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Viewing cable 06SAOPAULO207, Destruction of Pirated Software in Sao Paulo

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Reference ID Created Released Classification Origin
06SAOPAULO207 2006-02-23 19:27 2011-07-11 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Sao Paulo
VZCZCXRO6893
PP RUEHRG
DE RUEHSO #0207 0541927
ZNR UUUUU ZZH
P 231927Z FEB 06
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC PRIORITY 4564
INFO RUEHBR/AMEMBASSY BRASILIA 5716
RUEHMN/AMEMBASSY MONTEVIDEO 1821
RHEHNSC/NSC WASHDC
RUCPDOC/USDOC WASHDC 2286
RUEHBU/AMEMBASSY BUENOS AIRES 2049
RUEHSG/AMEMBASSY SANTIAGO 1566
RUEHLP/AMEMBASSY LA PAZ 2589
RUEHRG/AMCONSUL RECIFE 2719
RUEHRI/AMCONSUL RIO DE JANEIRO 6844
RUEHAC/AMEMBASSY ASUNCION 2404
UNCLAS SAO PAULO 000207 
 
SIPDIS 
 
DEPT FOR WHA/BSC AND EB/TPP/IPE 
STATE PASS TO USTR FOR AND MSULLIVAN 
STATE PASS TO USPTO/OLIA 
USDOC FOR 4332/ITA/MAC/WH/OLAC/JANDERSEN/ADRISCOLL/MWAR D 
USDOC FOR 3134/ITA/USCS/OIO/WH/RD/DDEVITO/DANDERSON/EOL SON 
NSC FOR SUE CRONIN 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KIPR ETRD KJUS BR
SUBJECT: Destruction of Pirated Software in Sao Paulo 
 
Reftel: 05 Sao Paulo 901 
 
1. (U) On 21 February 2006, the Business Software Alliance (BSA) 
sponsored the destruction of more than 500,000 pirated software 
discs outside Sao Paulo's Pacaembu Stadium.  The contraband was 
displayed publicly and then ceremoniously destroyed by feeding discs 
into a wood chipper.  This event highlighted anti-piracy 
achievements by the software industry in Brazil.  2005 was a record 
year for anti-piracy seizures, raids, and prosecutions.  According 
to BSA, software piracy has decreased from 90 percent to 76 percent 
over the last ten years.  By BSA estimates, 26,000 jobs would be 
created if software piracy were to continue to decrease by 10 
percent a decade over the next 20 years.  Federal Deputy Luiz 
Antonio de Medeiros (PL), leader of a recent special congressional 
committee that investigated piracy, gave a rousing speech denouncing 
the ills of software piracy, its ties to organized crime, and its 
destruction of legitimate jobs.  In his speech, Deputy Medeiros 
called for increased piracy penalties and reform in the anti-piracy 
legislation.  CG and Econoffs attended the event.  Media presence 
included TV and newspaper coverage. 
 
2. (SBU) COMMENT.  While, 2005 was a year of successes for Brazil in 
terms of anti-piracy enforcement (including increases in frontier 
interdictions and the termination of the USTR GSP review), much 
remains to be done on the consumer-side of the equation.  The 
decrease in software piracy from 90 percent to 76 percent is mostly 
due to BSA efforts in the corporate sector.  Software piracy in the 
public/consumer sector still remains above 90 percent.  Moreover, 
public attitudes regarding piracy are slow to change.  Recent 
studies conducted by Brazilian polling company IBOPE show that the 
purchase of pirated goods is habitual across all social classes, 
with 33 percent of the public admitting to purchasing pirated goods. 
 The same IBOPE studies show high public awareness (75 percent) of 
the harms of piracy (organized crime, tax evasion, etc.).  Moreover, 
75 percent of those polled agreed that piracy directly harms Brazil, 
insomuch as it decreases tax revenue and therefore GoB spending on 
education, health, etc. 
 
3.  (SBU) A recent joint study by the Brazil-U.S. Business Council 
and Warner Brothers Consumer Products shows that piracy deprives the 
GOB of USD 14.5 billion per year in uncollected taxes.  56 percent 
of those IBOPE polled felt that trademarked/copyrighted goods are 
too highly priced and that trademark/copyright owners are too rich 
to feel the effects of pirated sales.  65 percent felt justified in 
purchasing illegal goods because "pirated industries help generate 
jobs in poor countries, while genuine industries only created jobs 
in rich countries."  While government enforcement efforts and 
corporate campaigns were the successes of 2005, much remains to be 
done in 2006 in the area of public/consumer education to change 
prevalent attitudes regarding piracy.  We feel public events like 
this BSA-sponsored software destruction and last August's 
Association for the Protection of Phonographic Copyrights 
(APDIF)-sponsored destruction of over one million pirated CDs and 
DVDs (reftel) help raise public awareness and reduce sympathy for 
pirated goods.  END COMMENT. 
 
4. (U) This cable was coordinated with AmEmbassy Brasilia. 
 
 
McMullen