Identifier
Created
Classification
Origin
08PRISTINA517
2008-09-27 09:48:00
CONFIDENTIAL
Embassy Pristina
Cable title:  

BATTLING CORRUPTION AND IPR VIOLATIONS: KOSOVO

Tags:  PREL ETRD ECON EAID EAIR ETTC PTER KTFN UNMIK 
pdf how-to read a cable
VZCZCXRO3102
OO RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHPS #0517/01 2710948
ZNY CCCCC ZZH
O 270948Z SEP 08
FM AMEMBASSY PRISTINA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8522
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 1543
RHMFISS/CDR USEUCOM VAIHINGEN GE PRIORITY
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK PRIORITY
RHFMISS/AFSOUTH NAPLES IT PRIORITY
RHMFISS/CDR TF FALCON PRIORITY
RHEFDIA/DIA WASHDC PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RUEPGEA/CDR650THMIGP SHAPE BE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY
RUZEJAA/USNIC PRISTINA SR PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 PRISTINA 000517 

SIPDIS

DEPT FOR EUR, EUR/SCE, DRL, INL, AND S/WCI, NSC FOR
HELGERSON, USUN FOR SGEE, USOSCE FOR AHYDE, USDOC FOR
4232/ITA/MAC/EUR/OEERIS/SSAVICH

E.O. 12958: DECL: 09/25/2018
TAGS: PREL ETRD ECON EAID EAIR ETTC PTER KTFN UNMIK
KV, YI
SUBJECT: BATTLING CORRUPTION AND IPR VIOLATIONS: KOSOVO
INDEPENDENT MEDIA COMMISSION PROACTIVE AGAINST UNLICENSED
CABLE TV CONTENT

Classified By: AMBASSADOR TINA S. KAIDANOW FOR REASONS 1.4 (B) AND (D)

C O N F I D E N T I A L SECTION 01 OF 02 PRISTINA 000517

SIPDIS

DEPT FOR EUR, EUR/SCE, DRL, INL, AND S/WCI, NSC FOR
HELGERSON, USUN FOR SGEE, USOSCE FOR AHYDE, USDOC FOR
4232/ITA/MAC/EUR/OEERIS/SSAVICH

E.O. 12958: DECL: 09/25/2018
TAGS: PREL ETRD ECON EAID EAIR ETTC PTER KTFN UNMIK
KV, YI
SUBJECT: BATTLING CORRUPTION AND IPR VIOLATIONS: KOSOVO
INDEPENDENT MEDIA COMMISSION PROACTIVE AGAINST UNLICENSED
CABLE TV CONTENT

Classified By: AMBASSADOR TINA S. KAIDANOW FOR REASONS 1.4 (B) AND (D)


1. (C) SUMMARY: In the endemic battle to prevent corruption
in Kosovo, one notable effort stands out. Kosovo,s
Independent Media Commission (IMC) recently took an unusually
pro-active initiative to stop cable providers from
broadcasting unlicensed television content. The IMC has
struggled to implement existing legislation and establish
standard operating procedures, largely due to lack of
resources and political will. As a case in point, the IMC
only just issued full licenses to half of Kosovo's cable
providers this past August. Shortly afterwards, the IMC
discovered that none of the newly licensed companies was
abiding by the licensing terms, and the IMC threatened
punitive action. A compromise was eventually reached,
allowing the cable operators to remain "live" and avoid hefty
fines, but only if they suspended broadcasting unlicensed
material. By the end of August, all companies had ceased
broadcasting unlicensed content, which had included popular
American movies, documentary and nature channels. In a move
to evenly apply cable licensing standards across the whole of
Kosovo, the IMC has also made overtures to eight Kosovo Serb
cable providers operating in northern Kosovo to obtain proper
IMC licensing. Initial meetings with the northern Kosovo
providers have been positive, and the IMC is encouraged that
soon all cable television in Kosovo will be properly
licensed. Both initiatives represent a rare victory for the
protection of intellectual property rights in Kosovo. END

SUMMARY.


