Cablegate: Tallinn's Proposal for 2007 Ipr Enforcement


DE RUEHTL #0367/01 1560741
R 050741Z JUN 07





E.O. 12958: N/A

REF: STATE 55928

1. In response to reftel, the following is Embassy
Tallinn's proposal for funding to develop, distribute
and promote an extensive awareness campaign in Estonia
to combat internet piracy and promote cyber security.


2. The biggest IPR challenge in countries with a well-
developed IT sector is internet piracy. In Estonia, the
Internet is the primary tool for private banking,
national governance and communication by young people.
There are an estimated 700,000 internet users out of a
total population of 1.3 million, and the number is
rapidly increasing. Estonia is quickly gaining an
international reputation as the EU country at the
forefront of "e-government", "e-voting", "e-governance"
and overall market penetration of online services.
However, public awareness of the technical risk factors
and legal constraints on using the internet has not
kept up with the rapid growth in usage, especially
among the student and youth population. In this
environment of lower cost and higher-bandwidth access
to the internet, (large parts of downtown Tallinn offer
free, high-speed, Wi-Fi access) the greatest challenge
to protecting intellectual property rights is combating
digital piracy. The Baltic countries have only one NGO
dedicated to anti-piracy, the Estonian Organization for
Copyright Protection (EOCP) which represents major U.S.
industry rights holders. EOCP Managing Director Erik
Mandre has noted that since internet piracy is a new
and constantly evolving form of IPR violation, it is
essential to inform internet users about not only
threats, but also responsibilities in the digital

3. The issue of cyber crime has taken on greater
urgency in Estonia recently. Following a dispute with
Russia over the re-location of a Soviet-era war
memorial, Estonia became the target of an unprecedented
"cyber-war" directed at government ministries, banks
and newspapers in the form of massive Denial-of-Service
attacks. These attacks were primarily coordinated by
remotely controlling the computers of many unwitting
internet users (inside and outside of Estonia) via the
use of malicious software placed on their machines by
the perpetrators. There is a potential linkage between
these cyber attacks, law enforcement, and IPR
infringement. Cyber criminals engaged in digital
piracy of music, movies, software and other digital
media are frequently involved in other types of cyber
crime such as credit card fraud and digital blackmail.
These criminals use real or threatened Denial-of-
Service attacks against companies doing legitimate
business through the Web. At the same time, internet
users visiting websites to download illegal copies of
IPR-infringing material are at greater risk of their
computers getting infected with malicious software,
which could in turn be used in the type of massive
Denial-of-Service attacks directed at Estonia last
month. The cyber attacks in Estonia have demonstrated
the vulnerability of high-tech societies to threats
from the digital environment. Therefore, post sees a
critical need to raise public awareness on the linkage
between intellectual property rights in the digital
environment, and the larger issue of cyber security and
cyber crime.


4. Embassy Tallinn proposes to conduct an extensive
Internet piracy awareness campaign targeted at state
officials, Internet Service Providers, owners of
popular websites, and active Internet users in Estonia.

5. The objective of the program will be to raise
awareness of cyber security related to IPR violations
in the digital environment, as well as to reduce
uploading and downloading of digital content infringing
the IP rights of owners. The program will also raise
public awareness about legal and illegal actions on the
Internet, and the risks associated with engaging in
digital piracy.

6. The awareness campaign will have an educational
approach toward all target groups and will seek to
mobilize the maximum number of partners representing
the view of affected parties, including U.S.

industries. Before the campaign, project coordinating
agency EOCP, and consultants from Hill & Knowlton Eesti
AS in Estonia, will perform a control study of the
attitudes of different target groups toward digital
piracy. After the campaign, additional research will
evaluate behavioral changes of internet users.

7. The project will focus on the threats and negative
aspects of internet piracy, and on computer security.
It will explain where service providers, content
providers and internet users infringe IP rights in the
digital environment. The campaign will include
seminars, media relations and targeted advertising.
The target group will be Estonian government and law
enforcement officials, large and small internet
providers, owners and managers of popular web sites and
the most active internet users - students and other
people aged 10-25.

8. The proposed budget for the awareness campaign is
as follows:

Seminars: $20,000
Expert from the U.S. or EU for seminars: $5,000
Internet channel, banners, advertising: $5000
Other media: $20,000
Situation mapping and evaluation: $5,000
Expert fees, project coordination: $10,000

Total amount requested: USD 65,000

Fulfillment of criteria for funding:

9. Economic Impact on U.S. Interests: in Estonia, the
Internet is the biggest outlet for pirated music and
films. U.S. audio and video products are especially
popular in Estonia. However, awareness is low of what
is legal and what is illegal in the digital
environment. The awareness campaign will aim to
decrease internet piracy in Estonia, and promote the
vital Mission Strategic Plan goal, and U.S. business
interest of protecting intellectual property rights.

