Summary: 3 cables from Peru where Free/open source gets mentioned, especially in relation to government policy
TECHRIGHTS has a dear contributor called Eduardo Landaveri, to whom the following Cablegate cables would probably provide insight that is needed for understanding of his home country’s policy regarding software. The first cable says that “[i]n 2003, the GOP[Government of Peru] passed a decree mandating that all government agencies use legally procured open-source software. GOP agencies had until March 31, 2005 to erase all pirated software and install the legitimate versions”; the second one is similar but newer and the third one is a bit gross because Intel is nominated for a goodwill award for merely attacking its competition and trying to make a profit at the expense of poor people in Peru. Intel is a viciously anticompetitive company.
The three cables follow.
UNCLAS SECTION 01 OF 03 LIMA 000870 SIPDIS DEPT FOR WHA/AND, EB/IPE SWILSON COMMERCE FOR 4331/MAC/WH/MCAMERON DOC FOR J. BOGER USPTO FOR J. URBAN LOC FOR S. TEPP USTR FOR J. CHOE-GROVES E.O. 12958: N/A TAGS: ECON [Economic Conditions], ETRD [Foreign Trade], KIPR [Intellectual Property Rights], PE [Peru] SUBJECT: PERU: SPECIAL 301 REVIEW REF: A) State 23950 B) 04 Lima 1031 C) 04 Lima 1524 ¶1. Summary. Post recommends that Peru remain on USTR's Special 301 Watch List for 2005. Peru continued to face high levels of copyright piracy, including a substantial increase in optical disc piracy affecting the audiovisual industry in 2004. Indecopi, the GOP's IPR administrative agency, conducted high-profile raids and continued its public awareness campaign. Peru continues to face several problems, including the overall inadequacy of enforcement and the lack of deterrent sentences. The GOP did not take any significant steps to resolve the pharmaceutical industry's concern about a lack of protection for proprietary test data. GOP trade officials indicated that the data protection issue should be resolved during the U.S.- Andean free trade negotiations in 2005. End Summary. High Rates of Optical Disc Piracy --------------------------------- ¶2. Despite Indecopi's efforts, copyright piracy rates continued to climb in 2004. The audiovisual industry suffered from a dramatic increase in pirated optical discs, with an estimated piracy level of almost 75 percent, up from 65 percent in 2003. Jose Vega, General Manager of Blockbuster Peru, informed us that the motion picture industry lost an estimated $5 million in 2004 due to audiovisual piracy. The large amount of imported blank optical discs, as well as the wide availability of DVD technology, helps account for this increase. Peru also has one of the highest rates of musical piracy in the world. According to the Anti-Piracy Crusade, 98 percent of CDs in Peru are pirated. Martin Moscoso, head of Indecopi's copyright office, and the Business Software Alliance noted that Indecopi estimated that business software piracy levels have decreased from 60 percent in 2003 to 56 percent in 2004. Efforts to Rein in Piracy But More Coordination Needed ---------------------------- ¶3. Indecopi continued its "Anti-Piracy Crusade," which began in 2002. Indecopi's anti-piracy efforts in 2004, in collaboration with other government agencies as well as the private sector, focused on: 1) intensifying enforcement actions and 2) expanding the public awareness campaign. Indecopi's copyright office conducted, jointly with the national police and SUNAT (Peru's tax and customs agency), 37 raids in 2004 and confiscated over $20 million in pirated goods and blank optical discs. In March 2004, the Peruvian police, coordinating with one of Peru's special IPR prosecutors, successfully uncovered and seized a shipment of 750,000 blank optical discs valued at $400,000 (Ref C). In December 2004, the national police raided a Lima shopping center where pirated goods are sold, confiscating over $500,000 in pirated DVDs and CDs. ¶4. Private sector and Indecopi officials note that although SUNAT has participated in several seizures of pirated goods, it needs to become more involved in overall IPR enforcement. SUNAT assumed control of Peruvian customs in 2003 and has worked with Indecopi on several raids. The head of Indecopi's copyright office declared that SUNAT should take a more active role in coordinating and conducting raids, particularly at the ports. Currently, SUNAT is more focused on facilitating shipments at ports by quickly clearing containers. Many customs officials have had no prior training on how to recognize counterfeit goods. Harsher Punishments for Copyright Infringements ----------------------- ¶5. Industry