GOVERNMENT OF BRUNEI HOSTS MUCH NEEDED TALKS WITH

UNCLAS SECTION 01 OF 02 BANDAR SERI BEGAWAN 000095

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E.O. 12958: N/A
TAGS: KIPR ECON ETRD USTR WTRO BX

SUBJECT: GOVERNMENT OF BRUNEI HOSTS MUCH NEEDED TALKS WITH
MALAYSIAN RECORDING INDUSTRY

SUMMARY
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1. (SBU) Representatives of Recording Industry Association of
Malaysia (RIM) were back in Brunei on April 21 to discuss RIM's IPR
concerns with the Brunei Attorney General's Chambers, Judiciary
Department, Royal Brunei Police Force, and Royal Customs & Excise.
After the meeting with GoB agencies in the morning, RIM had an open
session with vendors in the afternoon, with the support and
participation of the AGC, MFAT, and Police. Embassy Commercial
Assistant was invited to attend the vendor session. RIM stated they
want to work with GOB but has deep concerns regarding disc piracy.
GoB officials did note their concerns regarding the perception of
Brunei as a piracy haven. RIM seemed pleased with their discussions
with GOB and there has been some public support as well for IPR
enforcement. End Summary.

RIM APPRECIATES USG SUPPORT AND WANTS TO WORK WITH GOB
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2. (U) RIM's CEO, NF Tan, acknowledged USG's support and assistance
in advancing IPR issues in Brunei. Prior to presenting an overview
of RIM and its activities to the audience, Mr. Tan stressed that
RIM's purpose was to work with GoB and local vendors on a solution
to benefit the music industry and Brunei. He stated that his
presentation was based on facts and figures as a result of RIM's
survey and monitoring of the Brunei music market. Tan noted that RIM
only covers the music market, not movies, games, or other
commodities.

RIM PRESENTS THE FACTS AS THEY SEE THEM
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3. (SBU) In his presentation, Mr. Tan noted that RIM's music
industry copyright covers Malaysia and Brunei and that there are 48
music CD outlets in Brunei, with a ratio of 1 shop for every 8000
residents. He stated that music piracy stood at more than 99 percent
in 2007, and more than 95 percent in 2009 (including pirated
ringtones). He stated RIM believes there is a syndicate in Brunei
that is exporting pirated CDs to neighboring Malaysian towns of
Limbang and Miri (based on raids carried out in by RIM). Tan
highlighted that RIM sent legal notices to all 46 pirated music
shops in November 2008 and that 44 shops still carried pirated music
CDs as per Feb 26, 2009 survey. In addition, there are 6 pirated
music vendors in country with one vendor dubbed the largest pirated
supermarket in Asia. There are 5 outlets in Brunei contravening
business law by operating without a business signboard.

SOME SUCCESS
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4. (U) RIM believes there has been some success following their
legal notification and discussions with several vendors. One vendor
with several outlets has stopped sales of music CDs, whereas another
has vouched to stop selling music CDs when their existing stock has
been sold out. Unless unfair competition of all pirated music CDs
are wiped out, the two vendors will not stock (original) music CDs.

QUESTION AND ANSWER SESSION GETS DETAILED
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5. (U) A number of questions were raised during a detailed question
and answer session with RIM. In regards to a question about music
kiosks being allowed to legal copy songs, Mr. Tan indicated that RIM
is currently in discussions with a prospective local distributor on
digital music sales, i.e. paying for downloadable songs. This model
would be more suitable for the current digital climate. A MFAT
representative voiced their concern with Brunei's alleged exports of
pirated CDs to Malaysia, in view of Brunei's current standing with
United States Trade Representative's (USTR) Special 301 review. RIM
suggested that Government to Government collaboration between the
Brunei and Malaysia is necessary to tackle the disc piracy issue.
RIM also pointed out the profits from pirate syndicates are used to
fund illegal activities.

COMMENT
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6. (SBU) At the end of the session, R. Ramalingan, RIM's General
Manager, told Embassy Commercial Assistant that RIM had a very good
meetings with the GoB agencies, and an agreeable solution has been
reached. Without further details disclosed by RIM, post believes RIM
has moved forward with GoB enforcement and legal agencies on the
issue of rightholder's presence and support, a key obstacle
identified in previous dialogues. In addition, post noted there has

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been public support for IPR enforcement in three consecutive issues
of the opinion page in the local paper, Borneo Bulletin. The hope is
that these recent positive steps are not simply a short term attempt
to improve Brunei's standing in Special 301 process but rather part
of a longer term effort by GoB to improve IPR enforcement.


TODD