PIRACY STILL THRIVING IN MOROCCO

UNCLAS CASABLANCA 000132

SIPDIS
SENSITIVE

STATE FOR NEA/MAG
STATE PASS TO KIRA ALVAREZ AND RACHEL BAE USTR
STATE PASS TO JOSEPH RODRIGUEZ USPTO

E.O. 12958: N/A
TAGS: ECON ETRD KIPR PGOV MO
SUBJECT: PIRACY STILL THRIVING IN MOROCCO


1. (SBU) Summary: A recent visit by Econoff and Poloff to Morocco's
largest informal market revealed that despite a strong legislative
framework for combating counterfeit and pirated products,
enforcement remains weak. According to Morocco's Commercial and
Industry Property Office, only 19 intellectual property rights
related arrests were made in 2008. Counterfeit I-Phones and I-Pods,
unlicensed software, and pirated DVDs are readily available at a
very low cost. The recent Casablanca-based conference on
intellectual property enforcement, led by the U.S. Patent and
Trademark Office (USPTO),identified Morocco's slow and at times
ineffective judicial system as a major challenge in the battle
against piracy and counterfeiting. End Summary.

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Model for the Region
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2. (SBU) As a signatory to several international conventions aimed
at combating piracy and counterfeiting, Morocco has a strong
legislative framework unlike many other developing countries.
Praising Morocco's efforts, the general director of the World
Intellectual Property Organization recently said, "Morocco is a
model for the region. Its advances in modernizing and boosting its
intellectual property capacity and infrastructure are to be
applauded." Further underscoring the country's commitment to
combating the infringement of intellectual property rights (IPR) is
Morocco's hosting of negotiations on the Anti-Counterfeiting Trade
Agreement (ACTA),which if implemented will strengthen its IPR
enforcement measures. (Note: Morocco will be the only developing
country in the ACTA negotiation process, which will take place July
16-17 in Rabat. End Note.)


3. (SBU) Leading Morocco's effort to boost the country's IPR
compliance is the Moroccan Commercial and Industrial Property Office
(OMPIC). This office is tackling counterfeiting and piracy through
a three-pronged approach that entails: 1) working with
rights-holders and other government agencies to reform IPR
legislation and improve law enforcement efforts, 2) changing
mindsets about piracy through advertising campaigns and industry
promotional events, and 3) taking civil action against pirates and
counterfeiters to send the message that the industry will no longer
tolerate this activity.


4. (SBU) OMPIC works closely with the Moroccan Association to
Combat Piracy (AMPL),which coordinates the country's on-the-ground
police raids and seizures. Since AMPL's inception in early 2008,
nearly two million CDs and DVDs have been seized. One of Morocco's
most successful anti-piracy campaigns centered on one of its own
acclaimed films, "Casanegra". The film was given title protection
status (TPS),which takes serious sanctions against individuals who
illegally replicate the film. To test TPS's effectiveness, Econoff
visited Morocco's largest informal market in search of a pirated
copy of Casanegra, to no avail.


5. (SBU) With limited resources to fight piracy and counterfeiting,
OMPIC is actively soliciting private sector assistance. One example
of this cross-sectoral partnership is MAPROMAC, a liaison between
the business community and the different government agencies
protecting against counterfeit goods. "Private sector involvement
is key, as they can provide the necessary resources to conduct
long-term investigations needed in the large majority of IPR cases",
said OMPIC Director Adil El Maliki.

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Observations from the Field
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6. (SBU) While Morocco's regulatory and legislative IPR framework
is strong, enforcement remains weak. According to OMPIC, only 19
IPR-related arrests took place in 2008. The fight against piracy
and counterfeiting remains nascent in Morocco, conceded a Ministry
of Justice official at a recent IPR enforcement conference sponsored
by USPTO the week of June 22.


7. (SBU) Econoff and Poloff visited Derb Ghallef, Morocco's largest
black market, the week of June 22 to assess how widely available
counterfeit and pirated products are to Moroccan consumers. Derb
Ghallef is made up of over 100 kiosks offering inexpensive
counterfeit I-phones, I-pods, Microsoft programs, and pirated DVDs.
The asking price for one of Hollywood's latest blockbusters, for
example Wolverine, The Hangover, and Gran Torino, was USD 1. Next
to this extensive collection of Western films, was unlicensed
software such as Microsoft's Windows Vista and Apple's Final Cut,
for a slightly higher price of USD 3.

8. (SBU) Counterfeit Apple I-phones and I-pods, which looked
identical to the adjacent genuine products, were also readily
available. The kiosk owners informed us that the counterfeit items
were from China, but operated exactly like the originals. The
asking price for a 3GB counterfeit I-Phone is USD 37. A salesman
said demand for counterfeit I-Phones is so high that it is hard to
keep them on the shelf.

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A Deficient Judicial System
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9. (SBU) Despite a strong legal IPR framework, the country's slow
and often ineffective judicial system remains a major challenge in
the battle against piracy and counterfeiting, confided El Maliki.
"It can take up to two years to prosecute a person charged with
counterfeiting in Morocco". In the meantime, "he is back on the
streets selling the pirated product again." Other government
officials at the USPTO conference from Customs to Labor to Morocco's
business federation echoed these sentiments, adding that inadequate
funding to investigate IPR violations is also an impediment.


10. (SBU) Comment: While the Mission's capacity-building IPR
initiatives are likely to enhance enforcement, private sector-led
efforts to combat piracy and counterfeiting will be indispensible in
improving Morocco's IPR climate. Specifically, industry-initiated
legal actions will be critical in winning the country's fight
against counterfeiting, further highlighting the importance of a
reliable judicial system. End Comment.

ORDONEZ