2009 SPECIAL 301 REVIEW - GREECE

UNCLAS SECTION 01 OF 06 ATHENS 000283

SIPDIS

DEPT FOR EUR/SE - GOODMAN, SCARLATELLI; DEPT FOR
EEB/TPP/IPE - JURBAN; DEPT PASS TO USTR - JENNIFER GROVES,
LESLIE YANG; DEPT PASS TO USDOC - HILLEARY SMITH; DEPT PASS
TO USPTO - MICHAEL SMITH

E.O. 12958: N/A
TAGS: ECON ETRD GR KIPR
SUBJECT: 2009 SPECIAL 301 REVIEW - GREECE

REF: A. ATHENS 1360

B. ATHENS 1456

C. BOUZIS-ARGIROPOULOU 09-03-2008 EMAIL

D. GREECE'S FEBRUARY 2009 - COMPREHENSIVE ACTION PLAN

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Summary
--------------


1. (SBU) The Greek Government - particularly the Ministry of
Foreign Affairs (MFA) - responded to Greece's placement on
the U.S. Special 301 Watch List in 2008 with a genuine effort
to understand and begin addressing USG concerns. It has
welcomed enhanced dialogue with a range of USG agencies,
including State, the Department of Commerce, its U.S. Patents
and Trademark Office (USPTO),USTR, as well as post. As a
result of this attitude, USG and industry groups have
observed greater receptivity from the Greek Government to
constructive engagement on IPR.


2. (SBU) The most significant milestone reached this year
was the MFA's establishment of an Interministerial
Coordinating Committee (IMC) on IPR convened under the
leadership of the Secretary General for International
Economic Affairs. This Committee convened five times over
the course of the year and published in February 2009 a
comprehensive summary of GoG efforts to support IPR as well
as an Action Plan outlining a range of actions the GoG is
contemplating for the future.


3. (SBU) This cable focuses on the results of the USG's IPR
engagement with Greece, keyed to action areas highlighted by
the USG's Special 301 Initiative Document. In spite of the
good work of the IMC, we still believe it would be premature
to remove Greece at this time from the Special 301 list. As
impressive as Greek efforts were this year, they were uneven,
a fact even the GoG itself recognizes in the Action Plan.
The Plan clearly states the need for the GoG to improve
existing measures to eradicate product piracy and
counterfeiting and "...reach a higher level of coordination
among the law enforcement authorities." We can best support
Greece by acknowledging its efforts, prominently represented
by the Action Plan and by, most importantly, encouraging the
GoG to implement the Plan's suggestions. End Summary.

The 301 Special Initiative and Greece's Response
-------------- ---


4. (SBU) The USG heightened its engagement with the GoG on
IPR issues in 2008. In September 2008, visiting USDOC
Hilleary Smith and A/Dep EconCouns passed to the GoG a
"Special 301 Initiative" document consisting of a list of
steps derived from previous recommendations on how Greece
could demonstrate that it has improved the protection and
enforcement of IPR (reftel C). These steps evolved from
discussions and consultations with the GoG and rights holders
in the Economic and Commercial Cooperation Commission (ECCC).



5. (SBU) The MFA responded in September 2008 that they would
consider how best to react to these measures. The National
Action Plan (NAP) was apparently drafted with the Special
Initiative in mind, placing an emphasis on gathering and
processing statistical data, raising public awareness, and
increasing training for judiciary and law enforcement
authorities. The Plan is an achievement, given the difficult
context of the competing political and commercial priorities
of virtually all stakeholders, which so often undermine
national strategic goals in Greece, including IPR.



I. Background on the Inter-Ministerial Committee
-------------- ---


6. (SBU) In order to increase senior-level attention to IPR
issues, the GoG created the IMC in April 2008 pursuant to a
Ministry of Foreign Affairs (MFA) decree. Originally, IPR
issues were discussed informally and at an ad-hoc basis by an
OPI-initiated Athens Task Force, first established in 2006.
The IMC, which held its first meeting in May 2008, is chaired
by the Secretary General of the MFA's General Secretariat for
Economic and Commercial Affairs. Members at the SecGen level
include the Ministries of Development, Culture, Interior,
Justice, Customs, and Finance. The IMC coordinates the
National Action Plan (NAP),enforcement, and reporting on
statistics. The IMC finalized the NAP on ebruary 19, 2009.


