Summary: New North America-centric (US) movie tries to paint Wikileaks an “enemy” rather than let Wikileaks speak for itself (interviews, facts)

A disgusting propaganda film called Fifth Estate recently came out. It is already a big failure across cinemas, which perhaps helps indicate that bad press over bad factual assessment, misrepresentations, omissions, etc. did its thing. Wikileaks demonisation is not a side effect but an agenda of this ‘film’ and it’s easy to see why propaganda films of this kind are needed. Wikileaks helps expose international corruption [1]. US State Department employees are barred from Wikileaks‘ Web site (or voice), but this anti-Wikileaks film is just fine for them [2]. To better understand what kind of people work for the State Department watch this fairly recent discussion with the press. It is disheartening to see political films misusing/distorting facts not just when it comes to war revisionism but also journalism. █

Related/contextual items from the news:

1. 8 Ways WikiLeaks Cables About a Tiny Country Like Iceland Expose the Dark Depths of American Empire

   A Chelsea Manning-leaked cable showed how Iceland asked the U.S. to stop European “bullying,” just the first of a deluge of revelations detailing how America throws around its weight.

2. State Department Employees Cleared to Watch WikiLeaks Movie

   Ever since WikiLeaks.org began releasing thousands of classified cables, State Department employees have been forbidden from visiting the website without explicit authorization. (Sure, it was a silly prohibition given the proliferation of mainstream newspaper stories based on the WikiLeaks cables, but them’s the rules). So how about viewing WikiLeaks the movie?

   Not a problem, the State Department tells The Cable. Watching the hotly anticipated WikiLeaks drama Fifth Estate will not place employees on the naughty list.

   “The department hasn’t issued any sort of guidance on the movie, so there would be no prohibition against the movie,” a State Department official said of the film, which debuts nationwide on Friday. “Employees would be free to watch whatever movie they’re interested in.”

Summary: Some news about the leaking counterculture and what can be done about it

Private Manning got punished [1] for doing what many anti-war activists could not or would not. Society has debt to him. War is not a sport and blindly supporting one’s “team” is a foolish thing to do; it’s what typically supports and excuses war crimes. Here in the UK intimidation tactics against acts like Manning’s expand to relatives of those who report on leaks like Manning’s (see the latest on Miranda [2,3]) and the US military machine now calls the Founding Fathers extremists by attributing to them “extremist ideologies.” [4]

The US has been preparing for internment without charges for US citizens (c/f NDAA), having ‘trailed’ the idea in Guantanamo [5]. Those who are not worried by all this (and more, much beyond the scope of this post) are arguably complicit in serious abuses; apathy was not a defence, based on history’s lessons.

The war on dissent may successfully be crushing some Web sites and movements, but out response will be proportional in the opposite direction. █

Related/contextual items from the news:

1. RT interview on Manning sentencing

2. United Kingdom detains private citizen for being affiliated with NSA reporting under Schedule 7 of the 2000 Terrorist Act

   Anyone reporting on or connected with a journalist writing articles about the NSA surveillance is now considered a threat.

3. Miranda Detention: ‘Blatant Attack on Press Freedom’

   The detention of David Miranda — partner of the Guardian journalist involved in the NSA revelations — and the destruction of hard drives in the British newspaper’s basement reveal one thing: Governments do not want their citizens to be informed when it comes to the topic of surveillance.

4. DoD Training Manual Suggests Founding Fathers Followed ‘Extremist Ideology’

   A Department of Defense training manual obtained by a conservative watchdog group pointed to the original American colonists as examples of an extremist movement, comments that have sparked fear of a broader crackdown on dissent in America.

   The training manual provides information that describes, among other things, “common themes in extremist ideologies.”

5. Here’s What The White House’s “Secret” Plan To Close Guantanamo Looks Like

   One reason the White House drafted the document, sources tell me, was to beat back criticism from some members of Congress who have said the reason they have not taken any action on Guantanamo since 2009 is because the White House did not have a comprehensive plan for shutting down the facility.

