Identifier
Created
Classification
Origin
06CASABLANCA883
2006-08-01 09:25:00
CONFIDENTIAL
Consulate Casablanca
Cable title:  

HACKING ISRAEL AND PIRATING MOVIES: TALES FROM THE MOROCCAN

Tags:  ECON PGOV MO 
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ZNY CCCCC ZZH
P 010925Z AUG 06
FM AMCONSUL CASABLANCA
TO RUEHC/SECSTATE WASHDC PRIORITY 7047
INFO RUEHAS/AMEMBASSY ALGIERS 2823
RUEHEG/AMEMBASSY CAIRO 0668
RUEHMD/AMEMBASSY MADRID 3659
RUEHNK/AMEMBASSY NOUAKCHOTT 2183
RUEHFR/AMEMBASSY PARIS 0484
RUEHRB/AMEMBASSY RABAT 7661
RUEHTU/AMEMBASSY TUNIS 1948
C O N F I D E N T I A L CASABLANCA 000883 

SIPDIS

SIPDIS

STATE FOR NEA/MAG AND NEA/PI

E.O. 12958: DECL: 07/14/2020
TAGS: ECON PGOV MO
SUBJECT: HACKING ISRAEL AND PIRATING MOVIES: TALES FROM THE MOROCCAN
BLACK MARKET

Classified By: Principal Officer Douglas Greene
for reasons 1.4 (b) and (d)

C O N F I D E N T I A L CASABLANCA 000883

SIPDIS

SIPDIS

STATE FOR NEA/MAG AND NEA/PI

E.O. 12958: DECL: 07/14/2020
TAGS: ECON PGOV MO
SUBJECT: HACKING ISRAEL AND PIRATING MOVIES: TALES FROM THE MOROCCAN
BLACK MARKET

Classified By: Principal Officer Douglas Greene
for reasons 1.4 (b) and (d)


1. (C) Summary: The black market still thrives in Casablanca
despite the Intellectual Property Right (IPR) provisions of various
bilateral and multilateral agreements to which Morocco is a party.
Although there are occasional high profile arrests and confiscations
of pirated goods by GOM authorities, a general lack of opportunity in
the formal sector continues to draw the talents of technologically
proficient, entrepreneurial youth. These young entrepreneurs apply
their skills to everything from illegally downloading Hollywood films
to descrambling television satellite signals for unrestricted access.
Local computer savvy youth also hack internet web sites for fun,
profit, or in some cases, as direct retaliation for Israeli military
actions. End Summary.

--------------
Derb Ghalef- Anything For A Price
--------------


2. (U) Econoff visited Derb Ghalef, a Casablanca neighborhood
notorious for its prominent black market medina, where local
residents boast "anything can be bought for the right price." Large,
dirty and noisy, Derb Ghalef bustles with energy and illicit economic
activity. Walking through the narrow maze of alleyways, one passes
innumerable small, seemingly improvised storefronts selling
everything from televisions, computers and cell phones to household
goods, automotive parts and knock-off designer clothing. Product
inventory is diverse and consumer activity intense. As Econoff
wandered the medina, the most popular products appeared to be
satellite descramblers, cell phones and of course, pirated films.


3. (U) The business of selling pirated movies on Digital Video Disc
(DVD) has grown visibly more sophisticated over the past year as
black market retailers have adopted business practices redolent of
Western video rental stores while also expanding their presence
throughout the greater Casablanca area. While some pirate DVD
retailers still sell their wares from large, unorganized bins, others
have designed their small shops to mimic miniature Blockbuster video
stores, complete with DVDs organized by current releases, favorite

actors and popular movie genres.


4. (U) DVD pirates have also begun pricing DVDs according to the
quality of the reproduction (master copies downloaded from the
internet are more expensive than dubbed copies filmed in movie
theaters with hand-held cameras). Meanwhile, movie pirates continue
to rely on individual sales agents who set up shop on street corners
and sell products from portable stands and the trunks of automobiles,
all in view of local police.


5. (C) While often ignored by Moroccan law enforcement authorities,
the profession is not without occasional risk. On July 14 local
press reported that Moroccan authorities arrested one of Derb
Ghalef's more prominent counterfeiters and confiscated more than
170,000 DVDs. The police claim it is the largest seizure of private
DVDs in Morocco to date. Nonetheless, since the arrest DVD retailers
seen by Econoff on several street corners appeared unconcerned about
the arrest and carried on with business as usual.

--------------
Downloading by Day, Hacking Israel by Night
--------------


6. (C) Meanwhile recent articles in the Moroccan and international
press report that a group of computer savvy youth in Derb Ghalef
hacked into over 700 Israeli web sites in response to Israeli
military actions in Gaza early in July. The hacker group, which
calls itself "Team Evil", replaced the home pages of target web sites
with the following text: "Hacked by Team-Evil Arab hackers u Klll
palestin people we Kill Israel servers" (sic).


7. (C) After widespread reporting in the local press, GOM law
enforcement rounded up an unconfirmed number of Derb Ghalef youth in
connection with the hacking. In contrast to the recent confiscation
of DVDs, these arrests sent a noticeable chill through the infamous
neighborhood as young computer "professionals" promptly shut off
their cell phones. The swift action by Moroccan law enforcement
demonstrates that while illegal economic activity often receives
inconsistent attention, potential threats to Moroccan security or
foreign policy interests command, understandably, a more immediate
response. [Interestingly (though perhaps somewhat conspiratorially),
some business contacts insist the round-up was more about recruitment
than enforcement, stating that "Team Evil" is now most likely working

for the GOM Ministry of Interior (MOI). "That's how things work
here," explained one business contact.]

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


8. (C) Morocco continues to face challenges in absorbing its
considerable informal sector into the formal economy. To some
extent, lack of opportunity in the formal sector for its
entrepreneurial youth encourages them to apply their talents in the
profitable informal sector. While IPR concerns here are not solely
the result of those factors, the issues they raise, once again,
underscore the importance of supporting the development of the formal
economy, with greater friendliness toward SMEs.


GREENE