ITALY - 2003 SPECIAL 301 NOTIFICATION

UNCLAS ROME 002182

SIPDIS


SENSITIVE

STATE PASS USTR FOR BURCKY

E.O. 12958: N/A
TAGS: KIPR ETRD IT
SUBJECT: ITALY - 2003 SPECIAL 301 NOTIFICATION


REF: STATE 111508

(U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED. PLEASE
PROTECT ACCORDINGLY. NOT FOR INTERNET DISTRIBUTION.


1. (SBU) ON MAY 6, ECONCOUNS CALLED ON MAURO MASI, DEPUTY
SECRETARY GENERAL FOR THE PRIME MINISTER'S OFFICE AND

SIPDIS
EXTRAORDINARY COMMISSIONER OF SIAE (THE COPYRIGHT ROYALTY
COLLECTING SOCIETY),REGARDING THE SPECIAL 301
NOTIFICATION FOR ITALY (REFTEL). MASI WAS NOT SURPRISED
BY THE DECISION TO KEEP ITALY ON THE WATCH LIST. HE WAS
WELL AWARE OF THE REASONS BEHIND THIS DECISION. HE
INDICATED THAT THE GOI IS FULLY COMMITTED TO PURSUING IPR
PROTECTION. MOREOVER, MASI POINTED TO THE SERIOUS
ENFORCEMENT EFFORTS THAT HAVE BEEN MADE BY THE GUARDIA DI
FINANZA (FINANCE POLICE). MASI ACKNOWLEDGED THAT ITALY'S
FUNDAMENTAL PROBLEM WITH PIRACY RESULTS FROM
INCONSISTENCY IN COURT RULINGS AND THE RELUCTANCE OF
JUDGES TO TREAT IPR VIOLATIONS AS SERIOUS OFFENCES. MASI
BELIEVED THAT THE ITALIAN PUBLIC WAS COMING TO APPRECIATE
IMPORTANCE OF IPR AND WAS LESS PRONE TO PURCHASING
PIRATED MATERIALS. WHILE HE KNEW THAT SUCH CHANGES IN
MENTALITY WOULD TAKE TIME, HE FELT THAT THE IMPROVEMENT
WAS QUITE REAL


2. (SBU) THE DISCUSSION THEN TURNED TO WHETHER
COPYRIGHTED MATERIAL SHOULD BE REQUIRED TO HAVE (AND PAY
FOR) A SIAE STICKER. ECONCOUNS EXPLAINED THAT THIS METHOD
PUT THE BURDEN OF EFFORT AND COST ON THE INDUSTRY -
ALREADY THE VICTIMS OF PIRACY. MASI STATED HIS
LONGSTANDING POSITION THAT THE SIAE STICKER IS THE BEST
WAY TO ENSURE THAT PRODUCTS OFFERED TO THE PUBLIC ARE
LEGITIMATE. WHILE MASI ADDED THAT, WHILE HE WAS NOT
FULLY CONVINCED BY THE BUSINESS SOFTWARE ALLIANCE'S (BSA)
ARGUMENT THAT BUSINESS SOFTWARE SHOULD BE EXEMPT FROM THE
STICKER REQUIREMENT, THE GOI HAD DONE ALL WITHIN ITS
POWER OF AMENDING REGULATIONS TO SATISFY BSA'S REQUESTS.
ANY FURTHER ACTION WOULD HAVE TO BE ACHIEVED BY AMENDING
EXISTING LEGISLATION "WHICH OF COURSE IS A MUCH MORE
COMPLEX PROCEDURE."


3. (SBU) MASI TOLD ECONCOUNS THAT HE PLANNED TO PRESENT
SIGNIFICANT DRAFT IPR LEGISLATION TO PARLIAMENT DURING

2003. HE WOULD BE WILLING TO SHARE THESE DRAFTS WITH THE
USG AS THEY ARE DEVELOPED, AND TO CONSIDER USG COMMENTS.
AT THIS POINT, HOWEVER, HE DID NOT WISH TO GIVE ANY
INDICATION AS TO THE NATURE OF THE PROPOSALS.


4. (SBU) MASI HAS BEEN FOR SEVERAL YEARS THE CARETAKER
COMMISSIONER OF SIAE. HE WAS APPOINTED TO BRING SIAE OUT
OF A DEEP FINANCIAL CRISIS BY INCREASING REVENUES AND
CUTTING EXPENDITURES. THIS HE HAS DONE. ASKED ABOUT HIS
FUTURE ROLE, MASI INDICATED THAT SIAE WOULD ELECT A BOARD
AND CHAIRMAN BY SEPTEMBER 2003. WHILE HE WILL PROBABLY
NOT BE THE NEW CHAIRMAN, MASI SAID HE WOULD MOST LIKELY
CONTINUE TO SIT ON THE SIAE BOARD.


5. (SBU) COMMENT: IN HIS DUAL ROLE -- COMMISSIONER OF
SIAE AND SENIOR OFFICIAL IN THE PRIME MINISTER'S OFFICE
FOR COPYRIGHT POLICY -- MASI HAS SHOWN FAR MORE INTEREST
IN IMPROVING SIAE'S FINANCIAL SITUATION THAN IN FIGHTING
PIRACY. WE WOULD HOPE THAT HIS CHANGED ROLE AT SIAE WILL
MEAN A CHANGE IN HIS PRIORITIES.


6. (SBU) REGARDING IPR ENFORCEMENT MORE GENERALLY IN
ITALY, THE GUARDIA DI FINANZA (FINANCE POLICE) HAS WORKED
CLOSELY WITH THE IPR INDUSTRY AND THE MISSION FOR THE
LAST SEVERAL YEARS TO FIGHT COPYRIGHT PIRACY. THE
CARABINIERI (NATIONAL MILITARY POLICE) HAVE MADE
INCREASING EFFORTS AS WELL. THERE ARE NOW FREQUENT
ARRESTS FOR COPYRIGHT PIRACY. HOWEVER, ITALIAN JUDGES
ARE ALMOST ALL UNWILLING TO SENTENCE INDIVIDUALS TO
PRISON FOR COPYRIGHT PIRACY. SO LONG AS CRIMINALS KNOW
THAT THEY FACE NO REAL POSSIBILITY OF JAIL TIME, PIRACY
RATES WILL NOT FALL.
SEMBLER

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2003ROME02182 - Classification: UNCLASSIFIED