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### Viewing cable 08MADRID1351, SPAIN: IPR PIRACY GETTING MORE ATTENTION

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08MADRID1351 | 2008-12-22 16:29 | 2010-12-22 12:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Madrid

`

    VZCZCXRO2600
    RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV RUEHSR
    DE RUEHMD #1351/01 3571629
    ZNR UUUUU ZZH
    R 221629Z DEC 08
    FM AMEMBASSY MADRID
    TO RUEHC/SECSTATE WASHDC 5815
    INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
    RUEHLA/AMCONSUL BARCELONA 3726
    RUCPDOC/DEPT OF COMMERCE WASHDC

` `

    UNCLAS SECTION 01 OF 03 MADRID 001351

    SENSITIVE
    SIPDIS

    STATE FOR EUR/WE, EEB/TPP/IPE, EEB/CIP
    STATE PASS USTR DWEINER
    USDOC FOR 4212/DCALVERT
    USDOC ALSO FOR PTO

    E.O. 12958: N/A
    TAGS: ETRD KCRM KIPR SP
    SUBJECT: SPAIN: IPR PIRACY GETTING MORE ATTENTION

    REF: A. MADRID 1346
    ¶B. MADRID 1318
    ¶C. MADRID 1194
    ¶D. MADRID 1150

    MADRID 00001351 001.2 OF 003

    SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY

    SUMMARY

    ¶1. (SBU) In addition to IPR-related developments reported in
    ref A, the Ministry of Culture recently unveiled a new IPR
    enforcement manual, prepared in concert with law enforcement
    agencies and rights-holders' organizations. Meanwhile, the
    country's largest copyright management society has come under
    fire for its aggressive and allegedly deceptive practices in
    enforcing its members' rights. Recent GOS actions and
    declarations concerning internet piracy have attracted
    widespread media and public attention and prompted a small
    demonstration by anti-regulation internet users December 20.
    The amount of recent activity on the internet piracy front
    appears to reflect growing expectations that some sort of
    regulatory change is in the offing. End Summary.

    IPR ENFORCEMENT MANUAL UNVEILED

    ¶2. (U) On December 11, Ministry of Culture Director General
    for Policy and Cultural Industries Guillermo Corral Van Damme
    unveiled a Manual of Best Practices for the Pursuit of Crimes
    Against Intellectual Property. Coordinated by the Culture
    Ministry, the Manual includes input from the Interior and
    Justice Ministries, the Prosecutor General's Office
    (Fiscalia), the National Police, Guardia Civil, Judicial
    Council, Tax Authority, the Federation of Provinces and
    Municipalities, and copyright management entities. The
    Manual provides background on the phenomena of IPR and piracy
    in Spain and provides statistics and charts on enforcement
    actions. It also provides a series of guidelines on how to
    investigate complaints, obtain and preserve evidence, and
    bring offenders to justice. While it refers to "crimes
    against intellectual property," the Manual is devoted
    specifically to copyrighted cultural content, without
    reference to patent or trademark protection. It addresses
    "top manta" - the sale of pirated or counterfeit merchandise
    on sidewalks and in informal street markets, concealed under
    blankets - as well as digital piracy.

    ¶3. (U) In addition to DG Corral, Jose Antonio Robles
    Garrido, Chief Inspector of the IPR Crimes unit of the
    National Police; Joaquin Delgado Martin of the Central
    Secretariat of the National Judicial Conference; and Jose
    Luis Perez Quintero of the investigations and anti-fraud
    department of the Music Producers of Spain (PROMUSICAE) spoke
    at the launch of the Manual. In his remarks, Corral said the
    Manual presents the most common piracy problems, with
    suggested and recommended solutions to those problems and
    especially ways to coordinate among all affected and
    interested parties, from owners, rights-holders, and
    intermediaries to technical experts, police, prosecutors, and
    judges.

    ¶4. (U) Perez of PROMUSICAE expressed appreciation on behalf
    of rights-holders for the government's work in preparing the
    Manual and its efforts to improve protection. He noted with
    satisfaction that the Manual stipulates that peer-to-peer
    (P2P) file-sharing and downloading without permission of the
    rights-holder of the material always constitutes some sort of
    infringing activity. The Manual specifically lists, as a
    legitimate investigative practice, a police agent's
    registering on-line with a false identity in order to gather
    evidence of unauthorized P2P file-sharing.

    ¶5. (SBU) Comment: The Fiscalia's Circular 1 of May 5, 2006
    on Crimes Against Intellectual and Industrial Property in
    Light of the Reform of Organic Law 15/2003 states that
    alleged IPR infringers are subject to criminal prosecution
    only when they act "with a profit motive and to the detriment
    of a third party," a provision which many internet users and
    law enforcement officials have read as essentially
    decriminalizing P2P downloads. Rights-holders complain that
    one consequence of the Circular's language is a reluctance on
    the part of police and prosecutors to act against
    unauthorized P2P activity. Furthermore, numerous judges have
    rejected criminal complaints involving P2P file-sharing on
    the grounds of no established profit motive. The GOS has
    thus far shown little interest in amending or clarifying the

    MADRID 00001351 002.2 OF 003

    Circular, arguing that it is legally correct and leaves open
    to rights-holders the option of civil litigation when
    criminal prosecution fails. While the Manual does not
    correct or even contradict the Circular, rights-holders hope
    its unambiguous characterization of unauthorized P2P
    downloads as always infringing may spur authorities to pursue
    such behavior more vigorously, and judges to punish offenders
    more often. End Comment.

