IP COORDINATORS ADVANCE U.S. AGENDA IN GREECE

UNCLAS E F T O SECTION 01 OF 03 ATHENS 001881 SIPDIS USDOC FOR 4232/ITA/MAC/KNAJDI/JKIMBALL SIPDIS NOFORN SENSITIVE E.O. 12958: N/A TAGS: KIPR ECON ETRDGR SUBJECT: IP COORDINATORS ADVANCE U.S. AGENDA IN GREECE ¶1. (U) Summary: Department of Commerce Senior Advisor to the U.S. Intellectual Property Coordinator, Wayne Paugh, and David Brener, on detail to the IP Coordinator's office from the U.S. Department of Homeland Security, met with senior Greek Government officials over two days, July 14- 15, to discuss U.S. concerns with Greece's IPR regime and the implementation of an Action Plan. Although Greece was not included as a Watch Country in the 2006 Special 301 Report issued by the U.S. Trade Representative this year, concerns were such that an Action Plan was developed to address IPR weaknesses in Greece. The visit from the Commerce IPR Coordinator's office was productive in helping us demonstrate the high-level USG interest on IPR, especially vis-a-vis the Action Plan for Greece. The tone and tenor of the senior level meetings was open and positive, with the Greek interlocutors making a concerted effort to detail steps they have taken and to propose and discuss possible additional steps. The coordination of the Secretary of the Greek Government, responsible for setting SIPDIS the agenda for cabinet meetings, was responsible for bringing the visit of the U.S. officials to the attention of the relevant Ministers. ¶2. (SBU) Greece was removed from the Special 301 Watch List in 2003. Deputy Finance Minister Folias confided to us that the current government leadership does not want Greece to fall back onto the Watch List, and will make every effort to avoid a recurrence. His positive attitude contrasts sharply with many mid-level working officials who have, unfortunately, been less responsive. ¶3. (U) U.S. IP Coordinator staff met with the following Greek Government representatives. Ms. Helen Louri-Dendrinou, Economic Advisor to the Prime Minister. Ms. Domna Kyrzopoulou, Economic Advisor to the Justice Minister. Mr. Christos Folias, Deputy Finance Minister. Mr. Elias Argyros, Executive Secretary, Special Financial Investigations Service. Dr. Constantinos Polyzogopoulos, Director, Hellenic Copyright Organization. Mr. Manousos Voloudakis, Secretary General, Ministry of Development. Mr. George Kounadis, Director, Ministry of Finance. ¶4. (U) Ambassador Ries met with the U.S. officials at the beginning of their program. The American Hellenic Chamber of Commerce hosted a luncheon on the occasion of the visit, which included representatives from the IT and apparel sectors, BSA, MPAA, business consultants and lawyers. Mr. Paugh and Mr. Brener were accompanied by the Senior Commercial Officer and either FCS or ECON staff or both to all meetings. ¶5. (U) At all meetings, Mr. Paugh explained that the IP Coordinator's Office is primarily responsible for helping implement a White House initiative to coordinate IP policy across different agencies, and that it enjoys bi-partisan and bi-cameral Congressional support. He briefed Greek government and business officials on the STOP (Strategy Targeting Organized Piracy) initiative, and relayed the message that IPR was now a priority at the highest levels of the U.S. government, including Secretary Gutierrez and President Bush. He noted that 40% of U.S. economic growth depends on intellectual property, and over 50% of U.S. exports are linked in some way to intellectual property. ¶6. (U) The U.S. delegation complimented Greek officials on the legal infrastructure in place, but urged that more attention and resources be devoted to sustained enforcement and training in general. The meetings yielded useful information about a range of steps taken, challenges faced by the Greek government, and areas where the U.S. government might be able to assist. The following are salient points discussed. ¶7. (SBU) Judicial: The independence of the judicial branch was cited as a major obstacle to increased enforcement of IPR violations. In the past the Justice Ministry has issued circulars to all judges reminding them of the importance of vigorous enforcement of IPR laws. In May, the President of the Judicial Training Academy agreed to begin training new judges in IPR issues. No action has been taken yet. It was asked whether the U.S. Government could support a colloquium for judges, in collaboration ATHENS 00001881 002 OF 003 with the European Union, WIPO or the USPTO. ¶8. (SBU) Administrative Penalties: A Joint Committee has been established under the auspices of the Culture Ministry (Hellenic Copyright Organization) to review the adequacy of current IPR law and the issue of administrative penalties in particular. The Business Software Alliance supports the use of