and Indecopi officials involved in the Anti- Piracy Crusade agree that the GOP needs to improve IPR enforcement. Both call for the establishment of specialized judges to handle IPR cases, as well as greater authority for the two special IPR prosecutors (who only have authority in Lima). Currently, judges lack expertise in intellectual property matters and have avoided imposing harsh sentences on IPR violators. In July 2004, the GOP passed Law No. 28289, the Law on the Fight Against Piracy, which increased the minimum penalty for piracy from a two-year to a four- year sentence, with a maximum sentence of eight years. There have yet to be any convictions under the new law, although there are more than 1,000 IP cases pending before Peru's courts. GOP Mandates the Use of Legitimate Software ------------------------------------------- ¶6. In 2003, the GOP passed a decree mandating that all government agencies use legally procured open-source software. Unfortunately, this loosely written decree did not establish which GOP agency was to take the lead on implementation, nor did it designate penalties for violations of this decree. GOP agencies have until March 31, 2005 to erase all pirated software and install the legitimate versions. Peru's Software Association held several educational sessions for Congressmen in 2004, emphasizing the importance of using legal software. Mario Camara, Deputy Director General of the Office of E- Commerce and Information, informed us February 16 that not all agencies have complied with the requirement. With no agency designated as point of contact, it is difficult for the GOP to monitor progress. Camera noted that his office would meet with each GOP agency's Systems Office next week to encourage them to comply with the decree. Camera also warned that the lack of funding to purchase the new software might limit some agencies' ability to procure legal software. Higher Taxes and a New Import Registry -------------------------------------- ¶7. A new decree passed as part of Peru's tax reform in January 2004 requires importers of blank CDs to make valued added tax payments in advance, improving SUNAT's ability to trace subsequent purchases. In November, SUNAT began imposing a higher tariff on all importers of blank optical discs ($1.30 per DVD and $0.25 per CD), in an effort to differentiate between legal and illegal importers. ¶8. In July, the GOP passed a law requiring that SUNAT establish an import registry for all persons and companies importing blank optical discs and recording equipment. With the registry, SUNAT would be able to monitor the frequency of optical disc importation and target those companies that cannot justify legal sales of these discs. To date, SUNAT has not yet established this registry. Pharmaceutical Data Protection ------------------------------ ¶9. The GOP did not take significant action in 2004 to improve the protection of confidential pharmaceutical data. The issue of data protection is increasingly sensitive, as local generic drug producers have high levels of political clout. Trade officials continue to argue that the TRIPs Article 39.3 does not mandate any specific period of data exclusivity. Peru, which is, along with Colombia and Ecuador, negotiating a free trade agreement with the United States, intends to resolve our data exclusivity concerns in the FTA process. Comment: Recommend No Change in Status --------------------------------------- ¶10. Post recommends that Peru remain on USTR's Special 301 Watch List due to the continued high levels of piracy and copyright violations, as well as the continued lack of protection for pharmaceutical test data. Despite increased focus and awareness of IPR problems, the GOP has not increased judicial enforcement of existing laws in order to create a meaningful deterrent nor established clear administrative measures for government agencies to comply with those laws. STRUBLE
VZCZCXYZ0002 RR RUEHWEB DE RUEHPE #0699/01 0531554 ZNR UUUUU ZZH R 221554Z FEB 06 FM AMEMBASSY LIMA TO RUEHC/SECSTATE WASHDC 8820 INFO RUEHBO/AMEMBASSY BOGOTA 3011 RUEHQT/AMEMBASSY QUITO 0042 RUEHLP/AMEMBASSY LA PAZ FEB SANTIAGO 0213 RUEHCV/AMEMBASSY CARACAS 9102 RUEHBU/AMEMBASSY BUENOS AIRES 2269 RUEHME/AMEMBASSY MEXICO 3281 RUEHBR/AMEMBASSY BRASILIA 6520 RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEAFCC/FCC WASHDC RHEHNSC/NSC WASHDC UNCLAS LIMA 000699 SIPDIS SIPDIS DEPT FOR WHA/AND, WHA/CEN, EB/IPE CLACROSSE AND AANDAMO COMMERCE FOR 4331/MAC/WH/MCAMERON DOC FOR JBOGER USPTO FOR JURBAN LOC FOR STEPP USTR FOR JCHOE-GROVES E.O. 12958: N/A TAGS: ECON [Economic Conditions], ETRD [Foreign Trade], KIPR [Intellectual