Bonum Certa Men Certa

Cablegate: President Chavez Smeared for Favouring Free/Open Source Software, Venezuela Added to Shame List

Cablegate



Summary: Venezuela gets the "PRIORITY WATCH LIST" treatment, meaning that it gets sanctioned or at least warned for not kneeling to Western monopolies ('IP')

US resistance to the authorities in Venezuela may have been boosted by Microsoft's interests that are all about money and subjugation. If Venezuela accepts Microsoft's software, then it accepts software which is controlled by US powers, making it simpler to topple those authorities. According to the following Cablegate cables, Free/open source software gets mentioned unfavourably 3 years in a row, in relation to so-called 'IP' (monopoly on knowledge). A cable from 2007 says: "The piracy rate for business software in 2006 is 84 percent, according to International Intellectual Property Alliance statistics -- a 6 percent increase from 2005. U.S. software companies have repeatedly come under attack from the BRV as exemplars of what President Chavez referred to as the "neo-liberal" trap of IPR. In 2004, the BRV passed legislation that mandates the use of open source software throughout the public sector. While not necessarily a violation of IPR in and of itself, the software industry has concerns about a lack of transparency in its implementation and favoritism shown to certain vendors."



The 2008 cable is similar. It states:"The piracy rate for business software in 2007 was 86 percent, according to the Business Software Alliance. U.S. software companies have repeatedly come under attack from the BRV as exemplars of what President Chavez referred to as the "neo-liberal" trap of IPR. In 2004, the BRV passed legislation that mandated the use of open source software throughout the public sector. While not a violation of IPR in and of itself, the software industry has concerns about a lack of transparency in its implementation and favoritism shown to certain vendors."

In 2009 it says: "In 2004, the GBRV passed legislation that required the use of open source software throughout the public sector. While not a violation of IPR in and of itself, the software industry has concerns about a lack of transparency in its implementation and favoritism shown to certain vendors. The piracy rate for business software in 2008 was 87 percent, according to the Business Software Alliance. The market for legitimate CDs and DVDs continues to decline. As Venezuela imports a high number of virgin discs, the country may be a distribution source and a production center for counterfeit products. The National Film Law, passed in August 2005, requires distributors to locally copy a percentage of the movies they distribute and to register all films, leading to unauthorized release of confidential information and piracy."

Once again they lump software in with counterfeits to bloster their case for so-called 'IP' and make the government of Chavez weaker. Here is the 2007 cable:










VZCZCXRO3434 RR RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHTM DE RUEHCV #0366/01 0521438 ZNR UUUUU ZZH R 211438Z FEB 07 FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC 7899 INFO RUEHZI/WHA IM POSTS COLLECTIVE RUCPDOC/DEPT OF COMMERCE

UNCLAS SECTION 01 OF 02 CARACAS 000366

SIPDIS

SENSITIVE SIPDIS

STATE FOR EB/IPE CLACROSSE, DEPT PLS PASS TO USTR JCHOE-GROVES, DOC JBOGER, DOC PLS PASS TO USPTO JURBAN AND LOC STEPP

E.O. 12958: N/A TAGS: KIPR [Intellectual Property Rights], VE [Venezuela] SUBJECT: 2007 SPECIAL 301 RECOMMENDATION: KEEP VENEZUELA ON PRIORITY WATCH LIST

REF: A. STATE 7944

B. 06 CARACAS 486 C. 05 CARACAS 596

ۦ1. Summary: (SBU) The BRV's protection and enforcement of IPR continues to deteriorate. The market for legitimate music CDs is eclipsed by piracy, with piracy rates for CDs, DVDs, and business software hovering around 80 percent. SAPI, the agency that oversees IPR enforcement and issues patents, has not issued a single patent since 2004. Venezuela's customs and tax agency, SENIAT, has achieved some success in its anti-piracy campaigns and seizure of contraband, but overall enforcement of IPR legislation remains ineffective. The implementation of proposed legal changes would further weaken IPR protection. Based on the BRV's antipathy to IPR, weak enforcement and possible legal changes to further strip away IPR protection, Post recommends that Venezuela remain on the Special 301 Priority Watch List for 2007. End Summary.

