US embassy cable - 05YEREVAN1452

UNCLAS YEREVAN 001452 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EUR/CACEN, EUR/ACE, EB/IPC 
PLS PASS TO USTR, USPTO 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, KIPR, AM 
SUBJECT: IPR POLICE UNIT (FINALLY) PUT IN ACTION 
 
 
SENSITIVE BUT UNCLASSIFIED.  PLEASE PROTECT ACCORDINGLY. 
 
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SUMMARY 
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1.   (SBU) In its first major action since its creation in 
January 2005, Armenia's IPR police unit July 20 cracked down 
on three companies which together control roughly 70 percent 
of the pirated CDs, DVDs and tapes market.  The police 
confiscated more than 50,000 illegal CDs, tapes and 
videotapes and filed an indictment.  Head of the IPR Agency 
Armen Azizyan told us that in the police will soon close 
down the rest of the companies producing and distributing 
illegal pirated products.  "The press has actually done us a 
favor by increasing public awareness regarding the IPR law, 
piracy and existence of enforcement unit," Azizyan said. 
Although this is a step forward in IPR law enforcement, no 
steps have been taken to curb the broadcast of films and TV 
shows without a license.  End Summary. 
 
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POLICE CRACK DOWN ON RECORDING STUDIOS 
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2.   (SBU) The director of "ArmAuthor" NGO Susanna Nersisyan 
told us that their organization filed a claim against 
several recording studios violating the "IPR and Related 
Rights Law" by failing to pay fees for reproducing the works 
of several local authors.  (Note:  ArmAuthor collects fees 
and royalties in Armenia similary to ASCAP in the U.S.  End 
Note.)  A police unit of Armenia's Anti-Organized Crime of 
RA Police" started an investigation and on July 20 they 
searched warehouses and confiscated more than 50,000 illegal 
CDs, tapes and videotapes.  They instituted a criminal case 
against those companies "HD," "THD" and "Reco Records" which 
are owned by the Khanoyan brothers and control around 70 
percent of the market for the production and distribution of 
pirated products.  ArmAuthor's Nersisyan and Azizyan believe 
that the police will crack down the other companies 
producing and distributing illegal products.  Nevertheless, 
under the current legislation the police cannot prosecute 
international IPR violations without a complaint, filed in 
Armenia, by an aggrieved party. 
 
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ANOTHER CASE OF PROTECTIONISM? 
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3.   (SBU) The owners of the raided companies, the Khanoyan 
brothers, claim that the police action was organized on the 
orders of Ashot Giziryan, head of the Unit of Fight Against 
Organized Crime, who is alleged to own another recording 
studio, "KK Studio," and who they claim is trying to drive 
them out of the market.  Karen Karapetyan, "KK Studio" 
general director, denied any connection with Giziryan in a 
number of interviews, and claims that the studio is 
operating legally, has more than 100 agreements with authors 
and performers, and pays the required fees to ArmAuthor. 
 
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COMMENT: IPR ENFORCEMENT STILL HAS A WAY TO GO 
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4.   (SBU) It's a good sign that the police may finally 
taking IPR enforcement seriously and is cracking down on the 
producers of pirated products.  Closing down the major 
player in that field is a huge step forward.  Despite the 
campaign against pirated music and films, the enforcement 
unit has not taken action against the broadcasting of 
unlicensed programs on TV or production and distribution of 
unlicensed software, and this case was against reproduction 
of Armenian products.  The enforcement unit has few legal 
options with regard to pirated international goods, since 
the law does not provide for ex-officio prosecutions.  We 
continue to support regulation and enforcement of IPR in 
Armenia through USG programs, and will continue to press the 
GOAM to pass legislation that will make Armenia's IPR regime 
as effective as possible. 
GODFREY