Property Rights], PE [Peru] SUBJECT: PERU: SPECIAL 301 REVIEW REF: A) STATE 14937 B) 05 LIMA 1971 C)05 LIMA 3794 ¶1. Summary. Post recommends that Peru remain on USTR's Special 301 Watch List for 2006. Peru continued to face high levels of copyright piracy in all sectors, including media, books, toys, apparel and other merchandise, in 2005, including a slight increase in optical disc piracy. Indecopi, the GOP's IPR administrative agency, conducted high-profile raids and continued its public awareness campaign. Peru continues to face several problems, including the overall inadequacy of enforcement, inadequate border protections and the lack of deterrent sentences. The GOP, in concluding Free Trade Agreement negotiations with the United States in December 2005, obligated itself to protecting proprietary test data for pharmaceutical and agrochemical products beginning in January 2007. End Summary. Peru's International Obligations -------------------------------- ¶2. Peru is a member of the World Intellectual Property Organization (WIPO). It is also a member of the Paris Convention, Berne Convention, Rome Convention, Geneva Phonograms Convention, Brussels Satellites Convention, Universal Copyright Convention, the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT). Peru's 1996 Copyright Law is generally consistent with the TRIPS Agreement. Peru joined the WCT in July 2001 and the WPPT in February 2002. Although most of the provisions of these two WIPO treaties are included in Peru's 1996 Copyright Law, officials at Indecopi, the IPR administrative agency, have acknowledged the need for additional legislation in order to clarify the rights of artists and producers. The National Association of Music Publishers continues to criticize Indecopi's enforcement, claiming that its members are not receiving the royalties due to them. Peru's 1996 Industrial Property Rights Law provides the framework for patent protection. In 1997, based on an agreement reached with the U.S. Government, Peru addressed several inconsistencies with the WTO TRIPS Agreement provisions on patent protection and most-favored nation treatment for patents. Efforts to Rein in Piracy Enhances Coordination ------------------------- ¶3. Indecopi continued its "Anti-Piracy Crusade," which began in 2002. Indecopi's anti-piracy efforts in 2005, in collaboration with other government agencies as well as the private sector, focused on: 1) intensifying enforcement actions and 2) expanding the public awareness campaign. In March and November, the Anti-Piracy Crusade organized "Anti- iracy Day" and "Movie Theater Day", in an effort to increase public awareness about intellectual property rights. On both days, Peruvian movie theaters offered discounts on movie tickets prices, promoting increased attendance. Moviegoers were encouraged to turn in pirated DVDs in exchange for discounts on food and future movie ticket sales. On both days, the Anti-Piracy Crusade collected more than 80,000 pirated DVDs. ¶4. Indecopi's copyright office conducted, jointly with the national police and SUNAT (Peru's tax and customs agency), more than 60 raids in 2005, with 13 occurring outside of Lima. Indecopi and SUNAT confiscated more than $30 million in pirated and contraband goods and blank optical discs. In July 2005, the Peruvian police, coordinating with one of Peru's special IPR prosecutors, successfully raided "El Hueco", a market known for selling pirated products in Lima, and confiscated 8 tons of contraband and pirated merchandise worth $300,000. ¶5. In September 2005, SUNAT and Indecopi signed a Memorandum of Understanding, enabling Indecopi to assign one officer to the Port of Callao. This officer works closely with Customs to review incoming shipments. In six months, Indecopi and SUNAT screened 51 containers and confiscated the contents of 18 containers that were illegally transporting contraband and pirated goods. Private sector and Indecopi officials agree that this is a step in the right direction, although they believe that SUNAT, which assumed control of Peruvian customs operations in 2003, must become more involved in overall IPR enforcement. Many customs officials have had little or no prior training on how to recognize counterfeit goods. ¶6. In October 2005, Post, the U.S. Patent and Trade Office, and U.S. Customs conducted an IPR training seminar for Customs and Indecopi officials. U.S. Customs officials advised the Peruvian participants on obligations under TRIPs and best practices for finding and seizing contraband and pirated goods. One issue highlighted by the conference was the need for Peru to meet its TRIPS obligations; many