ANTI-DREAM BOX CAMPAIGN A NIGHTMARE FOR SATELLITE

C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 000475

SIPDIS

SIPDIS

NEA/ARP, EEB/CBA, EEB/TPP/MTA/IPC AND EEB/CIP/BA
COMMERCE FOR 4520/ITA/MAC/ONE/THOFFMAN
STATE PLEASE PASS TO USTR FOR JBUNTIN

E.O. 12958: DECL: 05/23/2017
TAGS: ECON KIPR BA ECTRD
SUBJECT: ANTI-DREAM BOX CAMPAIGN A NIGHTMARE FOR SATELLITE
TV PIRATES

REF: SIMPSON-BAGWELL MAY 2 E-MAIL

Classified By: Ambassador William T. Monroe, reasons 1.4 (b) and (d).

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SUMMARY
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1. (C) After a slow start, Ministry of Information officials
appear set to tackle a technologically sophisticated form of
satellite TV piracy locally marketed as the Dream Box, which
defeats pay-TV encryption systems. Ministry of Information
Director of Publication and Press Jamal Dawood has issued a
circular threatening legal action against purveyors of this
product. He also announced plans to shut down internet sites
responsible for providing updated encryption codes used by
the Dream Box. Local executives representing relevant
intellectual property rights-holders' interests believe
Embassy support on this issue yielded positive results.
However, local satellite TV pirates may not concede defeat
easily. End Summary.

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DREAM BOX MERCHANTS WARNED
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2. (U) Director Jamal Dawood advised EconOff May 22 that the
Ministry had just launched a campaign to eliminate the
illicit use of Dream Boxes in Bahrain. (Note: A Dream Box is
a satellite TV receiver with a port allowing internet
connectivity. These units are commonly programmed to access
pirate-operated internet addresses, from which they receive
codes allowing them to descramble pay-TV encryption. Dream
Box is a popular brand, but also refers generically to other
brands of the same equipment type. Consumers reportedly pay
a nominal monthly fee to retain access to the code-providing
internet sites. End Note.) Dawood provided EconOff with a
copy of a circular he had issued to "all enterprises dealing
in the installation of devices capable of receiving satellite
TV channels." The circular declares that the programming of
devices to circumvent the encryption of satellite TV is a
flagrant copyright violation and threatens unspecified legal
proceedings against offenders.


3. (SBU) Dawood told EconOff May 23 that, in addition to
publishing the circular in the Arab and English press,
officials representing his directorate had distributed the
circular to known Dream Box retailers. He said these
officials subsequently returned to the shops and found that
the Dream Boxes had been removed from the shelves. Dawood
expressed satisfaction in the fact that this action had
yielded visible results, but he was not naive concerning the
challenge of curtailing the sale of a product that enjoys
heavy demand. "We know that they will continue to sell these
items under the table."

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ANTI-ENCRYPTION SITES TO BE SHUT DOWN
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4. (SBU) Dawood said a second phase of his campaign involved
shutting down the internet sites responsible for supplying
Dream Boxes with the pay-TV descrambling codes. Such action
would not only prevent new Dream Boxes from being programmed,
but would also disable the piracy-related features of Dream
Boxes already in use. He said he had already met with
Bahrain's principal internet service provider, Batelco,
regarding steps to shut down these sites. (Note: Arabian
Anti-Piracy Alliance (AAA) representatives advise that
operators of these internet sites in Bahrain have been
especially persistent and quickly provide updated codes to
Dream Box customers on-line whenever pay-TV providers change
their encryption codes. End Note.)


5. (SBU) An AAA representative May 22 noted that his office
had been appealing to the Ministry of Information for
enforcement on this issue for some time. He believed U.S.
Embassy involvement had been instrumental in leading to this
significant progress (reftel). (Note: An April 29-30
regional MEPI-funded U.S. Patent and Trademark Office IPR in
Broadcasting workshop in Bahrain focused additional attention
on this issue. End Note.) Business Development Manager
Ghada Babaa of satellite TV company Orbit told EconOff May 23
that she was hopeful that her company would at last see
relief on the Dream Box issue, which Orbit cites as being
responsible for a significant drag on earnings. She too
expressed appreciation for the Embassy's support.

MANAMA 00000475 002 OF 002



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COMMENT
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6. (C) The Dream Box problem had been an exception to what
industry executives report as a generally positive
intellectual property rights regime in Bahrain. Ministry of
Information officials had been slow to respond to this
high-tech piracy problem. However, Embassy engagement with
the Ministries of Industry and Commerce and Information
appear to have been helpful in prompting decisive action.
Local satellite TV pirates stand to lose a lucrative source
of income from the Dream Box and may be expected to counter
attempts to shut down their internet sites. Post will
continue to follow this issue and report on future
developments.


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MONROE