US embassy cable - 05ROME4046

UNCLAS SECTION 01 OF 03 ROME 004046 
 
SIPDIS 
 
STATE PASS USTR FOR JIM SANFORD 
USDOC PASS USPTO 
COMMERCE FOR DAS ERIC STEWART 
JUSTICE FOR ARIF ALIKAN 
 
E.O. 12356: N/A 
TAGS: KIPR, ETRD, EINV, IT, EUN 
SUBJECT: IPR Public Education in Italy: Refining the 
Message, Medium to Reach All 
 
REF:  ROME 1569 
 
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Summary 
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1. Uneven IPR enforcement by police remains a 
problem in Italy, but a lack of respect for 
intellectual property among the general public also 
represents a significant hurdle.  Some 20 percent of 
Italian consumers, according to a recent poll, admit 
to buying fakes.  The Embassy, in cooperation with 
the Italian Ministry of Culture, recently gathered 
key government and industry IPR experts for a 
brainstorming session.  This outreach session 
confirmed that GOI public education campaigns, in 
the eyes of industry observers, have failed to 
deliver a consistent, effective message about the 
damage of IPR crime to Italy's economy.  American 
participants shared examples of IPR public outreach 
programs, particularly DOJ's student-focused 
"Activate Your Mind" program. The U.S. Patent and 
Trademark Office also discussed its outreach to 
small businesses as a possible model. As a result of 
the workshop, the Ministry of Culture has offered to 
take the lead in future GOI-sponsored public 
education campaigns.  End summary. 
 
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Background 
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2.  Italy is now widely recognized as having adopted 
adequate IPR laws.  However, while there is some 
progress, much remains to be done on effective 
street-level enforcement and meaningful sentencing. 
Italian magistrates still see piracy as a petty 
offence and remain reluctant to impose jail time. 
Mission Italy will thus continue its efforts to 
sensitize Italian judges to the serious nature of 
IPR crime, including the heavy involvement of 
Italian and international organized crime. 
 
3.  Another weak link, however, is the lack of 
sensitivity among Italian consumers.  A recent poll 
sponsored by the Guardia di Finanza (Italy's 
financial police) showed that 20 percent of 
consumers admit to purchasing counterfeit products. 
While the GOI is conducting some education efforts, 
(e.g., officials of SIAE, the Italian government's 
royalty collection agency, visit schools to speak 
with students about piracy and illegal downloading), 
these programs are small in scale.  The Mission, 
along with our contacts in the United States and 
Italian copyright industries, see the need for a 
coordinated, wide-scale GOI effort to educate 
Italian society about the damage of IPR crime--in 
the form of more organized crime, lower employment 
in the Italian IP industries, potential safety and 
health hazards posed by counterfeited goods, and 
lost investment and tax revenue--to Italy. 
 
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First Workshop on Public Outreach 
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4.  To open this campaign, the Embassy, in 
collaboration with the Italian Ministry of Culture, 
hosted a public outreach "brainstorming session" 
with key GOI officials and U.S. experts.  This two- 
day roundtable workshop took place at ConGen 
Florence using a format similar to those used in our 
workshops with Italian judges (reftel).  Key to the 
success of this event was its informal and off-the- 
record nature, which allowed a more candid and 
fruitful exchange of ideas. 
 
5.  Italian participants included high-level 
officials from the Italian Ministries of Culture, 
Education, and Productive Activities; the Italian 
Society of Authors and Editors (SIAE), Confindustria 
(Italy's main business association); Italian anti- 
mafia judges; and Florence city officials. 
Additionally, communications experts from a think 
tank and a private consulting firm offered advice on 
refining the GOI's public education campaigns. 
Finally, representatives from the Business Software 
Alliance (BSA), FAPAV (an Italian film industry 
association affiliated with the Motion Picture 
Association), and FIMI (a music industry group 
representing U.S. labels here) provided industry 
perspectives. 
 
6.  From the United States, the Embassy invited Arif 
Alikan, Vice Chairman and Executive Director of the 
Department of Justice Task Force on Intellectual 
Property; Trent Luckinbill, Council to the Assistant 
Attorney General, Antitrust Division; Elizabeth Shaw 
from the U.S. Patent and Trade Office's Department 
of International Relations; and Deborah Foster, 
Senior Program Director at Street Law, an NGO that 
specializes in legal education programs for students 
and has participated in recent DOJ student outreach 
efforts. 
 
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Sympathy for Pirates 
-------------------- 
 
7. Participants generally criticized the (few) 
public campaigns conducted to date in Italy as 
ineffective and possibly even confusing for 
consumers.  There was broad consensus that the GOI 
had not done enough to explain the difference 
between legal activity (for example, making 
personal-use copies) and IPR infringement. 
Similarly, both government and industry have not 
generated much public sympathy for rights holders as 
many consumers, frustrated by the high cost of 
legitimate CDs and DVDs in Italy, tend to believe 
infringers are doing them a favor. 
 
