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Viewing cable 07WARSAW1918, NEED PIRATED MUSIC? FILMS? WARSAW STADIUM STILL

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Reference ID Created Released Classification Origin
07WARSAW1918 2007-09-11 08:23 2011-08-24 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Warsaw
VZCZCXRO3649
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHWR #1918/01 2540823
ZNR UUUUU ZZH
P 110823Z SEP 07
FM AMEMBASSY WARSAW
TO RUEHC/SECSTATE WASHDC PRIORITY 5144
INFO RUCNMEM/EU MEMBER STATES
RUEHKW/AMCONSUL KRAKOW 1827
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
UNCLAS SECTION 01 OF 02 WARSAW 001918 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO USTR WMOORE 
USDOC FOR 4232/ITA/MAC/EUR/JBURGESS, JKIMBALL, MROGERS 
TREASURY FOR MGAERTNER 
 
E.O. 12958: N/A 
TAGS: ETRD ECON KIPR PL
SUBJECT: NEED PIRATED MUSIC? FILMS? WARSAW STADIUM STILL 
OPEN 
 
REF: WARSAW 137 
 
WARSAW 00001918  001.2 OF 002 
 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED 
 
1. (U)  Summary:  The "Russian market" at the Warsaw Stadium, 
for years the most visible symbol of intellectual property 
theft in Poland, was supposed to close at the beginning of 
July to make way for construction of a new stadium needed for 
the 2012 European Soccer championship (reftel).  However, the 
market remains open, and counterfeit goods are readily 
available.  End summary. 
 
------------------------ 
The Scene at the Stadium 
------------------------ 
 
2. (U)  On August 8, EmbOffs observed an abundance of pirated 
goods on sale at the market.  These included: 
 
-- Films and Music:  Next to the bus stop for the Stadium a 
table stood laden with pirated films.  Inside the Stadium, 
many more were openly offered.  "The Bourne Ultimatum" was 
scheduled to open that day in Warsaw theaters, but was 
already on sale at the market, packaged with the other two 
films in the Bourne Trilogy.  EconOff asked a Russian trader 
whether he had a copy of "The Simpsons Movie."  The trader 
stated he did not have a copy with him, but that the 
"supplier" could deliver one in about 15 minutes.  Polish 
films that have just opened in theaters here were also 
available.  Music CDs and DVDs with four or five movies, 
generally grouped by genre, sold for PLN 15 (about US$5.35). 
More merchandise was available than was on display.  Traders 
regularly sidled up, murmuring, "Films? Music?" 
 
-- Shoes:  A huge number of stands offered tennis shoes with 
patently false Nike, Adidas and Puma markings.  EconOff asked 
one Ghanaian trader whether he had a particular pair of 
"Nike" shoes in a different size.  The trader produced a pair 
from a full duffel bag under his table.  However, they were 
missing the painted-on Nike "swoop." 
 
-- Clothing:  Sweat shirts and similar apparel was widely 
available with logos such as Nike or the New York Yankees. 
These labels also appeared on clothing that was not sports 
related (for example, a midriff-baring polyester woman's 
clubbing tank top to which an incongruous Puma logo had been 
added).  While the quality of the sports apparel tended to be 
low, good quality jeans with Diesel, Wrangler and Armani 
labels were on sale, as well as very good quality "Lacoste" 
shirts.  The "Lacoste" shirts were available for PLN 35 
(about US$12.50). 
 
-- Cigarettes and Alcohol:  EconOff noted several instances 
of men walking around the market with cartons of cigarettes, 
often Marlboros, poking out of their jackets.  EconOff also 
observed a transaction in which, having fixed a price with a 
customer, a trader ran down the Stadium steps, uncovered a 
trash bag that had been hidden under some sticks and weeds, 
withdrew a bottle of vodka, returned to the customer and 
slipped it quickly into his shopping bag. 
 
3.  (SBU)  The Stadium is owned by the Ministry of Sport, and 
had previously been managed by a company called Damis. 
However, the Damis-Ministry of Sport contract expired July 
31, and was not renewed.  Since then, an association of the 
vendors has been responsible for administering the site.  One 
might reasonably question their zeal in policing themselves. 
EmbOffs observed an official placidly going from stall to 
stall, each openly displaying counterfeit wares, collecting 
the PLN 6 rent (about US$2.14). 
 
4.  (U)  The appearance of two police officers created more 
stir.  First, a lookout yelled, "Police."  Then tables 
emptied.  EconOff observed a trader from Russia or the 
Ukraine hiding a bag of goods underneath a kebab stand. 
Next, the trader made a furious series of coordinating calls 
on a walkie-talkie/cell phone.  When the policemen appeared, 
they ambled past now-cleared tables, although 10 feet away 
knock-off shoes and shirts remained out on display. 
Nevertheless, police enforcement has had some effect on trade 
at the Stadium.  A Bangladeshi selling "Lacoste" shirts told 
EmbOff that the cost of having the shirts -- which are very 
good quality, even if cheaper than the real article -- 
confiscated could be ruinous, so he now brings less 
 
WARSAW 00001918  002.2 OF 002 
 
 
merchandise to the Stadium.  However, he also proffered a 
cell phone number that could be called to place an order for 
shirts in advance of a future trip to the market. 
 
------------------------ 
How Long Can This Go On? 
------------------------ 
 
5.  (SBU)  Closing dates for the Stadium repeatedly have been 
announced, and then postponed.  One problem is that the 
Polish government has not yet settled on a new location for 
the market and its roughly 4,000 traders.  Acquiring land and 
making any needed improvements will eat more time.  On August 
7, it was reported that the market would be closed by 
October.  However, traders told EmbOff they expect to be at 
the Stadium at least until the end of the year.  On September 
7, the Ministry of Sport's spokesman was quoted in the media 
saying that, according to the construction schedule, the 
Ministry won't need the land for a year yet.  The vendors 
association understands that to mean the they can stay for 
another year, although the top of the Stadium, where 
intellectual property piracy is at its worst, will have to be 
vacated sooner.  Also on September 7, the Ambassador asked 
new Sports Minister Jakubiak about plans for the Stadium. 
She indicated construction of the new stadium would begin in 
March 2009, but offered no insight regarding the future of 
the market. 
 
--------------- 
Does It Matter? 
--------------- 
 
6.  (SBU)  The Stadium remains important as a symbol known 
worldwide of intellectual property theft.  However, contacts 
in the Polish police, as well as representatives of the 
motion picture and recording industry associations,  have 
told EconOff they are most concerned by the rise of internet 
piracy, where content is downloaded illegally (often from 
servers in the United States, contacts state).  Digital 
piracy is harder to control than trade in physical goods like 
DVDs or CDs.  These contacts stated that trade at the Stadium 
is not on the scale of a few years ago (although one 
long-time observer of the market told EconOff the openness 
with which fake goods are offered has increased). 
 
7.  (SBU)  These contacts also believe that, sooner or later, 
the Stadium will close, and that whatever replaces it will be 
an improvement.  Plans call for a new trading space, wherever 
it may be, to be enclosed, with controlled points of entry 
and egress.  This should make it easier to prevent bringing 
counterfeit goods into the marketplace. However, there is 
some risk that the illegal traders will simply migrate to 
other, smaller open-air markets already in existence around 
Warsaw.  In any case, while the Stadium remains an 
intellectual property protection problem, it is no longer the 
epicenter of the problem in Poland. 
HILLAS