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7. (SBU) The IMC created a working-level group (WLG) that
met five times, beginning in September 2008. The IMC tasked
the working-level group (WLG) with studying Greece's current
legal framework, registering problems and presenting
proposals on how to face these problems, and compiling a
comprehensive action plan. MFA representative Christina
Argiropoulou said the IMC took industry input into
consideration as it conducted its work. At the same time,
industry is concerned that the newly-formed IMC does not
include them in their meetings, unlike the original Athens
Task Force on IPR.

II. Coordination of Enforcement
Efforts: Mixed Units Approach
--------------


8. (SBU) -- THE PLAN ON ENFORCEMENT: The Action Plan, in of
itself, is a first step towards the coordination of
enforcement efforts. By outlining the role of each pertinent
GoG body, both policy and ground enforcement, the GoG assigns
accountability for the activities associated with the
enforcement and protection of IPR in Greece. The GoG is
examining "alternative methods on enhancing coordination
between Law Enforcement Authorities" especially the use of
mixed units, also called joint enforcement teams comprised of
the Municipal Police and the tax police (YPEE) from the
Ministry of Economy and Finance. Below, we discuss the
results from the mixed units in Athens and Thessaloniki. We
encourage strengthening and standrdizing the operations of
these units.


9. (SBU) -- RESULTS OF MIXED UNITS OVERALL AND IN ATHENS:
The local representative of the Motion Picture Association of
America (MPAA),EPOE, reports that the municipal police do
not fully participate in the mixed units and often do not
take their responsibility to confiscate counterfeit goods in
a serious manner. This is likely stymied by bureaucratic
requirements, such as the need for an interagency destruction
committee to inventory and oversee the destruction of
counterfeit goods. Post has also received reports that the
unarmed municipal police do not apprehend street vendors for
fear of attack or reprisal. (Note: The Greek public remains
vehemently opposed to IPR enforcement activities. End Note.)
At this time, the jurisdiction of these units is limited to
the borders of the Municipality of Athens with a "special
emphasis, as expected, on the Historical Center of Athens"
(reftel D). (Note: This is where the most egregious
examples of IPR violations can be found. End Note.)


10. (SBU) -- RESULTS ON MIXED UNITS IN THESSALONIKI: In
Thessaloniki (Greece's second largest city),we have not seen
evidence of mixed-unit law enforcement efforts. Senior
police officials have assured us, however, that the municipal
police, special control unit officers (YPEE) and Hellenic
(regular) police do cooperate on an ad hoc basis to fight
street vendors selling counterfeit CDs, DVDs, and other
goods. At a February 2008 meeting, representatives of
Thessaloniki municipal police, Hellenic Police and YPEE told
the Senior First Instance Prosecutor of Thessaloniki and
representatives of MPAA and ConGen Thessaloniki, however,
that they lacked clear instructions from "political
authorities" on how they should conduct mixed unit patrols
against street vendors and sales of counterfeit goods.


11. (SBU) -- RESULTS ON ENFORCEMENT IN THESSALONIKI: Greek
political and police officials have expressed a range of
reasons they are unable adequately to enforce IPR provisions
of Greek law. These reasons include the lack of personnel
and resources to conduct mixed unit patrols on any regular
basis. The Mayor of Thessaloniki told ConGen officials in
March 2008 the municipal police force is too small to devote
significant time to catching illegal vendors, and that
improved enforcement would require more help from Hellenic
Police. Senior Hellenic Police officials have expressed
concern about a public backlash against arrests of street
vendors, since the public sympathizes with the young
immigrants who comprise the majority of vendors. Some
Thessaloniki municipal police have told us that they lack not
only weapons but also the speed and stamina necessary to
catch vendors, who usually run away when they see police
approaching. ConGen has seen on one occasion two municipal
police running for over two blocks, but failing to catch a
youthful vendor carrying stacks of DVDs and CDs in both
hands.


12. (SBU) Sometimes individual Greek officials make a

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concerted effort to address IPR enforcement problems, only to
move on to other postings. First Instance Prosecutor of
Thessaloniki Vassilis Floridis took an active interest in IPR
enforcement in 2008. He wrote letters to the Mayor and head
of northern Greek police urging them to enforce IPR-related
laws and decrees, including with mixed unit patrols. He also
made public statements calling for police to arrest vendors
of counterfeit and pirated goods. The Prosecutor submitted a
proposal for the creation of a new financial police force
that (unlike the municipal police) would have the authority
to make arrests and that would be dedicated to fighting IPR
and other economic crime. He was transferred at the end of
2008 to another position with no authority for pursuing such
initiatives. Two local business chambers wrote letters and
made public appeals in 2008 calling on municipal and police
authorities to stop street vendors.

