IPR POLICE UNIT (FINALLY) PUT IN ACTION

UNCLAS YEREVAN 001452

SIPDIS

SENSITIVE

DEPT FOR EUR/CACEN, EUR/ACE, EB/IPC
PLS PASS TO USTR, USPTO

E.O. 12958: N/A
TAGS: ECON EFIN KIPR AM
SUBJECT: IPR POLICE UNIT (FINALLY) PUT IN ACTION


SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY.

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SUMMARY
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1. (SBU) In its first major action since its creation in
January 2005, Armenia's IPR police unit July 20 cracked down
on three companies which together control roughly 70 percent
of the pirated CDs, DVDs and tapes market. The police
confiscated more than 50,000 illegal CDs, tapes and
videotapes and filed an indictment. Head of the IPR Agency
Armen Azizyan told us that in the police will soon close
down the rest of the companies producing and distributing
illegal pirated products. "The press has actually done us a
favor by increasing public awareness regarding the IPR law,
piracy and existence of enforcement unit," Azizyan said.
Although this is a step forward in IPR law enforcement, no
steps have been taken to curb the broadcast of films and TV
shows without a license. End Summary.

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POLICE CRACK DOWN ON RECORDING STUDIOS
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2. (SBU) The director of "ArmAuthor" NGO Susanna Nersisyan
told us that their organization filed a claim against
several recording studios violating the "IPR and Related
Rights Law" by failing to pay fees for reproducing the works
of several local authors. (Note: ArmAuthor collects fees
and royalties in Armenia similary to ASCAP in the U.S. End
Note.) A police unit of Armenia's Anti-Organized Crime of
RA Police" started an investigation and on July 20 they
searched warehouses and confiscated more than 50,000 illegal
CDs, tapes and videotapes. They instituted a criminal case
against those companies "HD," "THD" and "Reco Records" which
are owned by the Khanoyan brothers and control around 70
percent of the market for the production and distribution of
pirated products. ArmAuthor's Nersisyan and Azizyan believe
that the police will crack down the other companies
producing and distributing illegal products. Nevertheless,
under the current legislation the police cannot prosecute
international IPR violations without a complaint, filed in
Armenia, by an aggrieved party.

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ANOTHER CASE OF PROTECTIONISM?
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3. (SBU) The owners of the raided companies, the Khanoyan
brothers, claim that the police action was organized on the
orders of Ashot Giziryan, head of the Unit of Fight Against
Organized Crime, who is alleged to own another recording
studio, "KK Studio," and who they claim is trying to drive
them out of the market. Karen Karapetyan, "KK Studio"
general director, denied any connection with Giziryan in a
number of interviews, and claims that the studio is
operating legally, has more than 100 agreements with authors
and performers, and pays the required fees to ArmAuthor.

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COMMENT: IPR ENFORCEMENT STILL HAS A WAY TO GO
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4. (SBU) It's a good sign that the police may finally
taking IPR enforcement seriously and is cracking down on the
producers of pirated products. Closing down the major
player in that field is a huge step forward. Despite the
campaign against pirated music and films, the enforcement
unit has not taken action against the broadcasting of
unlicensed programs on TV or production and distribution of
unlicensed software, and this case was against reproduction
of Armenian products. The enforcement unit has few legal
options with regard to pirated international goods, since
the law does not provide for ex-officio prosecutions. We
continue to support regulation and enforcement of IPR in
Armenia through USG programs, and will continue to press the
GOAM to pass legislation that will make Armenia's IPR regime
as effective as possible.
GODFREY