Customs officials were unaware of TRIPS and how the agreement affects how they do their job. High Rates of Optical Disc Piracy --------------------------------- ¶7. Despite Indecopi's efforts (detailed below), copyright piracy rates remained the same in 2005. The audiovisual industry suffered from the piracy of optical discs, with an estimated piracy level of almost 75 percent, up from 65 percent in 2003. Jose Vega, General Manager of Blockbuster Peru, informed us that the motion picture industry lost an estimated $5 million in 2005 due to audiovisual piracy. The large amount of imported blank optical discs, as well as the wide availability of DVD technology, helps account for this increase. Peru also has one of the highest rates of musical piracy in the world. According to the Anti-Piracy Crusade, 98 percent of CDs in Peru are pirated. Martin Moscoso, head of Indecopi's copyright office, and the Business Software Alliance noted that business software piracy levels remained the same since 2004, at approximately 54 percent. Formal Importation of Blank Discs Decreases But Contraband on the Rise ------------------------------------ ¶8. Indecopi estimates that in 2005, approximately 100 million blank optical discs were legally imported into Peru, a decrease of 10 million since 2004. Indecopi approximates that of these 105 million discs, only 14 million were used for legal purposes. Martin Moscoso, Director of Indecopi's Copyright Office, explained that, due to the high private copy levies (approximately 200-300 percent of costs) imposed by the Peruvian Artists Association in 2005, formal importers of blank optical discs chose to reduce imports in order to avoid paying such a high fee. Moscoso also indicated that contraband of blank optical discs has increased, although official figures are unavailable. SUNAT Implements Registry ------------------------- ¶9. In July 2004, the GOP passed a law requiring that SUNAT establish an import registry for all persons and companies importing blank optical discs and recording equipment. With the registry, SUNAT would be able to monitor the frequency of optical disc importation and target those companies that cannot justify legal sales of these discs. On September 25, 2005, SUNAT published regulation 020-2005, which established the norms for the import registry. Importers of blank optical discs must provide SUNAT with the number of units imported, the name of the commercial organization that will sell the discs, the commercial brand of the discs, the model information and format characteristics. ¶10. The registry went into effect on October 24, 2005. According to SUNAT officials, legitimate importers of blank optical discs have faced no difficulty in providing SUNAT with the necessary information. However, importers that either use the discs for illicit means or sell them to illegitimate vendors have been more reluctant to provide SUNAT with the information. SUNAT officials predict that the level of legal imports of blank optical discs will decrease in 2006, as more discs are smuggled across land borders. SUNAT plans on improving its border protections to crack down on the contraband of blank discs. New Regulations to Strengthen IPR Enforcement --------------------------------------------- ¶11. The GOP in 2005 passed several new regulations aimed at improving the IPR environment. On October 28, SUNAT, coordinating closely with Indecopi and the private sector, issued a resolution modifying the January 2004 decree that required importers of blank CDS to make valued added tax payments in advance. The new regulation seeks to improve SUNAT's ability to trace imports of blank discs and their subsequent purchases. SUNAT now charges an advance VAT of $0.03 per CD and $0.06 per DVD. Under the regulation, SUNAT is now able to audit importers' sales to determine the legitimacy of the sale and who are the largest consumers of blank optical discs. If a company feels that it has paid too much in VAT, it must provide SUNAT with evidence of its sales. SUNAT would then issue a credit for future VAT payments. ¶12. The Lima Municipality in October 2005 issued Order 717 to improve the ability of police to raid local vendors of pirated products. The regulation now enables the Municipal Government, working with the police, to revoke licenses for those vendors who sell pirated products. The Anti-Piracy Crusade lauded the new regulation, but commented that the Lima Government has yet to enforce it. Indecopi continues to work with the Lima Municipality, as well as several other municipal governments, to encourage the protection of intellectual property. Amendment to the Artists