AUTHORITIES RAID POPULAR TASHKENT MULTIMEDIA CHAIN

C O N F I D E N T I A L TASHKENT 000119 SIPDIS SIPDIS E.O. 12958: DECL: 01/29/2018 TAGS: PGOV PREL ECON KCRM KIPR UZ SUBJECT: AUTHORITIES RAID POPULAR TASHKENT MULTIMEDIA CHAIN Classified By: Poloff Tim Buckley for reasons 1.4 (B) and (D) ¶1. (C) Summary: On January 25 Uzbek tax and intellectual property rights authorities raided the popular Nirvana chain of multimedia stores in Tashkent. Reportedly, 100,000 discs containing pirated music, film, and software were seized. Journalists were invited on the simultaneous raids, which were conducted to demonstrate Uzbekistan's commitment to fulfilling its Bern Convention obligations. Public reaction favors keeping this a low priority on the Government of Uzbekistan's list, but this was a major symbolic action against intellectual property rights violations since the chain is very prominent. However, counterfeit media is still readily available from ubiquitous street shops and vendors throughout Tashkent. Rumors that the President's daughter Gulnora owned the chain appear to be unfounded, and it is more likely that a long-time business owner fell out of favor with Uzbek authorities and was made a sacrificial lamb. We will continue to watch for more signs of intellectual property rights enforcement or for a vacuum if the Nirvana stores remain closed. End summary. ¶2. (SBU) News reports indicate that on January 25 authorities raided 18 stores of the popular (and highly visible) Tashkent multimedia retail chain Nirvana and seized 100,000 discs containing pirated music, film, and software material. The raid was conducted simultaneously by tax officials and the Uzbek Agency for the Protection of Copyrights, and local journalists were invited to accompany authorities on the raids. According to an article on www.ferghana.ru, the purpose of the raid was to demonstrate that Uzbekistan is fulfilling its obligations under the Bern Convention, which it adopted in 2004. ¶3. (SBU) The press reports also noted that the chain does carry some legally authorized products, mostly of local content. However, many of these materials were also confiscated since the vendor could not provide documents to prove customs clearance had been properly obtained. The government spokesman claimed the seized materials will be destroyed once the investigation is complete. ¶4. (SBU) The www.ferghana.ru article included interviews with passers-by in front of the closed shops, with the general reaction being that the government should have more pressing issues to deal with -- chiefly the provision of heat in this harsh winter -- than focusing on intellectual property rights enforcement. Consumers also complained that Nirvana stores offered "quality" products and good customer service, whereas the plethora of smaller shops and street vendors are unreliable. There was reportedly also a raid on January 24 against various street vendors, in which 10,000 discs were seized, but the www.ferghana.ru article noted that small street shops were open for business as usual on the weekend following the raids on Nirvana, which left the latter's stores closed. Comment: -------------- ¶5. (C) There were rumors that the Nirvana chain was owned by Gulnora Karimova, the President's daughter, but this is apparently not true. Embassy LES say that pirating music and videos is small potatoes compared to the more lucrative enterprises Karimova is involved in and that some people simply assumed she owned it because the chain seemed so successful in prominent shopping districts throughout the capital. Law enforcement agencies would also not target part of Karimova's empire, but we will watch to see who fills the void in the event Nirvana does not resume its operations. ¶6. (C) The Nirvana chain has operated with a high profile for several years, so it is significant that Nirvana was now suddenly the target of such a large, coordinated raid. Our LES report that similar raids have occasionally occurred in bazaars before, generally token efforts, but no one can recall one against a well-known retail establishment. With so much pirated material in plain sight around Tashkent, this is hardly a major setback for counterfeiters, but it is a strong symbolic action. We will watch for follow up actions on intellectual property rights enforcement and for clues about why the chain owner, who must have been well-connected to have a robust business for many years, may have become a sacrificial lamb. End comment. NORLAND