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Viewing cable 08ZAGREB566, CROATIAN POLICE FIGHTING IPR PIRACY BUT OUTMATCHED

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Reference ID Created Released Classification Origin
08ZAGREB566 2008-07-30 14:03 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Zagreb
VZCZCXYZ0001
PP RUEHWEB

DE RUEHVB #0566 2121403
ZNR UUUUU ZZH
P 301403Z JUL 08
FM AMEMBASSY ZAGREB
TO SECSTATE WASHDC PRIORITY 8527
UNCLAS ZAGREB 000566 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EEB/TPP/IPE JOELLEN URBAN 
 
E.O. 12958: N/A 
TAGS: ECON EINT KIPR HR
SUBJECT: CROATIAN POLICE FIGHTING IPR PIRACY BUT OUTMATCHED 
BY THE PIRATES 
 
1. (SBU) SUMMARY: The Croatian police actively pursue 
intellectual property pirates and have achieved some 
successes at raids and seizures, especially of smaller 
operations. However, police officials cite technological 
challenges and the global nature of the problem as major 
obstacles to further success. In particular, they are 
technologically outmatched by Amstel, Croatia's largest movie 
pirate, according to industry estimates. The lack of 
deterrent from Croatia's light punishment for convicted 
pirates and the limited resources available to the relevant 
section of the police department also hinder the fight 
against piracy. 
 
2. (SBU) On July 16, econ officer and econ assistant met with 
Ivan Mijatovic, head of the Financial Crime Department, 
General Police Directorate, Croatian Ministry of Interior, 
and Mirjana Vukovic, an inspector with the department, to 
discuss their actions against intellectual property piracy. 
Mijatovic and Vukovic told us the department is actively 
pursuing piracy operations and has had several successes at 
raids and seizures. They said, however, that the department 
is technologically outmatched by the best pirates. They also 
repeatedly stressed that intellectual property piracy is a 
global problem, well beyond the department's power to solve. 
Mijatovic, however, noted one problem specific to the 
Croatian justice system: while the earnings from some piracy 
operations are great, the punishment for convicted offenders 
is so small as to be little more than symbolic. He said fines 
are negligible amounts and imprisonment is very rare, and 
then of short duration, thus offering little deterrent for 
new or repeating offenders. 
 
3. (SBU) We asked particularly about the work of Amstel, 
which, according to Croatian Association for the Protection 
of Audiovisual Works estimates, is the largest movie pirate 
in Croatia sourcing from the internet and largest distributor 
in Croatia, earning at least $100,000 per year. Vukovic told 
us they know Amstel has been operating for years and is very 
large and well organized, though she could not give us a 
volume or monetary estimate of their operations. She said 
they believe Amstel operates out of several apartments to 
distribute DVDs and music CDs and has invested a lot in the 
operation. She said "Amstel" is their online nickname. The 
department continues to actively pursue Amstel. Vukovic said 
she knows they have gotten "very close," but they have never 
been able to establish solid enough proof for arrests. She 
said she has seen press articles joking that the department 
has made Amstel a monopoly, because in its pursuit of Amstel, 
it has discovered and closed down the other smaller 
operations. 
 
4. (SBU) Describing some of the challenges the department 
faces in pursuing intellectual property criminals, Vukovic 
referred to Amstel as a perfect example of a pirate 
organization. She said they are well organized and agile; 
they frequently change their internet provider (IP) and 
physical addresses. Further, they use untraceable, 
non-Croatian IP addresses. Vukovic and Mijatovic both said 
Amstel uses U.S.-based IPs and that this has hindered the 
department's investigations because they cannot access 
information from the IPs. They said the department simply 
cannot catch up or keep up with Amstel technologically. 
Vukovic said that, unfortunately, what may end up putting 
Amstel out of business is other advances in piracy that are 
making it easier and easier for average users to access 
pirated works for themselves directly from the internet. 
 
5. (SBU) COMMENT: Although piracy certainly is a global and 
technologically challenging problem, challenges internal to 
the Croatian police department also limit the success at 
cracking down on intellectual property crimes. In previous 
discussions, we have learned that the section of the 
department working on intellectual property crimes has only 4 
or 5 staff members. Further, the section also covers other 
cybercrimes such as child pornography, which often take 
higher priority. Thus, although the section staff appears 
dedicated and has invested serious effort and achieved some 
successes against intellectual property crime, they may have 
reached the limit of what they can accomplish without a 
significant increase in resources and expertise. 
Bradtke