Protection Law Pending ------------------------ ¶13. In July 2004, the Prime Minister approved a Supreme Decree establishing the Law of Artists, Interpreters and Music to protect the interests and rights of those involved in the creative arts, including performers and producers of musical recordings and motion pictures, from acts of piracy. The decree argued that blank optical media was being used for "private copies" and piracy of media and software, violating copyright laws. Under the law, the Peruvian Artists Association can apply a levy of 200-300 percent on all blank optical discs, to be paid by the manufacturers of blank recording media. ¶14. The private sector, working with Indecopi, the Lima Chamber of Commerce, and the Peruvian Artists Association, sought to have the levy reduced to a more reasonable 20 percent of the value. A recommendation was passed to the Ministry of Trade in early January 2006 for action. If the Ministry of Trade agrees with the recommendation, it will pass the document to the Prime Minister's office for a Supreme Decree. Still No Convictions of IPR Violators ------------------------------------- ¶15. Industry and Indecopi officials agree that the GOP needs to improve IPR enforcement. Both call for the establishment of specialized judges to handle IPR cases, as well as greater authority for the two special IPR prosecutors (who only have authority in Lima). Currently, judges lack expertise in intellectual property matters and have avoided imposing harsh sentences on IPR violators. In July 2004, the GOP passed Law No. 28289, the Law on the Fight Against Piracy, which increased the minimum penalty for piracy from a two-year to a four-year sentence, with a maximum sentence of eight years. There have yet to be any convictions under the new law, although there are more than 1,000 intellectual property cases pending before Peru's courts. ¶16. In mid-2005, Indecopi filed a lawsuit for piracy and money laundering against one of the main optical disc importers. The case remains in the Judiciary, and the importer has filed a countersuit against the Indecopi officials for slander and wrongful prosecution. Martin Moscoso lamented that the Peruvian Judicial system is inherently slow and corrupt -- this case could take several years to resolve. Deadline Extended for Legal Software Use ---------------------------------------- ¶17. In 2003, the GOP passed a decree mandating that all government agencies use legally procured open-source software. GOP agencies had until March 31, 2005 to erase all pirated software and install the legitimate versions. The E-Government Office in the Prime Minister's Office in late 2004 took the lead in implementing this project. In mid-2005, Rafael Muente, the new Director of the E- Government Office, conducted an audit of the software used by GOP agencies. He found that only 60 percent of GOP agencies were following the decree. In November 2005, the GOP issued a regulation extending the deadline for installation of legal software to December 31, 2006. Increased Problems with Lack of Patent Protections for Pharmaceuticals -------------------------------------- ¶18. In 2005, three U.S. pharmaceutical companies complained that Indecopi was not adequately protecting patents. In all three cases, the companies noted that they face unfair competition from local distributors selling foreign-made pirated copies of their best selling products. While Indecopi initially issued a precautionary measure against the local producers, this measure, per Peruvian law, expires after 120 days. In several cases, Indecopi ordered the U.S. companies to prove that the local distributors are selling pirated copies of their patented medicines, which is contrary to TRIPS obligations. This process takes time and substantial funding, during which the company can still sell the pirated product on the market. Even if Indecopi orders a local distributor to cease sales of the allegedly pirated product, the distributor can appeal the decision; during the appeals process, local producers can resume sales of the "pirated" product. The companies estimate that they have lost more than $5 million in damages due to lost government procurement sales. Pharmaceutical Data Protection ------------------------------ ¶19. The U.S. pharmaceutical and agrochemical industries also continue to be concerned about Peru's protection of confidential test data. Peruvian government health SIPDIS authorities approved the commercialization of new drugs that were the bioequivalents of already approved drugs, thereby denying the originator companies the exclusive use of their data. In effect, the