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### Viewing cable 07BRASILIA1431, BRAZIL: IPR TRAINING REQUEST

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07BRASILIA1431 | 2007-07-26 19:08 | 2011-07-11 00:00 | UNCLASSIFIED | Embassy Brasilia

`

    VZCZCXRO3569
    PP RUEHRG
    DE RUEHBR #1431/01 2071908
    ZNR UUUUU ZZH
    P 261908Z JUL 07
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC PRIORITY 9599
    INFO RUEHSO/AMCONSUL SAO PAULO 0470
    RUEHRI/AMCONSUL RIO DE JANEIRO 4828
    RUEHRG/AMCONSUL RECIFE 6981
    RUEHAC/AMEMBASSY ASUNCION 6223
    RUEHBU/AMEMBASSY BUENOS AIRES 4926
    RUCPDOC/USDOC WASHDC

` `

    UNCLAS SECTION 01 OF 05 BRASILIA 001431

    SIPDIS

    SIPDIS

    DEPT FOR EB/TPP/IPE AND INL/C

    E.O. 12958: N/A
    TAGS: KIPR ECON BR
    SUBJECT:  BRAZIL: IPR TRAINING REQUEST

    REF:  A) 07 SECSTATE 55928
     B) 05 BRASILIA 1163
     C) 07 BRASILIA 944
     D) 07 BRASILIA 249
     E) 07 RECIFE 37
     F) 07 BRASILIA 1105

    ¶1.  Embassy is resending this as an amendment to reftel F to
    incorporate suggestions made by the Recording Industry Association
    of America (RIAA).

    ¶2.  SUMMARY: In accordance with requirements presented in reftel A,
    Embassy Brasilia submits the following proposal for 2007 IPR
    enforcement training.  The proposal is for a grant of US 75,940 to
    provide a three-day high-level workshop for law enforcement
    officials (Federal Police, Customs, and Highway Patrol) and judicial
    authorities (local and state prosecutors and judges) in the state of
    Pernambuco, a key locale in Mission Brazil's efforts to fight IPR
    piracy.  The workshop is modeled on two other sets of workshops: (1)
    the five training programs, held in the States of Minas Gerais,
    Bahia, Parana, Rio Grande do Sul, and Mato Grosso do Sul, funded
    under the same IPR program; and, (2) seminars proposed that will
    focus on providing training to judges and prosecutors so that they
    have a better understanding of IPR law that will result in criminal
    sentences more in line with the current IPR laws already in
    existence.

    ¶3.  The workshop will focus on expanding law enforcement's knowledge
    of existing laws against piracy and protection of intellectual
    property rights so that civil and criminal cases against
    intellectual property rights abusers hold up in court (see para 19).
     By reviewing what laws exist, what is enforceable, what has been
    done to combat piracy and protect intellectual property rights,
    working relationships between those in the field and those
    prosecuting are strengthened.  Mission Brazil proposes to use
    leading Brazilian experts and NGOs such as the Motion Picture
    Association's enforcement affiliate in Brazil - the Association for
    the Defense of Intellectual Property (ADEPI), the American Chamber
    of Commerce, the National Association for Guaranteeing Intellectual
    Rights (ANGARDI), and the Northeast Association for Intellectual
    Property (ANEPI) - to provide key expertise in organizing and
    conducting the workshop.  Use of the very qualified Brazilian
    experts resident in these organizations will allow us to better
    adapt the training program to Brazilian sensitivities, while saving
    money on the international air-fare necessary to bring outside
    experts from the U.S.

    ¶4.  To complement the workshop, technical assistance will also be
    provided.  The recommendations of the joint industry and government
    National Anti-Piracy Council (CNCP) in its 99 point action plan
    include the creation up of Task Forces that would attack piracy at
    the Regional level.  This is seen by the music industry as a very
    important step and one that needs to encouraged and nurtured.
    Therefore five sets of i2 software and training will be distributed
    amongst the Pernambuco Anti-Piracy Task Force and the Brazilian
    Federal Police in order to combat music piracy.

