agendas for the meetings

33 please see the list of stakeholders under heading 4. Institutional Framework

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- Minutes from the meetings

b) Institution Building

This component aims at assisting the BC institutions involved in developing an institution building strategy and in outlining the different options for enhancing the cooperation between the institutions. In Montenegro inter-institutional cooperation is still not fully formalised. The key element of cooperation is enhancement of the exchange of intelligence, information and best practice.

Activities:

- Assess the level of interagency cooperation related to IP enforcement presently taking place in Montenegro, hereunder the roles of the different stakeholders;

- Issue recommendations on how to enhance the capacity of the IP active institutions in Montenegro; and

- Develop a formalized model for cooperation between the IP active institutions in Montenegro.

Deliverables:

- Report on the present level of cooperation between the IP active institutions;- Recommendations related to enhancing the capacity of the IP active institutions in

Montenegro; and- Formalized model for cooperation developed.

c) Legal Alignment

The alignment of the legal framework with the acquis is well advanced in Montenegro. The latestProgress report from 2012 underlines however the importance of streamlining the enforcement code with the EU acquis:

Activities:

- Conduct a gap analysis of the existing legislation; and- Propose changes to the existing legislation which can be presented to the political level

Deliverables:

Report outlining the gaps in the existing legislation and containing proposals on how to align the legislation to EU standards

To be noted: With regard to the Patent Legislation – which also needs to be revised - it is envisaged that Montenegro will receive the required support from the EPO. It is therefore not included in the scope of the present project.

d) Capacity building

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The capacity building side of the project aims at enhancing the capacity of the Police, Customs, Judges and prosecutors on issues related to IPR enforcement. Training on IP protection targeting officials from the IP Office is also envisaged.

Activities:

- Study tour to selected EU member state for 10 Montenegrin officials- Study visit for one copyright expert to selected EU member state - Two seminars targeting Police officials;- Two seminars targeting Customs officials;- Two seminars targeting Market Inspectors;- Two seminars targeting Judges and Prosecutors; and- Two seminars targeting officials from the IP Office.

Deliverables:

- Two study visits conducted- Ten seminars conducted;- Training materials made available to participants; and- Short evaluation report submitted subsequent to each training session.

The trainings for enforcement officials will target an audience with none or limited knowledge on the subject. As regards the seminars for officials from the IP Office they will primarily focus on issues related to trademarks and designs, as patent related training will be provided you the EPO on a bilateral basis.

e) Awareness Raising

Activities:

- Two workshops for selected officials from the institutions involved in IP Awareness raising;- Development of awareness raising materials and campaign for the general public.

Deliverables:

- Awareness raising materials and campaign developed in cooperation with selected beneficiary representatives.

3.5 Means/ Input from the MS Partner Administration:

3.5.1 Profile and tasks of Project Leader

Project Leader

Profile:

- Relevant university degree or relevant work experience;

- 10 years of professional experience, a minimum of 5 years within the area of Intellectual Property Rights

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- Extensive experience in the field of project management;

- Fluency in English (written and spoken);

- Demonstrated experience in preparing, managing and/or implementing Twinning Projects; and

- Prior experience from the Western Balkans will be an asset.

Tasks:

- Overall management of the project;

- Development and implementation of the detailed work plan;

- Coordination of the MS experts and quality control of the input delivered;

- Participation in the Steering Committee Meetings;4

- Process the final report in cooperation with BC counterpart.

3.5.2 Profile and tasks of the short-term experts

Short term expert(s) involved in institution building activities

Profile:

-Relevant university degree or equivalent education from an IP enforcement authority

(Police or Customs);

-Minimum 5 years of professional experience in the field of IPR;

-Demonstrated experience in developing models for interagency cooperation;

-Fluency in English (written and spoken);

-At least one experience as a Short Term Expert in EU funded projects – preferably Twinning;

- Employed by a public administration or a public body on a permanent basis for at least one year

-Prior experience from the Western Balkans will be an asset.

Tasks:

-Assess the present capacity of the IP active institutions in Montenegro in relation to IP protection and enforcement;

-Process recommendations on how to enhance the cooperation between the IP active authorities in Montenegro; and

-Develop a formalized framework for cooperation between the IP active authorities in Montenegro.

