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### Viewing cable 04BRASILIA222, BRAZILIAN FEDERAL DEPUTIES DISCUSS PIRACY WITH GAO

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
04BRASILIA222 | 2004-02-02 17:46 | 2011-07-11 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Brasilia

`

    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 000222

    SIPDIS

    SENSITIVE

    STATE FOR WHA/BSC AND EB/TPP/MTA/IPC
    PLS PASS USTR FOR SCRONIN AND CBURKY
    USDOC FOR 4322/ITA/MAC/WH/WBASTIAN/JANDERSEN/DMCDOUGALL
    USDOC FOR 3134/USFCS/OIO/WH/DDEVITO/DANDERSON/EOLSON
    NSC FOR MDEMPSEY

    E.O. 12958: N/A
    TAGS: KIPR EIND ECON KCRM PGOV BR IPR
    SUBJECT:  BRAZILIAN FEDERAL DEPUTIES DISCUSS PIRACY WITH GAO

    Refs:  A) 2003 Sao Paulo 2199  B) 2003 Brasilia 3868

    ¶1.  (U) This is an action request - see para 9.

    ¶2.  (U) Summary:  Members of Brazil's Federal Chamber's
    Investigative Commission (CPI) on Piracy briefed visitors from
    the U.S. General Accounting Office and Emboffs on January 20.
    Describing the work of the CPI and the extent of the piracy
    problem in Brazil, the federal deputies expressed their
    appreciation of the interest of the U.S. Congress in this issue
    and signaled their desire for further consultations in
    Washington.  Biopiracy, threats to health and safety, raising
    public consciousness and addressing the root causes of piracy
    were among the issues covered.  The CPI is making preparations
    for drafting its final report (expected in June), planning town
    hall meetings in several cities to engage the public as well as
    a working group session with private-sector representatives
    next week in Brasilia. End Summary.

    ¶3.  (SBU) Just returning from the holidays to an extraordinary
    session of the Congress called by the President, Brazilian
    Federal Deputy Luiz Medeiros (PL-SP), met with visitors from
    the U.S. General Accounting Office and Emboffs on January 20.
    Medeiros presided over an hour-long session that included
    expositions from other CPI members on subjects ranging from
    biopiracy to China, questions and answers from the GAO team,
    and his own vignettes from investigations. He began the meeting
    by extolling the CPI's work and reputation.  He recognized that
    piracy in Brazil is intimately linked with corruption,
    organized crime and the drug trade, citing the case of three
    shopping centers selling pirated goods in Sao Paulo, owned and
    operated by the Chinese mafia, that were temporarily shut down
    last month through the efforts of the CPI and enforcement
    officials (see ref A).

    ¶4.  (SBU) Medeiros also highlighted the negative consequences
    of piracy on economic development as evinced in the case of a
    Toshiba factory in Brazil considering closure due to the unfair
    competition from contraband and pirates.  According to
    Medeiros, police discovered a factory assembling Toshiba laptop
    look-a-likes with used contraband computer parts, posing as a
    computer repair shop.  Before police could initiate an
    investigation and raid, a federal judge intervened attesting to
    the legitimacy of the repair shop.  The CPI later discovered
    that the judge in question was himself under investigation in
    Operation Anaconda, a wide-ranging Federal Police corruption
    investigation.  More than simply a question of tax evasion, job
    losses and trampled intellectual property rights, pirated,
    often sub-standard, goods such as medicines and auto-parts
    present a real threat to the health and safety of Brazilians,
    he said.