--------------------------- The Pharmaceutical Industry --------------------------- ۦ2. (SBU) The international pharmaceutical industry continues to see a weakening of IPR protection in Venezuela. Despite Venezuela having the highest per-capita pharmaceutical consumption in Latin America, and being the third largest market in the region, SAPI, the Autonomous Intellectual Property Service (the country's primary IPR authority), has not issued a patent to an imported pharmaceutical product since 2003, and has not issued a patent in any sector since 2004. SAPI has continued to receive an average of over 500 patent application submissions per year. Since 2002, the BRV has failed to protect pharmaceutical testing and other confidential data for product submissions that have not yet

SIPDIS received patent protection. The BRV does not provide linkage between patent and sanitary registration. Counterfeiters can receive sanitary registration approval in the absence of a patent -- equivalent to marketing approval for a counterfeit product.

ۦ3. (SBU) The legal framework in Venezuela for pharmaceutical protection is ambiguous after the BRV withdrew from the CAN (Andean Community) in April 2006. Venezuelan law had incorporated over 650 legal decisions from the Andean Community into domestic law, including Decision 486, a pronouncement on protection of intellectual property rights. The most recent domestic intellectual property legislation in Venezuela dates from 1955 and does not provide for patent protection. Venezuelan courts have, de facto, continued to apply Decision 486, though they have offered no assurances that they will continue to do so.

--------------------------- Recorded Media and Software --------------------------- ۦ4. (SBU) The market for legitimate CDs and DVDs continues to decline. According to a Post IPR source, there are approximately 1.8 million music CDs sold annually in Venezuela and 80 million virgin discs imported. This would indicate that Venezuela is not solely a distribution source, but a mass production center for counterfeit products. Industry estimates the piracy rate for music CDs at 85 percent, a two percent increase from 2005. The National Film Law, passed in August 2005, requires mandatory registration of all films, which could lead to unauthorized releases of confidential information and contribute to piracy.

SIPDIS

ۦ5. (SBU) The piracy rate for business software in 2006 is 84 percent, according to International Intellectual Property Alliance statistics -- a 6 percent increase from 2005. U.S. software companies have repeatedly come under attack from the BRV as exemplars of what President Chavez referred to as the "neo-liberal" trap of IPR. In 2004, the BRV passed legislation that mandates the use of open source software throughout the public sector. While not necessarily a violation of IPR in and of itself, the software industry has concerns about a lack of transparency in its implementation and favoritism shown to certain vendors.

--------------- IPR Enforcement --------------- ۦ6. (SBU) IPR enforcement in Venezuela continues to be weak. Enforcement problems derive for the most part from a lengthy legal process, unprepared judges, as well as lack of

CARACAS 00000366 002 OF 002

resources for investigation and prosecution. A single special prosecutor is responsible for IPR issues. Consequently, investigations are severely backlogged. Under current Venezuelan law, most IPR enforcement actions can only take place as a result of a complaint by the rights holder. In addition, the complainant is responsible for the cost of storage of allegedly illicit goods during the investigation and trial. A loophole in the law only permits actions against copyright violators operating at a fixed location, effectively barring prosecution of street vendors.

ۦ7. (SBU) SENIAT remains the one bright spot in a dismal landscape of respect for IPR with noteworthy efforts to fight piracy in conjunction with its "zero tax evasion" mission. SENIAT proposed an Anti-Piracy Law in 2006. We do not expect this proposal to be signed into law. In February 2007, SENIAT reportedly destroyed 450,000 pirated CDs and 280,000 pirated DVDs. SENIAT superintendent Jose Gregorio Vielma Mora has called on the BRV to provide the legislative framework to protect author's rights, adding that enforcement efforts to stamp out counterfeiting requires enhanced cooperation of SENIAT, local police, and the national guard. Coordinated efforts, to date, have been minimal.

---------------------------- Legal Changes on the Horizon ---------------------------- ۦ8. (SBU) Proposed legal changes, if implemented, would result in further weakening of the IPR regime in Venezuela. The National Assembly has delegated to President Chavez, for a period of 18 months, the power to issue decrees carrying the force of law. Both the pharmaceutical and recording industries expressed their concern to us over potential abuse of this power to push through legislation that would further weaken the IPR regime. In particular, there is concern that Chavez may sign into law a controversial copyright bill dating from 2004, which apparently was no longer on the legislative agenda. The bill would violate a reported 31 of Venezuela's bilateral and multilateral IPR treaty obligations including the Bern Convention and TRIPs. It would reduce the protection period for copyrights from 60 to 50 years and would allow the BRV to expropriate artistic rights for the public sector. Venezuela has not yet ratified the WIPO Copyright Treaty or the WIPO Performances and Phonograms Treaty.

