Identifier
Created
Classification
Origin
07BRASILIA944
2007-05-25 12:56:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Brasilia
Cable title:
BRAZIL: Corruption, Public Apathy, Lack of Resources
how-toVZCZCXRO6848 PP RUEHRG DE RUEHBR #0944/01 1451256 ZNR UUUUU ZZH P 251256Z MAY 07 FM AMEMBASSY BRASILIA TO RUEHC/SECSTATE WASHDC PRIORITY 9027 INFO RUEHSO/AMCONSUL SAO PAULO 9942 RUEHRI/AMCONSUL RIO DE JANEIRO 4445 RUEHRG/AMCONSUL RECIFE 6695 RUCPDOC/USDOC WASHDC RUEHAC/AMEMBASSY ASUNCION 6093 RUEHBU/AMEMBASSY BUENOS AIRES 4785
UNCLAS SECTION 01 OF 02 BRASILIA 000944
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR EB/TPP/IPE JENNIFER BOGER
DEPT PASS USTR FOR VICTORIA ESPINEL, CHRIS WILSON, SUE CRONIN AND
JENNIFER CHOE GROVES
USDOC FOR ITA/MAC/OIPR CASSIE PETERS
USDOC FOR ITA/MAC/WH/OLAC/MCAMPOS
E.O. 12958: N/A
TAGS: KIPR ETRD ECON BR
SUBJECT: BRAZIL: Corruption, Public Apathy, Lack of Resources
Hampers Anti-Piracy Efforts in Pernambuco
REF: A) Recife 37
UNCLAS SECTION 01 OF 02 BRASILIA 000944
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR EB/TPP/IPE JENNIFER BOGER
DEPT PASS USTR FOR VICTORIA ESPINEL, CHRIS WILSON, SUE CRONIN AND
JENNIFER CHOE GROVES
USDOC FOR ITA/MAC/OIPR CASSIE PETERS
USDOC FOR ITA/MAC/WH/OLAC/MCAMPOS
E.O. 12958: N/A
TAGS: KIPR ETRD ECON BR
SUBJECT: BRAZIL: Corruption, Public Apathy, Lack of Resources
Hampers Anti-Piracy Efforts in Pernambuco
REF: A) Recife 37
1. (SBU) Summary: On May 10, Federal Police stationed in the
north-eastern state of Pernambuco told EmbOff that public apathy,
corruption among state officials, and limited resources have
undercut their efforts to stem the flow of pirated goods in the
region. Despite a directive from the state's new governor, state
officials are viewed by federal authorities as unreliable allies due
mainly to widespread corruption. Public acceptance of piracy as a
legitimate activity has led to continued growth in contraband sales
in the state and investigations of other crimes have siphoned off
limited resources from anti-piracy actions. The officials felt the
state has increasingly become an alternate conduit to the Paraguayan
border for the import of pirated goods from China. Federal Police
requested the USG place an emphasis on conducting IPR training
programs in the state. End Summary.
--------------
State Corruption a Concern
--------------
2. (SBU) Federal police in Recife told EmbOff on May 10 that they
were reluctant to share information on anti-piracy operations with
Pernambuco state police due to concerns about widespread corruption,
despite a recent directive from the new governor, Eduardo Campos
(who took office January 1),instructing state authorities to
cooperate fully with federal anti-piracy efforts. While they
believe the governor is sincere, they said state police do not share
his commitment.
--------------
Public Acceptance of Piracy
--------------
3. (SBU) Federal police officials in this north-eastern city of 2
million are frustrated by public acceptance of IPR piracy as the
natural consequence of a burdensome tax regime that drives up the
price of legitimate goods. The general public view is that sellers
of contraband items are offering popular goods at affordable prices
and not regarded as criminals. One police official said street
vendors often openly modify legitimate video game machines to accept
pirated products - an unauthorized version of a popular video game
can be purchased for as little as USD 5 versus USD 100 for a
licensed copy.
--------------
Limited Resources
--------------
4. (SBU) Federal Police pointed out that higher-profile crimes such
as murder and money laundering vie with IPR violations for limited
resources. They rely mainly on private groups to monitor piracy
activities and alert police when they discover them. They noted
that their operations are also constrained by a lack of storage
space for confiscated items. As an example, one police official
described a recent raid which netted 250 thousand illegal DVDs and
CDS. He said the items seized during that raid alone would not fit
in a space the size of the police headquarters conference room and
explained that the disposition of "tons of plastic" from the seized
items poses significant environmental concerns.
--------------
A Smugglers' Alternative to Foz De Iguacu?