    COPYRIGHT MANAGEMENT SOCIETY CRITICIZED

    ¶6. (SBU) According to Clara Mapelli, Ministry of Culture
    Deputy Director General for Intellectual Property, the
    Ministry plans to undertake a campaign to improve the public
    image of copyright management societies. These societies,
    which collect royalties on behalf of artists, entertainers,
    and other creators and producers, are widely perceived as
    rent-seeking social parasites. Many ordinary Spaniards
    resent them for the "private copy levy" ("canon digital") on
    blank recording media and recording and playing devices,
    which emerged briefly as an issue in national elections
    earlier this year.

    ¶7. (U) The largest copyright management society, the General
    Society of Authors and Publishers (SGAE), has some 91,000
    members and reported revenues in 2007 of approximately 380
    million euros. SGAE has come under critical media attention
    recently for an incident in late 2007 in which the society
    allegedly paid an undercover detective to crash and
    surreptitiously video-record a private wedding party in
    Sevilla to gather evidence that the organizers were having
    copyrighted music performed without having paid the required
    fees. This led in turn to an expensive judgment against SGAE
    for violation of the newlyweds' privacy rights, and to a
    series of articles in major media, led by daily of record "El
    Pais," aiming to expose SGAE's aggressive enforcement
    practices.

    ¶8. (U) At the unveiling of the Best Practices Manual, DG
    Corral was asked whether SGAE's methods of enforcing its
    members' rights constituted the sort of good practice the
    Manual strove to encourage. He replied that enforcement of
    the law is the sole competence of duly constituted
    authorities, and that while private entities like SGAE may
    provide the authorities with information and ask for their
    help in protecting their rights, they may not take the law
    into their own hands. Culture Minister Molina, likewise
    queried about SGAE at his press breakfast (ref A), noted that
    it is a legitimately established and well-respected entity
    with a long history, and which is entitled to defend its
    members' interests, so long as it conforms to the law in so
    doing; otherwise, he averred, it may expose itself to legal
    problems.

    SPOTLIGHT ON DIGITAL PIRACY AND POSSIBLE REMEDIES

    ¶9. (U) A series of recent GOS actions and statements (see
    refs A-B) - e.g., the launch of the Ministry of Culture's
    public awareness campaign; Culture Minister Cesar Antonio
    Molina's announcement that new anti-piracy regulations may be
    coming soon; and Minister of Industry, Tourism, and Trade
    Miguel Sebastian's remarks at the late November digital
    content conference (FICOD) on the importance of IPR
    protection - have generated increased media attention to the
    internet piracy issue and possible remedies. Following its
    critical expose of SGAE's activities, El Pais published an
    IPR-related news article or op-ed piece every day during the
    week of December 15. Contributors included Jose Manuel
    Tourne of the Federation for the Protection of Intellectual
    Property (FAP), laying out the rights-holders' perspective;
    Miguel Perez Subias, president of the Internet Users'
    Association, arguing for total legalization of P2P activity;
    Jesus Nunez Banegas of the Information and Communications
    Technology Business Association (AETIC), warning of the
    complications and perils implicit in graduated response
    regimes; Javier Ribas of business law firm Landwell-PWC,
    outlining legal underpinnings of a graduated response system;
    and Secretary of State for Telecommunications and the
    Information Society Francisco Ros Peran, reiterating the
    government's position that Internet Service Providers (ISPs)
    and rights-holders need to reach a mutually acceptable
    agreement that recognizes the competing rights and
    responsibilities of the different stake-holders. On December
    21, El Pais published an inverview in which Didier Lombard,
    worldwide president of France Telecom - which operates in

    MADRID 00001351 003.2 OF 003

    Spain under the name "Orange," one of the four members of the
    ISP association Redtel - expressed support for the
    implementation in Spain of a graduated response regime
    similar to one currently contemplated in legislation under
    consideration by France's parliament.

    ¶10. (U) On November 20, a group estimated at about 30
    "cyber-activists" held a brief demonstration outside the
    Madrid headquarters of the Spanish Socialist Workers' Party
    (PSOE - ruling party) in favor of free, legal P2P downloads.
    The demonstrators set up two computers on which they
    downloaded copyrighted material. Activists unfurled banners
    and waved signs with such messages as "Digital culture should
    be free" and (playing on the Ministry of Culture campaign
    slogan, "If you're legal, you're all right") "Be legal:
    Create, copy, share, modify." The demonstrators' choice of
    the party headquarters was reportedly a reaction to the
    possibility of a more vigorous government response to
    internet piracy.

    COMMENT

    ¶11. (SBU) Fellow members of the Anti-Piracy Coalition
    recognize that the copyrights management societies' bad
    public image sometimes hurts rights-holders' efforts to
    secure better IPR enforcement. According to Jose Manuel
    Tourne, the election-related flap earlier this year over the
    digital canon - in which SGAE and similar organizations were
    portrayed as heavies - made the societies nervous about
    possibly losing significant revenues and thus reluctant to
    press the government too hard to amend the Fiscalia's
    Circular. The most recent spate of bad publicity involving
    SGAE could potentially damage the rights-holders' cause in
    the court of public opinion and strengthen the hand of the
    telecoms and the internet users' associations. At the same
    time, the lively debate in the pages of Spain's largest
    circulation daily newspaper and the demonstration may be seen
    as signs of expectations that some sort of regulatory change
    is in the offing. End Comment.
    AGUIRRE

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