US embassy cable - 04BRASILIA2160

UNCLAS SECTION 01 OF 02 BRASILIA 002160 
 
SIPDIS 
 
STATE FOR WHA/BSC, EB/TPP/MTA/IPC SWILSON, AND CA/VO 
STATE PASS TO USTR FOR SCRONIN, LYANG AND BPECK 
USDOC FOR 
4322/ITA/MAC/WH/OLAC/WBASTIAN/JANDERSEN/DMCDO UGALL/DRISCOLL 
USDOC FOR 3134/USFCS/OIO/EOLSON/DDEVITO 
TREASURY FOR OASIA/SEGAL 
NCS FOR DEMPSEY 
 
E.O. 12958: N/A 
TAGS: KIPR, ETRD, KCRM, PGOV, ECON, BR, IPR & Biotech 
SUBJECT: BRAZIL: PIRACY CPI'S FOURTH IPR BILL 
 
REFS: A) BRASILIA 2150 B) BRASILIA 2017 C) BRASILIA 1668 
 
1.  This is the fourth in a series of five cables on 
legislation put forward on July 16, 2004 by Deputies 
belonging to the Congressional Investigative Commission on 
Piracy (reftels).  Below is Embassy's unofficial 
translation of the text of the fourth bill. 
 
2. Bill 3967/2004 
  (of the Piracy CPI) 
 
Modifies the penalty for crimes of contraband and receipt 
of illicit goods 
 
The National Congress decrees: 
 
Article 1 - This law increases the penalty for privation of 
liberty mandated for the crimes of contraband or smuggling 
and receipt of illicit goods, penalties restricting rights: 
 
Article 2 - Art. 180 and 334 of Decree-law no. 2.848 of 
December 7, 1940, enters into effect with the following 
edit: 
 
"Art. 180 ....................... 
Penalty - confinement, from 1 (one) to 4 (four) year, and 
loss of the right to do business. 
 
Paragraph 1 ....................... 
Penalty - confinement from 3(three) to 8(eight) years, and 
loss of the right to do business." 
 
"Art. 334. Import or export prohibited merchandise or 
evade, in full or in part, the payment of rights or taxes 
due on the entrance, or the exit or consumption of 
merchandise: 
Penalty - confinement, from 1(one) to 4(four) years and 
loss of merchandise and the vehicle used to effect the 
entrance or exit, as well as losing the right to do 
business." 
 
Article 3 - This law goes into effect on the date of its 
publication. 
 
JUSTIFICATION 
 
The bill that the Piracy CPI hereby presents has as its 
objective modification of the penal law to combat piracy so 
prevalent in our society. 
 
In Foz do Iguacu there are many buses that cross the border 
every day.  These buses, contrary to what might be 
expected, don't carry passengers, as they don't even have 
seats.  They are true cargo carriers, loaded with 
merchandise that is illegal either because it can't come 
into the country or because it came in without paying the 
taxes due. 
 
In the same way, throughout Brazil stores sell pirated 
merchandise; when there is an investigation, we seize it, 
and the next day they are back in business with hundreds 
more illegal products. 
 
The objective of this bill is, besides the deprivation of 
liberty already proscribed by the law, to deprive merchants 
who sell illegal products of the right to do business and 
those who promote contraband to lose the means of transport 
through which the crime was committed, in addition to the 
merchandise, which is often not even seized. 
 
With the hope that these measures help to decrease the 
entrance of illegal products into the country, we count on 
the support of the illustrious Deputies for approval of 
this project. 
 
Sessions Room, July 16, 2004 
Deputy Medeiros, President 
Deputy Josias Quintal, Reporter 
 
End unofficial Embassy translation. 
 
Danilovich