Italy's Finance Police See IPR Protection as Key

UNCLAS ROME 002435

SIPDIS


STATE PASS USTR FOR BURCKY

Sensitive

E.O. 12958: N/A
TAGS: KIPR ETRD PGOV IT
SUBJECT: Italy's Finance Police See IPR Protection as Key

(U) This cable is sensitive but Unclassified. Please
Protect Accordingly. Not for Internet Distribution.


1. (SBU) Summary: In a recent discussion with Emboffs,
Major General Nino di Paolo underscored the commitment of
Italy's Finance Police (FP) to fighting IPR piracy. IPR
protection has become a top priority for the FP as it has
focused on the links between IPR pirates and organized
crime. Di Paolo said that law enforcement has sufficient
legal tools to investigate and arrest offenders. He saw
magistrates, however, as either unwilling (in some cases)
or too overworked (more often) to deal effectively with
IPR criminals. The far more fundamental problem, in his
view, is the pervasive lack of understanding and support
from the Italian political elites and the public.
Changing this will require long-term, systematic
education and outreach efforts. End Summary.


2. (SBU) On May 12, Guardia di Finanza (Finance Police -
FP) Major General Nino di Paola hosted a luncheon for
ECMIN, Econcouns and Econ Specialist. Also participating
from the FP were Brigadier General Francesco Polella,
head of international affairs, and Colonel Paolo Granata,
head of the Antifraud and International Cooperation
office. The FP handles financial and economic crimes,
including terrorism finance, money laundering, smuggling,
tax evasion, counterfeiting and IPR piracy. Di Paola is
the third most senior official nationally in the FP.

3. (SBU) Di Paolo stated flatly that IPR protection is a
top priority for the FP. The FP, he stressed, sees IPR
piracy (copyright and trademark in particular) not as
simple fraud or tax evasion, but as an integral part of
organized crime. In fact, in certain areas of the
country criminal organizations have used IPR piracy
earnings to replace lost revenues from traditional but
declining illegal activities, such as cigarette
smuggling, with copyright and trademark piracy. Di Paolo
expressed his conviction that treating piracy as a petty
offence was a major mistake.


4. (SBU) The laws now on the books in Italy are adequate
and provide enforcement agencies with sufficient legal
tools, in Di Paolo's view. He argued that higher
criminal penalties would not prove a significant
deterrent to piracy. He pointed out that criminals are
often involved not only in piracy but also arms
trafficking, money laundering and other crimes, and
sentences are already significant for those crimes.
Those not involved in other criminal acts, however,
tended to be lower level pirates, whom magistrates are
reluctant to sentence to jail time.


5. (SBU) "Piracy can only be fought effectively if the
Italian people's cultural approach to piracy is changed,"
stressed Di Paolo. His proposal was to initiate a
systematic, long-term information and sensitization
campaign -- starting with primary schools. Criminal and
civil penalties, he said, are ineffective and difficult
to implement "if a crime is not perceived as a threat and
penalties are deemed inappropriate by the people." Di
Paolo said that when his men raid arms dealers,
bystanders on the scene applaud. However, when the same
officers raid music and video pirates, bystanders object
and argue.


6. (SBU) Di Paolo recognized that some magistrates tend
to treat piracy as minor offences. He maintained,
however, that many judges do recognize the seriousness of
IPR crimes, yet must set them aside to handle murders and
other violent crimes. In fact, Di Paolo explained,
piracy is so closely linked to organized crime that major
trademark and copyright piracy tends to be centered in
areas of high criminal incidence. Naples, for example,
is the top area for criminal piracy and also a center of
organized crime violence. Magistrates under crushing
workloads understandably give priority to murders and
other violent crimes.


7. (SBU) Di Paolo and ECMIN agreed that the Embassy and
the FP would work to deepen and reinforce our mutual
efforts in the fight against IPR piracy. Working with
our consulates and the IPR industry, we agreed to renew
our plan of action against piracy, in light of lessons
learned over the past few years.


8. (SBU) Di Paolo thanked ECMIN for the Embassy's

services in support of an important voluntary visitor
program for senior FP officers conducted in April and for
the continued inclusion of FP officers in the
International Visitors program. Underscoring the
longstanding and active collaboration between the FP and
Embassy officials, Di Paolo expressed satisfaction that
the relationship had expanded from enforcement activities
to policy dialogue on issues such as money laundering and
IPR protection.


9. (SBU) Comment: Under General Di Paolo's leadership,
the FP has led Italy's fight against IPR piracy. We have
found them both committed and realistic in their efforts,
but largely unsupported by the public and political
elites. We hear frequently from IPR industry
representatives about excellent cooperation from the FP,
which is subsequently undermined by magistrates'
unwillingness to prosecute and convict. Di Paolo's less
critical view of the magistrates may be simply a
realistic assessment that he can expect no more.
Sembler
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2003ROME02435 - Classification: UNCLASSIFIED