Summary: Harassment by proxy seems like a possibility now that funds to the FSF are being discouraged

Donations to the Free Software Foundation (FSF) are a dangerous or suspicious activity now (like post-Cablegate Wikileaks), at least based on this account from a reader/contributor of ours. Donations to the FSF are made more difficult now. Microsoft did this type of thing last year [1, 2]. Here is how the latest story goes:

Master Card called me about my FSF Subscription That’s very strange because I’ve been making monthly payments for about a decade. Someone is doing something nasty to the FSF.

At 8AM, I got a call from the fraud prevention department of my credit card asking me to “verify some recent activity”. I saw it in my email when I woke up about an hour after they called.

My Mastercard was robbed once before, so I checked online and called the customer service number printed on my bill. There was nothing suspicious in the online report or the last bill. I was not about to call the number left on my answering machine, which simply identified itself as “TOLL FREE CALL” It took some time to escape the menu, which was uninformative and dangerous because it wanted to change things. The key phrase “human being” did the trick and I was promptly routed to an operator at the fraud department.

The representative told me that my monthly FSF subscription charge had triggered the call and that means hundreds of false charges had been made in the FSF’s name. When she told me the FSF charge was responsible for the call, I said that was strange because I had been making regular automated payments since 2004. She told me that the trigger was probably false charges to other accounts. I asked her how many false charges it would take to make such a trigger. She said that it changes daily but that it would probably take hundreds.

I can think of four explanations for this:

1. The FSF made a mistake in billing. Unlikely.

2. Mastercard wanted to harass the FSF. Unlikely but they have a history of cutting off funds to Wikileaks and can not really be trusted.

3. Someone made fraudulent payments to Mastercard on many accounts. That could be done maliciously or as a misguided help, the result would be the same and no one should do that.

4. Someone wanted to harass the FSF by setting up fake accounts to play games.

Whatever the actual reason, damage is being done to the FSF’s reputation and it should never have happened to me. An algorithm that overlooks my long history of monthly payments is broken. Operators should be given the exact reason that a company has been labeled suspicious. The call was inconvenient and damaging. Further speculation added to that damage. Hopefully, Mastercard itself is not responsible for this and will get to the bottom of it.

I started a FSF Forum thread about this hoping to call the right kind of attention to the problem.

http://www.fsf.org/associate/forum/community/612250276

Discouragement through discomfort is an effective strategy. Proving this to be intentional is hard, almost impossible even.

Steven J. Vaughan-Nichols celebrates a decade of fighting back against SCO, whose funding from Microsoft is evident. Showing the intention or proving it is the hard part. With uncertainty or lack of concrete evidence, these attacks can carry on, little by little, proxy by proxy (one of the latest seems to be Nokia). Groklaw covers another curious attack, namely Oracle (a friend of a friend, Apple). The latest is this: “Google has now responded to Oracle’s appeal in the Oracle v. Google API copyright case. Plus it adds its own cross appeal.”

Copyrights were also used by SCO. In all cases, and wherever FOSS takes over, the intend is to tax GNU/Linux or impose a sort of blockade. █

Summary: A good look at how Microsoft crushes freedom-respecting software in Vietnam

AS ALWAYS EXPECTED, the monopolist from Redmond will never permit competition to exist. Like a tyrant running after potential opposition, Microsoft runs after any signs of Free/open source software adoption and sends its proxies for annihilation, confusion, entryism, or whatever. Cablegate provides some more insight and examples of what Microsoft is doing. The following cable, for instance, gives yet more details on how Microsoft asks US government officials to help derail Vietnam's migration to GNU/Linux.

