US embassy cable - 03ROME2182

UNCLAS ROME 002182 
 
SIPDIS 
 
 
SENSITIVE 
 
STATE PASS USTR FOR BURCKY 
 
E.O. 12958:  N/A 
TAGS: KIPR, ETRD, IT 
SUBJECT: ITALY - 2003 SPECIAL 301 NOTIFICATION 
 
 
    REF:  STATE 111508 
 
(U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED.  PLEASE 
PROTECT ACCORDINGLY.  NOT FOR INTERNET DISTRIBUTION. 
 
1. (SBU) ON MAY 6, ECONCOUNS CALLED ON MAURO MASI, DEPUTY 
SECRETARY GENERAL FOR THE PRIME MINISTER'S OFFICE AND 
 
SIPDIS 
EXTRAORDINARY COMMISSIONER OF SIAE (THE COPYRIGHT ROYALTY 
COLLECTING SOCIETY), REGARDING THE SPECIAL 301 
NOTIFICATION FOR ITALY (REFTEL).  MASI WAS NOT SURPRISED 
BY THE DECISION TO KEEP ITALY ON THE WATCH LIST.  HE WAS 
WELL AWARE OF THE REASONS BEHIND THIS DECISION.  HE 
INDICATED THAT THE GOI IS FULLY COMMITTED TO PURSUING IPR 
PROTECTION.  MOREOVER, MASI POINTED TO THE SERIOUS 
ENFORCEMENT EFFORTS THAT HAVE BEEN MADE BY THE GUARDIA DI 
FINANZA (FINANCE POLICE).  MASI ACKNOWLEDGED THAT ITALY'S 
FUNDAMENTAL PROBLEM WITH PIRACY RESULTS FROM 
INCONSISTENCY IN COURT RULINGS AND THE RELUCTANCE OF 
JUDGES TO TREAT IPR VIOLATIONS AS SERIOUS OFFENCES. MASI 
BELIEVED THAT THE ITALIAN PUBLIC WAS COMING TO APPRECIATE 
IMPORTANCE OF IPR AND WAS LESS PRONE TO PURCHASING 
PIRATED MATERIALS.  WHILE HE KNEW THAT SUCH CHANGES IN 
MENTALITY WOULD TAKE TIME, HE FELT THAT THE IMPROVEMENT 
WAS QUITE REAL 
 
2. (SBU) THE DISCUSSION THEN TURNED TO WHETHER 
COPYRIGHTED MATERIAL SHOULD BE REQUIRED TO HAVE (AND PAY 
FOR) A SIAE STICKER. ECONCOUNS EXPLAINED THAT THIS METHOD 
PUT THE BURDEN OF EFFORT AND COST ON THE INDUSTRY - 
ALREADY THE VICTIMS OF PIRACY.  MASI STATED HIS 
LONGSTANDING POSITION THAT THE SIAE STICKER IS THE BEST 
    WAY TO ENSURE THAT PRODUCTS OFFERED TO THE PUBLIC ARE 
LEGITIMATE.  WHILE MASI ADDED THAT, WHILE HE WAS NOT 
FULLY CONVINCED BY THE BUSINESS SOFTWARE ALLIANCE'S (BSA) 
ARGUMENT THAT BUSINESS SOFTWARE SHOULD BE EXEMPT FROM THE 
STICKER REQUIREMENT, THE GOI HAD DONE ALL WITHIN ITS 
POWER OF AMENDING REGULATIONS TO SATISFY BSA'S REQUESTS. 
ANY FURTHER ACTION WOULD HAVE TO BE ACHIEVED BY AMENDING 
EXISTING LEGISLATION "WHICH OF COURSE IS A MUCH MORE 
COMPLEX PROCEDURE." 
 
3. (SBU) MASI TOLD ECONCOUNS THAT HE PLANNED TO PRESENT 
SIGNIFICANT DRAFT IPR LEGISLATION TO PARLIAMENT DURING 
2003.  HE WOULD BE WILLING TO SHARE THESE DRAFTS WITH THE 
USG AS THEY ARE DEVELOPED, AND TO CONSIDER USG COMMENTS. 
AT THIS POINT, HOWEVER, HE DID NOT WISH TO GIVE ANY 
INDICATION AS TO THE NATURE OF THE PROPOSALS. 
 
4. (SBU) MASI HAS BEEN FOR SEVERAL YEARS THE CARETAKER 
COMMISSIONER OF SIAE. HE WAS APPOINTED TO BRING SIAE OUT 
OF A DEEP FINANCIAL CRISIS BY INCREASING REVENUES AND 
CUTTING EXPENDITURES.  THIS HE HAS DONE.  ASKED ABOUT HIS 
FUTURE ROLE, MASI INDICATED THAT SIAE WOULD ELECT A BOARD 
AND CHAIRMAN BY SEPTEMBER 2003.  WHILE HE WILL PROBABLY 
NOT BE THE NEW CHAIRMAN, MASI SAID HE WOULD MOST LIKELY 
CONTINUE TO SIT ON THE SIAE BOARD. 
 
5. (SBU) COMMENT: IN HIS DUAL ROLE -- COMMISSIONER OF 
SIAE AND SENIOR OFFICIAL IN THE PRIME MINISTER'S OFFICE 
FOR COPYRIGHT POLICY -- MASI HAS SHOWN FAR MORE INTEREST 
IN IMPROVING SIAE'S FINANCIAL SITUATION THAN IN FIGHTING 
PIRACY.  WE WOULD HOPE THAT HIS CHANGED ROLE AT SIAE WILL 
    MEAN A CHANGE IN HIS PRIORITIES. 
 
6.  (SBU) REGARDING IPR ENFORCEMENT MORE GENERALLY IN 
ITALY, THE GUARDIA DI FINANZA (FINANCE POLICE) HAS WORKED 
CLOSELY WITH THE IPR INDUSTRY AND THE MISSION FOR THE 
LAST SEVERAL YEARS TO FIGHT COPYRIGHT PIRACY.  THE 
CARABINIERI (NATIONAL MILITARY POLICE) HAVE MADE 
INCREASING EFFORTS AS WELL.  THERE ARE NOW FREQUENT 
ARRESTS FOR COPYRIGHT PIRACY.  HOWEVER, ITALIAN JUDGES 
ARE ALMOST ALL UNWILLING TO SENTENCE INDIVIDUALS TO 
PRISON FOR COPYRIGHT PIRACY.  SO LONG AS CRIMINALS KNOW 
THAT THEY FACE NO REAL POSSIBILITY OF JAIL TIME, PIRACY 
RATES WILL NOT FALL. 
SEMBLER 
 
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 2003ROME02182 - Classification: UNCLASSIFIED