    ¶5.  To date, USG has not focused sufficiently on anti-piracy efforts
    in Brazil's Northeast, an area more than 3 times the size of France
    and also a focal point for the movement of vast quantities of
    pirated goods.  A cohesive IPR strategy must include this region of
    Brazil and must combine both training and technical assistance.
    Pernambuco, in particular, represents a unique opportunity to take a
    novel approach to anti-piracy.  The Federal Police have explicitly
    asked USG for more training programs.  In addition, governor there
    has instructed state officials to cooperate with Federal officials
    on piracy issues - a rather novel approach since there has not been
    that sort of cooperation in the past.

    ¶6.  Identify Priority Countries/Regions that Threaten Intellectual
    Property Rights:  Brazil continues to be a high priority country for
    USG efforts in improving IPR enforcement.  The Northeast of Brazil
    has seen a surge in recent piracy activity that has resulted in high
    profile enforcement actions.  This has been especially pronounced in
    Pernambuco.

    ¶7.  Economic Impact: The enormity of the effects of piracy in Brazil
    is hard to exaggerate.  Brazil's illegal market in just 3 types of
    products (clothes, tennis shoes, and toys) resulted in tax revenue
    losses of at least 18.6 billion reais (roughly USD 8.86 billion).
    This figure is equivalent to 45% of the annual deficit in Brazil's
    bankrupt social security system.  A February 2007 International
    Intellectual Property Alliance (IIPA) report noted that losses due
    to copyright piracy of business software rose almost 30% in 2006;
    entertainment software industry losses increased 24 % over the same

    BRASILIA 00001431  002 OF 005

    period. A national survey showed a 45% increase countrywide in the
    monetary amount of illegitimate toys, clothing and sports footwear
    traded in Brazil and that counterfeit CDs are the most produced and
    purchased items in the contraband market.  Countrywide, over 30
    million pirated CDR's are sold annually and 1 billion songs
    downloaded illegally.  Because the Northeast is geographically large
    and heavily populated, it is home to a significant amount of this
    illegal trade.

    ¶8.  In 2006, the American Chamber of Commerce and ANGARDI conducted
    a poll in Recife, Sao Paulo, Rio de Janeiro and Belo Horizonte to
    determine consumers' buying habits and what they thought about the
    economic effects of buying pirated goods.  The results for Recife
    (the capital of Pernambuco) were startling and point out the
    importance of fighting piracy in the Northeast.  While the report
    showed a decline in sale of pirated goods in Sao Paulo, Brazil's
    major metropolitan area, it disturbingly pointed out that  Recife
    consumers buy more pirated goods and are less likely to understand
    the social and economic impacts of piracy than consumers in the
    other cities.  The 2006 commercial value of 13 categories of pirated
    goods in Recife (ranging from toys to pocketbooks/wallets to
    batteries) amounted to USD 83.9 million according to the report.  If
    pirated goods are sold at half the price of legitimate goods, this
    amount reflects a loss of USD 167.7 million in the formal economy,
    and a loss in tax revenue of USD 66.7 million.

    ¶9.  Crime and Security:  While the Triborder region (Brazil,
    Paraguay and Argentina) continues to be a major route for pirated
    goods, law enforcement officials and NGOs have noted the increasing
    involvement of the Northeast in the movement of pirated goods due to
    stepped-up GOB customs enforcement efforts in the Triborder region.
    Citing one example, the town of Caruaru (about an hour's drive from
    Recife) is the well-know wholesale market center and source of most
    pirated products in the Northeast.  Experts describe an almost wild
    west atmosphere in Caruaru with perceived threats to anti-piracy
    activists (reftel E).

    ¶10.  Relevance to Other U.S. Objectives:  Intellectual property
    protection is a key U.S. government objective and is one of the
    primary goals in our Mission Strategic Plan (MSP).  IPR violations
    cost U.S. (and local) industry, reduce the incentives to invest in
    research and development, and contribute to a culture of
    lawlessness.  Piracy, in particular, has connections to illicit
    trade in general, and its illegally-gained revenues are easily
    laundered into other illegal activities.  Industry has been engaged
    in a long struggle to enter the highly-protected markets of Latin
    America, and piracy strikes at the gradual gains made over time in
    this regard.