4 As described under: 4) Institutional Framework

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Short term expert involved in legal alignment

Profile:

-University degree in Law;

-Minimum 5 years of professional experience in the field of IPR;

-Demonstrated professional experience in conducting gap analysis on IP legislation;

-In depth understanding of the mechanisms related to IP enforcement;

-Fluency in English (written and spoken);

-At least one experience as a Short Term Expert in EU funded projects – preferably Twinning;

- Employed by a public administration or a public body on a permanent basis for at least one year

-Prior experience from the Western Balkans will be an asset.

Tasks:

-Conduct a gap analysis on the Montenegrin IP legislation.

-Provide recommendations on how to amend the law in order to meet the EU requirements.

Short term experts involved in capacity building

Profile:

- University Degree in Law or relevant experience from Customs Market Inspectorate or Police

- Prior professional experience as trainers in EU funded projects preferably twinning;

- Specialisation in IPR within their respective branch of the administration;

- Fluency in English (written and spoken);

- At least one experience as a Short Term Expert in EU funded projects – preferably Twinning;

- Employed by a public administration or a public body on permanent basis for at least one year

- Prior experience from the Western Balkans will be an asset.

Tasks:

-Prepare training materials

-Conduct training

-Process mission report

Short term expert involved in awareness rising

Profile:

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- University degree or relevant work experience in IPR communication issues;

- Prior professional experience with developing awareness raising activities;

- Profound knowledge on IPR;

- Fluency in English (written and spoken);

- Experience as a Short Term Expert in EU funded projects – preferably Twinning;

- Employed by a public administration or a public body on permanent basis for at least one year

- Prior experience from the Western Balkans will be an asset.

Tasks:

-Conduct workshops for selected officials from the institutions involved in the project on awareness; and

-Develop Awareness materials targeting the general public in cooperation with the Montenegrin officials.

4. Institutional Framework

As the responsibilities related to protection and enforcement of IPR are embedded in different branches of the Montenegrin central administration it is important that all IP active institutions participate in the project. Thus a project like this is an interagency project targeting more than one Montenegrin institution.

The institutions to be involved in the project are: Intellectual Property Office of Montenegro – Lead Partner; Ministry of Economy Ministry of Finance – Customs Administration; Ministry of Interior – Police; Market Inspectorate; Ministry of Justice/Prosecutors Office/Judicial Training Centre.

It is expected that each institution appoint an official that can represent the respective institution at the Steering Committee Meetings scheduled for respectively month 1, month 4 and month 6 of the project. It is also expected that the EU Delegation is represented at the SCM.

5. Budget

The maximum total budget for the Twinning light project is 250 000 EUR. Interpretation and translation costs will be reimbursed from the budget costs.

6. Implementation Arrangements

6.1 Implementing Agency responsible for tendering, contracting and accounting (AO/CFCU/PAO/ COMMISSION), including contact person and full contact details.

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Mr Andre LYSHead of OperationsEU Delegation to MontenegroVuka Karadžića 1281000 Podgorica MontenegroTel: +382 20 444 600

6.2 Main counterpart in the BC:

Ms Snezana DZUVEROVIC Intellectual Property Office of MontenegroRimski trg 4681000 PodgoricaTel: +382 20 234 591Mobile: +382 67 242111E-mail: snezana.dzuverovic@zis.gov.me

6.3 Reporting requirements

The Start-up Report will cover first two months of the contract and will be submitted during the third month. The Start-up report should: - Clearly define the aims and purpose of the aid provided by the project,

- Give detailed description of the content of particular parts of the project,- Work out in detail the activities carried out and the results achieved,- Work out in detail all modifications agreed with the beneficiary institution,- Review difficulties met during the implementation of the project and measures that

were undertaken for their removal,- Provide all findings obtained in the meanwhile and preliminary conclusions, and- Contain a general plan of activities for the implementation of the remained duration of the

project.

The Final Report shall be submitted within three months upon the completion of the project activities and in any case within the legal duration of the project, and it should contain the following:

-Complete review of all activities carried out by MS experts during the implementation of the project,

- Achieved progress concerning each activity, - Summary of all project results, with particular emphasis on mandatory results,- Estimation of the project impact compared with the project aims and measures of the

achieved progress,- Identification of all important problems met during the implementation of

the contract and solutions that have been applied,- Lessons drawn from the project, and- Recommendations for further steps in future projects

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Reports shall be submitted to the Montenegrin Intellectual Property Office and Delegation of the European Union to Montenegro, in a form of 3 hard copies and in an electronic version on CD. All reports should be written in English and translated into Montenegrin.

