SWEDEN: INTERNET PIRACY UPDATE

UNCLAS STOCKHOLM 000733

SIPDIS

STATE PASS USTR FOR DAVID WEINER

E.O. 12958: N/A
TAGS: KIPR EINT ECPS ETRD PGOV SW
SUBJECT: SWEDEN: INTERNET PIRACY UPDATE


1. (U) Summary: Implementation of the European Union's Intellectual
Property Rights Enforcement Directive (IPRED) continues to be
controversial in Sweden. During their recent party congress, the
opposition Social Democrat Party decided that the legislation needs
to be changed. On a positive note, the first IPRED case might be
heard by the Swedish Supreme Court and the percentage of Swedes who
download illegally has decreased for the first time since 2004.
Sweden's Communications Minister plans to raise Internet governance
and the Internet Service Provider's role in combating copyright
infringements during her November 30-December 3 visit to Washington
for a visit focused on the efforts of Sweden's EU Presidency to
develop a common EU Information Technology strategy for the next
five years. End summary.

Social Democrats want to change IPRED legislation
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2. (U) After four days of compromising and power struggles, the
Social Democrat party congress agreed on November 1 that if they win
in 2010 the IPRED legislation needs to be changed. The actual
changes were not specified, but left to be determined by the Party
leadership.


3. (U) During the Party Congress, Leif Pagrotsky (the Social
Democrat now responsible for integrity issues) expressed stronger
criticism of the IPRED legislation than he has done previously. "We
propose that the [party] congress supports culture-makers right to
get paid for their work. But we are equally convinced that IPRED
must be changed and that the rule of law and protection of integrity
needs to be reinforced," he said.

Circumventing the IPRED legislation
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4. (U) Regardless of changes to the legislation, the current IPRED
legislation may become less effective in the future because more and
more Swedes use services that allow them to hide their IP addresses.
According to Swedish media reports, as many as 10 percent (130,000)
of Swedes aged 15-24, use such services.

Fewer Downloaders in Swedens
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5. (U) The number of illegal downloaders in Sweden is down
slightly, a Stockholm Daily reported on November 3. The reduction is
only from 19 percent of Swedes to 18 percent, but the drop contrasts
to what had been steady growth since 2004 in the number of Swedes
who download illegally from the internet. This reduction took place
even before the IPRED legislation was introduced. The legislation
may encourage a further drop.


6. (U) According to the World Internet Institute, which for the
ninth time has conducted its annual poll "Swedes and the Internet,"
the shift in the trend is due to the emergence of legal alternatives
to illegal file sharing, such as Spotify. The newly launched legal
movie streaming website Voddler might produce additional reductions
in illegal downloads, but it is too early to tell.

Swedish Supreme Court may hear IPRED case
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7. (U) In a split decision, the Swedish Court of Appeals decided
that an internet provider (ePhone) did not have to hand over
information on its user (IP address 77.53.104.102) who had made
audio-books available online. The case has now been appealed to the
Swedish Supreme Court. The Supreme Court has issued an injunction
saying that the internet provider does not have to hand out the
information, but is not allowed to destroy the information until the
Supreme Court has decided whether or not it will hear the case. The
injunction included a 500,000 Swedish Kronor (USD 71,000) fine if
violated.

Comment
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8. Sweden's Minister for Communications Asa Torstensson will visit
Washington, DC on November 30 - December 3. As EU President, Sweden
is working on a common EU Information technology strategy for the
upcoming 5 years. The Swedish Embassy is seeking appointments for
Torstensson with Commerce, FCC, OSTP, OMB, DHS, as well as with Sen
Jay Rockefeller, Sen Kay Bailey Hutchison, and Rep James Oberstar.
Subjects the Minister plans to raise include Internet governance and
the Internet Service Provider's role in combating copyright
infringements.

BARZUN