--------------
5. (SBU) Police officials said they have seen a rise in IPR piracy
in the state over the last seven years, an observation that may
support a recent assertion by the head of a large anti-piracy group
that smugglers are increasing their use of the ports in the
northeast then shipping goods inland to circumvent increased GOB
scrutiny at the Foz De Iguacu frontier with Paraguay. One police
officer said that although most CDs and DVDs found in the local
market were manufactured in small factories in Brazil, police have
found a number of counterfeit imported toys, electronics, CDs, DVDs
and tennis shoes - mainly from China.
6. (SBU) Comment: The refusal of Pernambuco state police to meet
with EmbOff underscored the Federal officials' point about a
disconnect with state officials on IPR issues. Police officials
agreed that the USG could help by conducting more IPR training
BRASILIA 00000944 002 OF 002
programs in the north-east. End Comment.
Chicola
SIPDIS
SENSITIVE
SIPDIS
DEPT FOR EB/TPP/IPE JENNIFER BOGER
DEPT PASS USTR FOR VICTORIA ESPINEL, CHRIS WILSON, SUE CRONIN AND
JENNIFER CHOE GROVES
USDOC FOR ITA/MAC/OIPR CASSIE PETERS
USDOC FOR ITA/MAC/WH/OLAC/MCAMPOS
E.O. 12958: N/A
TAGS: KIPR ETRD ECON BR
SUBJECT: BRAZIL: Corruption, Public Apathy, Lack of Resources
Hampers Anti-Piracy Efforts in Pernambuco
REF: A) Recife 37
1. (SBU) Summary: On May 10, Federal Police stationed in the
north-eastern state of Pernambuco told EmbOff that public apathy,
corruption among state officials, and limited resources have
undercut their efforts to stem the flow of pirated goods in the
region. Despite a directive from the state's new governor, state
officials are viewed by federal authorities as unreliable allies due
mainly to widespread corruption. Public acceptance of piracy as a
legitimate activity has led to continued growth in contraband sales
in the state and investigations of other crimes have siphoned off
limited resources from anti-piracy actions. The officials felt the
state has increasingly become an alternate conduit to the Paraguayan
border for the import of pirated goods from China. Federal Police
requested the USG place an emphasis on conducting IPR training
programs in the state. End Summary.
--------------
State Corruption a Concern
--------------
2. (SBU) Federal police in Recife told EmbOff on May 10 that they
were reluctant to share information on anti-piracy operations with
Pernambuco state police due to concerns about widespread corruption,
despite a recent directive from the new governor, Eduardo Campos
(who took office January 1),instructing state authorities to
cooperate fully with federal anti-piracy efforts. While they
believe the governor is sincere, they said state police do not share
his commitment.
--------------
Public Acceptance of Piracy
--------------
3. (SBU) Federal police officials in this north-eastern city of 2
million are frustrated by public acceptance of IPR piracy as the
natural consequence of a burdensome tax regime that drives up the
price of legitimate goods. The general public view is that sellers
of contraband items are offering popular goods at affordable prices
and not regarded as criminals. One police official said street
vendors often openly modify legitimate video game machines to accept
pirated products - an unauthorized version of a popular video game
can be purchased for as little as USD 5 versus USD 100 for a
licensed copy.
--------------
Limited Resources
--------------
4. (SBU) Federal Police pointed out that higher-profile crimes such
as murder and money laundering vie with IPR violations for limited
resources. They rely mainly on private groups to monitor piracy
activities and alert police when they discover them. They noted
that their operations are also constrained by a lack of storage
space for confiscated items. As an example, one police official
described a recent raid which netted 250 thousand illegal DVDs and
CDS. He said the items seized during that raid alone would not fit
in a space the size of the police headquarters conference room and
explained that the disposition of "tons of plastic" from the seized
items poses significant environmental concerns.
--------------
A Smugglers' Alternative to Foz De Iguacu?
--------------
5. (SBU) Police officials said they have seen a rise in IPR piracy
in the state over the last seven years, an observation that may
support a recent assertion by the head of a large anti-piracy group
that smugglers are increasing their use of the ports in the
northeast then shipping goods inland to circumvent increased GOB
scrutiny at the Foz De Iguacu frontier with Paraguay. One police
officer said that although most CDs and DVDs found in the local
market were manufactured in small factories in Brazil, police have
found a number of counterfeit imported toys, electronics, CDs, DVDs
and tennis shoes - mainly from China.
6. (SBU) Comment: The refusal of Pernambuco state police to meet
with EmbOff underscored the Federal officials' point about a
disconnect with state officials on IPR issues. Police officials
agreed that the USG could help by conducting more IPR training
BRASILIA 00000944 002 OF 002
programs in the north-east. End Comment.
Chicola