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Viewing cable 08LAPAZ551, BOLIVIAN PIRACY: IF YOU CAN'T BEAT 'EM, JOIN 'EM

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Reference ID Created Released Classification Origin
08LAPAZ551 2008-03-10 21:25 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0000
RR RUEHWEB

DE RUEHLP #0551/01 0702125
ZNR UUUUU ZZH
R 102125Z MAR 08
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC 6783
INFO RUEHAC/AMEMBASSY ASUNCION 7696
RUEHBJ/AMEMBASSY BEIJING 0425
RUEHSW/AMEMBASSY BERN 0164
RUEHBO/AMEMBASSY BOGOTA 5053
RUEHBR/AMEMBASSY BRASILIA 8964
RUEHBU/AMEMBASSY BUENOS AIRES 6185
RUEHBY/AMEMBASSY CANBERRA 0094
RUEHCV/AMEMBASSY CARACAS 3399
RUEHPE/AMEMBASSY LIMA 3620
RUEHMD/AMEMBASSY MADRID 3914
RUEHMN/AMEMBASSY MONTEVIDEO 5318
RUEHNE/AMEMBASSY NEW DELHI 0166
RUEHNY/AMEMBASSY OSLO 0153
RUEHOT/AMEMBASSY OTTAWA 0522
RUEHQT/AMEMBASSY QUITO 6022
RUEHSG/AMEMBASSY SANTIAGO 0651
RUEHKO/AMEMBASSY TOKYO 0356
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHBS/USEU BRUSSELS
RUMIAAA/USCINCSO MIAMI FL
RUEHUB/USINT HAVANA 0987
RHEHNSC/NSC WASHINGTON DC
RHMFIUU/HQ USSOUTHCOM MIAMI FL
UNCLAS LA PAZ 000551 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON KIPR EINV BL
SUBJECT: BOLIVIAN PIRACY: IF YOU CAN'T BEAT 'EM, JOIN 'EM 
 
1. (SBU)  Summary:  Piracy of audio-visual materials is 
almost universal in Bolivia, damaging the domestic movie- and 
music- industries and eliminating any chance of profits for 
international imports.  Certain members of the domestic 
industry have recently taken two different routes in attempts 
to wrench some profits from the Bolivian market: market 
"Bolivian pride" or make deals with the pirates.  The 
situation is complicated by an almost complete lack of 
enforcement and local government initiatives that wink at 
intellectual property theft.  Post is looking for financial 
support for an upcoming World IPR-day event, see paragraph 7. 
 End summary. 
 
- - - - - - - 
Buy Bolivian 
- - - - - - - 
 
2. (SBU)  A number of domestic movie producers have signed up 
with La Paz newspaper "La Razon", which is selling copies of 
prominent domestic movies through the newspaper's retail 
chain.  The paper is running print ads encouraging readers to 
support the Bolivian industry and "look for the gold llama" 
or the gold camera, as indicators of genuineness.  La Razon 
sells its movies for 25 bolivianos (about USD3.3, while most 
pirated movies sell on the streets for 10 bolivianos or less.) 
 
- - - - - - - - - - 
Strange Bedfellows 
- - - - - - - - - - 
 
3. (SBU)  Meanwhile, Emboffs met with Bolivian movie producer 
Roberto Calasich, who has taken a more unusual step to try to 
earn money on his back catalogue.  Calasich informs us that 
he has entered into a business arrangement with the National 
Federation of Audio and Video Merchants, a loosely-organized 
union of Bolivian media pirates.  Reportedly, other Bolivian 
intellectual property owners have also taken this step: 
Enriqueta Ulloa, president of the Bolivian musical artists' 
organization SOBODAYCOM complained to us that a 
locally-famous Bolivian singer has recently signed an 
agreement with a pirates' union to distribute her CDs. 
According to Calasich, the pirates Federation has agreed not 
to pirate his videos, but instead to allow Calasich to 
produce copies of his videos, which he provides to the 
Federation at a cost of 1 boliviano (13 cents) apiece.  The 
Federation then sells the videos, usually for around 10 
bolivianos, through its network of vendors. 
 