    ¶11.  Political Will: Both the executive branch and the legislative
    branch have indicated a political will to continue the fight against
    piracy.  In 2004, the GOB established the National Anti-Piracy
    Council (CNCP), a public-private endeavor overseen by the Ministry
    of Justice to coordinate national IPR protection efforts.  Since
    then, the GOB has evidenced more effective anti-piracy enforcement
    efforts.   For example, the value of seizures by local and federal
    authorities of counterfeit and contraband goods in the first nine
    months of 2006 increased 54% over the same period in 2005.

    ¶12.  Capacity to Achieve Measurable Progress:  As a result of
    encouragement and actions taken by the CNCP, Brazil's law
    enforcement agencies are creating specialized IP units to better
    focus and coordinate their enforcement activities and to help
    develop essential expertise.  The CNCP plans to develop an
    operational database to help coordinate law enforcement actions.  It
    also is considering methods for measuring/gauging progress in
    enforcement efforts.  Progress on enforcement will also be
    measurable by the annual enforcement statistics released by the GOB
    National Anti-Piracy Council (CNCP) and through statistics on
    estimated intellectual piracy loses compiled by industry
    organizations such as IIPA.

    II. Components of an Effective IPR Regime

    ¶13.  Legal framework: This proposal is being made with consideration
    of instituting a more comprehensive framework for conducting
    bilateral technical cooperation on IPR enforcement, which the USG is
    trying to develop with the GOB. Brazil has many elements of what
    could be an effective IPR regime, but in most cases, the
    capabilities of these elements need to be enhanced and better
    coordinated to provide effective enforcement.

    ¶14.  Enforcement capacity: Brazil's laws covering copyright issues
    are considered adequate; the principal problems are enforcement and
    criminal prosecution.  Brazilian law enforcement agencies operate as

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    professional units with substantial capabilities.  Brazil's customs
    service is heavily engaged in combating piracy and is upgrading its
    intelligence gathering and analysis, infrastructure and personnel
    capabilities.  However, in all these units, many individuals have
    not been adequately trained in the specialized area of IP crimes,
    particularly in geographic areas with less concentrated piracy
    activity.  A lack of effective, institutional coordination between
    Brazilian law enforcement agencies has also further complicated and
    undermined attempts to mobilize Brazilian law enforcement to combat
    piracy in a comprehensive manner.

    ¶15.  Border controls:  Brazil's customs service has the ability to
    block and intercept pirated products, and is seeking greater
    latitude in handling seized goods.  Due to the sheer volume,
    however, Brazil's 16,886 km land border has been an area of
    particular weakness in the country's copyright and trademark
    enforcement.  Once the border is penetrated, movement of pirated
    goods throughout Brazil is hard to deter.  There is evidence that as
    the border with Paraguay is better enforced, pirated goods are now
    crossing the remote western and northern areas bordering Colombia,
    Venezuela, and Guyana as well as arriving by sea to the Northwest
    (reftel C).

    ¶16.  Government-Industry Cooperation: Cooperation between the
    government enforcement agencies and the private sector has improved
    substantially in the last two years through their collective efforts
    within the CNCP and creation of a national anti-piracy plan.

    ¶17.  Effective International Cooperation:  Brazil is a signatory to
    World Intellectual Property Organization (WIPO) and GOB officials
    have participated in IPR enforcement seminars, including a recent
    seminar in Asuncion.  Representatives of various GOB states and
    other entities are slated to attend an IPR enforcement seminar in
    Lima in July.  Additionally, the executive secretary of the CNCP
    attended a USPTO sponsored IPR enforcement program in Alexander,
    Virginia this June.  In November, 2006, USPTO detailed a patent
    attorney to Sao Paulo to serve as IPR Attach.  He works closely
    with the Brazilian patent agency, INPI.

    ¶18.  Public Awareness:  The GOB and various companies have sponsored
    public awareness campaigns.  The CNCP - with support of the Union of
    Customs Employees and the National Confederation of Industry -
    launched a major anti-piracy campaign in 2006 to raise public
    consciousness about piracy and contraband in Brazil and emphasize
    the importance of intellectual property protection.  This program
    was aimed at the 16 - 24 year old age group, found by a 2005 U.S.
    Chamber sponsored survey to be the largest group of consumers of
    pirated goods.  Campaign organizers carry their message to schools
    and universities and sponsor anti-piracy messages in both print and
    broadcast media.  They also distribute fliers, t-shirts, buttons,
    bumper stickers, caps, and textbooks bearing their distinctive
    anti-piracy logo.