Government of Peru allows the test data of registered drugs from some companies to be used by others seeking approval for their own pirate version of the same product. U.S. companies also are concerned that the Peruvian government does not provide patent protection for second uses, which would allow a company with a patented compound for one use to subsequently patent a second use of that compound. Although Peruvian law provides the means for effective trademark protection, counterfeiting of trademarks and imports of counterfeit merchandise remain widespread. ¶20. While Indecopi did not take significant action in 2005 to improve the protection of confidential pharmaceutical data, the GOP did conclude negotiations on a bilateral free trade agreement with the United States. In doing so, the GOP committed itself to protecting proprietary test data for pharmaceutical and agrochemicals for ten years. The free trade agreement, once signed and ratified by the U.S. and Peruvian Congresses, is scheduled to go into effect on January 1, 2007. 2006 Training Plans ------------------- ¶21. In 2006, Post, working with the U.S. Patent and Trade Office and the Department of Homeland Security, plans on hosting several training classes in Peru for key IPR and law enforcement officials. In February 2006, the International Law Enforcement Academy (ILEA) in Peru, with assistance from the U.S. Customs and Border Protection, hosted a training seminar for 50 officials from Peru, Brazil, Argentina and Paraguay. During the seminar, officials learned new techniques for investigations and seizures, how to prepare a case report for pending prosecutions, and best practices from U.S. Customs. ¶22. Post in 2005 submitted to State/INL a request for funding for an IPR training seminar for Peru's special IPR prosecutors, police and judges. To date, Post has not received an answer from State/INL on its proposal. If money is not available from State/INL, Post will seek funding from alternate sources, such as the U.S. Patent and Trade Office and the private sector. ¶23. Post also plans on sending several Indecopi Officials to the United States for an international visitors IPR program. Additionally, we would like to work with the U.S. Patent and Trade Office to host a conference on Peru's obligations under TRIPS and the U.S.-Peru Free Trade Agreement. Comment: Recommend No Change in Status -------------------------------------- ¶24. Post recommends that Peru remain on USTR's Special 301 Watch List due to the continued high levels of piracy and copyright violations, as well as the continued lack of protection for pharmaceutical test data. Despite increased focus and awareness of IPR problems, the GOP has not increased judicial enforcement of existing laws in order to create a meaningful deterrent or established clear administrative measures for government agencies to comply with those laws. ARELLANO
VZCZCXYZ0000 PP RUEHWEB DE RUEHPE #2106/01 1662249 ZNR UUUUU ZZH P 152249Z JUN 07 FM AMEMBASSY LIMA TO RUEHC/SECSTATE WASHDC PRIORITY 5873 INFO RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC RUCPDOC/DEPT OF COMMERCE WASHINGTON DC UNCLAS LIMA 002106 SIPDIS SIPDIS DEPT FOR D, E, AND EEB/EPPD NSMITH-NISSLEY COMMERCE FOR 4331/IEP/WH/MCAMERON USTR FOR BENNETT HARMAN E.O. 12958: N/A TAGS: BEXP [Trade Expansion and Promotion], ECON [Economic Conditions], EINV [Foreign Investments], ELAB [Labor Sector Affairs], ETRD [Foreign Trade], USTR [Office of the Special Representative for Trade Negotiations], AID [Agency for International Development, International Cooperation Administration], PE [Peru] SUBJECT: EMBASSY LIMA NOMINATES INTEL FOR SECRETARY'S AWARD FOR CORPORATE EXCELLENCE REF: STATE 71180 AND PREVIOUS SUMMARY ------- ¶1. Embassy Lima is pleased to nominate Intel Semiconductores del Peru S.A. for the Secretary of State's 2007 Award for Corporate Excellence. Intel Corporation's office in Peru is an outstanding example of Intel's commitment to corporate social responsibility, education and bridging the digital divide. In only two years of existence, the small Peru office has made major contributions to economic development in Peru and meets the standards of conduct in all eight categories on which the award is based. Described below are three concrete examples that show why Intel deserves this award: Intel's groundbreaking "PC Peru" program, the recently launched Intel Education Initiative, and an IT training center for the visually handicapped. END SUMMARY. TRANSFORMATIONAL "PC PERU" PROGRAM ---------------------------------- ¶2. In March 2005, Intel and Peruvian President Alejandro Toledo announced the launch of the "PC