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Viewing cable 06LIMA1718, PERU CELEBRATES ANTI-PIRACY WEEK

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Reference ID Created Released Classification Origin
06LIMA1718 2006-05-04 18:10 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Lima
VZCZCXYZ0001
RR RUEHWEB

DE RUEHPE #1718/01 1241810
ZNR UUUUU ZZH
R 041810Z MAY 06
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 0246
INFO RUEHBO/AMEMBASSY BOGOTA 3338
RUEHQT/AMEMBASSY QUITO 0295
RUEHLP/AMEMBASSY LA PAZ MAY SANTIAGO 0475
RUEHCV/AMEMBASSY CARACAS 9397
RUEHBU/AMEMBASSY BUENOS AIRES 2371
RUEHME/AMEMBASSY MEXICO 3318
RUEHBR/AMEMBASSY BRASILIA 6709
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAFCC/FCC WASHDC
UNCLAS LIMA 001718 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR WHA/AND, EB/IPE SWILSON 
COMMERCE FOR 4331/MAC/WH/MCAMERON 
DOC FOR J. BOGER 
USPTO FOR J. URBAN 
LOC FOR S. TEPP 
USTR FOR J. CHOE-GROVES 
 
E.O. 12958: N/A 
TAGS: KIPR ECON ETRD PE
SUBJECT: PERU CELEBRATES ANTI-PIRACY WEEK 
 
REF: A) Lima 699    B) 05 Lima 1971 
 
1.  (U) Summary.  The Peruvian Government, promoting the 
protection of intellectual property rights, celebrated Anti- 
Piracy week from April 23-30.  Indecopi, the Government's 
IPR Administrative Agency, commemorated its second annual 
Destruction Day, destroying more than 300,000 confiscated 
pirated CDs and DVDs, and educating the public about how IPR 
violations hurt the overall well-being of Peruvians.  The 
GOP also took the opportunity to emphasize that intellectual 
property protections must cover more than just pirated discs 
by highlighting the need to protect copyrighted printed 
material.  End Summary. 
 
Piracy Still a Problem 
---------------------- 
 
2.  (U) Peru continues to grapple with high levels of 
piracy, particularly the piracy of optical discs.  In 2005, 
over 100 million blank optical discs entered Peru legally, 
10 million less than 2004.  Indecopi estimates that only 14 
million of these discs were used for legitimate purposes. 
The rest, Indecopi alleges, were utilized in the pirating of 
software, music, and movies. 
 
3.  (U) The audiovisual industry suffered from high piracy 
levels in 2005, with an estimated piracy level of almost 75 
percent, up from 65 percent in 2003.  According to the 
Motion Picture Association, the industry lost an estimated 
$10 million last year.  Peru also has one of the highest 
rates of music piracy in the world; approximately 98 percent 
of CDs sold in country are pirated.  Additionally, the 
pirating of blank optical discs affects the software 
industry, which estimates that 2005 piracy levels totaled 54 
percent. 
 
4.  (U) The pirating of books and other printed materials is 
also of concern.  Indecopi estimates that piracy of printed 
materials, estimated at 40 percent of total sales, cost the 
sector more than $13 million in damages in 2005.  Unlike 
optical disc piracy, which primarily affects the U.S. motion 
picture industry, piracy of printed media directly affects 
Peruvian authors and artists. 
 
Getting the Message Out 
----------------------- 
 
5. (U) Indecopi, in an effort to expand public awareness of 
the need to protect intellectual property, celebrated Anti- 
Piracy Week, April 22-26.  Martin Moscoso, head of 
Indecopi's copyright office, informed us that while previous 
public awareness campaigns were successful, Indecopi wanted 
to take public awareness to a higher level, emphasizing 
different types of piracy. 
 
6.  (SBU) During the five-day event in Lima, Indecopi held a 
two-day seminar for local government officials, brining in 
speakers from the audiovisual, music and book industry to 
explain how IPR violations affect Peruvians.  Highlighting 
how the piracy of copyrighted materials stifles the 
innovation and creativity of Peruvians, as well as 
economically hurts the country through reduced tax 
collections, the guest speakers encouraged the local 
governments to fully implement the new municipal regulations 
that call for a crackdown on piracy sales.  Moscoso informed 
us that while the Indecopi event focused on Lima, Indecopi 
offices throughout Peru distributed pamphlets and other 
materials, explaining the urgent need to protect IPR. 
 
Steamrolling Pirated Goods 
-------------------------- 
 
7.  (SBU) Indecopi also commemorated its second annual 
Destruction Day on April 23, taking the opportunity to 
destroy more than 300,000 pirated CDs and DVDs collected 
during raids in 2005.  Moscoso noted that he hoped that 
during next year's Destruction Day, the GOP will be able to 
destroy more than half a million confiscated discs. 
Indecopi, he explained, continues to push Sunat (the 
Peruvian Customs and Tax Agency) and the police to conduct 
more raids throughout the country.  He also emphasized the 
need for local governments to enforce their laws that enable 
them to rescind licenses for those caught selling pirated 
goods.  Indecopi and local police, acting within these laws, 
plan to conduct more raids on known locations that sell 
pirated products. 
 
8.  (U) The focus during the week was not just on the piracy 
of optical discs.  Moscoso also highlighted Indecopi's 
efforts to broaden the scope of IPR education to include 
printed materials.  Teaming up with the Peruvian Book 
Association, Indecopi celebrated World Book Day on April 22. 
The Book Association sponsored special sales on books in 
more than 50 locations throughout Peru in an effort to 
promote the sale of legitimate books. 
 
Reduction in Tariff on 
Blank Optical Discs 
---------------------- 
 
9.  (SBU) Moscoso also informed us that Indecopi, in 
collaboration with the Lima Chamber of Commerce and several 
private companies including Imation, succeeded in reducing 
the fees charge on the imports of blank optical discs under 
the Artists Protection Law.  This law, which was passed in 
2004 in an effort to curb piracy and compensate local 
artists, established an excessive levy of 200-300 percent on 
the imports of all blank optical discs to be paid by the 
importers (Ref B).  UNIMPRO, the Peruvian Phonographic 
Association, previously charged a fee of $0.29 for blank CDs 
and $1.20 for blank DVDs.  On February 28, UNIMPRO and the 
Lima Chamber of Commerce signed an agreement lowering the 
fees to $0.03 for blank CDs and $0.07 for blank DVDs. 
 
Comment 
------- 
 
10.  (SBU) Anti-Piracy Week is an example of how the GOP is 
strengthening its efforts to combat IPR violations. 
Indecopi and Sunat have taken steps in the past year to 
improve protections of intellectual property rights.  We 
will continue to work with other GOP agencies -- 
particularly the police, prosecutors and judges -- 
encouraging them to punish IPR violators and enforce 
intellectual property laws. 
 
STRUBLE