US embassy cable - 03ROME2435

UNCLAS  ROME 002435 
 
SIPDIS 
 
 
STATE PASS USTR FOR BURCKY 
 
Sensitive 
 
E.O. 12958: N/A 
TAGS: KIPR, ETRD, PGOV, IT 
SUBJECT: Italy's Finance Police See IPR Protection as Key 
 
(U) This cable is sensitive but Unclassified.  Please 
Protect Accordingly.  Not for Internet Distribution. 
 
1. (SBU) Summary: In a recent discussion with Emboffs, 
Major General Nino di Paolo underscored the commitment of 
Italy's Finance Police (FP) to fighting IPR piracy.  IPR 
protection has become a top priority for the FP as it has 
focused on the links between IPR pirates and organized 
crime.  Di Paolo said that law enforcement has sufficient 
legal tools to investigate and arrest offenders.  He saw 
magistrates, however, as either unwilling (in some cases) 
or too overworked (more often) to deal effectively with 
IPR criminals.  The far more fundamental problem, in his 
view, is the pervasive lack of understanding and support 
from the Italian political elites and the public. 
Changing this will require long-term, systematic 
education and outreach efforts. End Summary. 
 
2. (SBU) On May 12, Guardia di Finanza (Finance Police - 
FP) Major General Nino di Paola hosted a luncheon for 
ECMIN, Econcouns and Econ Specialist.  Also participating 
from the FP were Brigadier General Francesco Polella, 
head of international affairs, and Colonel Paolo Granata, 
head of the Antifraud and International Cooperation 
office.  The FP handles financial and economic crimes, 
including terrorism finance, money laundering, smuggling, 
tax evasion, counterfeiting and IPR piracy.  Di Paola is 
the third most senior official nationally in the FP. 
3. (SBU) Di Paolo stated flatly that IPR protection is a 
top priority for the FP.  The FP, he stressed, sees IPR 
piracy (copyright and trademark in particular) not as 
simple fraud or tax evasion, but as an integral part of 
organized crime.  In fact, in certain areas of the 
country criminal organizations have used IPR piracy 
earnings to replace lost revenues from traditional but 
declining illegal activities, such as cigarette 
smuggling, with copyright and trademark piracy.  Di Paolo 
expressed his conviction that treating piracy as a petty 
offence was a major mistake. 
 
4. (SBU) The laws now on the books in Italy are adequate 
and provide enforcement agencies with sufficient legal 
tools, in Di Paolo's view.  He argued that higher 
criminal penalties would not prove a significant 
deterrent to piracy.  He pointed out that criminals are 
often involved not only in piracy but also arms 
trafficking, money laundering and other crimes, and 
sentences are already significant for those crimes. 
Those not involved in other criminal acts, however, 
tended to be lower level pirates, whom magistrates are 
reluctant to sentence to jail time. 
 
5. (SBU) "Piracy can only be fought effectively if the 
Italian people's cultural approach to piracy is changed," 
stressed Di Paolo.  His proposal was to initiate a 
systematic, long-term information and sensitization 
campaign -- starting with primary schools.  Criminal and 
civil penalties, he said, are ineffective and difficult 
to implement "if a crime is not perceived as a threat and 
penalties are deemed inappropriate by the people." Di 
Paolo said that when his men raid arms dealers, 
bystanders on the scene applaud.  However, when the same 
officers raid music and video pirates, bystanders object 
and argue. 
 
6. (SBU) Di Paolo recognized that some magistrates tend 
to treat piracy as minor offences.  He maintained, 
however, that many judges do recognize the seriousness of 
IPR crimes, yet must set them aside to handle murders and 
other violent crimes.  In fact, Di Paolo explained, 
piracy is so closely linked to organized crime that major 
trademark and copyright piracy tends to be centered in 
areas of high criminal incidence.  Naples, for example, 
is the top area for criminal piracy and also a center of 
organized crime violence.  Magistrates under crushing 
workloads understandably give priority to murders and 
other violent crimes. 
 
7. (SBU) Di Paolo and ECMIN agreed that the Embassy and 
the FP would work to deepen and reinforce our mutual 
efforts in the fight against IPR piracy.  Working with 
our consulates and the IPR industry, we agreed to renew 
our plan of action against piracy, in light of lessons 
learned over the past few years. 
 
8. (SBU) Di Paolo thanked ECMIN for the Embassy's 
 
services in support of an important voluntary visitor 
program for senior FP officers conducted in April and for 
the continued inclusion of FP officers in the 
International Visitors program.  Underscoring the 
longstanding and active collaboration between the FP and 
Embassy officials, Di Paolo expressed satisfaction that 
the relationship had expanded from enforcement activities 
to policy dialogue on issues such as money laundering and 
IPR protection. 
 
9. (SBU) Comment: Under General Di Paolo's leadership, 
the FP has led Italy's fight against IPR piracy.  We have 
found them both committed and realistic in their efforts, 
but largely unsupported by the public and political 
elites. We hear frequently from IPR industry 
representatives about excellent cooperation from the FP, 
which is subsequently undermined by magistrates' 
unwillingness to prosecute and convict.  Di Paolo's less 
critical view of the magistrates may be simply a 
realistic assessment that he can expect no more. 
Sembler 
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	2003ROME02435 - Classification: UNCLASSIFIED