PERU CELEBRATES ANTI-PIRACY WEEK

UNCLAS LIMA 001718 SIPDIS SIPDIS SENSITIVE DEPT FOR WHA/AND, EB/IPE SWILSON COMMERCE FOR 4331/MAC/WH/MCAMERON DOC FOR J. BOGER USPTO FOR J. URBAN LOC FOR S. TEPP USTR FOR J. CHOE-GROVES E.O. 12958: N/A TAGS: KIPR ECON ETRD PE SUBJECT: PERU CELEBRATES ANTI-PIRACY WEEK REF: A) Lima 699 B) 05 Lima 1971 ¶1. (U) Summary. The Peruvian Government, promoting the protection of intellectual property rights, celebrated Anti- Piracy week from April 23-30. Indecopi, the Government's IPR Administrative Agency, commemorated its second annual Destruction Day, destroying more than 300,000 confiscated pirated CDs and DVDs, and educating the public about how IPR violations hurt the overall well-being of Peruvians. The GOP also took the opportunity to emphasize that intellectual property protections must cover more than just pirated discs by highlighting the need to protect copyrighted printed material. End Summary. Piracy Still a Problem -------------- ¶2. (U) Peru continues to grapple with high levels of piracy, particularly the piracy of optical discs. In 2005, over 100 million blank optical discs entered Peru legally, 10 million less than 2004. Indecopi estimates that only 14 million of these discs were used for legitimate purposes. The rest, Indecopi alleges, were utilized in the pirating of software, music, and movies. ¶3. (U) The audiovisual industry suffered from high piracy levels in 2005, with an estimated piracy level of almost 75 percent, up from 65 percent in 2003. According to the Motion Picture Association, the industry lost an estimated $10 million last year. Peru also has one of the highest rates of music piracy in the world; approximately 98 percent of CDs sold in country are pirated. Additionally, the pirating of blank optical discs affects the software industry, which estimates that 2005 piracy levels totaled 54 percent. ¶4. (U) The pirating of books and other printed materials is also of concern. Indecopi estimates that piracy of printed materials, estimated at 40 percent of total sales, cost the sector more than $13 million in damages in 2005. Unlike optical disc piracy, which primarily affects the U.S. motion picture industry, piracy of printed media directly affects Peruvian authors and artists. Getting the Message Out -------------- ¶5. (U) Indecopi, in an effort to expand public awareness of the need to protect intellectual property, celebrated Anti- Piracy Week, April 22-26. Martin Moscoso, head of Indecopi's copyright office, informed us that while previous public awareness campaigns were successful, Indecopi wanted to take public awareness to a higher level, emphasizing different types of piracy. ¶6. (SBU) During the five-day event in Lima, Indecopi held a two-day seminar for local government officials, brining in speakers from the audiovisual, music and book industry to explain how IPR violations affect Peruvians. Highlighting how the piracy of copyrighted materials stifles the innovation and creativity of Peruvians, as well as economically hurts the country through reduced tax collections, the guest speakers encouraged the local governments to fully implement the new municipal regulations that call for a crackdown on piracy sales. Moscoso informed us that while the Indecopi event focused on Lima, Indecopi offices throughout Peru distributed pamphlets and other materials, explaining the urgent need to protect IPR. Steamrolling Pirated Goods -------------- ¶7. (SBU) Indecopi also commemorated its second annual Destruction Day on April 23, taking the opportunity to destroy more than 300,000 pirated CDs and DVDs collected during raids in 2005. Moscoso noted that he hoped that during next year's Destruction Day, the GOP will be able to destroy more than half a million confiscated discs. Indecopi, he explained, continues to push Sunat (the Peruvian Customs and Tax Agency) and the police to conduct more raids throughout the country. He also emphasized the need for local governments to enforce their laws that enable them to rescind licenses for those caught selling pirated goods. Indecopi and local police, acting within these laws, plan to conduct more raids on known locations that sell pirated products. ¶8. (U) The focus during the week was not just on the piracy of optical discs. Moscoso also highlighted Indecopi's efforts to broaden the scope of IPR education to include printed materials. Teaming up with the Peruvian Book Association, Indecopi celebrated World Book Day on April 22. The Book Association sponsored special sales on books in more than 50 locations throughout Peru in an effort to promote the sale of legitimate books. Reduction in Tariff on Blank Optical Discs -------------- ¶9. (SBU) Moscoso also informed us that Indecopi, in collaboration with the Lima Chamber of Commerce and several private companies including Imation, succeeded in reducing the fees charge on the imports of blank optical discs under the Artists Protection Law. This law, which was passed in 2004 in an effort to curb piracy and compensate local artists, established an excessive levy of 200-300 percent on the imports of all blank optical discs to be paid by the importers (Ref B). UNIMPRO, the Peruvian Phonographic Association, previously charged a fee of $0.29 for blank CDs and $1.20 for blank DVDs. On February 28, UNIMPRO and the Lima Chamber of Commerce signed an agreement lowering the fees to $0.03 for blank CDs and $0.07 for blank DVDs. Comment -------------- ¶10. (SBU) Anti-Piracy Week is an example of how the GOP is strengthening its efforts to combat IPR violations. Indecopi and Sunat have taken steps in the past year to improve protections of intellectual property rights. We will continue to work with other GOP agencies -- particularly the police, prosecutors and judges -- encouraging them to punish IPR violators and enforce intellectual property laws. STRUBLE