Honduras Seizes 20,000 Pirated Discs; First Such

UNCLAS SECTION 01 OF 02 TEGUCIGALPA 000810

SIPDIS

DEPT FOR EB/TPP/IPE, WHA/CEN
DEPT PASS TO USTR

E.O. 12958: N/A
TAGS: KIPR ECON KJUS HO
SUBJECT: Honduras Seizes 20,000 Pirated Discs; First Such
Seizure in Two Years



1. Summary. On April 12, 2005, EmbOffs met with Prosecutor
for the Protection of Intellectual Property, Ligia Roque de
Galeas, to learn the details of an April 6-7 successful
seizure of approximately 20,000 pirated CDs and DVDs.
Following the seizures, several suspects were arrested in
raids on more than half a dozen sales locations in the
cities of Tegucigalpa and Choluteca. The operation was
planned and coordinated - and largely owes its success to -
Roque's initiative and the cooperation of Police Special
Investigations Sub-Commissioner Ramon Sabillon. End
Summary.


2. The Government of Honduras, for the first time in over
two years, has launched a successful operation to seize
pirated CDs and DVDs. On April 6-7, over 40 police agents
participated in raids on over half a dozen sales locations,
seizing approximately 20,000 discs. This operation took
place almost entirely at the initiative of the Prosecutor
for the Protection of Intellectual Property, Ligia Roque de
Galeas. She accomplished this remarkable feat despite a
number of obstacles. Changes to the Honduran law a few
years ago removed ex-officio authority, leaving the
Prosecutor powerless to act without a criminal complaint in
hand. (Once it enters into force, CAFTA-DR will fix this.)
Undeterred and determined to put a stop to flagrant sales of
pirated materials in broad daylight on the sidewalks of
Honduras' cities, Ms. Roque de Galeas took it upon herself
to contact a number of music and video publishers (including
Sony, Dideca, BMG and Universal) to secure criminal
complaints from them. (It is worth noting that to do so,
she first had to persuade her own bureaucracy to approve her
use of the telephone for the long distance calls to contact
these companies -- an indication of how modest the resources
are at her disposal.) Roque told us she was inspired in
part to take these actions following suggestions received in
training on IPR enforcement offered by the U.S. Patent and
Trademark Office in February 2005, which Roque and two other
GOH officials attended.


3. The week before the raids, Roque coordinated the
logistics with the police Special Investigations Unit
(DGSEI). The operation started in the afternoon of April 6
and finished on April 7. It took place in several locations
throughout Tegucigalpa, including downtown, Colonia Kennedy,
a video rental store (that rents out only pirated videos) in
Lomas de Toncontin, and in the southern city of Choluteca.
Forty policemen and 6 cars were used during the raids.
Police seized 14,800 CDs and 6,800 DVDs. The discs are
currently under police custody. After experts finish their
examination and confirm to the courts that the goods are
counterfeit, the seized products will be destroyed in
public, most likely by driving over them with a bulldozer.
(Roque is seeking to borrow a bulldozer from the Tegucigapla
municipal authorities for this purpose.)


4. Arrested suspects included primarily street vendors but
also one person who reproduced these products in
Tegucigalpa. (In the case of the DVDs, Roque reported that
the movies had been downloaded from the Internet but that
the booklet and promotional information were apparently
being copied and produced locally.) Street vendors informed
police that there are some reproducers in San Pedro Sula who
normally send the products to a warehouse located in the
popular San Isidro market in Comayaguela, just across the
river from downtown Tegucigalpa. The street vendors
reportedly identified their supplier in San Pedro by an
alias; they apparently do not know his real name. Roque
speculated that some vendors also receive products smuggled
overland from El Salvador. Notably, however, there is no
evidence thus far that any of the discs were made in China,
which is often alleged to be the source of pirated material
sold in Honduras. The street vendors were released on their
own recognizance in exchange for providing information to
the prosecutor about middlemen and suppliers of the pirated
materials. The sole pirated disc producer arrested was also
released but remains under investigation.


5. Roque told EmbOffs that with the criminal complaints she
has received it will be possible to plan, coordinate, and
carry out more seizure operations in the cities of San Pedro
Sula and La Ceiba in the near future. She can also use the
existing complaints to file and to prosecute criminal
charges if seizures are made in those cities. In order to
support continuing operations of this type in Honduras, the
media publishers who filed criminal complaints, joined by
others from Costa Rica, have indicated they intend to file
additional criminal complaints. They have also offered to
provide technical assistance in identifying and prosecuting
future piracy cases.


6. Comment. Post is very pleased that the IP training
received by three Honduran officials (including Roque) in
Washington in February 2005 resulted in such a spectacular
success. Roque de Galeas is currently the sole prosecutor
in the Public Ministry who has responsibility for IPR
crimes. Though her portfolio was increased from half-time
IPR to full-time IPR a month ago, she still lacks a formal
declaration from the Attorney General naming her to the
post, and she has no support staff. The recent operation
was a success largely because of her will and drive, but the
task at hand is simply too much for one official alone to
confront. Post will contact the Honduran Government at
senior levels to praise these efforts, to emphasize how
important prosecution of IPR crimes is, and to underscore
our gratitude for this clear demonstration of political will
to confront this issue. Most importantly, we hope that
public recognition of such a high profile success will
encourage the Honduran Government to formally name Roque de
Galeas as IPR Prosecutor and to follow through with plans to
form an IPR unit within the Public Ministry and provide that
unit with a level of support that will allow it to continue
effectively cracking down on IPR violations in Honduras.
End comment.

Pierce