US embassy cable - 05SOFIA1546

UNCLAS SOFIA 001546 
 
SIPDIS 
 
DEPT FOR EB/IPE JURBAN; SWILSON 
DEPT PLEASE PASS USTR LERRION 
DOC FOR SSAVICH 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, KIPR, ASEC, BU 
SUBJECT: BULGARIAN POLICE RAID PIRATE CD PRODUCER, ARREST 
TEN PEOPLE 
 
 
1.  SUMMARY:  The Bulgarian police broke up a large-scale 
Optical Disc Media (ODM) bootlegging operation, involving 
production and distribution of pirated goods.  Following a 
well-planned investigation, the police raided two illegal 
production sites August 31, seizing over 70,000 pirated 
discs with a retail value between 364,000-936,000 Bulgarian 
leva (USD 228,000 - 585,000).  Local industry 
representatives hailed the operation as a success and hope 
criminal cases against the 10 arrested suspects will soon 
follow. END SUMMARY. 
 
2.  The Ministry of Interior announced August 31 a major 
enforcement action against criminal organizations involved 
in the illegal production and distribution of copyrighted 
material.  The police action is the culmination of a six- 
month joint investigation conducted by members of the 
Economic Police Force in Sofia, Burgas and Vratsa, who 
worked in cooperation with industry representatives.  The 
enforcement activity was designed to disrupt and dismantle 
some of the major criminal organizations that illegally 
produce, distribute and trade in copyrighted software, 
movies, music and games. 
 
3.  Local industry representatives confirmed for us that the 
raids were prompted by information that they passed to 
police.  The police simultaneously raided two production 
sites and warehouses in Sofia and Vratsa, and reportedly 
seized over 70,000 illegal CDs/DVDs containing music and 
movies.  Police believe the investigation uncovered a major 
source of illegal CDs in Bulgaria.  The pirated goods were 
sold throughout the country, predominantly in Black Sea 
resorts, for prices between 7 Bulgarian leva (USD 4.4) and 
18 Bulgaria leva (USD 11.3).  Additionally, the police 
seized nine computer systems, a CD burner, a printing 
machine, 50 CD-Rs, 27 stereos, over one million printed CD 
covers of top name international artists, and another 2,000 
pirate CDs/DVDs in Burgas.  The equipment had the capacity 
to produce 1000 counterfeit CDs a day. 
 
4.  Police arrested 10 people including the 38 year-old 
suspected organizer of the operation.  Under the current 
Penal Code, the suspects could face imprisonment of up to 
three years and a fine of 1,000 - 3,000 Bulgarian leva (USD 
625 - 1,875). 
 
5.  On behalf of local industry, Rozalina Apostolova, head 
of the local representation of the Motion Picture 
Association, welcomed the Ministry of Interior's latest 
actions against organized CD/DVD piracy in Bulgaria.  She 
said this is an important seizure, which highlights the 
growing problem of pirate production in Bulgaria.  According 
to Apostolova, the raid may be the police force's largest 
seizure of pirated CDs/DVDs in several years. 
 
COMMENT:  The raid has successfully disrupted - if not 
dismantled - what might be one of Bulgaria's larger 
organized IPR bootlegging rings.  The seizure of such a 
large amount of production and the arrests of the ten people 
reflect the growing scale of ODM piracy and trade in 
Bulgaria.  We are hopeful that it also represents the start 
of increased enforcement activities.  These coordinated 
raids are a good example of how the national enforcement 
bodies together with industry representatives can 
successfully fight piracy.  Real success, however, will 
depend on whether the courts now follow through with 
prosecutions and convictions and whether further seizures 
continue. END COMMENT. 
 
BEYRLE