------- Comment ------- ۦ9. (SBU) Venezuela continues to be an unfriendly environment for intellectual property rights. Pirated and counterfeit products abound, and piracy rates are climbing. Despite SENIAT's efforts, overall enforcement remains weak. The BRV has dedicated few resources to investigating and prosecuting IPR crimes. The legal regime for IPR protection is in a state of uncertainty after Venezuela's withdrawal from the CAN. IPR protection will likely deteriorate in the upcoming year as Chavez may push through controversial copyright legislation that would further undermine IPR protection and violate Venezuela's treaty obligations. Post recommends keeping Venezuela on the Special 301 Priority Watch List for 2007.

BROWNFIELD







Here is the 2008 cable:








VZCZCXYZ0007 RR RUEHWEB

DE RUEHCV #0232/01 0532127 ZNR UUUUU ZZH R 222127Z FEB 08 FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC 0650 INFO RUEHBO/AMEMBASSY BOGOTA 7695 RUEHLP/AMEMBASSY LA PAZ FEB LIMA 0959 RUEHQT/AMEMBASSY QUITO 2774 RUCPDOC/DEPT OF COMMERCE

UNCLAS CARACAS 000232

SIPDIS

SENSITIVE SIPDIS

STATE FOR EB/IPE JBOGER DEPT PLS PASS TO USTR JCHOE-GROVES DOC PLS PASS TO USPTO CPETERS

E.O. 12958: N/A TAGS: KIPR [Intellectual Property Rights], VE [Venezuela] SUBJECT: 2008 SPECIAL 301 RECOMMENDATION: KEEP VENEZUELA ON PRIORITY WATCH LIST

REF: A. STATE 9475 B. 07 CARACAS 366 C. 06 CARACAS 486

ۦ1. (SBU) Summary: The BRV's protection and enforcement of IPR continues to deteriorate. The market for legitimate music CDs is eclipsed by piracy, with piracy rates for CDs, DVDs, and business software hovering above 80 percent. SAPI, the agency that oversees IPR enforcement and issues patents, has not issued a single patent since 2004. Based on the BRV's antipathy to IPR, weak enforcement, and possible legal changes to further strip away IPR protections, Post recommends that Venezuela remain on the Special 301 Priority Watch List for 2008. End Summary.

--------------------------- The Pharmaceutical Industry ---------------------------

ۦ2. (SBU) The international pharmaceutical industry continues to see a weakening of IPR protection in Venezuela. Despite Venezuela having the highest per-capita pharmaceutical consumption in Latin America, and being the third largest market in the region, SAPI, the Autonomous Intellectual Property Service (the country's primary IPR authority) has not issued a patent to an imported pharmaceutical product since 2003, and has not issued a patent in any sector since 2004. According to a local IPR contact, SAPI received 2,958 patent applications in 2007 (over 50 percent of these were from the pharmaceutical industry), of which zero were approved. (Note: SAPI approved 26 designs. End Note.) Since 2002, the BRV has failed to protect pharmaceutical testing and other confidential data for product submissions that have not yet received patent protection. The BRV also does not provide a linkage between patent and sanitary registrations. As a result, counterfeiters can receive sanitary registration approval in the absence of a patent -- equivalent to marketing approval for a counterfeit product. Eduardo Saman, the Director of SAPI and the newly appointed Director of the National Institute for the Defense of the Consumer (INDECU), has argued that trademarks and patents impeding the fabrication of generic medicines or the reproduction of technology should be considered monopolies. Monopolies are prohibited under the Venezuelan constitution.

--------------------------- Recorded Media and Software ---------------------------

ۦ3. (SBU) The market for legitimate CDs and DVDs continues to decline. According to a Post IPR contact, in 2007 there were approximately 1.9 million music CDs sold in Venezuela and 90 million "virgin" discs imported, ten million more disks than in 2006. This would indicate that Venezuela is not solely a distribution source, but may be a production center for counterfeit products. Industry experts estimated the piracy rate for music CDs at 88 percent in 2007. The number of street vendors selling pirated DVDs and CDs on the highway during rush hour has also visibly increased over the last year. One local report estimated losses due to pirated CDs at USD 50.6 million. The

ۦ4. (U) National Film Law, passed in August 2005, requires distributors to copy in Venezuela a percentage of the movies they plan on distributing locally and to register all films. Industry sources fear that this could lead to unauthorized releases of confidential information and contribute to piracy. They estimate

SIPDIS that 92 percent of movies purchased in Venezuela were produced illegally, and estimate losses of approximately USD 41.3 million.