10. Crime and Security Considerations: cyber crime,
including internet piracy, is a new and constantly
evolving area. The Internet does not recognize borders
however, Estonia's relatively large pool of well
educated IT specialists creates a high potential for
internet-based criminal activity as well as the
expertise to combat cyber crime. (Note: the popular
peer-to-peer programs Kazaa and Skype were both
developed by Estonians, and Estonia's defenses against
the May cyber attacks are being studied by both U.S.
and European experts. End note)

11. Relevance to Other U.S. Objectives: Protection of
IPR is one of Embassy Tallinn's Mission Strategic Plan
priorities for FY 2007 and 2008. In order to promote
economic prosperity, the Embassy is supporting efforts
to enhance protection of IP rights.

12. Political Will: The Government of Estonia has
demonstrated its support for improving its IPR regime.
On several occasions, including addressing public via
mass media, the Deputy Under-Secretary for Criminal
Policy at the Ministry of Justice has made statements
about importance of combating internet piracy. Also,
the recent "cyber war" has raised the level of GOE
interest in crimes in the digital environment. The
Deputy-Under Secretary for Internal Security at the
Ministry of Internal Affairs confirmed that combating
IPR violation is an integral part of the new internal
security strategy the government is currently
developing. At an Embassy-sponsored IPR conference in
January 2007, Estonia's Police Commissioner drew
attention to the linkage between organized crime groups
and IPR infringement, pointing to the funds they can
raise through illegal digital piracy.

13. Capacity to Achieve Measurable Progress: the
primary cooperation partner and implementation
coordinator for this project will be the EOCP, the only
anti-piracy organization in the Baltics. Since its
establishment in 1998, the EOCP has successfully
represented the Motion Picture Association of America
(MPAA) and collaborates with copyright organizations
all over the world. EOCP will work closely with Hill &
Knowlton Estonia which has significant experience
working with clients in the consumer technology sector
and organizations promoting IP rights.

Components of an Effective IPR Regime in Estonia:
--------------------------------------------- ----

14. Embassy Tallinn's proposal for IPR Enforcement
Training Funds is made in the context of Estonia's
effective IPR regime. This regime includes: an
appropriate legal framework, enforcement capacity,
border Controls, government-industry cooperation,
international cooperation, public awareness, and
engagement by public officials in Estonia.

Project Evaluation Metrics

15. Targeted to U.S. Priorities: According to the
2004-2009 Department of State Strategic Plan, part of
its mission to protect the United States, American
citizens, and U.S. interests, is to wage a vigorous
campaign against organized crime, including cyber
crime. Accordingly, "...the Department and USAID will
strengthen foreign law enforcement capabilities and
strengthen laws, law enforcement institutions, and
judicial systems." Encouraging greater compliance with
existing IPR laws and raising awareness of the need for
tougher cyber crime laws is a key part of this
strategy. Embassy Tallinn's 2008 Mission Strategic
Plan also includes the goal to "promote increased IPR
protection in Estonia to create investment and
commercial opportunities for U.S. companies."

16. Support of host government: The Ministry of
Culture, which has primary responsibility for
awareness-raising in the IPR field, fully supports this
initiative. In addition, senior officials in both the
Ministry of Justice and the Ministry of Internal
Affairs (with jurisdiction over police) have expressed
their support for IPR enforcement.

17. Specific weaknesses of the intellectual property
system targeted by proposal: as internet piracy is a
relatively new form of crime, there is little
information available to the public that explains what
actions on the Internet are legal and illegal. Raising
awareness on cyber crimes including internet piracy is
a comprehensive long-term commitment. This project
aims not only to inform Internet users of the legal
aspects of digital piracy, but also to make them aware
of the elevated cyber security risks associated with
downloading illegal music, movies and software.

18. Benchmarks: the success of the project will be
measured by the amount of digital content available on
the targeted Estonian websites; the number of press
publications on the message of the campaign; and the
change in attitudes and behavior of the target groups
based on opinion surveys conducted before and after the

19. Oversight and accountability measures: Embassy
Economic Officer and Economic Specialist will
coordinate and consult with the program designers and
implementers, EOCP and Hill & Knowlton, all
programmatic and technical matters which may arise in
the administration of the program. Embassy
representatives will also evaluate performance to
ensure compliance with the project terms and
conditions, including regular review of progress and
financial reports.


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