III. Regular Updates to USG on
Statistical and Qualitative Updates
--------------


13. (SBU) While we have been impressed by the GoG's
enhanced attention to IPR issues in 2008, the GoG has not
helped itself by severely controlling information flow on IPR
developments. In several attempts by Post to obtain updates
on progress, MFA officials responded that they required
clearance from the IMC before releasing any details on Action
Plan developments to the USG. Obtaining this information
almost inevitably requires senior-level approaches. From
time to time, the MFA and other GoG bodies have provided
general highlights on broader IPR issues, which have been
reported by Post.


14. (SBU) The GoG has a poor record of collecting and
disseminating statistics on IPR violations. In his
presentation to the July 2008 ECCC, Secretary General
Skylakakis highlighted the importance he ascribed to
addressing this problem. This issue remains a sensitive one.
As reported in the previous year, the GoG does not have a
single source of information for IPR-related statistics. The
Ministry of Justice does not keep a comprehensive database
regarding prosecutions and penalties for IPR violations.
Rather, the Hellenic Copyright Organization (OPI) gathers all
copyright cases and maintains a database of copyright
infringements fed in by law enforcement authorities on an ad
hoc basis. The police are required to submit lengthy and
detailed information on the names of all the CDs and movies
confiscated. Reportedly, the police are less likely to
submit this time-consuming information if a large number of
products is confiscated. OPI said that it was reviewing
offers from companies who could handle the electronic
management of the database. Separately, the MFA reported in
December that it was applying for EU funding to compile a
statistical database of IPR cases in order to better punish
repeat offenders.


15. (SBU) In spite of these ongoing difficulties, the Action
Plan submission represents an important step forward as it
conveys a range of important, if still incomplete,
statistical information on IPR seizures and other data.
According to the statistics provided by the GoG on
enforcement, we noted the following information on IPR
confiscations and cases in 2008:

-- mixed-units (municipal and Hellenic police forces) made
774 confiscations with almost 47,000 euros of fines,
-- municipal police made 357 confiscations, including 50,100
CDs, 14,150 DVDs, and 16,500 handbags,
-- customs confiscated 83 cases containing 855,784 goods, and

-- Hellenic Police dealt with 1,116 cases of IPR violations
of DVDs and CDs.

IV. Public Awareness Efforts
--------------


16. (SBU) OPI can be credited with the majority of public
awareness efforts in Greece, which are targeted to a broad
audience of youth, academics, civil servants, and businesses
entities. OPI has used media outreach, internet, brochures,
and conferences to highlight IPR issues and raise awareness
among Greek communities. Post commends these efforts and
believes that continued campaigns, together with greater
enforcement, can generate greater understanding of and
respect for IPR, especially among the youth, who are the
highest users of internet and the target market for illegally

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copyrighted material. OPI's public outreach efforts in 2008
included presentations and conferences at universities,
online and print educational guides on IPR, and various
IPR-awareness raising events.


V. Foster Cooperation between ISPs and Rights Holders
-------------- --------------


17. (SBU) The GoG expresses in the Action Plan the
difficulties it is having in addressing internet piracy. It
notes, for instance, that strict data-privacy laws prevent
the GoG from actively pursuing Internet service providers to
target copyright infringers. (Note: Greece has a
sensitivity to the collection of personal information due to
its period under a military dictatorship from 1967-1974. End
Note.) ISPs are legally prohibited from disclosing their
subscribers' names or physical addresses without a court
order. Greek ISPs do not cooperate with right holders group
for fear of losing business. For its part, industry
continues to encourage a graduated-response program to shut
down accounts without the need for releasing personal
subscriber information. The Association of Greek Producers
of Phonograms (IFPI) reports that the Vice-Chairman of the
Greek National Regulating Authority promised to schedule a
meeting with the ISPs and copyright organizations to discuss
the issue. We believe this problem will continue to plague
the GoG. According to industry reports, the downloading of
illegal software and copyrighted content is anticipated to
increase as internet penetration rises. At present, 35
percent of the population, or 3.8 million people, use the
internet, a low figure by EU standards.


