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Viewing cable 06JAKARTA3296, IPR Update: Police Enforcement Campaign Continues

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Reference ID Created Released Classification Origin
06JAKARTA3296 2006-03-14 11:52 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Jakarta
VZCZCXRO7986
PP RUEHCHI RUEHDT RUEHHM
DE RUEHJA #3296 0731152
ZNR UUUUU ZZH
P 141152Z MAR 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 1052
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS JAKARTA 003296 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
FOR EAP/MTS; EB/IPE/EAP 
COMMERCE PLEASE PASS USPTO FOR JOELLEN URBAN 
DEPT PASS TO USTR DKATZ, JGROVES 
 
E.O. 12598: N/A 
TAGS: KIPR ETRD WTO ID
SUBJECT: IPR Update: Police Enforcement Campaign Continues 
 
REF: JAKARTA 3531 "Special 301 Submission" 
 
1.  (SBU) Summary: A Local Motion Picture Association (MPA) 
representative told us on March 14 that Indonesian police 
raided their third optical disc (OD) factory in 2006 on 
March 13 and sealed 12 production lines used to produce 
pirated ODs.  The factory apparently had been in the process 
of registering with the Ministry of Industry and had 
recently received source identification codes (SID).  In 
total, the MPA representative told us police have shut down 
and sealed 26 production lines in 2006, including seven 
lines on February 9 (Ref) and seven lines at another factory 
during that same week.  End Summary. 
 
2.  (SBU) A regional International Federation of Phonogram 
and Videogram Producers (IFPI) representative said the raids 
are sending a strong signal to other factories.  He noted 
that each line costs roughly a quarter of a million US 
dollars to purchase second hand, and each has the capacity 
to produce roughly 100,000 OD's per month (pirate discs sell 
for roughly 50 cents on average in Indonesia).  The MPA 
representative told us that all three factories are owned by 
a single individual with reported links to organized crime. 
According to the MPA representative, the Attorney General's 
Office seems keen to prosecute the owner of the three raided 
factories.  Police conducted the raids with support from a 
local recording industry association (Gapurindo) headed by a 
former three star police general.  District Police on March 
8 also raided pirate vendors at Ratu Plaza again and seized 
roughly 100,000 pirated discs. 
 
2.  (SBU)  A USAID funded project assisting the Indonesian 
Government (GOI) on implementation of OD regulations on 
March 14 held a well-attended wrap-up workshop that included 
representatives from most of the known 22 OD factories, 
local and regional IP industry representatives, and key 
government agencies.  The IFPI regional representative, who 
participated in the workshop, told us that many OD factories 
are now refusing to accept masters without SID codes.  This 
has created a short term problem for producers who still 
possess older legitimate masters that do not contain SID 
codes.  To solve the problem, the Ministry of Industry says 
it will agree to allow these producers to register their 
masters (using their existing bar codes) at the Ministry 
until the end of March and use them to produce ODs until the 
end of October. 
 
3.  (SBU) Comment: We are pleased that the police are 
keeping up recent enforcement efforts, but the ultimate 
seizure of the 26 lines may be dependent on the successful 
outcome of a court case brought against the owner.  USAID 
assistance has made significant progress in implementation 
of the OD regulations.  Many registered factories are now 
demanding SID Codes on masters, and factories are 
negotiating a compromise with the GOI to address the issue 
of older legitimate masters without SIDs.  We hope to build 
on this progress with two EB-funded senior technical 
advisors who will come on board soon to support the police 
on IPR enforcement and the Ministry of Industry on OD 
regulation implementation. 
PASCOE