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Viewing cable 06SAOPAULO910, BRAZIL'S NATIONAL PLAN TO COMBAT PIRACY: AN UPDATE ON

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Reference ID Created Released Classification Origin
06SAOPAULO910 2006-08-18 15:04 2011-07-11 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Sao Paulo
VZCZCXRO4615
RR RUEHRG
DE RUEHSO #0910/01 2301504
ZNR UUUUU ZZH
R 181504Z AUG 06
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC 5648
INFO RUEHBR/AMEMBASSY BRASILIA 6722
RHEHNSC/NSC WASHDC
RUCPDOC/USDOC WASHDC 2546
RUEHMN/AMEMBASSY MONTEVIDEO 2123
RUEHBU/AMEMBASSY BUENOS AIRES 2414
RUEHSG/AMEMBASSY SANTIAGO 1845
RUEHLP/AMEMBASSY LA PAZ 2977
RUEHPE/AMEMBASSY LIMA 1049
RUEHCV/AMEMBASSY CARACAS 0365
RUEHBO/AMEMBASSY BOGOTA 1428
RUEHRG/AMCONSUL RECIFE 3093
RUEHRI/AMCONSUL RIO DE JANEIRO 7372
RUEHAC/AMEMBASSY ASUNCION 2733
RUEATRS/DEPT OF TREASURY WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEAWJC/DEPT OF JUSTICE WASHDC
UNCLAS SECTION 01 OF 02 SAO PAULO 000910 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR WHA/BSC AND EB/TPP/IPE 
STATE PASS TO USTR FOR MSULLIVAN 
STATE PASS EXIMBANK 
STATE PASS OPIC FOR MORONESE, RIVERA, MERVENNE 
NSC FOR FEARS 
USDOC FOR 4332/ITA/MAC/OLAC 
USDOC FOR 3134/USFCS/OIO 
USDOC ALSO PASS PTO/OLIA 
TREASURY FOR OASIA, DAS LEE AND JHOEK 
DOL FOR ILAB MMITTELHAUSER 
DOJ FOR CMERRIAM 
AID/W FOR LAC/AA 
 
E.O. 12958:  N/A 
TAGS: KIPR ETRD ECON KJUS BR
SUBJECT:  BRAZIL'S NATIONAL PLAN TO COMBAT PIRACY:  AN UPDATE ON 
IMPLEMENTATION EFFORTS 
 
REF: A) Brasilia 599 
 
1.  SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT ACCORDINGLY 
 
2. (U) Summary.  At the July 26 Sao Paulo meeting of Brazil's 
National Council to Combat Piracy and Intellectual Property Crimes, 
the public-private Forum Against Piracy and Illegality (FNCP) 
officially became an autonomous unit of the Council.  The meeting 
reviewed the past year's implementation of the Council's 99 measures 
to combat piracy and outlined the FNCP's proposed actions during 
this election year.  These FNCP actions include  presentation of a 
petition to all candidates for political office recommending public 
policies to combat piracy, a national public/private awareness 
campaign, and continuing public debates to gather support and 
momentum.  The Council and the Sao Paulo State Interagency Committee 
Against Piracy closed the meeting with a detailed review of their 
2006 -2007 action plans to combat piracy, defined by a combination 
of law enforcement, educational, preventive and economic measures. 
End Summary. 
 
3.  (U) July marked the first autonomous meeting of the FNCP, an 
organization conceived within the National Council to Combat Piracy 
and Intellectual Property Crimes (itself formed in November 2004), 
and composed of  private, state, and social enterprises joined 
together to combat piracy in its various forms.  The role of the 
FNCP is threefold:  (1) to formulate a permanent discussion and 
debate framework on combating piracy, (2) to be a channel of 
communication between the state-sponsored federal Council and 
society at large, and (3) to continuously enlist the active 
participation of all current and future members of FNCP in the 
ongoing national struggle to combat piracy. 
 
4.  (U) FNCP President Paulo Rosa, also the President of the 
Brazilian Association for the Recording Industry, introduced a 
petition for signature that would be presented to all political 
candidates, containing suggested public policies to be implemented 
in the fight against piracy, contraband and copyright violation. 
All members present were urged to sign, and the petition is expected 
to be delivered to candidates within 15 days.  Rosa hopes that the 
petition will stimulate debate during the election campaign, 
especially if presented in terms of loss of jobs and tax revenue, 
both of which directly affect all voter communities.  According to 
FNCP sources, piracy accounted indirectly for the loss of 496,000 
jobs in 2005, and resulted in another approximately 154,000 jobs not 
being generated in the formal economy.  It caused a loss of USD 2 
billion in tax revenues for the federal government, while the 
manufacturing sector was denied production and sales worth USD 5.4 
billion. 
 
5.  (U) At the meeting three federal Congressional Deputies, all up 
for re-election, each reiterated that piracy is not a problem that 
is coming across the Paraguayan border in stuffed shopping bags, but 
rather a structured, illegal trade activity conducted within Brazil 
by well-organized gangs.  According to FNCP Executive Secretary 
Alexandre Cruz, this illegal trade has grown 25% in the past 12 
months.  Not only is the problem endemic among the Brazilian public, 
it also encompasses many legitimate businessmen and government 
officials.  The President of the Parliamentary Investigative 
Committee (CPI) on Piracy, Federal Deputy Luiz Antonio Medeiros, 
whose testimony led to the incarceration of Brazilian-Chinese 
businessman (and counterfeit smuggler) Law King Chong in 2004, 
 
SAO PAULO 00000910  002 OF 002 
 
 
stated that both Sao Paulo and Brasilia are major centers in Latin 
America for pirated, counterfeit and smuggled goods.  He cited as an 
example the plaza in front of the Congress in Brasilia, known as the 
"Paraguayan Marketplace."  Although located in direct sight of law 
enforcement officials, the market manages to sell all types of 
counterfeit and pirated goods.  Deputy Julio Semeghini mentioned 
that it is not surprising to see high-ranking government officials 
in the crowded market purchasing products side by side with the 
public. 
 
6.  (U) The meeting closed with the National Council to Combat 
Piracy and Intellectual Property Crimes and the Sao Paulo State 
Interagency Committee to Combat Piracy presenting their current and 
future plans to combat piracy.  Both organizations pursue a 
combination of preventive, educational, economic, and law 
enforcement measures in combating piracy.  Each works in 
coordination with local, state and federal law enforcement and has 
been successful in lobbying the government to obtain increased 
funding for law enforcement operations to combat piracy. 
 
7.  Comment.  (SBU)  The formation of the FNCP is a positive step in 
Brazil's continuing fight against piracy.  Its members cross the 
broad spectrum of industries that are affected by these illegal 
actions, from the recording, motion picture, and software industries 
to manufacturers and publishing companies.  Working as an autonomous 
unit, FNCP should be able to serve as a channel between public and 
private forces, stimulating continued debate, awareness and action 
against this ever increasing problem.  Brazil cannot afford to 
weaken its present position given the high economic cost in lost 
sales, impact on jobs, and lost tax revenues.  End Comment. 
 
McMullen