UNCLAS ABU DHABI 001028

SIPDIS

SENSITIVE
STATE FOR NEA/ARP, NEA/PPR AND EB/IPC FOR WILSON
STATE PASS USTR - ALVAREZ AND BUNTIN
STATE PASS LOC - TEPP
USDOC FOR USPTO - URBAN
USDOC FOR LASHLEY
GENEVA PASS USTR

E.O. 12958: N/A
TAGS: PREL KIPR ETRD TC
SUBJECT: UAEG WORKING WITH PRIVATE COMPANIES TO STEM
VIDEO PIRACY


1. (U) Classified by DCM Richard Albright for reasons
1.5 (b) and (d).


2. (U) Summary: According to press reports, several
labor camps outside of Abu Dhabi have in the past year
become centers for pirated video cassettes; workers
from south India record the latest movies on VHS tapes
and rent them out to consumers in Abu Dhabi at reduced
prices. But UAE authorities have found an unlikely
ally in their efforts to eliminate the trade and are
turning to employers to educate their workers about
the legal risks of counterfeiting. At the UAEG's
urging, contracting companies who manage the labor
camps are posting signs warning workers that the
company will take legal action against workers
involved in counterfeiting. According to Abu Dhabi
police, this campaign has resulted during the last few
weeks in the imprisonment and deportation of dozens of
counterfeiters in the labor camps. End summary.


3. (U) Local contracting companies are posting signs
in English and in the various languages of the
subcontinent warning employees that they will be fired
and referred to the police if they are engaging in
counterfeiting activity. The notices also remind
employees that, under the new Copyright Law of 2002,
counterfeiters may face two to nine months
imprisonment and a fine ranging from USD $2,700 to
$55,000. The penalty is doubled for repeat offenders
according to the number of copyrights violated.


4. (U) According to the Abu Dhabi police, these
laborers record movies on VHS tape and rent out 30 to
50 video cassettes each day at a rate far less than
that of authorized video dealers -- about USD $.50 to
$1 per video. These pirated movies, according to the
police, reach the UAE via Pakistan and the Far East.
Most of the new Hindi movies are smuggled via Pakistan,
while Tamil movies come through Malaysia and Thailand.
English movies are smuggled by Chinese expatriates from
Hong Kong.


5. (U) The UAEG is cracking down on the counterfeiters
in response to complaints by movie distributors, video
store owners, and local cinemas. These businesses have
reported 50 percent losses in distribution and 60
percent losses in their retail business during the last
year. According to press reports, local merchants have
formed a committee to strategize with Abu Dhabi law
enforcement on ways to combat video piracy.


6. (SBU) Comment: The UAE authorities responsible for
copyright enforcement are stretched thin and
historically have relied on industry -- and, in this
case, the legitimate employers of the
workers-cum-counterfeiters -- to identify culprits and
illicit activity. For workers in the labor camps,
termination by their employers and loss of income are
greater deterrents than imprisonment; contracting
companies likewise have an incentive to keep workers
under their sponsorship out of trouble. If this new
tactic significantly reduces counterfeiting in the
labor camps (and it is, according to press reports),
the UAEG is likely to expand its program of working
with local companies to ensure implementation of IPR
polices to sectors of the economy where counterfeiting
continues to be a problem. End comment.

Wahba