US embassy cable - 03HOCHIMINHCITY1035

UNCLAS SECTION 01 OF 02 HO CHI MINH CITY 001035 
 
SIPDIS 
 
STATE FOR EB/TPP/MTA/IPC AND EAP/BCTLV 
STATE ALSO PASS USTR BURCKY/ALAVAREZ AND BRYAN 
STATE ALSO PASS USPTO FOR URBAN AND FOWLER 
STATE ALSO PASS LIBRARY OF CONGRESS FOR TEPP 
USDOC FOR LASHLEY AND 4431/MAC/AP/OPB/VLC/HPPHO 
 
E. O. 12958: N/A 
TAGS: VM, ETRD, ECON, KIPR, IPROP 
SUBJECT: 145,000 PIRATED DISCS/TAPES CONFISCATED IN HO CHI MINH 
CITY - WHAT'S NEXT? 
 
1. Summary:  Ho Chi Minh City's thriving trade in pirated media 
took a hit at the end of September when inspectors from the city's 
Department of Culture and Information (DCI) raided a large 
wholesale/retail shop where they confiscated over one hundred 
thousand pirated CDs, DVDs, VCDs, and videotapes.  Whether this 
will make much of a difference, how the authorities targeted the 
shop, and what will happen to the owner remain a mystery.  In a 
stiff, formal meeting between Econoff and DCI officials, they 
offered little context for the raid other than their claim that 
this was not an isolated enforcement action.  In fact one local 
official claimed HCMC authorities have confiscated over 700,000 
discs thus far this year.  Up to now, however, there has been no 
visible impact on other shops selling pirated CDs and DVDs here. 
End Summary. 
 
Possible Prosecutions, No One Detained Yet 
------------------------------------------ 
2.  Media reports stated that inspectors from the Ho Chi Minh City 
Department of Culture and Information raided an optical media shop 
on September 27 and confiscated over 100,000 items.  These reports 
characterized this raid as the largest in the city's history and 
part of an ongoing and concerted campaign to cut local stocks of 
pirated discs in half by year's end.  Some newspaper reports 
stated that the shop had been operating under the protection of a 
local police officer that happened to be the brother of the shop 
owner. 
 
3.  Econoff met with Deputy Director Nguyen Thanh Tan of the 
Department of Culture and Information to learn more about the 
action and praise this recent episode of enforcement.  Deputy 
Director Tan noted that the raid netted 145,000 pirated units. 
The majority of the discs were Vietnamese music CDs rather than 
foreign music or movie titles.  Inspectors concluded the store was 
a retailer of pirated discs, as well as a storage and distribution 
center serving other retailers.  Mr. Tan said his office turned 
over the findings of its investigation to the police.  Given the 
sheer number of discs and tapes involved, he expects the shop 
owner will face prosecution.  Local press has reported that, 
according to the department's Acting Chief Inspector, those 
involved will be brought to trial.  At present, however, the shop 
owner is free and will remain so pending the police review of the 
case and a decision on whether to bring charges.  Mr. Tan also 
said the authorities are interested in two other individuals 
associated with the case, though he did not elaborate on their 
relationship to the shop owner. 
 
Why this Shop? 
-------------- 
4.  Econoff asked Mr. Tan how the shop was identified and 
targeted, pointing out that pirated discs are openly sold 
throughout HCMC.  Tan sidestepped the question, however, 
explaining that his office's "Research Section" identified the 
shop and placed it under surveillance for over a week, after which 
his inspectors conducted the raid.  What brought the shop to the 
attention of the authorities remains unknown.  He denied any 
knowledge that local police were protecting the shop. 
 
5.  Other press accounts report that the department would target 
two production facilities in the future.  The Deputy Director, 
while agreeing with Econoff that producers were the most important 
link in the chain, would not elaborate on any possible new raids. 
He did repeatedly emphasize, however, that this raid was not some 
isolated incident but just one of many actions carried out by his 
inspectors as part of their ongoing campaign against pirated 
discs.  He even disputed headlines in local papers that dubbed 
this raid as the largest to date.  Tan said that equally large 
hauls of contraband goods had been taken in the past.  He seemed 
at pains to convey the impression that local authorities are fully 
engaged in the effort to control IPR violators and not just 
conducting a raid here and there for show.  In a follow-up 
conversation one DCI official stated that various authorities in 
HCMC have confiscated over 700,000 discs thus far this year. 
 
Why Act Alone? 
-------------- 
6.  The Department of Culture and Information is one of several 
local agencies that have authority to work in IPR enforcement. 
The DCI is more typically known for its role in licensing all 
cultural events and performances as well as publications.  These 
are the folks that censor publications and keep porn and politics 
out of the bookshops.  Recent press accounts of anti-piracy 
activities have referred to Team 814, an inter-agency group 
working against piracy in HCMC.  Tan listed his organization, the 
city's Trade Office, the Market Management Board, tourism 
authorities, city police, and the Department of Labor, Invalids 
and Social Affairs as members of Team 814.  The raid involved 
about 10 inspectors from the Culture and Information Service but 
no other participants.  The Deputy Director did not elaborate on 
why that was the case, except to say that they had a small time 
window to conduct the raid, thus bringing in other agencies was 
not feasible. 
 
Not Invited 
----------- 
7.  As for the fate of the confiscated discs, Tan told Econoff 
they would be burned or crushed under the wheel of a steamroller 
by the end of the month.  He added that authorities would destroy 
discs from this raid with discs confiscated in other actions, 
maybe as many as a million in all.  When Econoff told Tan he would 
be very interested in attending the destruction of the discs, Tan 
chuckled and responded that such events were always televised and 
Econoff could watch it on TV. 
 
Comment 
------- 
8.  Taking 145,000 pirated discs off the streets of HCMC, while 
certainly a positive move, is probably a drop in the bucket, and 
pirated CDs and DVDs are still openly sold throughout the city. 
Up to now, raids on shops selling illegal discs meant perhaps the 
loss of some merchandise, small fines, and a temporary closing. 
Most shops operate untouched.  If local authorities really want to 
stamp out the problem they will need to take aim at bigger fish 
and follow through with real penalties. 
 
9.  While DCI officials declined to offer much background 
information about the raid or their future plans, the local press 
has offered fairly broad coverage.  Vietnamese newspaper reports 
credit the authorities with identifying two production centers and 
claim that four or five "giant" suppliers serve the city's disc 
shops.  If the newspapers are correct, we hope the authorities 
will quickly move from "identify" and "suspect" to enforcement 
actions.  In the most recent case, as with the problem as a whole, 
the raids are an important beginning, but more will be needed for 
a lasting impact. 
 
YAMAUCHI