US embassy cable - 03ABUDHABI1028

UNCLAS ABU DHABI 001028 
 
SIPDIS 
 
SENSITIVE 
STATE FOR NEA/ARP, NEA/PPR AND EB/IPC FOR WILSON 
STATE PASS USTR - ALVAREZ AND BUNTIN 
STATE PASS LOC - TEPP 
USDOC FOR USPTO - URBAN 
USDOC FOR LASHLEY 
GENEVA PASS USTR 
 
E.O. 12958: N/A 
TAGS: PREL, KIPR, ETRD, TC 
SUBJECT:  UAEG WORKING WITH PRIVATE COMPANIES TO STEM 
VIDEO PIRACY 
 
1. (U) Classified by DCM Richard Albright for reasons 
1.5 (b) and (d). 
 
2. (U) Summary:  According to press reports, several 
labor camps outside of Abu Dhabi have in the past year 
become centers for pirated video cassettes; workers 
from south India record the latest movies on VHS tapes 
and rent them out to consumers in Abu Dhabi at reduced 
prices.  But UAE authorities have found an unlikely 
ally in their efforts to eliminate the trade and are 
turning to employers to educate their workers about 
the legal risks of counterfeiting.  At the UAEG's 
urging, contracting companies who manage the labor 
camps are posting signs warning workers that the 
company will take legal action against workers 
involved in counterfeiting.  According to Abu Dhabi 
police, this campaign has resulted during the last few 
weeks in the imprisonment and deportation of dozens of 
counterfeiters in the labor camps.  End summary. 
 
3. (U) Local contracting companies are posting signs 
in English and in the various languages of the 
subcontinent warning employees that they will be fired 
and referred to the police if they are engaging in 
counterfeiting activity.  The notices also remind 
employees that, under the new Copyright Law of 2002, 
counterfeiters may face two to nine months 
imprisonment and a fine ranging from USD $2,700 to 
$55,000.  The penalty is doubled for repeat offenders 
according to the number of copyrights violated. 
 
4. (U) According to the Abu Dhabi police, these 
laborers record movies on VHS tape and rent out 30 to 
50 video cassettes each day at a rate far less than 
that of authorized video dealers -- about USD $.50 to 
$1 per video.  These pirated movies, according to the 
police, reach the UAE via Pakistan and the Far East. 
Most of the new Hindi movies are smuggled via Pakistan, 
while Tamil movies come through Malaysia and Thailand. 
English movies are smuggled by Chinese expatriates from 
Hong Kong. 
 
5. (U) The UAEG is cracking down on the counterfeiters 
in response to complaints by movie distributors, video 
store owners, and local cinemas.  These businesses have 
reported 50 percent losses in distribution and 60 
percent losses in their retail business during the last 
year.  According to press reports, local merchants have 
formed a committee to strategize with Abu Dhabi law 
enforcement on ways to combat video piracy. 
 
6. (SBU) Comment:  The UAE authorities responsible for 
copyright enforcement are stretched thin and 
historically have relied on industry -- and, in this 
case, the legitimate employers of the 
workers-cum-counterfeiters -- to identify culprits and 
illicit activity.  For workers in the labor camps, 
termination by their employers and loss of income are 
greater deterrents than imprisonment; contracting 
companies likewise have an incentive to keep workers 
under their sponsorship out of trouble. If this new 
tactic significantly reduces counterfeiting in the 
labor camps (and it is, according to press reports), 
the UAEG is likely to expand its program of working 
with local companies to ensure implementation of IPR 
polices to sectors of the economy where counterfeiting 
continues to be a problem.  End comment. 
 
Wahba