6.4. The working language is English

7. Implementation Schedule (indicative)

7.1 Launching of the call for proposals 4th Quarter 2013

7.2 Start of project activities 1st Quarter 2014

7.3 Project completion 3rd Quarter of 2014

7.4 Duration of the execution period: 6 month implementation and three months for start-up and reporting

8. Sustainability

It is anticipated that the model for cooperation which will be developed inside this project will be operational subsequent to the finalisation of the project and as such sustainable. The alignment of the IP legislation is for obvious reasons a feature that will have a lasting impact on the level of enforcement and protection of IPR in Montenegro.

ANNEXES TO PROJECT FICHE

1. Logical framework matrix in standard format

2. Detailed implementation chart

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1) LOGICAL FRAMEWORK MATRIX IN STANDARD FORMAT

Project title:

Enhancing the protection of Intellectual Property Rights in Montenegro

Overall objective Objectively verifiable indicators Sources of Verification

The overall objective of this project is to enhance the level of protection of IPR in Montenegro to a level similar to that which exists in the European Union.

- The work of the four institutions involved in the project: Intellectual Property Office of Montenegro (IPOM), Ministry of Justice, Police, and Customs leading to a reduction in the level of piracy and counterfeiting in Montenegro

- Achieve full compatibility with the EU acquis.

- EU Regular Report on Montenegro’s progress towards accession (in particular related to chapter 7 which covers Intellectual Property Rights)

- Reports issued by the Montenegrin government and by international organizations.

-Statistics gathered by the relevant IP active government bodies; Customs, Police, Ministry of Justice and IPOM

- The EU accession process for Montenegro is not delayed due to external factors.

Project purpose Objectively verifiable indicators Sources of Verification Assumptions

To strengthen the institutional and administrative capacity of the IP active authorities in Montenegro in relation to protection of IPR

Mission Reports from the Twinning projectFinal Report from the Twinning project

-Project reports

-Reports prepared by the EU institutions and other international organisations

-Reports issued by the Montenegrin Government as well as annual reports to Government issued by IPOM regarding the implementation of the national strategy.

-Statistics gathered by the relevant IP active government bodies;

The national strategy on Intellectual Property Rights is implemented without any significant delays

IPR enforcement continues to be a prioritized area among the enforcement bodies

The BC institutions are willing to enhance cooperation and coordination

The BC institutions participate actively in the outlined activities and are willing to enhance the exchange of information on IP

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Customs, Police, Ministry of Justice and IPOM

-Articles in newspapers and/or websites

related issues among each other.

Results Objectively verifiable indicators Sources of Verification Assumptions

1)

Enhanced cooperation and coordination among the IP active authorities in Montenegro

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2)

Legal and Regulatory framework aligned to EU standards

3)

Capacity building target Montenegrin government officials implemented

Ad 1)

Report on the present level of cooperation between the IP active authorities.

Recommendations related to enhancing the capacity of the IP active authorities in Montenegro.

Formalized model for cooperation developed and approved by BC institutions

Ad 2)

Gap analysis conducted

Recommendations for alignments to the present legislation processed and presented to the relevant BC institutions

Study tour to EU member state for 10 Montenegrin officials conducted

Training Needs Analysis concluded

Trainings for Police, Customs, Market Inspectorate, Ministry of Justice and IPOM implemented

Mission Reports

-Project reports

-Final Report

-Training materials

-Awareness materials

-Minutes from the Steering Committee Meetings

-Articles in newspaper and/or websites

-The Police authorities implement without significant delays the action plan for the fight against organized crime

-Beneficiary institutions provide the necessary human, material and financial support to the project.

-Good coordination among the main stakeholders.

-Trained staff will be given the opportunity to activate their newly acquired skills in the day-to-day work and will stay in their positions subsequent to the finalisation of the project.

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4)

Measures taken to enhance awareness on IP infringements in the general public

Conduct two workshops for selected officials related to IP awareness

Basic awareness materials targeting the general public processed

Activities: Objectively verifiable indicators: Sources of verification: Assumptions

Assess the present capacity of the IP active authorities in Montenegro.

Overview of task and capacity of each institution generated

Mission report

The institutions involved will make relevant staff members available for meetings with the expert

The staff members appointed will be willing to share information about the situation in their institution”

Process recommendations on how to enhance the capacity of the IP active authorities in Montenegro. Recommendations Mission report

Develop and implement a formalized model for cooperation (e.g. MoUs) between the IP active authorities in Montenegro.

