Carrefour Closes its Counterfeit Optical Disc Sales

UNCLAS SECTION 01 OF 02 TUNIS 002771

SIPDIS

SENSITIVE
SIPDIS

STATE FOR NEA/MAG (HARRIS) AND EB/IPE
STATE PASS USTR (BELL),USPTO (ADLIN/POGODA),USDOC FOR ITA/MAC/ONE
(ROTH AND MASON),ADVOCACY CTR (JAMES),AND
CLDP (TEJTEL)
CASABLANCA FOR FCS (ORTIZ)
LONDON AND PARIS FOR NEA WATCHER

E.O. 12958: N/A
TAGS: KIPR ECON ETRD TS

SUBJECT: Carrefour Closes its Counterfeit Optical Disc Sales
Section

REF: A. Tunis 2534

B. Tunis 2140

C. Tunis 1818


1. (SBU) Summary: The GOT is taking positive steps to target the
retail sector for enforcement of IPR. The Tunisian franchisee of
retail giant Carrefour has stopped its practice of openly selling
pirated optical discs. In addition, Carrefour's circulars now
contain an explicit warning against reproducing its ads, indicating
that such infringements are against "Artistic and Intellectual
Property Rights." GOT officials told EconOff that this development
is part of a renewed IPR enforcement campaign, for which Post and
USG officials have actively advocated in recent years. End
Summary.

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No More Pirated Discs
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2. (U) In late October, the French retail franchise store in Tunis,
Carrefour, withdrew pirated CDs and DVDs from its shelves. In
addition, Carrefour, for the first time, now includes a copyright
declaration in its advertisements warning consumers against
unauthorized reproduction of its ads. These actions were requested
by Tunisian authorities after a series of complaints, including
many, on many occasions, from the USG, about Carrefour's complaisant
behavior toward suppliers of pirated products.


3. (U) Pirated CDs and DVDs have been sold in Carrefour since its
opening in Tunis in August 2001. These products are available
throughout Tunisia at shops, public markets, and other retail
chains, including Monoprix and Geant. The phenomenon has reached
the point where it is having a marked effect on local manufacturers'
and retailers' legitimate product sales, as well as movie theatres.
A recent article in Middle East Online quoted one Tunisian film
producer as describing the problem of pirated DVDs as an "economic
catastrophe and a moral crisis" This effect and the complaints of
legitimate vendors have not gone unnoticed, and may have helped spur
the GOT to take action.

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What GOT Officials Say
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4. (SBU) EconOff and Econ specialist spoke with several GOT
officials regarding this recent development. According to a senior
official from the copyright office (Organisme Tunisien De Protection
des Droits d'Auteurs (OTPDA)),the recent Carrefour decision to
comply with IPR requirements is part of a series of GOT actions to
improve IPR enforcement in the retail sector. The GOT has
implemented a strategy to combat IPR violations in the Tunisian
marketplace. An inter-departmental commission, with representatives
from the Ministry of Culture, Ministry of Commerce and Handicraft,
Customs, Ministry of Interior, the Ministry of Communication
Technologies, and the OTPDA, has been formed and tasked with
improving IPR enforcement. OTPDA has been charged with preparing an
action plan to combat pirated products and working groups have been
set up to survey the main problem areas related to IPR enforcement.
One of the groups has already developed an action plan for issues
related to the music industry and a second is dealing with the movie
industry. An interagency brigade composed of agents from different
departments (police, customs, and economic control) has been charged
with executing operations on the ground to enforce and implement IPR
laws. Music suppliers, whether national or foreign, will be
subjected to strict oversight and an authorization will be required
for the reproduction of music. (Comment: This is the enforcement
task force that OTPDA discussed during a meeting with EconOff and
USPTO visitor, Darren Pagoda during his recent visit to Post. End
comment.)


5. (SBU) EconOff also spoke with an official from the Ministry of
Development and International Cooperation who knew that Carrefour
had ceased selling the pirated discs. He indicated that GOT has

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been working towards this end for a long time and that he expects
the action to be promulgated throughout the retail sector.


6. (SBU) Comment: Post has taken every opportunity to raise with GOT
officials the need for a stronger IPR enforcement regime. TIFA
negotiations have presented opportunities to broach this issue and
to provide the technical assistance programs that have helped to
increase awareness of and enforcement of IPR. Visits of USG
officials have also highlighted the weak IPR regime in Tunisia and
blatant IPR violation cases such as Carrefour and several other
retail giants operating in Tunisia. Post and USG visitors have been
able to stress the point that serious measures demonstrating
stronger IPR protection were essential before Tunisia would be able
to attract greater foreign direct investment and to strengthen the
economic ties between the U.S. and Tunisia. By taking concrete
steps, such as the campaign to remove pirated media products from
the retail sector, the GOT hopes to send a clear signal about its
determination to respect and protect IPR. End Comment.

GODEC