2. (SBU) On August 29, Kosovo cable customers turned on their
televisions to discover many of their favorite channels --
including those which ran popular American movies and
documentaries -- were no longer being broadcast due to
improperly licensed content. Behind this rare, pro-active
initiative to protect intellectual property rights was the
Independent Media Commission (IMC),Kosovo's independent
broadcast regulator. The IMC has struggled to fully
implement broadcast and licensing legislation, draft standard
licensing procedures, and recruit and retain staff. Despite
these obstacles, the agency has worked steadily to constitute
itself as a full regulatory authority. In August 2008, the
IMC was finally able to fully license cable operators in
Kosovo. Previously, cable companies were basically free to
show whatever programming could be acquired, without facing
local consequences; only their business ethics guided
decisions on whether or not to show unlicensed material. As
the IMC licensing terms were being drafted, the eight
companies eventually licensed were given the opportunity to
provide comments. According to Argjentina Grazhdani, the
IMC Council Chairperson, all comments received were uniformly
positive and the companies were subsequently licensed.


3. (SBU) Shortly after issuing full licenses, the IMC began
monitoring the cable operators for compliance with the
licensing terms. Two companies, Kutejsa and Ipko, by far the
market leaders in cable services, have U.S. capital
investment from Bedminster Capital and the Albright Group,
respectively. All eight newly licensed companies were
broadcasting unlicensed programming, ranging from entire
television channels to one-time sporting events. Grazhdani
told EconOff that monitoring cable operators for compliance
was in the IMC,s workplan, in response to increasing
complaints from Kosovo,s three national television stations
- all showing properly licensed programming - which were
losing viewers to the illegal content of the private cable
operators, particularly for sporting events and movies. The
IMC did not take action previously because the agency had not
yet established permanent licensing procedures. Each company
received a letter from the IMC, notifying it of the
violations and ordering them to cease broadcasting unlicensed
material, or risk being fined. The first letter was ignored.
A second notification letter was issued, and also ignored.

PRISTINA 00000517 002 OF 002


Noting that none of the cable operators had voluntarily
chosen to stop broadcasting unlicensed material, the IMC
monitoring department brought the violations to the attention
of the IMC Council, with the recommendation to impose fines
on the cable operators. Only the Council has the authority
to review violations cases and impose fines. After reviewing
the case files, the recommendation of the monitoring
department was accepted, and the Council decided to impose
fines of up to 50,000 euro per illegally broadcasted channel.



4. (SBU) Grazhdani told EconOff she was able to quietly
approach all the cable operators in advance to apprise them
of the Council's decision. However, she also made a
proposal: if all cable operators agreed to stop broadcasting
illegal material at the same time, the IMC Council would
suspend the decision to impose fines for three months while
the companies' negotiated proper broadcast licensing
agreements. Grazhdani stated that agreement from all
companies was critical, in order to prevent customers form
jumping from one service to another. Kutejsa was the first
company to obey the IMC's order and cease broadcasting
unlicensed content; Ipko followed 12 hours later, as did the
remaining companies. All cable providers agreed to secure
proper copyright agreements prior to applying for new channel
licensing from the IMC. A press release notified the public
of these actions.


5. (C) The goal of the IMC is not to damage the industry,
Grazhdani emphasized, but to actively encourage all
broadcasters, regardless of media format, to respect
intellectual property rights. This effort to license all
cable operators in Kosovo has led the IMC to approach the
remaining eight Kosovo Serb cable providers servicing
northern Kosovo. An informal meeting between the IMC and
four Kosovo Serb operators was extremely positive, says
Grazhdani. The companies are interested in being licensed,
in order to protect their own businesses, but are uncertain
about how to proceed without drawing undue attention to their
actions. Grazhdani assured the group that the IMC would
travel to northern Kosovo to complete all the necessary
paperwork, and the four companies said they would meet with
the remaining four operators to discuss a way to move
forward. While this would be a major accomplishment for the
IMC, there is precedent; according to Grazhdani, 30 percent
of licensed frequencies in Kosovo are Serb minority media.


6. (SBU) COMMENT: Such positive initiatives are refreshing
to witness. In the meantime, all cable operators are working
hard to secure broadcasting rights for the content they
previously offered -- in particular, the DigitAlb series of
channels from neighboring Albania, which shows popular
American movies and television programming. Ideally, says
Grazhdani, the industry will become self-regulating, with
each cable company reporting on the other,s illegal content.

KAIDANOW