4. (SBU) Calasich says his agreement with the media pirates' 
Federation has a number of benefits:  he is able to take 
advantage of the Federation's far-flung distribution network, 
and the product sells for the usual street price, therefore 
avoiding being undercut by "pirated" (or that is, other 
pirated) videos.  Calasich was dismissive of the La Razon 
"protect the Bolivian movie industry" campaign, because he 
said Bolivian consumers would not be willing to pay the high 
price of over USD3 per movie.  Calasich admitted, however, 
that he had no way of knowing if the Federation was abiding 
by its agreement, and he added that it would certainly be 
easy to fake the Federation's statement of "genuineness" 
(with its emblem of a circle-and-slash through a skull and 
crossbones.) 
 
- - - - - - - - - - - 
Honor Among Thieves? 
- - - - - - - - - - - 
5. (SBU)  According to Calasich, the group of media pirates 
now calling themselves the National Federation of Audio and 
Video Merchants banded together in the face of even cheaper 
pirated goods from outside the country.  He added, with no 
apparent irony, that the Federation needed to protect the 
Bolivian piracy sector.  During our meeting, Calasich asked 
for USG assistance in further cooperation with the Federation 
to allow him to recover some profits on his movies.  Calasich 
has since written to request support in "deepening of the 
process of legalization of piracy of DVDs."  In this request, 
he included a script that would humorously portray the 
conflict between a group of pirates and a group of reformed 
pirates.  "Some day Jerry Bruckheimer or Columbia Pictures 
will support us," says one of the script's ex-pirates, 
dreaming of owning distribution rights to U.S. films. 
Calasich plans to involve members of the pirates Federation 
in his production, so that they will see the value of 
Bolivian film-making.  Although Calasich says his aim is that 
Bolivian society recognize piracy as a crime, his ethical 
stance is complicated by his continued business association 
with the Federation, which makes the majority of its money by 
pirating U.S. intellectual property.  Even if Federation 
members grow to appreciate the Bolivian movie industry, it is 
not likely that they will cease stealing from U.S. 
intellectual property owners. 
 
6. (SBU) In a meeting with Emboffs, Eriqueta Ulloa and Noemi 
de Valdivia (presidents of two Bolivian artists associations) 
laid out the complete lack of any respect for intellectual 
property in their industry.  They mentioned that of the two 
remaining legal outlets for audio-visual materials in La Paz, 
one had recently closed and begun producing illegal disks, 
unable to compete in a market with no legal protection and no 
consumers interested in obeying unenforced laws.  According 
to Ulloa, the mayor of La Paz has recently "legalized" piracy 
by granting licenses to outlets of pirated products, as long 
as they do not sell pirated Bolivian products.  According to 
de Valdivia, not only did this pseudo-legitimize piracy and 
make the government a beneficiary of intellectual property 
theft, but the "no pirated Bolivian products" does not work: 
"Of course they sell our (pirated) CDs, if there are 
customers."  Ulloa (a well-known Bolivian singer who has 
toured in the United States) joked about seeing a 3-pack of 
her most famous CDs repackaged as her "Mariachi" collection: 
"They put my head on the body of some singer from Mexico in a 
Mariachi costume." 
 
- - - - 
Comment 
- - - - 
 
7. (SBU)  Embassy La Paz does not see a way to cooperate with 
Calasich on his goal of normalizing piracy, as we informed 
him during our meeting.  His plight and his attempt at a 
solution do highlight, however, the challenges faced by 
intellectual property owners in Bolivia.  As the Mission, 
through USAID and the Embassy, seeks to increase outreach and 
education on intellectual property rights issues, we will 
attempt to include local stakeholders.  Hopefully we will be 
able to provide  better options than "legalizing" piracy. 
Emboffs are exploring the possibility of showcasing artists 
from Ulloa and de Valdivia's associations at an upcoming 
world IPR day program which will hopefully include 
presentations from local and international IPR experts. 
Although the artists' groups are interested in volunteering 
their performances, the entire event (plus logistical support 
for the artists) will need funding.  Post would be interested 
in any PD or IPR desk funding available.  Please contact Beth 
Mader at madere@state.gov.  End Comment. 
GOLDBERG