18. (SBU) The MPAA was one of the industry organizations
closely following the ISP issue; however, Post was informed
that the MPAA plans to shut down its offices in 11 countries,
including Greece, due to budget constraints. The MPAA has
decided to focus on anti-camcording legislation in key target
markets. As a result, we believe that this will limit
industry's ability to liaise with ISPs on this important
issue.

VI. Increase Judicial Training
--------------


19. (SBU) The Greek Government has worked hard to raise
awareness of judges to IPR issues. In particular, OPI
co-organized with Post a February 20 USPTO-roundtable in
Athens on the enforcement of copyright law. Over 35 judges
participated in the roundtable, with over 15 judges from
outside of Athens. This is the second in a series of events
designed to sensitize judges to the challenges and issues
involved in copyright law. In June 2008, USPTO and OPI
organized an international conference on the topic of
"Copyright Policies and the Role of Stakeholders". The event
included representatives from the EU and European
universities. The MFA has also planned an upcoming IPR
conference in April for prosecutors on copyright law. Post
views these events as a positive effort on the part of the
GoG to bring attention to IPR issues.

VII. Administrative Fines and Confiscation Measures
-------------- --------------


20. (SBU) While the GoG has begun the limited imposition of
administrative fines, it faces ongoing challenges in
standardizing fines. As we discuss in paragraph 26, the GoG
has had better success with administrative fines in business
software. In 2008, OPI collected data on 400 infringements
engendering fines across the board, as announced by the
control services, also known as the tax police, who have the
responsibility for imposing fines. Industry reports that
suspects prefer to ask for a trial, which takes several years
to resolve, rather than agreeing to pay a standard fine.
MPAA's Greek representative (EPOE) has also complained to
post that Greek judges have not yet applied industry's
recommendations to use standard and deterrent penalties to
copyright cases in their courtrooms. In general, Greek
judges tend to issue light penalties resulting in suspended
sentences. EPOE believes the use of standard penalties would
send a strong signal to would-be infringers of potential
punishment. As reported above, OPI is the only source for the
collection of data on GoG's imposition of administrative
fines and it relies heavily on the information provided by
law enforcement authorities.

VIII. Enforcement and Prosecution of Penalties

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-------------- --


21. (SBU) Industry continues to highlight that Greek courts
do not adequately enforce copyright law. At a February 20
USPTO-funded judicial roundtable, Greek judges complained of
an enormous backlog of cases and were impressed to hear from
visiting U.S. Judge Michael Chagares that only 10 percent of
cases in the U.S. court system actually go to trial. They
explained to Judge Chagares that all of their cases go to
trial which contributes to the congestion and backlog of
cases in the court system. Greek judges also said that they
were less inclined to apply deterrent penalties to the poor
immigrants that appear in their court rooms, whom they
perceive to be single-operators trying to feed their
families. Defendants that face more severe penalties tend to
pursue tactics such as filing an appeal or not appearing for
their scheduled hearing, further delaying a decision on their
sentencing.

IX. Building up Capacity and Training
Law-Enforcement and Customs
--------------


22. (SBU) Greece places a priority on training enforcement
authorities. The NAP outlines a plan to train 200 police
officers on the topic of "financial crime" in which IPR is to
be included. In addition, the Customs Services has
identified three programs on IPR to be included into the
program of the Ministry of Finance Training School (SEYYO)
while the tax police (YPEE) submitted a proposal for an
individualized program on "Protection of IPR" in regional
areas of Greece. In 2008, YPEE worked with OPI and BSA to
provide training to enforcement authorities on illegal
software and IPR protection. IIPA identified the area of IPR
training and education as a key area for positive
collaboration between industry, the USG, and the GoG. In
April 2008, OPI co-organized with ConGen Thessaloniki an
educational seminar on counterfeited goods to law enforcement
authorities.


23. (SBU) Within the Special Initiative, the Hellenic
Customs Service are asked to work toward effectively
controlling the import of pirated and counterfeit goods and
regularly engage with neighboring countries. As a result,
the GoG has indicated in its Plan that special customs
control units should be responsible for activities on the
border.


