NICARAGUA: GON AGENCIES SEEK BETTER COOPERATION ON IPR

UNCLAS MANAGUA 000939 STATE FOR WHA/CEN, EB/TPP/IPE JUSTICE FOR OPDAT ROBERT LIPMAN STATE PLEASE ALSO PASS TO USTR FOR ANDREA MALITO TREASURY FOR SARA GRAY USDOC FOR 4332/ITA/MAC/WH/MSIEGELMAN USDOC PLEASE PASS TO USPTO FOR HOLLIS ROBINSON SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ECON ETRD KIPR USTR NU SUBJECT: NICARAGUA: GON AGENCIES SEEK BETTER COOPERATION ON IPR ENFORCEMENT REFS: A) MANAGUA 227, B) 08 MANAGUA 1051 SUMMARY -------------- ¶1. (SBU) Government of Nicaraguan (GON) officials have told us they are focused on improving interagency cooperation to increase intellectual property rights (IPR) enforcement efforts against copyright and trademark infringement, but working with judges remain a challenge. Nicaraguan National Police officers also stated that budget cuts and other investigatory priorities make it difficult to conduct more raids. GON officials are concerned that Nicaragua's economic slowdown this year has led to an increase in the sale of pirated goods. The GON has conducted eight raids so far in 2009, but the government has yet to convict, fine, or imprison any IPR offender this year. GON officials also continue to seek more assistance from industry on IPR enforcement. Although intellectual property protection remains a low priority, we are encouraging the private sector to provide more assistance to the GON's IPR enforcement efforts. IMPROVING INTERAGENCY COOPERATION -------------- ¶2. (SBU) GON officials are working to improve interagency cooperation on IPR enforcement. Dr. Leyla Prado, Head of the IPR Unit for the Prosecutor General's Office, said that her office and the Ministry of Trade, Industry and Development (MIFIC) are organizing regular meetings with the police and customs administration to coordinate enforcement efforts. She explained that while interagency cooperation on IPR enforcement has improved in the last few years, there was agreement among agencies that they could do a better job against copyright and trademark infringement. ¶3. (SBU) Prado told us that working with judges to prosecute IPR offenders, however, is a challenge. She said that several judges do not understand IPR and misinterpret the law to the detriment of enforcement efforts. She complained that trials against IPR offenders are slow and create a backlog for her unit and other GON agencies. In a separate meeting, Teodoro Bustamante, Deputy Director of the Nicaraguan National Police's Economic Crimes Investigation Unit, added that because court proceedings are so slow, police warehouses are full of pirated goods obtained through raids. The police cannot destroy this material because the law requires that it be held as evidence in court against IPR offenders. He stated that it is difficult for the police to conduct new raids without additional storage. Bustamante suggested that judges should attend more interagency meetings to help them understand their role in IPR protection so they do not inhibit law enforcement efforts. LACK OF PERSONNEL FOR IPR ENFORCEMENT -------------- ¶4. (SBU) Bustamante acknowledged that the police have difficulties maintaining staff to conduct raids. He explained that budget cuts and an increase in other crimes, such as currency counterfeiting, fraud, and theft, have limited his unit's activities against IPR infringement. Despite these issues, he expressed confidence that his unit will conduct more raids and arrests. Both Prado and Bustamante noted that Nicaragua's economic slowdown in 2009 has led to an increase in the sale of pirated goods. ENFORCEMENT RESULTS -------------- ¶5. (SBU) As of July 2009, the GON had conducted eight raids. The police seized a total of 4,237 backpacks in which the trademark rights had been violated. The police also seized 6,464 blank CDs. The monetary value of the seized goods is approximately $232,406. [Note: The police calculate that the monetary value of blank CDs is five cordobas or 25 U.S. cents.] The Prosecutor General's Office indicted nine IPR offenders as of the end of July. All of the cases await court action. Prado added that there have been no arrests, convictions, or fines against any IPR offender this year. INDUSTRY COOPERATION -------------- ¶6. (SBU) Bustamante stated that the police are cooperating with industry to combat piracy and other IPR crimes in some areas, such as identifying vendors of pirated goods and offering training to officers, but he asserted that the private sector could do more to help. He explained that while industry organizations like Nicautor -- an association that advocates IPR enforcement and protection for authors and composers -- provides training to police officers, the police want more assistance on detecting trademark and copyright infringement. In addition, the police need better equipment, such as computers and scanners, digital cameras, and digital product code scanners, to enhance their capabilities. COMMENT -------------- ¶7. (SBU) Although IPR enforcement remains a low priority for the GON, we are encouraging the private sector and industry associations to provide more assistance to the government's IPR enforcement efforts. Any assistance that the private sector can provide to the GON -- whether it is training, equipment, or public recognition of the GON's efforts to protect IPR -- will serve as positive reinforcement and underscore the importance of their work in this area. CALLAHAN