Peru" program, aimed at bridging the digital divide by offering low-cost high-quality computers throughout Peru. With more than half of the population living in poverty and one of the lowest computer penetration levels on the continent, the Peruvian government wanted to raise the quality of life for its citizens by providing better access to IT and Internet-based resources. Intel convinced other computer component manufacturers, distributors and content providers to join Intel in supplying the components at heavily discounted rates. In order to stimulate the Peruvian IT industry, all of the computers were assembled entirely in Peru by at least five local companies. The assembly was done under international standards and certified by Intel. ¶3. Two models were initially offered under the PC Peru program at over 300 points of sale, with the lower priced package costing $399. Each PC included a 40GB hard drive, a 15" monitor, a 52x CD-ROM, a keyboard, a mouse, two 240w speakers, a 1.44MB disk drive, free anti-virus software, the Linux operating system, three months of free Internet service, a warranty, and free training. To make the PCs even more accessible, Intel provided a 36-month payment plan option. One model included an Intel Celeron 1.8 processor and 128MB RAM, while the other included an Intel P4 2.26 processor and 256MB RAM. ¶4. During the launch phase with the Peruvian Ministry of Production, 4,140 of these low-cost computers were sold publicly and distributed throughout Peru. The private sector continued selling the PCs after the Peruvian government's direct involvement ended, and reached 20,000 units sold in 2006. There are countless testimonials of how access to affordable PCs improved the lives of lower and middle class Peruvians. Many small and micro enterprises were able to computerize their inventories, create websites, use e-mail to contact clients, expand their sales, and even begin exporting their products. Many of the PCs were acquired by schools, giving students their first access to a computer and the Internet. Currently, PC Peru offers four more modern packages from $457 to $620, which can be purchased online at www.pcperu.org. This program has been so successful, that it is being replicated by Intel in several other Latin American countries. INTEL EDUCATION INITIATIVE -------------------------- ¶5. Intel's Education Initiative is a worldwide program aimed at training teachers to effectively integrate technology into their classrooms. Primary and secondary school teachers are taught how IT can improve and facilitate their students' learning, are coached on how to apply IT to existing curricula, and are given free on-line resources and interactive lessons. Each teacher participates in 10, 4-hour modules (40 hours) of practical workshops plus 20 hours of homework. They learn to develop unit plans, incorporate the Internet in classes, design web pages, use multimedia programs, and how to transfer what they learn in workshop to other teachers. The Teachers are also put in contact with other trained teachers around the world, and invited to future meetings and Intel seminars. Each teacher receives an extensive Study Program Manual and a CD-ROM with resources. The use of IT and the Internet motivates students and stimulates their creativity. ¶6. In September 2006, less than two months after taking office, Peruvian President Alan Garcia witnessed Intel and the Ministry of Education signing an agreement launching the pilot program of the Intel Education Initiative in Peru. During the first phase of the pilot program, which began in February 2007, foreign Senior Trainers trained 33 Peruvians for 40 hours, after which they themselves became qualified Senior Trainers. In the second phase, which began at the end of April 2007, 10 of these new Senior Trainers are training 100 teachers from 5 public schools in the Lima area that were selected by the Ministry of Education to become Master Teachers (trained teachers that will help expand the program throughout Peru). This 10-week training also consists of one 4-hour module and 2 hours of homework per week, and is scheduled to be completed in mid July. Intel paid 100 percent of the pilot program costs: brought in trainers; rented computer center; provided manuals, CD-ROMs and incentives for Senior Trainers; and donated computers to a Ministry of Education training center. ¶7. The pilot program is being monitored by the Education Department of the Pontifical Catholic University of Peru, which will present its evaluation in mid July. After the pilot phase, the next step will be to train 300 additional Master Teachers in August 2007, with