US embassy cable - 05BRASILIA599

UNCLAS SECTION 01 OF 07 BRASILIA 000599 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR WHA/BSC AND EB/TPP/IPE 
STATE PASS TO USTR FOR SCRONIN, LYANG AND BPECK 
STATE PASS TO USPTO/OLIA 
USDOC FOR 
4332/ITA/MAC/WH/OLAC/JANDERSEN/ADRSICOLL/MWAR D 
USDOC FOR 
3134/ITA/USCS/OIO/WH/RD/DDEVITO/DANDERSON/EOS LON 
NSC FOR KBREIER 
 
E.O. 12958: N/A 
TAGS: KIPR, ETRD, KJUS, BR, IPR & Biotech 
SUBJECT: BRAZIL'S NATIONAL PLAN TO COMBAT PIRACY 
 
REF A) BRASILIA 487 (NOTAL) 
 
1. SENSITIVE BUT UNCLASSIFIED; PLEASE PROTECT 
ACCORDINGLY 
 
2. (U) Summary.  Brazil's National Council to Combat 
Piracy and Intellectual Property Crimes (Council) has 
formulated a national plan consisting of 91 measures, 
broken down into three categories based on their 
expected timeframe for implementation. The Council 
expects to be able to implement 38 measures within 6 
months, including a national media campaign, 
escalation of police operations, and the formation of 
specialized IPR units in the Federal Police and 
Federal Highway Police.  At the March 8 Bilateral 
Consultative Mechanism meeting, the GoB will provide 
an update to their September report on copyright 
enforcement and the Executive Secretary of the Council 
will make a presentation on the Council and the 
national plan.  End Summary. 
 
Background - National Council 
 
3. (U) Last November, the GoB formed a high-level 
National Council to Combat Piracy and Intellectual 
Property Crimes (Council), to a large extent in 
response to pressure from the USG in the form of a 
review of Brazil's trade benefits under the 
Generalized System of Preferences (GSP) program 
(reftel). The Council is presided over by the well- 
respected Vice-Minister of Justice, Luiz Paulo 
Barreto.  Marcio Costa de Menezes e Goncalves, who 
hails from the audiovisual private sector, has now 
been tapped to work full-time as Executive Secretary 
of the Council, and is responsible for providing its 
day-to-day direction.  The Council is comprised of 
high-level government officials, leading IPR industry 
representatives and congressional staffers. 
 
National Plan 
 
4. (SBU) On March 1, Otavio Brandelli, head of 
Itamaraty's IPR Division, provided econoff with a 
readout of the Council's three-day meeting (February 
26-28) in which a national anti-piracy plan was 
formulated.  With clear enthusiasm, Brandelli 
described that an expert in public planning had led 
the group through a marathon session in which the 
council constructed a national plan through a wholly 
collaborative effort - first with the group labeling 
the problem, then defining it further, and finally 
brainstorming to propose and agree on ideas for 
effectively attacking the problem. 
 
5. (SBU) The end result was a list of 91 measures, 
broken down into categories of short-term (6 months), 
medium-term (1 year), and long-term (2 years), based 
on their expected time-frame for implementation, 
although work is supposed to commence immediately on 
all 91 measures (see para 10 below for an unofficial 
translation of the measures).  Brandelli stressed that 
all the measures were adopted by consensus; he noted 
that an additional six to seven measures are going to 
be discussed during the Council's next meeting on 
March 17.  According to Brandelli, the process was 
productive not only for the resulting plan, but also 
in forging cohesiveness and a high-level of commitment 
within the group as it afforded all participants a 
"buy-in." 
 
