Identifier
Created
Classification
Origin
02ROME1072
2002-02-28 18:02:00
UNCLASSIFIED
Embassy Rome
Cable title:  

2002 SPECIAL 301 REVIEW: ITALY

Tags:  KIPR ECON ETRD IT 
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UNCLAS SECTION 01 OF 02 ROME 001072 

SIPDIS

DEPT FOR EB/IPC:CCONROY, DEPT PLS PASS TO USTR:
BURCKY/ALVAREZ, DOC FOR LASHLEY, USPTO FOR URBAN, LOC FOR
POOR

E.O. 12958: N/A
TAGS: KIPR ECON ETRD ECON ETRD IT ITKIPR
SUBJECT: 2002 SPECIAL 301 REVIEW: ITALY
UNCLASSIFIED


PAGE 02 ROME 01072 01 OF 02 281834Z

REF: A. STATE 12512

B. ROME 844

C. 01 ROME 6406

D. 01 ROME 5916

UNCLAS SECTION 01 OF 02 ROME 001072

SIPDIS

DEPT FOR EB/IPC:CCONROY, DEPT PLS PASS TO USTR:
BURCKY/ALVAREZ, DOC FOR LASHLEY, USPTO FOR URBAN, LOC FOR
POOR

E.O. 12958: N/A
TAGS: KIPR ECON ETRD ECON ETRD IT ITKIPR
SUBJECT: 2002 SPECIAL 301 REVIEW: ITALY
UNCLASSIFIED


PAGE 02 ROME 01072 01 OF 02 281834Z

REF: A. STATE 12512

B. ROME 844

C. 01 ROME 6406

D. 01 ROME 5916


1. SUMMARY: EMBASSY ROME RECOMMENDS THAT ITALY REMAIN ON
THE 301 WATCH LIST. COPYRIGHT PIRACY LEVELS HAVE FALLEN
SHARPLY SINCE 2000, WHEN ITALY'S NEW COPYRIGHT LAW WAS
ENACTED. LAW ENFORCEMENT IS FAR MORE AGGRESSIVE. HOWEVER,
PROBLEMS PERSIST, PARTICULARLY WITH THE JUDICIARY, CERTAIN
MUNICIPAL LEADERS, AND THE SIAE (ITALY'S COPYRIGHT ROYALTY
COLLECTION AGENCY). END SUMMARY.


2. THE IPR SITUATION IN ITALY IMPROVED DURING 2001, WITH
PIRACY LEVELS DROPPING BY OVER 30 PERCENT FROM 1999,
ACCORDING TO THE IIPA. THE ENACTMENT OF THE 2000 COPYRIGHT
LAW IN SEPTEMBER 2001 RAISED CRIMINAL PENALTIES AND LED TO A
NEW AWARENESS AMONG LAW ENFORCEMENT OFFICIALS AND THE PUBLIC
THAT PIRACY IS A CRIME. LAW ENFORCEMENT COOPERATION WITH THE
IPR INDUSTRY HAS BEEN VERY GOOD, PARTICULARLY AMONG THE
CARABINIERI (NATIONAL POLICE WITHIN THE DEFENSE MINISTRY) AND
THE GUARDIA DI FINANZA (FISCAL POLICE WITHIN THE FINANCE
MINISTRY). FAR MORE ARRESTS HAVE MEANT LESS PIRACY,
PARTICULARLY IN CITIES WHERE THE MAYORS AND PREFECTS SUPPORT
POLICE EFFORTS.


3. RESULTS HAVE VARIED FROM CITY TO CITY, DEPENDING UPON
MUNICIPAL OFFICIALS. FOR EXAMPLE, THE MAYOR AND PREFECT IN
ROME HAVE BEEN UNWILLING TO ALLOW POLICE TO ACT AGGRESSIVELY
AGAINST STREET VENDERS OF PIRATED MATERIAL. AS A RESULT,
UNCLASSIFIED

PAGE 03 ROME 01072 01 OF 02 281834Z
SUCH STREET SALES HAVE CONTINUED UNIMPEDED. OFFICIALS IN
CERTAIN CITIES HAVE ATTEMPTED TO STOP LOCAL CARABINIERI FROM
ACTING. ON THE OTHER HAND, TRIESTE CITY OFFICIALS HAVE BEEN
VERY SUPPORTIVE. AS A RESULT, IN THAT CITY, STREET VENDORS
OF PIRATED MATERIAL HAVE ALMOST DISAPPEARED AND PIRACY RATES
ARE EXTREMELY LOW.


