ITALY IPR: POSSIBLE BREAKTHROUGH IN GOI SUPPORT

UNCLAS SECTION 01 OF 02 ROME 001217

SIPDIS

SIPDIS

STATE PASS USTR FOR JAMES SANFORD, PAUL BURKHEAD, RACEHL
BAE, JENNIFER CHOE GROVES, VICTORIA ESPINEL, STAN MCCOY,
CHRISTOPHER WILSON
STATE PASS FOR EB/TPP/IPE JOELLEN URBAN, CANDY GREEN,
JENNIFER BOGER,
DOC PASS FOR USPTO AND LOCSTEP
DOJ FOR DAAG LAURA PARSKY
DHS PASS FOR ICE

E.O. 12958: N/A
TAGS: EINV ETRD IT KIPR LAB PGOV
SUBJECT: ITALY IPR: POSSIBLE BREAKTHROUGH IN GOI SUPPORT
FOR IPR PROTECTION

REF: A. ROME 290

B. 06 ROME 3243

C. 06 ROME 3205

D. 06 SECSTATE 182554

ROME 00001217 001.2 OF 002



1. SUMMARY AND INTRO: On May 31, Economic Development
Minister Bersani hosted Ambassador Spogli for a joint public
presentation on Intellectual Property Rights (IPR). Bersani
and the Ambassador emphasized the necessity of effective IPR
protection to stimulate growth and innovation in
knowledge-based societies such as Italy and the United
States. Both called for more effective enforcement of
Italy's IPR laws. This was the first occasion that a senior
official from the current government has publicly called for
and supported improved IPR protection in Italy, a major
objective of Mission Italy. We hope this event will mark a
turning point in our efforts to advocate stronger IPR
protection and will provide momentum to our other IPR
initiatives. END SUMMARY AND INTRO.


2. Bersani and the Ambassador spoke in the Ministry's Grand
Salon to approximately one hundred and fifty attendees from
the government, business, labor movement, law enforcement,
and the media. In addition to statements by the two
principals, four parties with particular interest in IPR also
offered brief remarks: Italy's High Commissioner Against
Counterfeiting, a representative of Italian industry
association Confindustria, a labor union official, and the
Rector (President) of Roma III University. Minister Bersani
also presented an award for innovation to an Italian
university student who, quite appropriately for the day's
topic, had designed software for screening patent
applications for commercially applicable ideas.


3. In his remarks, Ambassador Spogli noted that Italy's
economy is struggling to keep pace with those of other major
developed nations', and that notwithstanding a solid
partnership, trade and investment between Italy and the
United States are not as strong as they could be. He
suggested that greater support for innovation, and in turn,
greater support for IPR as a spur to innovation, could
strengthen Italy's economy.


4. The Ambassador identified a lack of acceptance in Italy
that IPR are an essential element for economic growth. He
also stressed that while Italy has good IPR protection laws,
they are not well enforced. In particular, he urged the
magistracy to pay more attention to piracy as a serious crime
that requires tough sentencing. In his conclusion, the
Ambassador restated his conviction that innovation is in the
DNA of all Italians, and reiterated his and the Mission's
support for Italian efforts to reinforce IPR.


5. Atypically, Minister Bersani diverged from his prepared
remarks to respond directly to Ambassador Spogli. Bersani
stated that Italy is growing increasingly aware that piracy
and counterfeiting threaten Italian industry. He observed
that, while economic and technological innovation are
essential, Italy still relies on traditional industrial
production for 23 percent of its GDP. Thus, protecting
trademarked "Made in Italy" products and other types of IPR
is crucial. He agreed with Ambassador Spogli that Italy must
use innovation to keep its economy competitive.


6. Bersani commented that creative and innovative
"chromosomes" (in reference to the Ambassador's comment on
Italian DNA) are no longer sufficient. he stated that it is
now necessary to create the conditions for IPR to become a
key national asset, by building a culture of respect for IPR
and reinforcing Italy's IPR laws. To effect this, Bersani
called on industry, unions, and consumers to work with law
enforcement. Bersani also agreed with the Ambassador on the
need for retargeting university research from pure research
to more commercially applicable ends, with the consequent
need to focus on the protection of the rights resulting from
research.

ROME 00001217 002.2 OF 002




7. Bersani highlighted Italy's continued commitment to
international collaboration on IPR in ongoing discussions
with the French and Chinese governments, in international
fora such as the EU and G-8, and in Italy's continuing
interest in the Anti Counterfeiting Treaty Agreement (ACTA)
(see reftels). He noted further that Italy has opened 14
"IPR desks" around the world to assist Italian companies in
protecting their rights abroad.


8. As noted, four short comments followed the two main
presentations. Italy's High Commissioner Against
Counterfeiting called for better coordination and
consolidation of IPR protection activities. These efforts
are currently divided among 17 GOI agencies. A representative
of Italian industry association Confindustria noted that IPR
protection is so important for Italian business that it must
become an EU priority. A labor union official confirmed the
unions' recognition of piracy's impact on the job market.
The Rector (President) of Roma III University agreed that
universities must make research more marketable, and
underscored the need to work more closely with the private
sector. Finally, all seconded the call for greater awareness
of the value of IPR in Italy.


9. COMMENT: Minister Bersani is one of the most important
"economic" figures in the government and has contributed some
of its most effective reform proposals. Post had identified
an absence of high level political commitment to IPR
protection as a significant problem in securing wider
bureaucratic support for stronger IPR enforcement. For that
reason, Bersani's unequivocal support for IPR awareness and
better implementation of legislation hitting at
counterfeiting and illicit sales is extremely welcome. Post
sees Bersani's participation in this event, and his comments
there, as a public endorsement of strong IPR protection.
Further, Post believes that his informal style throughout the
program, in which he deviated significantly from a prepared
script in which he responded directly to Ambassador Spogli's
presentation, signals a high level of personal interest in
and commitment to IPR. We hope this will mark a breakthrough
in our efforts to advocate improved IPR enforcement in Italy.
Post will continue to cultivate Bersani and his ministry as
partners in improving Italy's IPR protection record. END
COMMENT.
Spogli