    ¶5.  (SBU) The extension of the CPI until June 2004 and the
    formation of a Congressional caucus ("Frente Parlamentar" in
    Portuguese) devoted to the issue of piracy and tax evasion
    evidenced the strong public support of the CPI's work,
    according to Medeiros.  Therefore, the CPI has an obligation to
    provide realistic proposals for improving the situation.
    Toward that end, the CPI has maintained a very open atmosphere,
    seeking input from the private sector, law enforcement
    officials, and the judiciary.  While the CPI has supported
    public awareness campaigns, such as the Anti-Piracy Day
    activities (see ref B) Medeiros told us that CPI wants to
    involve the general public in formulating its report.
    Depending on the availability of funding, the CPI hopes to hold
    several town-hall meetings in large cities around the country
    to get feedback from Brazilian citizens on how to effectively
    combat piracy.  He invited Emboff to participate in a working
    group session with private sector representatives to be held in
    Brasilia February 4.  Medeiros, however, noted the absence of
    contact from the Interministerial Committee to Combat Piracy
    (CICP), the executive body formed by the GoB in 2001, although
    he made no mention of inviting input from the CICP. He said
    that the CPI would seek modifications to the CICP, but did not
    elaborate further.

    ¶6. (SBU) Approximately 10 deputies on the CPI joined the
    discussion, many praising the U.S. Congress's interest in their
    legislative effort to address piracy. Deputy Sarney-Filho (PV-
    MA), a former Minister of Environment, stressed the need for a
    wider vision of the problem to include biopiracy and
    trafficking in protected species.  Sarney-Filho encouraged
    Brazil's support for transnational legislation to address
    piracy in all of its forms.  Other deputies spoke of the
    difficulties enforcement officials face with minimal resources,
    inadequate laws (for example, the requirement for indefinite
    storage of seized goods), and at times an unsupportive
    judiciary.  They asked for information on U.S. legislation and
    procedures regarding seizures and targeted customs inspections.
    Vanessa Grazziotin (PCdoB-AM) noted that China receives more
    than its fair share of criticism as a supplier of pirated goods
    to the world, saying other Asian and East European countries
    merit investigation as well.  She spoke of the difficulty
    customs inspectors faced in differentiating between simply
    contraband goods and pirated goods.  Recognizing that poverty
    plays a significant role in Brazil's piracy problem, deputies
    discussed the merits of seeking ways to increase the cost of
    pirated goods as well as lower the cost of legitimate products.

    Comment
    -------
    ¶7. (SBU)  The CPI members clearly stated their desire to
    produce a useful and relevant document, and to have a long-term
    impact on the Federal Government's treatment of the piracy
    issue.  They are cognizant of the difficulties ahead, including
    the five-month timeframe in which they must complete their
    work.  The CPI has thus far managed to avoid becoming
    politicized.  Engaging the general public as fully as they have
    engaged the private sector will assist in producing a balanced
    set of proposals and lessen the possibility that the final
    report is perceived as primarily pro-private sector to the
    detriment of the larger Brazilian populace.

    ¶8.  (U) The CPI is working to keep the issue in the spotlight.
    Since the beginning of the year, the "Estado de Sao Paulo"
    newspaper, with the country's second-largest circulation, has
    published at least two articles featuring the Association for
    Protection of Intellectual Property (ADEPI) and the CPI.  One
    editorial cited the "real possibility" of U.S.-applied
    commercial sanctions against Brazil due to the country's
    failure to effectively combat piracy, a reference to the GSP
    review of last October.  A recent RadioBras (Brazil's National
    Radio) report featured the CPI and the Interministerial
    Committee as two of the main fronts in the fight against
    piracy, working to educate and protect the Brazilian public.
    Maintaining this positive momentum after the CPI's closure will
    be a challenge, an issue likely to be addressed by private
    sector representatives at the February 4 working group session
    with the CPI.

    ¶9.  (SBU) Meeting with members of the U.S. Congress active on
    piracy issues is high on the CPI's agenda, and may in part
    explain their willingness to meet with us at such an
    inopportune time.  IPR trade associations are working to
    organize a Brazilian legislators' visit to the U.S. in late
    March, one aim being meetings with members of Congress's two
    Piracy/IPR caucuses.  Mission strongly recommends that the
    Department facilitate such meetings and looks forward to
    communicating details of the visit through the appropriate
    point of contact in the Legislative Affairs Bureau as soon as
    they are available.

    HRINAK

`