4. PROSECUTORS AND JUDGES VARY IN QUALITY AS WELL. MANY
PROSECUTORS ARE UNWILLING TO BRING CRIMINAL CHARGES AGAINST
STREET VENDORS, FACTORY WORKERS OR SHOP WORKERS. JUDGES ARE
OFTEN UNWILLING TO CONVICT, ARGUING THAT "MINOR" ECONOMIC

CRIMES DO NOT JUSTIFY CRIMINAL TREATMENT. ON THE OTHER HAND,
AS THE EMBASSY AND CGS HAVE HELD CONFERENCES AND SEMINARS
WITH THE JUDICIAL COMMUNITY, WE HAVE SEEN A GROWING NUMBER OF
MAGISTRATES TAKE THIS CRIME MORE SERIOUSLY. SOME JUDGES HAVE
BECOME IMPORTANT ALLIES IN OUR EFFORTS.


5. THE TYPE OF PIRACY HAS VARIED AS WELL. ACCORDING TO
FAPAV (THE AUDIO-VISUAL ANTI-PIRACY ASSOCIATION),CASSETTE
PIRACY HAS DROPPED DRAMATICALLY. HOWEVER, PIRATED DVDS HAVE
JUST BEGUN TO APPEAR, AND COULD BECOME A FAR MORE SERIOUS
PROBLEM. "SMART-CARD" PIRACY -- COUNTERFEIT PAY-TV CARDS --
IS EQUAL TO AT LEAST 50 PERCENT OF THE PAY-TV MARKET IN ITALY
(REF B). ON THE OTHER HAND, THE BUSINESS SOFTWARE ALLIANCE'S
PRELIMINARY EVALUATION OF THE ITALIAN PIRACY RATES INDICATES
THAT THERE MAY BE A DECLINE IN WHITE COLLAR IN-FIRM ILLEGAL
DUPLICATION OF SOFTWARE. REGARDING THE MUSIC INDUSTRY, THE
FIMI REP INDICATED THAT IT IS DIFFICULT TO ESTABLISH HOW MUCH
OF THE DECLINE IN CD SALES IS ATTRIBUTABLE TO PIRACY AND HOW
MUCH TO OTHER FACTORS SUCH AS THE HIGH PRICE OF CDS (OR JUST
"NOT VERY GOOD MUSIC"). HOWEVER, FIMI CONFIRMED THAT PIRACY
UNCLASSIFIED

PAGE 04 ROME 01072 01 OF 02 281834Z
IS A KEY PROBLEM WITH STREET VENDORS SWARMING CITY STREETS
WITH PIRATED CDS.

SIAE: INSPECTING FOR STICKERS, NOT PIRACY
-------------- --------------


6. WE REMAIN CONCERNED BY THE INEFFECTIVE ANTI-PIRACY
EFFORTS OF SIAE, THE COPYRIGHT COLLECTION ENTITY. IPR
INDUSTRIES ARE WORKING INTENSIVELY -- WITH ACTIVE SUPPORT
FROM EMBASSY ROME AND CONSULATES MILAN, NAPLES AND FLORENCE
-- TO IMPROVE ENFORCEMENT AND EDUCATION. HOWEVER, SIAE HAS
BEEN MORE AN OBSTACLE THAN AN ALLY.


7. IN ACCORD WITH ARTICLE 11 OF THE 2000 COPYRIGHT LAW, SIAE
IS RESPONSIBLE FOR ANTI-PIRACY EFFORTS IN ITALY. BECAUSE
SIAE RECEIVES ALL REVENUES FROM ITS STICKER, WHICH IS
REQUIRED FOR COPYRIGHTED MATERIALS UNDER THE LAW (WITH THE
EXCEPTION OF BUSINESS SOFTWARE),IT HAS ADEQUATE RESOURCES
FOR THESE EFFORTS. HOWEVER, WE UNDERSTAND THAT SIAE HAS TO
DATE DIRECTED ITS EFFORTS SOLELY AT INSPECTING LEGITIMATE
COPYRIGHTED GOODS TO ENSURE THAT THESE CARRY A SIAE STICKER.
SIAE HAS DONE NOTHING, TO OUR KNOWLEDGE, TO ACT AGAINST
ILLEGAL COPYRIGHTED GOODS.


