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Cablegate: Demarche On Brazil Gsp/Ipr Review

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 BRASILIA 003089

SIPDIS

SENSITIVE

STATE PLEASE PASS TO USTR AND USPTO
NSC FOR MIKE DEMPSEY
DEPT OF TREASURY FOR FPARODI
USDOC FOR 3134/USFCS/OIO/WH/EOLSON
USDOC FOR 4332/ITA/MAC/WH/OLAC/MWARD

E.O. 12958: N/A
TAGS: KIPR ETRD BR IPR
SUBJECT: DEMARCHE ON BRAZIL GSP/IPR REVIEW

REF: STATE 259750

1. (SBU) ON DECEMBER 9, AMBASSADOR AND SPECASST MET WITH
AMBASSADOR ANTONIO DE AGUIAR PATRIOTA (THE FOREIGN
MINISTER'S CHIEF OF STAFF) TO DELIVER REFTEL DEMARCHE AND
TALKING POINTS. THE AMBASSADOR THANKED PATRIOTA FOR
RECEIVING HIM FOR THE MEETING ON SHORT NOTICE. HE THEN
TOLD PATRIOTA THAT HE WAS THERE TO DELIVER AN IMPORTANT
MESSAGE FROM WASHINGTON REGARDING THE GSP/ISP REVIEW. THE
AMBASSADOR SAID THAT AS PATRIOTA WAS AWARE, USTR HAD
ANNOUNCED IN JUNE THAT THE INVESTIGATION REGARDING BRAZIL'S
ENFORCEMENT OF COPYRIGHT LAW WOULD BE EXTENDED FOR 90 DAYS,
AND THAT JUST RECENTLY THIS REVIEW HAD BEEN EXTENDED ONCE
MORE FOR AN ADDITIONAL 180 DAYS. THE AMBASSADOR SAID THAT
THE USG HAS RECENTLY HELD MEETINGS WITH THE GOB AND
RECOGNIZES THE MEASURES ALREADY TAKEN BY THE GOB TO ADDRESS
PIRACY. HE EMPHASIZED THAT THERE IS, HOWEVER, STRONG
PRESSURE ON WASHINGTON TO WITHDRAW BRAZIL'S GSP BENEFITS,
IN LIGHT OF THE $700 MILLION IN ESTIMATED LOSSES DUE TO
COPYRIGHT PIRACY. HE ASKED THAT THE GOB DEMONSTRATE
PARTICULARLY AGGRESSIVE ENGAGEMENT, I.E. SELF-INITIATED
RAIDS, SEIZURES AND INSPECTIONS, AND NOT JUST IN RIO AND
SAO PAULO, BUT ALSO OTHER AREAS SUCH AS FOZ DO IGUACU AND
IN THE NORTHEAST. HE ASKED THAT THESE ACTIONS HAVE A HIGH
PROFILE, AND BE HIGHLY PUBLICIZED. HE ALSO STRESSED THE
IMPORTANCE OF EXPEDITIOUS INVESTIGATIONS AND PROSECUTIONS
RESULTING FROM THE RAIDS AND SEIZURES.

2. (SBU) PATRIOTA, WHO WAS LEAVING ON TRAVEL THE FOLLOWING
DAY, ASKED IF THERE WAS A PAPER THAT HE COULD USE TO
DELIVER THIS MESSAGE WITHIN THE MFA TO THE APPROPRIATE
PEOPLE, AT WHICH TIME THE AMBASSADOR PASSED A NON-PAPER
CONTAINING THE TALKING POINTS DETAILED IN REFTEL. THE NEXT
DAY POST PROVIDED THE MFA WITH AN INFORMAL PORTUGUESE
LANGUAGE TRANSLATION OF THESE POINTS.

WORKING-LEVEL FOLLOW-UP
-----------------------

3. (SBU) FOLLOWING UP ON THE AMBASSADOR'S DECEMBER 9
DEMARCHE, ECONOFFS MET WITH MINISTER ANTONINO PORTO E
SANTOS, FIRST SECRETARY OTAVIO BRANDELLI, AND THIRD
SECRETARY HENRIQUE CHOER MORAES TO GET A FURTHER READOUT ON

SIPDIS
THE GOB'S THINKING. PORTO E SANTOS - AN A/S EQUIVALENT -
HEADS THE MFA'S BUREAU FOR SCIENTIFIC, TECHNICAL, AND
TECHNOLOGICAL COOPERATION - THE ENTITY WHICH OVERSEES IPR
ISSUES WITHIN THE MINISTRY. SPEAKING INFORMALLY, OUR MFA
INTERLOCUTORS MADE THE FOLLOWING POINTS:

-- IN PRINCIPLE, THE IDEA OF A MEETING OF THE BILATERAL
CONSULTATIVE MECHANISM TO REVIEW PROGRESS (PRIOR TO MARCH)
WAS ACCEPTABLE.

-- THE MFA, AS HAD PRIVATE INDUSTRY, HAD ALREADY FORWARDED
TO THE NATIONAL ANTI-PIRACY COUNCIL A DRAFT NATIONAL ACTION
PLAN. THE COUNCIL WOULD MEET EARLY IN THE NEW YEAR TO
CONSIDER THESE DOCUMENTS.

-- THE PACE OF ENFORCEMENT ACTIONS AT KEY POINTS SUCH AS
THE FRIENDSHIP BRIDGE HAD ALREADY INCREASED SIGNIFICANTLY.
NOTWITHSTANDING THE LIMITATIONS OF THEIR DATA COLLECTION,
THE MFA HOPED TO SOON FIND OUT TO WHAT DEGREE THIS
INCREASED ENFORCEMENT HAD RESULTED IN PROSECUTIONS.

-- WHILE THE GOB COULD ISSUE RECOMMENDATIONS TO STATE AND
FEDERAL PROSECUTORS, GIVEN THE INDEPENDENT BENT OF THE
FEDERAL/STATE PUBLIC MINISTRIES THERE WAS NO GUARANTEE THAT
THE PROSECUTORS WOULD PAY ANY HEED TO SUCH RECOMMENDATIONS.
AND WHILE THE GOB PLANS TO LAUNCH A NATIONAL MEDIA CAMPAIGN
AGAINST PIRACY, FUNDING FOR THIS YEAR IS PROBLEMATIC.

NEXT STEPS
----------

4. (SBU) EMBOFFS WILL SEEK TO ENGAGE WITH LEADERS OF THE
NATIONAL ANTI-PIRACY COUNCIL PRIOR TO THAT BODY'S NEXT
MEETING. SPECIFICALLY, WE WILL SOLICIT ADDITIONAL
INFORMATION REGARDING THE STATUS OF THE GOB'S ANTI-PIRACY
EFFORTS AND REITERATE OUR MESSAGE REGARDING: A) THE
DESIRABILITY OF THE GOB MOVING FORWARD WITH RECOMMENDATIONS
TO PROSECUTORS, AND B) INITIATING A NATIONAL ANTI-PIRACY
MEDIA CAMPAIGN.

DANILOVICH

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