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### Viewing cable 07BRASILIA1105, BRAZIL: IPR TRAINING REQUEST

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07BRASILIA1105 | 2007-06-15 11:15 | 2011-07-11 00:00 | UNCLASSIFIED | Embassy Brasilia

`

    VZCZCXRO6491
    PP RUEHRG
    DE RUEHBR #1105/01 1661115
    ZNR UUUUU ZZH
    P 151115Z JUN 07
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC PRIORITY 9233
    INFO RUEHSO/AMCONSUL SAO PAULO 0118
    RUEHRI/AMCONSUL RIO DE JANEIRO 4589
    RUEHRG/AMCONSUL RECIFE 6808
    RUEHAC/AMEMBASSY ASUNCION 6140
    RUEHBU/AMEMBASSY BUENOS AIRES 4836
    RUCPDOC/USDOC WASHDC

` `

    UNCLAS SECTION 01 OF 05 BRASILIA 001105

    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

    ¶1.  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 $43,900 to provide a
    two-day high-level workshop for law enforcement officials (Federal
    Police, Customs, 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 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.  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.

    ¶2.  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.

    ¶3. 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
    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.

    ¶4. 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.

    ¶5. 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).

    ¶6. Relevance to Other U.S. Objectives:  Intellectual property

    BRASILIA 00001105  002 OF 005

    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 esily
    laundered into other illegal activities.  U.. industry has been
    engaged in a long struggle t enter the highly-protected markets of
    Latin Ameica, and piracy strikes at the gradual gains made over
    time in this regard.

    ¶7. 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.

    ¶8. 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/gauing progress in
    enforcement efforts.  Progress onenforcement will also be
    measurable by the annua enforcement statistics released by the GOB
    Natinal Anti-Piracy Council (CNCP) and through statistcs on
    estimated intellectual piracy loses compiled by industry
    organizations such as IIPA.

    II. Components of an Effective IPR Regime

    ¶9. 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.

    ¶10. 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
    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.

    ¶11. 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).

    ¶12. 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.

    ¶13. Effective International Cooperation:  Brazil is a signatory to
    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

    SIPDIS
    program in Alexander, Virginia this June.  In November, 2006, USPTO
    detailed a patent attorney to Sao Paulo to serve as IPR Attache.  He
    works closely with the Brazilian patent agency, INPI.

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    ¶14. 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.

    ¶15.  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.

    ¶16. 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

    ¶17. 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.

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

    ¶19. 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.

    ¶20. 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.

    ¶21. 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

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    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 Attache who also supports this
    proposal.

    ¶22.  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.

    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; and site visits.

    Syllabus:  16 hours

    Module 1: Piracy: An overview
    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.

    Participants:
    Class size: 35
    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.

    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), and BSA (Business Software Alliance).  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 class of 35, in U.S. dollars):
    Airfare for students to central location: $12,500
    Airfare for USG instructors (max.3):      $ 3,600
    Per diem for instructors:                 $ 3,000
    Simultaneous interpretation:              $ 3,600
    Hotel and Meals for students:             $15,000
    Class materials:                          $ 2,700
    Incidentals/coffee and water:             $ 1,000

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    Ground transportation:                    $ 1,250
    Data show:                                $ 1,250
    TOTAL:                                   $43,900

    Sobel

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