Identifier
Created
Classification
Origin
06ATHENS535
2006-02-24 12:30:00
UNCLASSIFIED
Embassy Athens
Cable title:  

YEAR 2006 SPECIAL 301 REVIEW: GREECE

Tags:  KIPR ECON GR 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 03 ATHENS 000535 

SIPDIS

DEPT FOR EB/IE CLACROSSE
DEPT PLS PASS TO USTR JCHOE-GROVES
DOC FOR JBOGER
DOC PLS PASS TO USPTO JURBAN

E.O. 12958: N/A
TAGS: KIPR ECON GR
SUBJECT: YEAR 2006 SPECIAL 301 REVIEW: GREECE

REF: A. ATHENS 107


B. STATE 14397

UNCLAS SECTION 01 OF 03 ATHENS 000535

SIPDIS

DEPT FOR EB/IE CLACROSSE
DEPT PLS PASS TO USTR JCHOE-GROVES
DOC FOR JBOGER
DOC PLS PASS TO USPTO JURBAN

E.O. 12958: N/A
TAGS: KIPR ECON GR
SUBJECT: YEAR 2006 SPECIAL 301 REVIEW: GREECE

REF: A. ATHENS 107


B. STATE 14397


1. (U) Summary: There are continuing IPR problems in
Greece. Enforcement remains problematic with law enforcement
authorities understaffed and undertrained for IPR duties. A
still larger obstacle is the judicial branch, which has been
unwilling to impose penalties significant enough to provide a
deterrent effect. Nevertheless, the relatively new
government of Greece has shown itself committed to improving
its efforts to fight piracy. It has significantly increased
the funding and staff size of its IPR office, increased the
number and effectiveness of its IPR raids, and begun the
difficult project of expanding the awareness and appreciation
of IPR issues inside of Greece. In light of these efforts,
Post does not concur with industry submission to include
Greece on the Special 301 list this cycle. While industry's
comments are all well-taken, and should be seriously
considered by the GoG, placing Greece on the Watch list this
year would be counterproductive. End Summary.

Background and Current IP Climate
--------------

2. (U) Implementation and enforcement of laws regarding
intellectual property problems have long plagued Greece,
resulting in its inclusion on the Special 301 Watch List from
1994 to 2003. Enhanced GoG efforts, particularly against the
broadcasting of pirated movies, led to Greece's removal from
the Special 301 List in 2003. Protection of intellectual
property rights in Greece is better than it was five years
ago. Greek IPR legislation is adequate (although it is being
updated and improved this year) and provides for heavy civil
and criminal penalties against IPR violators. However,
getting an IPR violator sanctioned, criminally or civilly, is
still time-consuming and difficult as courts treat IPR
violations as nuisance crimes and rarely impose punishments
severe enough to act as a deterrent. Additionally,
understanding of IPR issues among the population as a whole
is low. Nevertheless, there are signs that violations,
particularly in copyrighted audio-visual products, software
and apparel and footwear, are once again on the rise, as
detailed below.

Optical Media Piracy
--------------

3. According to the Greek office of the Motion Picture

Association of America (MPAA),EPOE, television piracy has
fallen from 70 percent of all broadcasts a decade ago to less
than 2 percent today. However, the piracy rate for optical
media remains between 10 to 20 percent of the market. The
local representative of the International Federation of
Phonographic Industries (IFPI) estimates that 1 in 3 CDs sold
in Greece is pirated. The sight of immigrants selling copied
CDs and DVDs on street corners and cafes in most major cities
is commonplace. Prosecution of violators however is mild, as
the illegal vendors, who are often disadvantaged immigrants,
enjoy the sympathy of courts and the public. Greece is not
believed to be a major producer of pirated optical media
(although small scale reproduction here does occur),but is a
participant in an increasingly regional copying and
distribution network.

Software Piracy
--------------

4. According to BSA Hellas, 60 percent of programs currently
circulating in the country are copies, compared to the EU
average 35 percent. (Note: This estimate is likely inflated
as it is derived from estimates regarding computer
penetration which are probably high for Greece. End note.)
Unlicensed sharing of a licensed copy among multiple
computers is the largest problem for the software industry.
Police and the tax police (YPEE) are authorized to raid
companies on illegal use of software. BSA has trained YPEE
auditors on how to execute software audits, but YPEE is
understaffed for the job.

Use/Procurement of Government Software
--------------

5. Although Post has never been provided with hard data,
anti-piracy organizations claim that government offices
illegally share computer software. In response to the
accusations, the Greek Ministry of Interior, Public
Administration and Decentralization has issued a number of
circulars giving instructions to the leadership of government
and state organizations to check and make sure that all
software in use in the public sector is legitimate.
Significantly, the Minister of Economy signed a
well-publicized deal with Microsoft in January to purchase
software at a discount as well as to allow for certain
programs to be used on both office and home computers for
members of the Greek Government.

