US embassy cable - 05WARSAW1371

UNCLAS WARSAW 001371 
 
SIPDIS 
 
 
SENSITIVE BUT UNCLASSIFIED 
 
E.O. 12958:  N/A 
TAGS: ETRD, EFIN, KIPR, PL, Domestic Politics 
SUBJECT:  Poland: Debate on Film Act Heating Up 
 
REF: February 3 Birdsey-Erath/Sessums/Errion Email 
 
Summary 
------- 
 
1.  (SBU)  Legislation being drafted by the Polish 
Parliament (Sejm) to impose a tax on foreign broadcasts into 
Poland is being hotly debated in the government.  Sejm 
deputies want to use the collected revenue to subsidize the 
domestic film industry.  Although the Ministry of Culture 
sees no problem with the subsidy measure, the Ministry of 
Finance and the Office of Competition and Consumer 
Protection (UOKiK) have misgivings over the efficacy and 
legality of the measure.  A major question is whether the 
Sejm can pass the law before elections scheduled for June. 
An English translation of the law is not yet available; 
however, below is a translation of Article 19, which 
contains the substance of Post's and industry's concerns. 
End Summary. 
 
Split in Government and Parliament on Bill 
------------------------------------------ 
 
2.  (SBU)  Econoff spoke with Pawel Ziolek, a consultant for 
major U.S. broadcasters in Poland, regarding the status of 
the Film Act.  Ziolek said he was not surprised that, in a 
meeting between the Ambassador and the Minister of Culture 
last month, the Polish position on the Film Act was firm: no 
WTO/Trips incompatibility, and no real "injury" to foreign 
broadcasters.  In earlier discussions with Ministry of 
Culture staff, one Polish official raised and then dismissed 
the issue of copyright infringement, although we had not 
raised copyright as a particular problem (NOTE: If there are 
copyright or other IPR-related concerns to state aids for 
broadcasters that Post is missing, request Washington 
agencies to let us know. End Note). 
 
3.  (SBU)  Ziolek said that the Finance Ministry and UOKiK 
are exerting pressure on the Ministry of Culture to abandon 
support for the legislation.  Finance does not believe the 
measure will be cost-effective; UOKiK sees potential 
competition policy inconsistencies.  Within the Sejm there 
is also debate, with the Citizens' Platform (PO) and Law and 
Justice (PiS) parties lined up against the bill.  The 
Democratic Left Alliance (SLD), Polish Peasant Party (PSL) 
and League of Polish Familes (LPR) support the measure. 
Given the political dynamics in Poland, it is not clear that 
the measure can be made into law before elections in June. 
Nonetheless, industry representatives remain concerned that 
a bill with onerous tax levies may be pushed through soon. 
 
Article 19 
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4.  (U)  Entities running movie theatres shall transfer to 
the Institute a constant two percent write-off from the 
revenue obtained from showing films and advertisements in 
their theatres--this is to be performed before the revenue 
is shared with the distributing entity. 
 
5.  (U)  Distributing entities shall transfer to the 
Institute a constant three percent write-off from the 
revenue obtained from the sales and lease of carriers with 
recorded films, as well as from agreements authorizing other 
entities to such sales and lease. 
 
6.  (U)  Television broadcasters shall transfer to the 
Institute a constant two percent write-off from the revenue 
obtained from presenting TV-shopping advertisements and 
sponsored programmes. 
 
7. (U)  Entities collecting payments for access, on the 
territory of the Republic of Poland, to programmes 
originating from broadcasters from abroad but broadcast in 
the Polish language or translated into Polish  shall 
transfer to the Institute a constant two percent write-off 
from the revenue obtained from the above payments. 
 
8.  (U)  Cable TV operators shall transfer to the Institute 
a constant two percent write-off from the revenue obtained 
from the rendering of the re-emission service. 
 
Munter 
 
 
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 2005WARSAW01371 - Classification: UNCLASSIFIED