FOX SPORTS PLEASED WITH IPR AGREEMENT WITH PARAGUAY

UNCLAS ASUNCION 000811

SIPDIS

STATE FOR WHA/BSC, WHA/EPSC, EB/TPP/IPE
STATE PASS TO USTR FOR SCRONIN, LYANG
USAID FOR AA/LAC ADOLFO FRANCO
TREASURY FOR OSIA MAUREEN WAFER
COMMERCE ITA SARAH COOK
NSC FOR MIKE DEMPSEY
SOUTHCOM FOR POLAD
US SOUTHERN COMMAND MIAMI, FLORIDA

E.O. 12958: N/A
TAGS: ECON KIPR PREL PA
SUBJECT: FOX SPORTS PLEASED WITH IPR AGREEMENT WITH PARAGUAY

REF: 04 Asuncion 1113


1. As reported in reftel, Fox Sports Latin America signed
an agreement with the Ministry of Industry and Commerce
(MIC) on August 10, 2004 to work cooperatively to reduce
piracy of Fox's programming in Paraguay. Fox executives
contacted post to express their satisfaction with the
arrangement, which they said the MIC has strongly supported.
Fox has begun making arrangements to renew the current
commitment with the GOP, and they understand that the new
Minister, Raul Vera, wants to renew the agreement.


2. Fox executives said that in the past 10 months, the MIC
has helped open more than 30 investigations and issued three
fines, and supported a formal complaint via CONATEL,
Paraguay's communications regulatory agency. A Fox press
release notes that the Tax Administration will be
cooperating as well by investigating the tax compliance of
violators. Fox told us that 15 small companies formerly
offering pirated signals have legalized their services.
Piracy has been reduced both as a result of the MIC's
efforts and from the example set by a successful criminal
case pursued by one of the Public Ministry's IPR
prosecutors. Fox recently signed a similar agreement with
Colombia, the second such agreement in the region, although
Fox said that Colombia has so far not shown the same level
of commitment as has Paraguay.

KEANE