    ¶19.  The "Creativity in Combating Piracy," award is part of this
    campaign and is sponsored by a Brazilian consultancy in connection
    with the U.S. Chamber of Commerce, NIKE, the Motion Picture
    Association and a Brazilian state owned bank.  It targets university
    students and is intended to promote leadership, social
    responsibility and awareness of the causes and impacts of piracy.

    ¶20.  Senior-level Engagement by Public Officials:  GOB IPR
    enforcement typically involves two ministries:  the Finance Ministry
    (Customs and Tax Authority) and the Ministry of Justice (Federal
    Police and Federal Highway Patrol).  Through the CNCP (which is
    overseen by the Vice Minister of Justice), the Ministry of Justice
    coordinates interagency IPR enforcement activities and state level
    authorities, who often have primary jurisdiction.  In turn, the
    Division of Intellectual Property at the Ministry of Foreign Affairs
    (MFA) is involved in these efforts and liaises with international
    actors.  Several Brazilian states - notably Rio de Janeiro, Sao
    Paulo, Rio Grande do Sul and, most recently, Bahia - have formed
    state level anti-piracy groups.

    III. Project criteria and metrics

    ¶21.  Targeted U.S. priorities:  Brazil accounts for the largest
    estimated trade losses due to piracy in the hemisphere - over $927
    million according to a recently updated IIPA report, yet arrest and
    incarceration figures remain difficult to obtain and appear dismally
    low in relation to the scope of the piracy problem.  This project
    directly targets the main problem areas in Brazil of law enforcement
    and criminal prosecution.

    ¶22.  Strong support of host government:  The Brazilian government
    has committed to combating piracy in a systematic and sustainable

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    manner through establishment of the public-private National
    Anti-Piracy Council (CNCP), adoption of a 99 point national action
    plan, and annual reports on anti-piracy activities.  The GOB has
    been prompted by a need to combat piracy because of the harm it
    causes Brazil through increased criminality, lost tax revenues,
    increased unemployment in the formal economy, economic damage to
    Brazilian artists, and the country's international image.  The
    creation of a working intellectual property rights division at the
    Ministry of External Relations is also indicative of the GOB
    interest in controlling the problem.

    ¶23.  Addresses key gap in, or is a fundamental part of, a strategy
    to improve IPR enforcement in a country/region:  The underlying
    concept of the workshop is to bring together law enforcement and
    judicial officials, along with NGOs engaged in anti-piracy efforts,
    in order to improve the lines of communication between those on the
    ground fighting piracy and those tasked with prosecuting.  Of
    primary importance for any effective anti-piracy effort within the
    Brazilian social and institutional context is the creation of
    networks that allow for permanent, voluntary and routine
    communication. In particular, the increased piracy activity and
    chronic corruption among some officials coupled with a perceived
    lack of attention to piracy activities in the state have made
    training and the creation of an anti-piracy network in Pernambuco a
    critically high priority (reftel C).  This project would help close
    that gap.

    ¶24.  Has the capacity to achieve near term, measurable success, with
    clear metrics:  We would expect to see the establishment of formal
    or informal working groups or teams, comprised of the all the
    relevant law enforcement and perhaps judicial officials in
    Pernambuco, shortly after completion of the training program.  As a
    next phase, we would monitor the success of these teams, looking for
    increases in actions taken, such as number of raids, seizures,
    arrests, and convictions; in instances where data may not have
    historically been gathered, a baseline would have to be determined.

    ¶25.  Has strong project oversight, accountability measures, and
    interagency support:  The Department of Homeland Security within
    Embassy Brasilia will participate in the program and assess its
    strengths and weaknesses on an on-going basis.  DHS works
    extensively with the GOB on piracy related issues and has the
    capability to assess both the program elements and the quality of
    GOB participation.  In addition to DHS backing, Mission has worked
    closely with the regional USPTO IPR Attach who also supports this
    proposal.