ۦ5. (SBU) The piracy rate for business software in 2007 was 86 percent, according to the Business Software Alliance. U.S. software companies have repeatedly come under attack from the BRV as exemplars of what President Chavez referred to as the "neo-liberal" trap of IPR. In 2004, the BRV passed legislation that mandated the use of open source software throughout the public sector. While not a violation of IPR in and of itself, the software industry has concerns about a lack of transparency in its implementation and favoritism shown to certain vendors.

-------------------------------------------- Tenuous Legal Protection of IPR in Venezuela --------------------------------------------

ۦ6. (SBU) The legal framework in Venezuela for Intellectual Property Rights has become more ambiguous since the BRV withdrew from the CAN (Andean Community) in April 2006. Venezuelan law had incorporated over 650 legal decisions from the Andean Community into domestic

law, including Decision 486, a pronouncement on protection of intellectual property rights. The most recent domestic intellectual property legislation in Venezuela dates from 1955 and does not provide for patent protection. Venezuelan courts have, de facto, continued to apply Decision 486, though they have offered no assurances that they will continue to do so.

ۦ7. (SBU) Numerous Post contacts have said that a new copyright law is expected to be decreed via the "enabling law." In January 2007, the National Assembly delegated to President Chavez, for a period of 18 months, the power to issue decrees carrying the force of law. Both the pharmaceutical and recording industries expressed their concern to us over potential abuse of this power to push through legislation that would further weaken the IPR regime. In particular, there is concern that Chavez may sign into law a controversial copyright bill dating from 2004. The bill would violate many of Venezuela's bilateral and multilateral IPR treaty obligations including the Bern Convention and TRIPs. It would reduce the protection period for copyrights from 60 to 50 years and would allow the BRV to appropriate artistic rights for the public sector. In 2007 the second-Vice President of National Assembly presented a different but similar version of this bill to the Andean Parliament. Venezuela has also not deposited the instruments of ratification for the WIPO Copyright Treaty or the WIPO Performances and Phonograms Treaty, and we are told has not sent an official delegation to WIPO committee meetings since 2004.

--------------------------------------------- -- Government of Venezuela's Open Hostility to IPR --------------------------------------------- --

ۦ8. (SBU) In 2007, the BRV attempted to remove significant IPR protections from the Venezuelan constitution as part of President Chavez failed December 2 constitutional reform package. Eduardo Saman, the director of SAPI and INDECU, drafted the proposed changes to article 98 that would have notably deleted any mention of abiding by established IPR law and international treaties and also would have removed the term intellectual property rights from the constitution, referring only to copyrights. This measure was co-sponsored by cooperatives representing distributors of pirated CD and DVDs. Despite the rejection of President Chavez' reform package, Saman has continued to issue anti-IPR statements and has said that he was trying to decriminalize the pirating of all works.

------------------ Other IPR BARRIERS ------------------

ۦ9. (SBU) The BRV's foreign currency controls have been another barrier to IPR in Venezuela. The Currency Exchange Administration (CADIVI) has been blocking access to foreign exchange for companies attempting to pay royalties, patent license fees, and franchise fees. As indicated in a June 2007 CADIVI resolution, 100 foreign currency requests to pay licensing fees from 2005 were allowed to expire due to improper paperwork, something IPR contacts deny. While CADIVI does not deny these currency requests, not acting on them prevents businesses from complying with IPR laws.

--------------- IPR Enforcement ---------------

ۦ10. (SBU) IPR enforcement in Venezuela continues to be weak. Enforcement problems derive for the most part from a lack of political will, lengthy legal processes, unprepared judges, and a lack of resources for investigation and prosecution. A single special prosecutor who has one assistant is responsible for IPR issues in Venezuela. Consequently, investigations are severely backlogged. Under current Venezuelan law, IPR enforcement actions can only take place as a result of a complaint by the rights holder. In addition, the complainant is responsible for the cost of storage of allegedly illicit goods during the investigation and trial. Trials can go on for years and storage costs are very high, making it unfeasible that someone will complete the legal process. A loophole in the law only permits actions against copyright violators operating at a fixed location, effectively barring prosecution of street vendors.