administrative penalties while the Motion Picture Association of America opposes its application to audio- visual works. Although currently split on the decision to introduce administrative penalties, the Greek Government views the use of administrative penalties positively from the point of view of state revenue. The Ministries of Culture, Finance and Justice are supportive of administrative penalties. ¶9. (SBU) Upstream Producers/Distributors: Deputy Finance Minister Folias mentioned the need for Greece to implement a strategy to identify upstream producers/distributors of pirated merchandise. Although the Development Ministry has competency in control and monitoring of retail markets, only the police or the Special Financial Service have the authority to pursue upstream producers and distributors. Coordination with Justice, Culture and Public Order would also be required. ¶10. (SBU) Trademark: The Development Ministry is in the process of drafting a bill to transpose an E.U. directive on trademarks and criminal penalties for violations. It is expected to be submitted to Parliament in September. The new law would enable the Ministry to levy administrative fines on the spot, similar to the Special Financial Investigation Service. Checks of the retail market show a marked increase in both seizures and prosecutions. A 2005 Retail Market Law clarified and confirmed the ability of Greek authorities to destroy confiscated products. Greek authorities believe that much of the pirated trademarked items enter Greece from other EU countries, especially Italy. ¶11. (SBU) Communication: It was noted that Greek consumers do not view piracy as a legal or moral issue. Purchasing pirated products is not a crime in Greece. It was suggested that a communication effort be made to address public opinion in this area, and to make the public aware of health and safety issues associated with pirated products and the negative impact it has on popular Greek artists and the economy of Greece overall. AmCham volunteered to participate in such an outreach effort. ¶12. (SBU) Special Financial Investigations Service: Perhaps the most encouraging news came from this office. As part of a broader government effort to pursue tax evasion, fraud, smuggling and other financial crimes, this service has been given additional resources in the form of well-trained personnel, IT equipment, vehicles, etc. The service recently sent out letters to large companies, over 4,000 in total, giving them 20 days to respond with information on the number and type of software licenses held. Plans are to audit those companies who do not respond and to do spot checks of others. This control will be announced in all the Greek economic newspapers. All information will be entered into a new database that will be the primary tool to monitor compliance. By the end of this year, the Service plans to target approximately 15,000 smaller (less than 50 employees) companies for the same exercise. ¶13. (SBU) Customs/Police: Several officials asked whether the U.S. Government could assist in training Greek customs and police officers or whether the U.S. Government could assist in identifying best practices. It was noted at the AmCham conference that Greek customs lacks an adequate IT platform, that Greek police are not knowledgeable about IP law, and that there is a lack of standardized procedures across Greece. AmCham officials also volunteered to coordinate a seminar on training of customs and police. Past success appears to be the result of personal connections and a willingness on the part of individual companies to invest the time and resources into training Greek authorities. ¶14. (SBU) Integrity of Statistical Data: In two meetings, Greek officials questioned the methodology used and general accuracy of the data used as part of the Special 301 process. ATHENS 00001881 003 OF 003 We believe that there are a number of very positive developments in Greece, and that post can and will sustain our engagement in the following areas. Monitor progress of Special Financial Services unit in carrying out its plans targeting software piracy. Follow up with the Finance Ministry regarding efforts to fashion an aggressive strategy to pursue upstream producers and/or distributors. Track the transposition of EU directives on trademark law and criminal penalties. Explore with the Justice Ministry ways in which to support training of judges, perhaps offering U.S. Government resources if appropriate. Ensure that the IP training for new judges is implemented as promised. Determine whether the U.S. Government can offer any assistance in training of Greek customs and police. Discuss with stakeholders the need and modalities of a public communication campaign to shape Greek public opinion about piracy. RIES