Apparel and Footwear Counterfeiting
--------------

6. Although Post has repeatedly made requests for
information, no companies or organizations, nor the GoG, have
been able or willing to provide hard data on apparel and
footwear counterfeiting. U.S. companies have told Embassy
officials that trademark violations appear to be on the
increase, at least as regards Greece as a transit country to
the Balkans. They also claim that Greece conducts the lowest
rate of IPR raids, both at ports of entry and in the market
place, of any EU15 country. For its part, the Greek Ministry
of Development reported it conducted 60,000 inspections of
commercial products in 2005, which included examinations for
IPR violations. Greek customs service in Thessaloniki have
confiscated over 65,000 thousand trademark violations
(jackets, shoes, pants, wallets and handbags primarily) since
October 2005. However, GoG authorities complain that a lack
of IPR experts in their ranks capable of identifying
counterfeit products hinders the effectiveness of their
counter-piracy efforts.

TRIPS Compliance and IPR treaties
--------------

7. Greece is fully TRIPS compliant. Existing national
legislation was bolstered with the ratification by parliament
of the WIPO Copyright Treaty (WCT) and WIPO Performances and
Phonograms Treaty (WPPT). Greece is in full compliance with
EU IPR directives. Draft legislation to implement the EU
Enforcement Directive has been prepared pending forwarding to
Parliament.

Enforcement
--------------

8. Enforcement of IPR laws is adequate, but could be
improved. The Greek police, as well as the Special Audits
Service (YPEE, former SDOE, which does tax inspections),the
Greek Customs and other enforcement agencies have conducted
numerous raids, which resulted in the confiscation of
thousands of CDs (762,365 in 1,418 raids in 2005),DVDs,
counterfeited brands in apparel/shoes and other products of
piracy. The key enforcement problem rests with the Greek
courts, which continue to treat IPR violations as nuisance
crimes and rarely hand out punishment severe enough to act as
a deterrent, despite having the legislative authority to do
so. Lack of formal training and low understanding of IPR
issues, not only by judges but also among the population as a
whole, have resulted in a reluctant pursuit of intellectual
property cases, especially where the most commonly arrested
violator is an immigrant selling a handful of pirated
products out of a bag.

GoG Steps Up Efforts
--------------

9. The Ministry of Foreign Affairs organized an IPR
conference last December, during which the GoG acknowledged
that Greece has a problem with counterfeit goods and software
sales, and that a failure to act will damage the
international image of the country. Greek officials also
acknowledged that the illegal activity of hundreds of street
vendors who sell pirated CDs, counterfeit sunglasses and
leather items robs the state of million of euros in tax
revenue. Interestingly, the speakers at the conference
referred to IPR violations for the first time as &theft8
and identified the enforcement problems deriving from the
lack of training of enforcement authorities and the weak GoG
efforts to educate the public and to raise public awareness
of the problem.


10. Greece's Intellectual Property Organization (OPI),which
is responsible for drafting Greece's IPR laws, is currently
updating Greece's copyright law (it dates back to 1993),as
well as updating Greece's IPR laws to meet the latest EU
directives. In a concrete sign of GoG's increased attention
to IPR issues, it has increased OPI's budget nearly
four-fold, as well as adding an additional 10 personnel to
its staff (for a total of 14). OPI director Polyzogopoulos
is now focused on the IPR problems in the Greek judiciary,
and says he has obtained the concurrence of the Ministry of
Justice to include a segment on IPR in the standard training
for Greek judges. Polyzogopoulos also hopes to introduce
short IPR-familiarization courses in high schools, alongside
introductory computer education courses.

Comment
--------------

11. Post agrees with most of the proposals in IIPA,s 2006
report; they would all serve to strengthen IPR protection in
Greece. However, post is not convinced that the IPR problems
in Greece merit inclusion on the Special 301 Watch List. The
current Greek Government, still only in its second year in
power, has demonstrated its commitment to protecting
intellectual property and fighting piracy. Moreover, it has
shown increasing successes over the last 3-4 month, including
focusing on the PR side of counter-piracy. In January Greek
officials publicly bull-dozed over four tons of counterfeit
CDs seized during 2005, getting excellent coverage in most
major Greek papers. Placing Greece on the Special 301 list,
just as two years of encouraging it to move more aggressively
on this topic is starting to bear fruit, would be
counterproductive. End Comment.
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