X. Combating Software Piracy
--------------


24. (SBU) Of all its IPR-related efforts, the GoG's actions
against software piracy appear to have been the most
effective. As we discuss in the following paragraphs, their
efforts have been concentrated in the private-sector, where
they have succeeded in applying some administrative fines.
The Special Tax Police (YPEE) provided the USG in September
with a list of the number of investigations of the illegal
use of software by private sector companies. According to
Greece's national action plan, the YPEE, issued 224 orders in
2008 to audit companies using illegal software. 137
companies were reportedly investigated and 15 companies were
found in breach of IPR laws. They sent two waves of letters
in 2008 to small and medium-sized companies requesting that
they provide information on their software use. YPEE
evaluated the responses, and conducted an undisclosed number
of raids followed the letters.


25. (SBU) Industry commends the GoG on their action and
encourages them to continue the momentum on this issue. BSA
has told us that such raids send a strong signal to the
companies engaging in copyright infringement and has urged
their increased use by the GoG. The International
Intellectual Property Alliance (IIPA) praised YPEE's work in
past years, stating in their submission, "BSA notes that the
level of software piracy remains high, but has declined
slightly in recent years (from 61 percent to 58 percent in
2008)...Much of this decline over the last few years may be
attributable in part to the work of the Tax Police (YPEE) and
their sending software audit letters to small- and
medium-sized businesses in Greece." IIPA said YPEE could be
even more effective by imposing standard administrative
fines.


26. (SBU) In general, administrative fines have been more
difficult to impose across the board. As we noted in

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paragraph 20, suspects are able to get a stay of the
imposition of these fines, by asking for a court case. The
YPEE has had better success with the imposition of
administrative fines on companies with pirated software. We
will continue to follow up with BSA and the tax police on
this information.


27. (SBU) Although the software piracy efforts have yielded
the most results, they have been concentrated in the
private-sector. The use of unlicensed software is widespread
in the public sector, according to reports from industry,
although some software companies reported to Post that they
believe public procurement is conducted according to EU
regulations, and is transparent, in theory. As reported in
reftel A, YPEE has complained that it is not able to hold
ministers accountable for violations in their ministries and
it would take up extensive political capital and resources to
undertake an audit of Greece's large bureaucracy.


28. (SBU) In a recent development concerning alleged public
sector software piracy, a U.S. software firm in 2007
initiated a lawsuit against a Greek public sector
organization, which allegedly replicated its software without
obtaining the necessary licenses. In 2008, the Greek public
sector organization counter-sued the company for making false
and slanderous statements and for the malfunctioning of the
software, asking for damages in excess of 100 times the
amount specified in the original suit by the U.S. software
firm.

Comment
--------------


29. (SBU) While Post does not recommend that Greece be taken
off the Special 301 list, it believes progress has been made
over the past year. This should be recognized in the 301
report and other public statements. We must not
underestimate the Ministry of Foreign Affairs' efforts
spearheading the IMC, calling IMC meetings over five times in
2008, organizing a comprehensive and thorough report,
essentially getting consensus from multiple agencies and
ministries. Nevertheless, we believe it is important to see
progress reflected in accurate, quantitative measurements of
piracy.


30. (SBU) We are struck by the GoG's change in attitude in
the NAP from previous years, as it openly admits concerns on
its own IPR record and questions how best to move forward to
implement a stronger IPR regime. The USG should take
advantage of this opportunity by calling on the GoG in 2009
actually to implement the Action Plan. This includes:
encouraging the Ministry of Justice to compile statistics and
data on fines and sentencing on IPR cases; continued
follow-up by the Tax Police on software piracy; and increased
training of judicial and enforcement authorities.


31. (SBU) On this last item, we believe that USG should
continue its support of workshops and roundtables of the
judicial and law enforcement arms. Specifically, we could
strengthen and regularize enforcement by hosting workshops
for the joint action teams (police and municipality police).
In addition, we believe we could support the GoG in
increasing the effectiveness of the judiciary arm through an
inter-governmental database, one that would collect
statistical information on IPR violations as well as
copyright cases, and could be used to track repeat offenders.


32. (SBU) In the same vein, it was a close call this year
given the significant amount of work that Greece has done.
Greece deserves credit for its hard work in a politically
contentious climate and should be encouraged to keep the
momentum on this issue. If they are able to implement their
National Action Plan, we should consider removing them from
the Watch List. End Comment.
SPECKHARD