ۦ11. (SBU) SENIAT, the customs and tax enforcement agency, has been the one bright spot for IPR enforcement with noteworthy efforts to fight piracy in conjunction with its "zero tax evasion" and "zero contraband" missions. In February 2007, SENIAT reportedly destroyed

450,000 pirated CDs and 280,000 pirated DVDs. Vielma Mora, the former superintendent of SENIAT, claimed to have invested USD 32.5-37.2 million to fight piracy in 2007. To avoid possible political fallout, SENIAT has sent employees outside Venezuela to receive IPR enforcement training. However, on February 1, Vielma Mora, the BRV's lone IPR advocate, was fired. Two weeks after this announcement, Post's contact at SENIAT declined to speak with us on SENIAT's IPR enforcement plans, saying she had to wait for new guidelines before sharing any information. The Venezuelan copyright and trademark enforcement branch of the police (COMANPI) also attempts to provide copyright enforcement support with a small staff of permanent investigators. Local IPR contacts have said that COMANPI, an agency known for its lack of personnel, limited budget, and inadequate storage facilities for seized goods, no longer has a functioning headquarters.

------- Comment -------

ۦ12. (SBU) Venezuela continues to have an unfriendly environment for protecting intellectual property rights. Pirated and counterfeit products abound, and piracy rates are climbing. Overall enforcement remains weak and high ranking officials publicly express their disdain for IPR protection. The BRV has dedicated few resources to investigating and prosecuting IPR crimes. The legal regime for IPR protection is in a state of uncertainty after Venezuela's withdrawal from the CAN, and IPR protection will likely deteriorate in the upcoming year if Chavez pushes through controversial copyright legislation that would further undermine IPR protection and violate Venezuela's treaty obligations. Post recommends keeping Venezuela on the Special 301 Priority Watch List for 2008.

Duddy







Here is the 2009 cable:








VZCZCXRO8270 PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHGR RUEHHA RUEHHO RUEHMC RUEHMT RUEHNG RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC DE RUEHCV #0271/01 0621828 ZNR UUUUU ZZH P 031828Z MAR 09 FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC PRIORITY 2678 INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS RUCPDOC/DEPT OF COMMERCE

UNCLAS SECTION 01 OF 02 CARACAS 000271

SENSITIVE SIPDIS

STATE FOR EEB/IPE DEPT PLS PASS TO USTR

E.O. 12958: N/A TAGS: ECON [Economic Conditions], ETRD [Foreign Trade], KIPR [Intellectual Property Rights] SUBJECT: 2009 SPECIAL 301 RECOMMENDATION: KEEP VENEZUELA ON PRIORITY WATCH LIST

REF: A. STATE 8410 B. 08 CARACAS 1427 C. 07 CARACAS 366 D. 06 CARACAS 486

ۦ1. (SBU) Summary: The Government of the Bolivarian Republic of Venezuela (GBRV) continues to chip away at protection of intellectual property rights. In 2008, the GBRV resurrected a 50 year old law disallowing the patenting of medicines and food. Enforcement remains a problem as the police agency primarily responsible for IPR is defunct. SAPI, the agency that oversees IPR and issues patents, has not issued a single patent since 2004. Based on the GBRV's aversion to IPR, weak enforcement, and possible legal changes to further weaken IPR protections, Post recommends that Venezuela remain on the Special 301 Priority Watch List for 2009. End Summary.

-------------------------------- Weakened Legal Protection of IPR --------------------------------

ۦ2. (SBU) Until Venezuela's April 2006 withdrawal from the Andean Community, Venezuela had incorporated over 650 legal decisions from the Andean Community into domestic law, including Decision 486, which provided the legal framework for patent and trademark protections. In September 2008, SAPI, the Autonomous Intellectual Property Service (the country's primary IPR authority), announced in a press release that it had resurrected the Ley de Propriedad Industrial de 1955 (the 1955 law). The 1955 law states that drinks, foodstuffs, drugs of any kind and other chemical reactions and combinations may not be patented.

ۦ3. (SBU) Creative works are protected pursuant to the Copyright Law of 1993, Decision 351 of the Cartagena Agreement, the Bern Convention and the Universal Copyright Convention. Venezuelan law protects the rights of authors of creative intellectual works. Currently, copyright protection is valid for the life of the author, plus 60 years. However, the pharmaceutical and recording industries continue to be concerned that Chavez may sign into law a copyright bill drafted in 2004. The draft legislation would violate many of Venezuela's bilateral and multilateral IPR treaty obligations, reduce the protection period for copyrights from 60 to 50 years and would allow the GBRV to appropriate artistic rights for the public sector. Venezuela has also not deposited the instruments of ratification for the WIPO Copyright Treaty or the WIPO Performances and Phonograms Treaty, and has not sent an official delegation to WIPO committee meetings since 2004.

