SETBACK TO ANTI-PIRACY EFFORT IN BRAZIL'S NORTHEAST

C O N F I D E N T I A L RECIFE 000037 SIPDIS DEPT FOR EB/TPP/IPE, DEPT PLEASE PASS USTR FOR VICTORIA ESPINEL, CHRIS WILSON, SUE CRONIN AND JENNIFER CHOSE GROVES, USDOC FOR ITA/MAC/OIPR CASSIE PETERS; SIPDIS E.O. 12958: DECL: 5/10/2010 TAGS: KIPR ETRD ECON PGOV BR SUBJECT: SETBACK TO ANTI-PIRACY EFFORT IN BRAZIL'S NORTHEAST CLASSIFIED BY: Diana Page, Principal Officer, AmConsulRecife, State. REASON: 1.4 (b) Classified by Principal Officer Diana Page, Reason 1.4 (b) ¶1. (C) Summary: The lawyer leading the fight for intellectual property rights (IPR) in the Northeast, Monica Lustosa, (PROTECT NO FORN) told consular officers that due to concern for her personal safety she will no longer publicly demand enforcement of anti-piracy laws. She was shaken to learn that state police personnel tasked with combating piracy were being reassigned --a sign that efforts to crack down on the producers of pirated goods were no longer going forward. The disarray in the local police was confirmed by sources known to the Consulate security officer, although Federal Police based in the Northeast remain commited to enforcement of IPR. End Summary ¶2. (C) During a meeting at the Consulate April 13, Monica Lustosa, President of the Northeastern Brazil Intellectual Property Association (ANEPI) and coordinator of the American Chamber of Commerce (AMCHAM)/Pernambuco Strategic Group on Intellectual Property told consular officers that she no longer would be publicizing her work combating piracy because she feared for her personal safety. She plans to continue working for the protection of intellectual property rights and technological innovation behind the scenes, but will avoid a high-profile media presence until she feels her personal safety can be guaranteed. ¶3. (C) Her concerns arose after meetings in March with representatives of the local and state police in the city of Caruaru, Pernambuco's second largest city, an industrial and logistics center which is the principal source for pirated products in the Northeast. During her meetings there, the Pernambuco civil policewoman in charge of IPR efforts repeatedly emphasized to each audience that Ms. Lustosa was spearheading the Northeast's fight against piracy. The policewoman would not talk to the press, but instead had Ms. Lustosa give a number of television interviews. The policewoman, who was instrumental in including piracy in a local telephone hotline to denouce crimes, privately told Lustosa later that she was requesting a transfer away from anti-piracy issues, implying threats had been made. ¶4. (C) Ms. Lustosa explained that the police hotline had originally been created to protect wealthy Caruaru business owners from kidnappings for ransom. Once the hotline was expanded to include anti-piracy tips, the business community in Caruaru, in particular business owners with police connections, dropped support for it. Ms. Lustosa said she would consider continuing to publicize the need for IPR protection, but only if her personal security were protected and she were paid for her work. For the time being, she no longer wishes to appear in the media. ¶5. (U) Lustosa was selected for the Embassy's International Visitor (IV) program to the U.S. in 2005, and she credits the IV program with giving her the inspiration to form the Pernambuco Strategic Group on Intellectual Property. She has since become one of the leading anti-piracy voices in Recife and the State of Pernambuco. She is president of ANEPI, a non-profit founded in 2005 to promote intellectual property rights and tp raise awareness of the economic and social damage caused by the piracy industry. Lustosa has been a prominent anti-piracy figure in Recife media and has been a featured anti-piracy speaker at numerous events. In 2005, at the urging of international and local recording industry officials, she successfully lobbied the state of Pernambuco to set up a specialized police unit to combat piracy - the Specialized Division for the Prevention and Repression of Brands and Products Falsification (NEPREFC). ¶6. (C) Comment: Post has independently confirmed Lustosa's claim that local authorities have been pressured by Pernambuco business interests to scale-back their anti-piracy efforts. However, Federal Police units remain unaffected by local pressure and are still actively engaged in anti-piracy efforts. Given Lustosa's expertise and previous successes, the fears that have curtailed her public efforts are a setback to IPR protection in this region. End Comment. This cable was coordinated with Embassy Brasilia. PAGE