Outline for formalized cooperation processed Mission report

The institutions involved in the project approve the model

The relevant institutions allocate human resources for operation and maintaining the cooperation model

Assess the Montenegrin IP legislation and provide recommendations for amendments

Identification of gaps in the national legislation which do not correspond to the EU requirements

Submission of proposal for revision of the legislation

Mission report

Number of proposed amendments to the law(s) which are subsequently approved politically

Availability of all relevant legal acts in English

Political will to approve the proposed changes

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Study visit to selected EU member state

A total of 10 representatives from the four institutions involved in the projectbenefit from the study tour

Participants gain an understanding of the IP infrastructure in the selected member state hereunder best practice related to protection and enforcement of Intellectual Property Rights

Mission report submitted by the participants to project management upon completion of the study tour

The institutions select participants who are actively involved in the implementation of the project.

All institutions participate

Study visit for Copyright expert from the IP Office

One official from the Montenegrin IP office visits EU member state to gain knowledge about how copyright is managed in an EU member state and in particular the relation between the Collecting Management Organisations and the authority dealing with copyright

Mission report submitted by the participants to project management upon finalisation of the study tour

The IP Office appoints the right person for the study visit

Training Needs Assessment

Training program producedVenue identifiedTarget group agreed uponSchedule for the trainings prepared

Mission report

Officials responsible for training in the Montenegrin institutions available for the discussions with the expert

Two seminars targeting Police

A minimum of 12 participants participate in each training

Mission reportsTraining materialsEvaluation schemes filled in by the participants

Beneficiaries appoint the relevant participants for the seminars

Two seminars targeting Customs

A minimum of 12 participants participate in each training

Mission reportsTraining materialsEvaluation schemes filled in by the participants

Beneficiaries appoints the relevant participants for the seminars

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Two seminars targeting Market InspectorateA minimum of 12 participants participate in each training

Mission reportsTraining materialsEvaluation schemes filled in by the participants

Beneficiaries appoint the relevant participants for the seminars

Two seminars targeting judges and prosecutorsA minimum of 12 participants participate in each training

Mission reportsTraining materialsEvaluation schemes filled in by the participants

Beneficiaries appoint the relevant participants for the seminars

Two seminars targeting IP Office staffA minimum of 7 participants participate in each training

Mission reportsTraining materialsEvaluation schemes filled in by the participants

Beneficiaries appoint the relevant participants for the seminars

Developing materials for awareness raising targeting the general public

Awareness materials produced in cooperation with officials from the beneficiary institutions

Mission reportMaterials

Beneficiary representatives appointed to participate in developing the awareness materials so that they match the “cultural code” of Montenegro

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2) DETAILED IMPLEMENTATION CHART

Activity Month Resources1 2 3 4 5 6

Project Planning and CoordinationSteering Committee Meetings X X X MS Project Leader minimum 6 working days

Institution BuildingAssess the present capacity of the IP active authorities in Montenegro

X X MS Short Term Expert input minimum 10 working days

Process recommendations on how to enhance the capacity of the IP active authorities in Montenegro

X X MS Short Term Expert input minimum 10 working days

Develop and implement a formalized model for cooperation between the IP active authorities in Montenegro

X X X MS Short Term Expert input minimum 20 working days

Legal AlignmentConduct a gap analysis X MS Short Term Expert input minimum 5 working daysPropose amendments to existing legislation X X MS Short Term Expert input minimum 10 working days

Capacity Building

Study visit to EU Member stateX 10 officials from the BC institutions involved in the project. Ideally 2

officials from each institution. Various MS experts depending on the program

Study visit for copyright expert from IP Office X 1 official from the Montenegrin IP Office. Various MS experts depending on the program

Training Needs Assessment X MS Short Term Expert input minimum 10 working daysTwo seminars on IP enforcement targeting Police X X MS Short Term Expert input minimum 12 working daysTwo seminars on IP enforcement targeting Customs X X MS Short Term Expert input minimum 12 working daysTwo seminars targeting Market Inspectors X MS Short Term Expert input minimum 12 working daysTwo seminars on IP enforcement targeting Judges and prosecutors

X X MS Short Term Expert input minimum 12 working days

Two seminars on IP protection targeting IP Office officials

X X MS Short Term Expert input minimum 12 working days

Awareness risingDeveloping materials for awareness raising targeting the general public

X X MS Short Term Expert input minimum 10 working days

TOTAL NUMBER OF WORKING DAYS Minimum input 141 Working days

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