    ¶26.  Course Outline
    Purpose:  To train professionals from a variety of public law
    enforcement and judicial organs in Pernambuco to detect, prevent,
    and punish intellectual property violations, and to provide
    technical assistance through trained intelligence analysts using the
    proper equipment to collect, collate and analyze the information
    available.  In combating music piracy in particular, tracking and
    analytical support in the form of i2 software along with the
    necessary training to utilize the software will be provided to the
    Task Forces.

    General Goals:
    (1) to create the critical mass necessary to strengthen the capacity
    of the Brazilian government to enforce intellectual property laws;
    (2) to train and motivate public officials to identify which
    intellectual property laws can be applied within their jurisdiction
    and capacity; and
    (3) to facilitate informational exchange among various enforcement
    organs so that they can coordinate anti-piracy efforts at the
    national level, mirroring the highly-effective organizational
    structure of those groups practicing piracy.

    Specific Goals:
    Participants of the workshop will:
    (1) understand the organization and modus operandi of the criminal
    groups practicing piracy;
    (2) be familiar with the pertinent legislation;
    (3) know how to identify illegal reproductions; and
    (4) understand the importance of constantly updating their operating
    methods to keep up with the advances in technology applied by
    pirates.

    Teaching Tools and Methods: theoretical training; workshops; case
    studies; site visits; and technical assistance.

    Syllabus:  24 hours

    Module 1: Piracy: An overview

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    Students will be trained to understand the basic principles of the
    penal and procedural code, as well as specific IP laws, they apply
    to piracy.

    Module 2: Analysis of Existing IP Legislation
    Students will learn which elements of existing legislation can be
    applied to which modes of piracy.

    Module 3:  Technology
    Students will become familiar with the technology used in
    disseminating legally-protected works and how they can be
    protected.

    Module 4:
    By providing training to judges and prosecutors we expect them to
    have a better understanding of IPR law that will result in criminal
    sentences more in line with the current IPR laws already in
    existence.  In addition, we expect to improve the effectiveness of
    Anti- Piracy operations carried out in the projected areas.

    Participants:
    Class size: 35 (for days one and two)
    Location:  Courses will be held in the State of Pernambuco.
    Participants will be selected from throughout Pernambuco, from
    Offices of the Public Prosecutor, the Federal Highway Police, the
    Military Police, the Civil Police, Scientific Police; Federal Tax
    Authority.  Consideration is given to their potential as training
    multipliers within their organizations.

    Class size: 10 (for day three)
    Location:  Courses will be held in the State of Pernambuco.
    Participants will be judges and prosecutors from Pernambuco.
    Consideration is given to their potential as training multipliers
    within their organizations.

    Co-Participating Institutions:  To provide the broadest possible
    perspective, ADEPI conducts the course in cooperation with other
    entities dedicated to protecting intellectual property, including
    ABC (Brazilian Cinematographic Association), UBV (Brazilian Video
    Union), APDIF (Association for the Protection of Phonographic
    Intellectual Property), BSA (Business Software Alliance), and the
    National Anti-Piracy Council (CNCP).  These organizations recommend
    and/or provide instructors in their specific areas; provide the
    latest information on technology and best-practice enforcement
    methods, and arrange site visits. The conference site is to be
    provided by government authorities, as has been customary with ADEPI
    programs.  Each training session will incorporate USG participation
    by including instructors from DHS and other relevant law enforcement
    offices from within the U.S. Mission in Brazil and/or from
    Washington.

    Expenses (for a total class of 45, in U.S. dollars):
    Airfare for students to central location:   $13,750
    Airfare for USG instructors (max.4):        $ 5,280
    Per diem for instructors:                   $ 4,400
    Simultaneous interpretation:                 $ 5,280
    Hotel and Meals for students:               $ 22,000
    Class materials:                             $ 4,950
    Incidentals/coffee and water:               $ 1,650
    Ground transportation:                      $ 1,925
    Data show:                                  $ 1,705
    (3rd day only) Combined per package
    cost for training and purchase of
    the i2 software                 $ 5,000
    Five Laptops at $2,000 ea.     $10,000

    TOTAL:      $ 75,940

    Sobel

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