6. (U) Thirty-eight measures fall into the short-term 
category, including a national media campaign, an 
escalation of police operations, and the formation of 
specialized IPR units within the Federal Police and 
Federal Highway Police.  Creation of a national 
database falls into measures that will be implemented 
over the longer-term. 
7. (SBU) In a separate discussion with Carlos Alberto 
de Camargo of the Association for the Defense of 
Intellectual Property and of the Motion Picture 
Association, he described the biggest challenge for 
implementation of the national plan as funding.  He 
identified two budgetary sources: the National Fund 
for Public Security at the federal level, and state 
governments.  The Ministry of Justice is responsible 
for lining up implementation resources.  Additional 
resources may be sought by seeking "collaborators" for 
implementation of specific measures; he noted that USG 
involvement would be welcome.  (Note, certain measures 
of the national plan could fit comfortably within 
potential technical assistance projects administered 
by Department of Justice OPDAT.)  Camargo assured 
econoff that in instances where the Council lacked 
institutional authority to direct the action of 
another governmental body, resulting in a measure in 
the form of a "recommendation," the intention of the 
Council is to go beyond recommending and to work 
directly with the entity involved to ensure 
implementation. 
 
8. (U) The Brazilian delegation to the Bilateral 
Consultative Mechanism (BCM) meeting on March 8 in 
Washington will provide an update to the report on 
copyright enforcement the GoB presented at last 
September's BCM meeting.  They plan to provide data on 
police actions, as available, including raids in well- 
known market places.  The centerpiece of their 
presentation will be a report given by Marcio Costa de 
Menezes e Goncalves, Executive Secretary of the 
Council, on the national plan. 
 
9. (U) Consulates Rio and Sao Paulo will report on 
private sector perspectives toward the Council and the 
national plan in septels. 
 
10. (U) Unofficial translation of the list of measures 
identified as comprising Brazil's national plan to 
combat piracy follow.  The measures are divided into 
categories that reflect the expected timeframe for 
implementation. 
 
SHORT-TERM ACTIONS 
 
1. Create Federal Police Department Divisions for 
Reducing Contraband and Embezzlement and Combating 
Piracy, and a similar Section in the Federal Highway 
Police Department. 
 
2. Amply publicize Government actions in the fight 
against piracy. 
 
3. Recommend that the Judiciary Power create 
specialized or preferential jurisdictions for 
Intellectual Property. 
 
4. Recommend creation of Legal Prosecutors specialized 
in Intellectual Property. 
 
5. Improve the process of removing foreigners involved 
with Intellectual Property offenses from the country. 
 
6. Improve exchange of information and agreements for 
the purpose of extraditing criminals. 
 
7. Recommend to States installation of Specialized 
Police Stations, under the purview of SUSP. 
 
8. Recommend to MEC action with headmasters for 
effective compliance with Law 9.610 (author's rights) 
in Colleges and Universities. 
 
9. Recommend to MEC reassessment of the number of 
copies of books per discipline/student. 
 
10. Conduct seminars/events with judge's associations, 
OAB and Attorney General (Public Ministry). 
 
11. Conduct a seminar (MERCOSUL) about piracy. 
 
12. Support the process of legislative changes that 
call for an expert opinion through sampling of seized 
pirated products, as well as remove the necessity to 
describe all goods seized. 
 
13. Identify transparent methods of financing by the 
private sector of measures to fight piracy. 
 
14. Include the piracy theme in the Unified System of 
Public Safety - SUSP. 
 
15. Study international agreements that can influence 
the practice of piracy in Brazil. 
 
16. Suggest neighboring countries increase inspection 
at borders suspected of piracy. 
 
17. Propose to the Ministry of Planning prioritization 
of resources for construction, expansion, reform and 
equipping installations of inspection agencies (SRF, 
DPF, DPRF). 
 
18. Support together with the Ministry of Planning, 
increased staffing for Federal Police, Federal 
Highways and Federal Revenue. 
 
