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Cablegate: Mexico's Piracy Survey - Survey Says . . .

VZCZCXRO1331
PP RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #3612/01 3432232
ZNR UUUUU ZZH
P 082232Z DEC 08
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC PRIORITY 4277
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE PRIORITY
RUEHGV/USMISSION GENEVA PRIORITY 1052
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEAHLA/DEPT OF HOMELAND SECURITY PRIORITY
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RHEHAAA/NSC WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 02 MEXICO 003612

SENSITIVE

SIPDIS

STATE FOR EEB/IPE RACHEL WALLACE
STATE PASS USTR FOR TANUJA GARDE
STATE PASS COMMERCE FOR JENNIFER BOGER

E.O. 12958: N/A
TAGS: KIPR ETRD ECON
SUBJECT: MEXICO'S PIRACY SURVEY - SURVEY SAYS . . .

REF: 08 MEXICO 2866

1. (U) Summary: AmCham Mexico just released its second
annual nationwide survey of consumption habits for pirated
goods in Mexico. Three-quarters of the Mexican population
knowingly purchase pirated products, mostly CD's and DVD's,
due primarily to their lower prices as compared to the
originals. On the positive side, almost half of Mexicans
believe buying pirated good is illegal; most believe that
piracy does weaken Mexico's security situation as well as
has a negative effect on Mexico's economy. As the only
survey of its kind in Mexico, it offers an insight into
consumption habits Q who, what, where and why Q and
establishes a benchmark to measure potential future
progress in combating piracy in Mexico. End Summary.

2. (U) On Tuesday, November 25, the American Chamber of
Mexico published its second annual survey regarding pirated
goods consumption habits in Mexico. They celebrated the
event with a panel of senior-level speakers from the
executive, legislative and judicial branches of the Mexican
government, as well as participants from the private sector
and the media. Keynote speakers included: Under Secretary
of Economy Felipe Duarte, who stressed the importance
placed by the Calderon Administration in strengthening the
Rule of Law and in protecting IPR and fostering innovation
and competitiveness --two issues for which the Embassy has
strongly lobbied; PAN Senator Jorge Ocejo, who recently
presented legislation to reform the customs law and create
a rightsholders database as well as give customs officers
more time to seize or detain suspicious or illegal
merchandise (see reftel); Chairman of the College of
Magistrates and District Courts Jorge Arturo Camero, who
has been a key player in fostering IPR awareness and best
practices in the judicial branch. (Note: Camero publicly
thanked the USG for its support in bringing IPR judges and
experts to share their expertise with Mexican and Latin
American judges and lawyers. End note.)

SURVEY OF FOUR MAJOR CITIES
---------------------------
3. (U) AmCham and the U.S. Chamber of Commerce sponsored
this survey in order to study the causes of piracy, but
also to attempt to measure the impact of counterfeit goods
on the Mexican economy. Through Grupo IDM, a local market
research and analysis firm, they conducted a survey in
September 2008 of 933 Mexicans ages 16-55 Q half of whom
were women Q living in the four major Mexican cities of
Mexico City, Guadalajara, Monterrey, and Tijuana. The
survey included 21 questions, of which three were open-
ended, and the average interview lasted 15 minutes.


THREE OUT OF FOUR KNOWINGLY PURCHASE PIRATED GOODS
--------------------------------------------- -----
4. (U) According to the survey, 76 percent of the
residents of Mexico City, Guadalajara, Monterrey and
Tijuana knowingly purchased pirated or counterfeit goods in
2007. This is down from the previous year, in which 9 out
of 10 respondents affirmed they had knowingly purchased
pirated or counterfeit goods. In the past six months, the
76 percent who had knowingly purchased pirated goods had
bought primarily music CD's (63 percent) and DVD's (38
percent). Other pirated goods purchased included clothing,
shoes, glasses, perfumes, videogames, cellphone
accessories, watches, and cigarettes. Interestingly,
consumers are reluctant to purchase such pirated goods as
medicines, alcoholic beverages and foods due to potential
health risks.


IT WAS CHEAP AT HALF THE PRICE
------------------------------
5. (U) In one of the open-ended questions, 42 percent of
the participants attribute the existence of piracy to the
fact that they are cheaper to acquire. An additional 27
percent stated that original brands are more expensive. 7
percent responded that piracy exists because the government
is corrupt and allows piracy to occur.


MEXICO 00003612 002 OF 002


6. (U) The principal driver for purchasing pirated goods,
according to 75 percent of the participants, is the price.
The primary method in which 44 percent of those surveyed
knew they were purchasing pirated goods was also the price.


7. (U) 47 percent believe piracy to be an illegal act, up
from 43 percent in 2007. 74 percent of the respondents
consider piracy to be subversive to Mexico's security
situation, and 84 percent believe piracy has a debilitating
effect on the Mexican economy.

EVERYBODY'S DOING IT
--------------------
8. (U) According to the survey, all socioeconomic levels
in Mexico participate in the purchase of pirated goods.
The higher income participants revealed a greater tendency
to purchase pirated shoes than other socioeconomic
categories. Lower income respondents were more likely than
others to purchase pirated CD's and DVD's. In terms of
gender, the purchase of pirated goods is roughly equal
between men and women. Men are more likely to purchase
CD's and DVD's, cellphone accessories, and computer games.
Women are more likely to purchase shoes, clothing, and
perfume. By age, 25-34 year-olds buy pirated products the
most, with ages 19-24 close behind.

9. (SBU) Post Comment: This survey offers an interesting
analysis of the Mexican IP environment and what the public
and private sectors are up against in their efforts to
protect and enforce property rights. That it was produced
by the local AmCham and was released along with several
laudatory speeches from government IP officials
demonstrates how strongly committed the Mexican
stakeholders are to combating piracy. Unfortunately, it
offers no proposals as to what steps should be taken to
address this issue, something to which the Mexican
Institute of Industrial Property (Mexico's USPTO
counterpart) took exception this year, and on which Post
will work with AmCham and the government to include in next
year's survey. AmCham also hopes to conduct a separate
survey to determine the level of IPR awareness in
Congressmen. If successful, this will be quite useful for
the industry as well as the USG in our efforts to encourage
stronger IP protection and enforcement legislation. End
Post Comment.

Visit Mexico City's Classified Web Site at
http://www.state.sgov.gov/p/wha/mexicocity and the North
American Partnership Blog at
http://www.intelink.gov/communities/state/nap /

GARZA

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