ۦ4. (SBU) Trademarks are registered with SAPI, granted for ten years and may be renewed for successive ten-year periods. Trademark rights can be enforced through civil, administrative and criminal actions. As a result of civil action, a registered trademark owner may be entitled to relief, which is at the discretion of the judge. However, the registered trademark owner cannot prohibit a third party from using a trademark in connection with products that are provided by the trademark owner. A trademark may be canceled at the request of any interested third party if it has not been used in Venezuela for three years.

--------------------------- The Pharmaceutical Industry ---------------------------

ۦ5. (SBU) Eduardo Saman, the former Director of SAPI and current Director of the Venezuelan consumer protection agency, the Institute for the Defense of People's Access to Goods and Services (INDEPABIS), has argued that trademarks and patents hindering the fabrication of generic medicines or the reproduction of technology should be considered monopolies, which are prohibited under the Venezuelan constitution. Despite his move to INDEPABIS, Saman continues to carry weight on IPR issues. SAPI has not issued a patent for an imported pharmaceutical product since 2003, and has not issued a patent in any sector since 2004. Since 2002, the GBRV has failed to protect pharmaceutical testing and other confidential data for product submissions that have not yet received patent protection. As the GBRV does not link patents and sanitary registrations, counterfeiters can receive sanitary registration approval in the absence of a patent -- equivalent to marketing approval for a counterfeit product.

---------------------------

CARACAS 00000271 002 OF 002

Recorded Media and Software ---------------------------

ۦ6. (SBU) In 2004, the GBRV passed legislation that required the use of open source software throughout the public sector. While not a violation of IPR in and of itself, the software industry has concerns about a lack of transparency in its implementation and favoritism shown to certain vendors. The piracy rate for business software in 2008 was 87 percent, according to the Business Software Alliance. The market for legitimate CDs and DVDs continues to decline. As Venezuela imports a high number of virgin discs, the country may be a distribution source and a production center for counterfeit products. The National Film Law, passed in August 2005, requires distributors to locally copy a percentage of the movies they distribute and to register all films, leading to unauthorized release of confidential information and piracy.

------------------ Other IPR BARRIERS ------------------

ۦ7. (SBU) Another barrier to IPR in Venezuela is foreign currency controls. The Currency Exchange Administration (CADIVI), the agency that administers the GBRV's currency controls, may block access to foreign exchange for companies attempting to pay royalties, patent license fees, and franchise fees. (To receive US dollars at the official exchange rate for transactions such as dividend repatriation and operating costs, a company must obtain CADIVI approval. There are no reliable figures for how much money US companies as a whole have requested from CADIVI.) Post has received reports of CADIVI not acting on foreign currency exchange requests due to "improper paperwork". While denial of currency requests may not be related to IPR enforcement, not acting on them prevents businesses from complying with IPR laws.

--------------- IPR Enforcement ---------------

ۦ8. (SBU) The enforcement situation in Venezuela remains the same as last year. An ongoing lack of political will, lengthy legal processes, unprepared judges, and a lack of resources for investigation and prosecution create effective barriers to IPR enforcement. A special prosecutor with one assistant is responsible for IPR issues in Venezuela and investigations are severely backlogged. Under current Venezuelan law, IPR enforcement actions can only take place as a result of a complaint by the rights holder and the complainant is responsible for the storage cost of the illicit goods. Furthermore, only violators operating at a fixed location are prosecutable, effectively barring prosecution of street vendors.

ۦ9. (SBU) With its "zero tax evasion" and "zero contraband" programs, SENIAT, the customs and tax enforcement agency, has undertaken IPR enforcement. Despite these efforts, SENIAT fired its lone IPR advocate in 2007. Throughout 2008, however, SENIAT published reports that it had destroyed pirated goods. COMANPI, the Venezuelan copyright and trademark enforcement branch of the police, is also charged with IPR enforcement and maintains a small staff of permanent investigators. Local IPR contacts have said that COMANPI, an agency known for its lack of personnel, limited budget, and inadequate storage facilities for seized goods, no longer has a functioning headquarters.

------- Comment -------

ۦ10. (SBU) The protection of intellectual property rights in Venezuela continues to deteriorate. The legal regime is increasingly tenuous, with a reversion to a 1955 law covering medicinal and food patents in 2008. Enforcement continues to remain weak and high ranking officials continue to express their disdain for IPR protection. Few resources are dedicated to investigating and prosecuting IPR crimes. Post recommends keeping Venezuela on the Special 301 Priority Watch List for 2009. GENNATIEMPO







The next post is likely to be out last of Cablegate, at least for now.

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