19. Strengthen and publicize methods of exchange and 
warranties for legal products used in piracy. 
 
20. Create an educational campaign:  "Cheap Costs a 
Lot". 
 
21. Show the population how a legal product is priced. 
 
22. Teach the consumer to evaluate products based not 
only on price. 
 
23. Inform society about software offers and lower 
prices for students and teachers. 
 
24. Suggest to ANATEL, the telecom regulator, that it 
increase monitoring of radio and TV transmissions of 
intellectual works likely to be pirated. 
 
25. Request unions who defend Intellectual Property 
give the Council periodic updates on new types of 
piracy and counterfeiting. 
 
26. Create training materials for instruction on 
police investigation, regarding crimes against 
Intellectual Property. 
 
27. Recommend to administrative and police authorities 
that they request authorization to destroy pirated 
products in public and private storage. 
 
28. Create within the Council a channel of 
communication for receipt and handling of accusations. 
 
29. Suggest to the National Bar Association placement 
of Intellectual Property questions on bar exams. 
 
30. Seek together with the Ministry of Education and 
educational entities inclusion of Intellectual 
Property in coursework in higher level courses, 
especially in law courses. 
 
31. Propose to the Judiciary creation of a database 
listing civil and criminal lawsuits of violations of 
Intellectual Property rights. 
 
32. Promote management with state and municipal 
governments that cede public space for sale of pirated 
products. 
 
33. Send the Council communications warning about the 
practice of book piracy, to higher learning 
establishments. 
 
34. Propose public/private partnerships aimed at using 
communication channels in awareness campaigns on the 
subject. 
 
35. Organize campaigns divulging information about the 
risks of consuming pirated products. 
 
36. Disseminate Council work to the manufacturing 
sector to encourage their participation in activities 
against piracy and Intellectual Property crimes. 
 
37. Propose changes in legislation that permit quick 
destruction or alternative disposition of seized 
pirated goods, when possible, even before it goes to 
trial. 
 
38. Suggest the maintenance and escalation of 
operations by Federal Police, Federal Highway Police 
and Federal Revenue against manufacture and 
distribution of pirated goods in Brazil. 
 
 
MEDIUM-TERM ACTIONS 
 
1. Better control immigration. 
 
2. Establish better customs and police cooperation, 
especially among MERCOSUL members and border 
countries. 
 
3. Propose formation of an International Court for 
Combating Piracy. 
 
4. Cooperate in the training and certification of 
personnel with support of international organizations 
and entities. 
 
5. Tighten cooperation with border countries 
(especially tri-border) and third countries. 
 
6. Hold an annual national meeting for exchange of 
information for combating piracy. 
 
7. Propose creation of popular products at low prices 
(alternatives). 
 
8. Offer incentives to develop studies between 
government and industrial manufacturing sector with a 
view to reducing prices on products that tend to be 
pirated. 
 
9. Assist in establishing reference pricing parameters 
to aid in the control of incoming pirated products and 
fraud. 
 
10. Identify the need for updating legislation and 
study bills in process in the National Congress that 
deal with Intellectual Property. 
 
11. Propose to the police chiefs and Attorney General 
(Public Ministry) publication of internal 
administrative norms to standardize procedures for 
combating piracy. 
 
12. Identify and propose prioritized geographic 
regions for border action. 
13. Request systematic operations at known critical 
points. 
14. Study ways to apply WTO customs valuation code, 
similar to that of MERCOSUL and ALADI. 
 
15. Conduct frequent national campaigns in the media 
with the support of public and private entities, 
artists and their own means of communication. 
 
16. Promote awareness activities in professional 
institutes and learning establishments, such as 
universities, schools, etc. 
 
17. Propose creation of state and municipal inspection 
work groups in significant centers of illegal 
products. 
 
18. Evaluate already existing resources for formation 
of a database. 
 
19. Broadcast through communication channels the 
illegality of publication of ads for pirated products. 
 
20. Evaluate Decree 4.543/02 concerning customs rules, 
eliminating eventual regulations that make combating 
piracy difficult. 
 