the goal of training 3,000 teachers nationwide (in all of Peru's 25 regions) by the end of 2007. After the conclusion of the pilot phase, the costs to continue and spread the program will be split 50-50 by Intel and the Ministry of Education. Intel also signed an agreement with San Martin de Porres University to help expand the training program throughout Peru. ¶8. Worldwide, the Intel Education Initiative has trained nearly five million primary and secondary school teachers in more than 40 countries since the program's launch in 2000. Intel invests $100 million per year in this program, and plans to train 10 million teachers more in the next five years. Intel donated 10,000 PCs to schools in developing countries in 2006 and plans to donate at least 90,000 more. COMPETITIVENESS CENTER FOR THE VISUALLY HANDICAPPED --------------------------------------------- ------ ¶9. In 2004, three blind young Peruvians, who had used a World Bank grant to launch Peru's first cyber cafe for the visually impaired in 2003, established the non-profit Association for Technology and the Handicapped (ATECNODIS). Later that year, Intel helped ATECNODIS establish the Peruvian Competitiveness Center for the Visually Handicapped (CCD), providing the building for the Center in the San Borja district of Lima, bringing foreign specialists to train ATECNODIS' volunteers, and donating 15 computers. ¶10. The CCD is a modern IT facility with accessible hardware and software that has provided individualized training to hundreds of visually handicapped Peruvians in computer and Internet use. Courses offered include: Introduction to IT, Windows Operating System, Microsoft Word, Excel, Internet and E-mail, Magic, Messenger, Open Book (scanner), Interactive Encyclopedias and Dictionaries, JAWS, and Mexvox. Since 2005, the CCD also offers text and book digitization services for the handicapped. ATECNODIS, with Intel support, is a leader in promoting the social inclusion of handicapped Peruvians. OTHER INTEL ACTIVITIES INVOLVING PERU ------------------------------------- ¶11. Intel has begun offering its wireless laptop "Classmate PC" in Peru for only $270 per unit. These low cost laptops are especially designed for primary and secondary school students. Intel donated 200 units to the Peruvian government for distribution to public schools in May 2007. ¶12. Intel made possible Peru's first ever wireless district in 2004, donating the infrastructure to provide free wireless "hotspots" throughout Lima's Miraflores district. Similarly, in September 2005, Intel and two other companies launched the "Wireless Cuzco" initiative, which provides free wireless for the central plaza of Peru's number one tourist destination high in the Andes. ¶13. Peruvian students participate and have won awards in Intel's International Science and Engineering Fair (ISEF), the largest pre-university science fair in the world. Sponsored by Intel since 1997, Intel's ISEF brings together the most promising innovators and scientists at the primary and secondary school levels. Prizes include cash and full university scholarships. INTEL'S PERU OFFICE ------------------- ¶14. Intel has had a presence in Peru for eight years, but its local office opened two years ago and currently has four employees. Intel Peru's corporate social responsibility contributions, with so few employees in such a short time, are truly amazing. ¶15. In addition to its exceptional corporate citizenship which contributes to economic development and innovation, Intel's Peru office follows exemplary employment practices and all Peruvian laws and regulations. Intel Peru has not violated any laws or standards, and has not been involved in any acts of corruption. Intel Peru is known as a great and safe place to work. COMMENT ------- ¶16. Intel, an innovative U.S. firm respected worldwide, has made a real difference in Peru with a solid commitment to improving education and bridging the digital divide. The work Intel has done in Peru is an excellent example of Intel's broader commitment to corporate social responsibility and great business practices worldwide. Intel Peru, with a staff of only four, has done more to contribute to development in Peru than many huge firms and deserves the Department's recognition for its exemplary accomplishments. With the U.S.-Peru Trade Promotion Agreement (PTPA) close to fruition and Peru hosting the Asia-Pacific Economic Cooperation (APEC) forum activities in 2008 (including visits by Secretary Rice and President Bush), this would be a great time to recognize a model U.S. company that is doing great things in Peru. STRUBLE
That’s all from Peru for now. █