8. Some participants also noted the need for the GOI 
itself to set an example on IPR. Some participants 
commented that, despite recent improvements, some 
Italian government offices, particularly at the 
local and regional level, continue to use unlicensed 
software.  BSA representatives said the situation 
may get worse as many bureaucracies cope with 
sharper budget cuts. 
 
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The Enforcement-Education Link 
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9.  Several additional themes emerged from the 
discussions, including: 
 
--Link Between Public Education and Enforcement: 
Many participants commented that better enforcement 
is the best public education tool.  Participants 
observed that an April 2005 law that created a 
maximum euro 10,000 fine for the purchase or 
possession of counterfeit items, has helped increase 
public awareness of IPR.  At the same time, 
enforcement with no public outreach risks creating a 
backlash.  Unless Italians understand the 
seriousness of IPR theft (especially organized-crime 
involvement) they will tend to oppose crackdowns on 
consumers and street vendors.  Many Italians tend to 
sympathize with the immigrant vendors and see the 
sale of fake bags and pirated music as a relatively 
harmless way for these immigrants to earn a living 
and allow budget tourists to return home with 
affordable gifts. 
 
--Need for Both Soft-Sell and Hard-Sell Approaches: 
Much of the debate centered on what themes IPR 
public outreach should emphasize.  A public 
communications expert pointedly criticized the anti- 
piracy ads shown in Italian movie theaters. 
Ordinary consumers, he said, tend to dismiss the 
menacing images (accompanied by loud heavy-metal 
music) of people in handcuffs.  Others argued that, 
while the "law-and-order" message is important, 
public service campaigns also need to explain why 
IPR is necessary for Italy's economic and cultural 
well-being. 
 
--Importance of Student Outreach: There was near- 
unanimous agreement on the importance of student 
outreach.  Italian officials expressed great 
interest in the Department of Justice's "Activate 
Your Mind" project, a student education program the 
DOJ is conducting in cooperation with Street Law and 
Court TV.  Many were impressed that Attorney General 
Gonzales had himself spoken at U.S. public schools 
to discourage Internet piracy. 
 
--More Private/Public Sector Cooperation:  Industry 
and the GOI should make a greater effort to 
coordinate activities by creating alliances among 
the media, labor unions, chambers of commerce, 
consumer associations, and local governments to 
promote IPR protection.  The deputy commander of 
Florence's municipal police briefed the workshop on 
police efforts to inform both tourists and locals 
about Italy's IPR laws and the danger of heavy 
fines.  Florence police have enlisted local 
merchants to distribute flyers explaining the law 
and have posted notices on buses and in taxis. 
Florence police, she said, make a point of 
conducting systematic and highly visible raids 
against street vendors as a complement to this 
outreach. 
 
[Comment:  We believe the Florence campaign is 
bearing fruit.  Econoffs have seen a decrease in 
street vending in the city over the past year. 
Predictably, however, city police are loathe to 
apply what many view as excessively high fines for 
purchase and possession of counterfeited goods. 
Thus, unless the level of the penalty is reduced, it 
is unlikely that city police will increase 
enforcement activities.  Alternative sentencing, 
such as community service, is not an option in 
Italy.  End comment.] 
 
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Ministry of Culture Takes the Lead 
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10.  In concluding the event, Culture Ministry 
Director General Paolo Carini indicated that the 
Ministry would take the lead for IPR public outreach 
and cooperate further with the U.S. Embassy to 
develop ideas.  He also indicated a desire to work 
with Italy's Education Ministry to promote IPR 
legality in schools and universities.  He also 
stated his office will try to obtain more budgetary 
resources for IPR campaigns. 
 
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Comment 
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11. This workshop revealed the need for better 
coordination within the GOI, and among industry 
associations, on IPR public education.  Copyright 
industry groups in Italy, which largely represent 
the interests of American multinationals, have 
resources to spend on public education; but 
government agencies by-and-large are reluctant to 
cooperate closely with business.  The Ministry of 
Culture is a good candidate to spearhead IPR 
outreach programs because it is the lead agency with 
responsibility for copyright enforcement.  The 
Ministry also has authority over Italy's royalty 
collection society, SIAE, which generates large 
amounts of cash for the GOI via a surcharge on the 
sale of books, music, movies, and software. We hope 
that, in the future, SIAE will devote more of these 
funds to promoting respect for IPR among the general 
public.   Recent leadership changes at SIAE leave us 
optimistic that this agency will become more active 
in anti-piracy efforts here.  End comment. 
 
Spogli