21. Formulate proposals regarding appropriate 
disposition of seized products and equipment. 
 
22. Formulate proposals that assign liability to 
agents who perform electronic sales of products that 
violate Intellectual Property. 
 
23. Seek public and private means to increase the 
quantity of instructional materials in libraries, 
teaching institutions and other entities of public 
interest. 
 
24. Institute or perfect integrated intelligence 
systems at SRF, DPF and DPRF to combat piracy. 
 
25. Promote seminars, courses and other activities 
involving the public and private sectors and unions, 
designed for specific target audiences (judges, 
prosecutors, experts, police, customs agents, authors, 
artists, etc.) with the purpose of disseminating 
knowledge about legislation and its observance. 
 
26. Develop mechanisms to share operational 
information on the subject among police, 
administrators, inspectors and judiciary. 
 
27. Support the inclusion of piracy in curricula at 
police academies and federal, state and municipal 
inspection agencies. 
 
28. Support states and municipalities in their 
respective application initiatives regarding police 
power and administrative inspection. 
 
29. Conduct educational campaigns for students 
regarding illegal reproduction of books. 
 
30. Enter into agreements with research institutions 
to generate studies, numbers and statistics on the 
extent of piracy in the country (for all sectors). 
 
31. Enter into agreements with research institutions 
(IPEA, IBGE, etc.) to conduct a socio-economic 
analysis regarding the problem of piracy in the 
country. 
 
32. Support strengthening of judgeships and creation 
of agencies in structures where they don't yet exist. 
 
33. Promote and stimulate exchange of information 
among international agencies related to the fight 
against Intellectual Property crimes. 
 
34. Obtain from pertinent public institutions, in 
particular agencies that deal with reducing crime, 
subsidies that allow elaboration of information about 
technical and financial difficulties encountered in 
prevention or reduction activities. 
 
 
LONG-TERM ACTIONS 
 
1. Promote common policies in the education field to 
enlighten the population as to the evils of piracy. 
 
2. Promote/aid development of activities that can 
substitute for piracy in border countries. 
 
3. Conduct and give incentives for training and 
certification courses for police agents, experts, and 
specifically agents of the Federal Revenue Service and 
State Revenue Secretaries. 
 
4. Promote means for coordinating actions between 
police and government administrative inspection 
agencies. 
 
5. Stimulate creation of state councils for combating 
piracy. 
 
6. Periodic disclosure of statistics regarding 
information obtained on piracy. 
 
7. Create and maintain a database, with information 
collected on a national level, integrated into the 
Unified System of Public Safety (SUSP). 
 
8. Sign agreements with entities specialized in 
development and management of databases. 
 
9. Promote and elaborate research and periodic 
evaluation on the piracy situation in target sectors. 
 
10. Improve alternative sentencing techniques and 
impose greater strictness in compliance. 
 
11. Conduct studies as to the possibility of reversing 
the burden of proof in cases of customs 
underinvoicing. 
 
12. Studies on the possibility of seizing vehicles and 
goods used for piracy. 
 
13. Studies about the common responsibility of owners 
of commercial establishments and teaching of piracy in 
institutions. 
 
14. Conduct studies about ways to promote balance of 
relations between owners of Intellectual Property 
rights and consumers. 
 
15. Coordination of marketing campaigns geared towards 
valuing and respecting intellectual property and 
against piracy. 
 
16. Creation/perfection of an integrated database from 
other public organs containing information on 
foreigners suspected of involvement with acts of 
piracy with subsequent release to related foreign 
agencies. 
 
17. Sign agreements with research institutions to 
identify compliance with manufacturing, distribution 
and business activities (standard of competition and 
price formulation). 
 
18. Study with the public and private sectors the 
viability of small distributors substituting pirated 
products for another type of legal product or 
alternative employment. 
 
19. Study in partnership with the private sector, 
possible alternatives for the reduction of the price 
differential/costs between legal and illegal products. 
 
Danilovich