8. WE HAVE REPORTED (REF C AND PREVIOUS) ON THE SIAE
STICKER ISSUE, AND OUR EFFORTS TO RESOLVE IT. IN LATE

UNCLASSIFIED

UNCLASSIFIED PTQ2683

PAGE 01 ROME 01072 02 OF 02 281834Z
ACTION EB-00

INFO LOG-00 AGRE-00 AID-00 AMAD-00 CEA-01 CIAE-00 CTME-00
INL-00 DINT-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 DS-00
EXME-00 EUR-00 E-00 FAAE-00 UTED-00 VC-00 FRB-00
H-01 TEDE-00 INR-00 ITC-01 LAB-01 LOC-01 L-00
VCE-00 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01
PA-00 PC-01 PRS-00 ACE-00 SP-00 SSO-00 SS-00
STR-00 TEST-00 TRSE-00 USIE-00 SNIS-00 NISC-00 DSCC-00
DRL-02 G-00 SAS-00 /012W
-------------- 6D700D 281834Z /38
R 281802Z FEB 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC 2509
INFO EU MEMBER STATES COLLECTIVE
AMCONSUL MILAN
AMCONSUL FLORENCE
AMCONSUL NAPLES
USDOC WASHDC

UNCLAS SECTION 02 OF 02 ROME 001072

SIPDIS

DEPT FOR EB/IPC:CCONROY, DEPT PLS PASS TO USTR:
BURCKY/ALVAREZ, DOC FOR LASHLEY, USPTO FOR URBAN, LOC FOR
POOR

E.O. 12958: N/A
TAGS: KIPR ECON ETRD ECON ETRD IT ITKIPR
SUBJECT: 2002 SPECIAL 301 REVIEW: ITALY
UNCLASSIFIED

PAGE 02 ROME 01072 02 OF 02 281834Z

JANUARY, BSA OFFICIALS MET WITH UNDER SECRETARY LETTA IN THE
PRIME MINISTER'S OFFICE, WHO PROMISED THAT THE REGULATIONS
WOULD BE REVISED TO PERMIT ROUTINE EXEMPTIONS FOR BUSINESS
SOFTWARE. BSA AND SIAE HAVE HELD FOLLOW UP MEETINGS ON THE
SPECIFIC WORDING OF THE NEW REGULATION AND THE SPECIFIC
WORDING OF THE EXEMPTION REQUIREMENTS. WE ARE MONITORING
THESE AND URGING SIAE TO MOVE QUICKLY.


9. INDUSTRY AND EMBASSY EFFORTS AT IPR EDUCATION AND
ENFORCEMENT, WHILE EXTENSIVE, ARE NOT ENOUGH. OUR COMBINED
EFFORTS HAVE IMPROVED THE SITUATION, PARTICULARLY WITH LAW
ENFORCEMENT AND, IN SOME CASES, WITH THE JUDICIARY. HOWEVER,
SIAE HAS THE NATIONAL RESPONSIBILITY AND THE RESOURCES. WE
HAVE PRESSED SIAE TO INVOLVE ITSELF IN EDUCATION AND
ENFORCEMENT EFFORTS, BUT HAVE SEEN NO ACTION YET.

WIPO TREATIES
--------------


10. ITALY HAS NOT YET RATIFIED THE 1996 WIPO INTERNET
TREATIES.

AMENDMENTS TO EXISTING LEGISLATION
-------------- ---


11. ITALY HAS NOT AMENDED ITS 2000 COPYRIGHT LAW AND THE
IMPLEMENTING REGULATIONS ENACTED IN 2001. AS STATED ABOVE,
WE ARE PRESSING FOR AN AMENDMENT TO CERTAIN REGULATIONS TO
PERMIT ROUTINE EXEMPTIONS FROM THE SIAE STICKER FOR BUSINESS
SOFTWARE.
UNCLASSIFIED

PAGE 03 ROME 01072 02 OF 02 281834Z


12. THE ITALIAN PARLIAMENT HAS RECENTLY APPROVED THE 2001 EU
DIRECTIVES OMNIBUS BILL, WHICH DELEGATED AUTHORITY TO THE GOI
TO INTEGRATE EU RULES GOVERNING COPYRIGHT INTO THE ITALIAN
LEGAL CODE .

GOVERNMENT SOFTWARE
--------------


12. WE HAVE RECEIVED NO COMPLAINTS/INFORMATION REGARDING
GOVERNMENT USE OF PIRATED SOFTWARE.

COMMENT
--------------


13. THE INTERNATIONAL INTELLECTUAL PROPERTY ALLIANCE (IIPA)
RECOMMENDS THAT ITALY REMAIN ON THE WATCH LIST. IPR INDUSTRY
REPRESENTATIVES HERE SHARE THAT ASSESSMENT. WE AGREE.
PIRACY HAS FALLEN BY OVER 30 PERCENT IN THE LAST TWO YEARS --
SINCE ITALY PASSED ITS TOUGH COPYRIGHT LAW IN 2000 -- BUT
MUCH REMAINS TO BE DONE.

SEMBLER

UNCLASSIFIED

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2002ROME01072 - Classification: UNCLASSIFIED