US embassy cable - 04BRASILIA3089

UNCLAS SECTION 01 OF 02 BRASILIA 003089 
 
SIPDIS 
 
SENSITIVE 
 
STATE PLEASE PASS TO USTR AND USPTO 
NSC FOR MIKE DEMPSEY 
DEPT OF TREASURY FOR FPARODI 
USDOC FOR 3134/USFCS/OIO/WH/EOLSON 
USDOC FOR 4332/ITA/MAC/WH/OLAC/MWARD 
 
E.O. 12958: N/A 
TAGS: KIPR, ETRD, BR, IPR & Biotech 
SUBJECT:  DEMARCHE ON BRAZIL GSP/IPR REVIEW 
 
REF:  STATE 259750 
 
1. (SBU) ON DECEMBER 9, AMBASSADOR AND SPECASST MET WITH 
AMBASSADOR ANTONIO DE AGUIAR PATRIOTA (THE FOREIGN 
MINISTER'S CHIEF OF STAFF) TO DELIVER REFTEL DEMARCHE AND 
TALKING POINTS.  THE AMBASSADOR THANKED PATRIOTA FOR 
RECEIVING HIM FOR THE MEETING ON SHORT NOTICE.  HE THEN 
TOLD PATRIOTA THAT HE WAS THERE TO DELIVER AN IMPORTANT 
MESSAGE FROM WASHINGTON REGARDING THE GSP/ISP REVIEW.  THE 
AMBASSADOR SAID THAT AS PATRIOTA WAS AWARE, USTR HAD 
ANNOUNCED IN JUNE THAT THE INVESTIGATION REGARDING BRAZIL'S 
ENFORCEMENT OF COPYRIGHT LAW WOULD BE EXTENDED FOR 90 DAYS, 
AND THAT JUST RECENTLY THIS REVIEW HAD BEEN EXTENDED ONCE 
MORE FOR AN ADDITIONAL 180 DAYS.  THE AMBASSADOR SAID THAT 
THE USG HAS RECENTLY HELD MEETINGS WITH THE GOB AND 
RECOGNIZES THE MEASURES ALREADY TAKEN BY THE GOB TO ADDRESS 
PIRACY.  HE EMPHASIZED THAT THERE IS, HOWEVER, STRONG 
PRESSURE ON WASHINGTON TO WITHDRAW BRAZIL'S GSP BENEFITS, 
IN LIGHT OF THE $700 MILLION IN ESTIMATED LOSSES DUE TO 
COPYRIGHT PIRACY.  HE ASKED THAT THE GOB DEMONSTRATE 
PARTICULARLY AGGRESSIVE ENGAGEMENT, I.E. SELF-INITIATED 
RAIDS, SEIZURES AND INSPECTIONS, AND NOT JUST IN RIO AND 
SAO PAULO, BUT ALSO OTHER AREAS SUCH AS FOZ DO IGUACU AND 
IN THE NORTHEAST.  HE ASKED THAT THESE ACTIONS HAVE A HIGH 
PROFILE, AND BE HIGHLY PUBLICIZED.  HE ALSO STRESSED THE 
IMPORTANCE OF EXPEDITIOUS INVESTIGATIONS AND PROSECUTIONS 
RESULTING FROM THE RAIDS AND SEIZURES. 
 
2. (SBU) PATRIOTA, WHO WAS LEAVING ON TRAVEL THE FOLLOWING 
DAY, ASKED IF THERE WAS A PAPER THAT HE COULD USE TO 
DELIVER THIS MESSAGE WITHIN THE MFA TO THE APPROPRIATE 
PEOPLE, AT WHICH TIME THE AMBASSADOR PASSED A NON-PAPER 
CONTAINING THE TALKING POINTS DETAILED IN REFTEL.  THE NEXT 
DAY POST PROVIDED THE MFA WITH AN INFORMAL PORTUGUESE 
LANGUAGE TRANSLATION OF THESE POINTS. 
 
WORKING-LEVEL FOLLOW-UP 
----------------------- 
 
3. (SBU) FOLLOWING UP ON THE AMBASSADOR'S DECEMBER 9 
DEMARCHE, ECONOFFS MET WITH MINISTER ANTONINO PORTO E 
SANTOS, FIRST SECRETARY OTAVIO BRANDELLI, AND THIRD 
SECRETARY HENRIQUE CHOER MORAES TO GET A FURTHER READOUT ON 
 
SIPDIS 
THE GOB'S THINKING.  PORTO E SANTOS - AN A/S EQUIVALENT - 
HEADS THE MFA'S BUREAU FOR SCIENTIFIC, TECHNICAL, AND 
TECHNOLOGICAL COOPERATION - THE ENTITY WHICH OVERSEES IPR 
ISSUES WITHIN THE MINISTRY.  SPEAKING INFORMALLY, OUR MFA 
INTERLOCUTORS MADE THE FOLLOWING POINTS: 
 
--  IN PRINCIPLE, THE IDEA OF A MEETING OF THE BILATERAL 
CONSULTATIVE MECHANISM TO REVIEW PROGRESS (PRIOR TO MARCH) 
WAS ACCEPTABLE. 
 
--  THE MFA, AS HAD PRIVATE INDUSTRY, HAD ALREADY FORWARDED 
TO THE NATIONAL ANTI-PIRACY COUNCIL A DRAFT NATIONAL ACTION 
PLAN.  THE COUNCIL WOULD MEET EARLY IN THE NEW YEAR TO 
CONSIDER THESE DOCUMENTS. 
 
--  THE PACE OF ENFORCEMENT ACTIONS AT KEY POINTS SUCH AS 
THE FRIENDSHIP BRIDGE HAD ALREADY INCREASED SIGNIFICANTLY. 
NOTWITHSTANDING THE LIMITATIONS OF THEIR DATA COLLECTION, 
THE MFA HOPED TO SOON FIND OUT TO WHAT DEGREE THIS 
INCREASED ENFORCEMENT HAD RESULTED IN PROSECUTIONS. 
 
--  WHILE THE GOB COULD ISSUE RECOMMENDATIONS TO STATE AND 
FEDERAL PROSECUTORS, GIVEN THE INDEPENDENT BENT OF THE 
FEDERAL/STATE PUBLIC MINISTRIES THERE WAS NO GUARANTEE THAT 
THE PROSECUTORS WOULD PAY ANY HEED TO SUCH RECOMMENDATIONS. 
AND WHILE THE GOB PLANS TO LAUNCH A NATIONAL MEDIA CAMPAIGN 
AGAINST PIRACY, FUNDING FOR THIS YEAR IS PROBLEMATIC. 
 
NEXT STEPS 
---------- 
 
4.  (SBU) EMBOFFS WILL SEEK TO ENGAGE WITH LEADERS OF THE 
NATIONAL ANTI-PIRACY COUNCIL PRIOR TO THAT BODY'S NEXT 
MEETING.  SPECIFICALLY, WE WILL SOLICIT ADDITIONAL 
INFORMATION REGARDING THE STATUS OF THE GOB'S ANTI-PIRACY 
EFFORTS AND REITERATE OUR MESSAGE REGARDING: A) THE 
DESIRABILITY OF THE GOB MOVING FORWARD WITH RECOMMENDATIONS 
TO PROSECUTORS, AND B) INITIATING A NATIONAL ANTI-PIRACY 
MEDIA CAMPAIGN. 
 
DANILOVICH