In ¶6 of the first cable it says: “Software industry members estimate that nearly 90 percent of software in Vietnam is pirated. Several events in 2007 indicate that this situation could improve in the near future, however. Following the Prime Minister’s July 2006 Decision 169 requiring government agencies to strictly comply with copyright laws, a February 2007 Prime Minister’s Instruction laid out the functions, tasks and budgetary means to meet this goal. In May 2007, the GVN signed a landmark software copyright agreement with Microsoft, under which Vietnam will purchase an estimated 300,000 licensed copies of Microsoft Office for government workers, provincial officials and many university faculty and staff (reftel E). In a recent meeting, Microsoft officials informed the Embassy that they are pleased with the GVN’s compliance with this agreement, although “implementation could be faster.” Reportedly in an attempt to avoid copyright infringements, the Communist Party of Vietnam announced in October 2007 that it would switch its 20,000 computers nationwide to open source software. In December 2007 the Ministry of Information and Communication (MIC) issued a list of open-source software products that it recommended other GVN agencies use to avoid copyright violations.”

It is also reassuring to see that “[t]he Government of Vietnam issued the following IPR-related regulations in 2007: . . . — Decision 08/2007/QD-BTTTT, dated 24 December 2007, on the List of open source Software That Meets the Requirements for Usage by State Agencies and Organizations;”

Here is some more lobbying: “Representatives of U.S. IT companies met with Bisbee and Mikalis to voice their concerns about an IT procurement policy announced by Vietnam in late July 2006 (Decision 169). USTR and Embassy Hanoi have worked closely with the Ministry of Post and Telecommunication (MPT) since July to raise USG and industry concerns about the policy, which seeks to provide procurement preferences for localized IT products and open source software. MPT released a draft implementing circular on January 30 for industry comments, and USTR urged the IT industry members to raise their concerns directly with MPT. In response to concerns raised by the USG in July, the MPT has worked to revise the original Decision to limit coverage to only government agencies and explicitly exclude state owned enterprises. USTR and Hanoi Econoff explained to the industry representatives that MPT was open to hearing from industry about global procurement best practices, and industry was urged to engage the GVN directly on this issue. (Note: In meetings in Hanoi, USTR raised industry concerns with MPT directly.”

The those who want to see it in context, here is the first cable:

VZCZCXRO2279
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHHI #0194/01 0510949
ZNR UUUUU ZZH
O 200949Z FEB 08
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7201
INFO RUEHBK/AMEMBASSY BANGKOK PRIORITY 6191
RUEHHM/AMCONSUL HO CHI MINH 4317
RUCNASE/ASEAN MEMBER COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE USD FAS WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS SECTION 01 OF 08 HANOI 000194 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS AND EEB/TPP/IPE JBOGER 
STATE ALSO PASS USTR JCHOE-GROVES, DBISBEE AND RBAE 
STATE ALSO PASS USPTO FOR JURBAN 
STATE ALSO PASS LIBRARY OF CONGRESS FOR TEPP 
AMEMBASSY BANGKOK FOR USPTO JNESS 
USDA FOR FAS/FAA/AO HUETE 
USDOC FOR ITA/MAC/OIPR CPETERS AND 4430/MAC/AP/OPB/VLC/HPPHO 
 
E.O. 12958: N/A 
TAGS: KIPR [Intellectual Property Rights], ECON [Economic Conditions], ETRD [Foreign Trade], VM [Vietnam] 
SUBJECT: VIETNAM SHOULD REMAIN ON THE 2008 SPECIAL 301 WATCH LIST 
 
REF: (A) STATE 009475; (B) 07 HANOI 308; (C) 07 HANOI 309; (D) HANOI 
090; (E) 07 HANOI 945; (F) 07 HANOI 1752 
 
HANOI 00000194  001.2 OF 008 
 
 
(U) SENSITIVE BUT UNCLASSIFIED, DO NOT POST ON THE INTERNET 
 
¶1. (SBU) Summary:  Mission Vietnam recommends continued placement of 
Vietnam on the Office of the U.S. Trade Representative's (USTR) 
Special 301 Watch List for 2008.  One year after acceding to the 
World Trade Organization, Vietnam has continued efforts to put in 
place an effective legal regime to protect intellectual property 
rights (IPR), taken some positive steps to reduce IPR violations and 
worked to raise awareness of this issue.  Despite these efforts, 
however, enforcement remains weak, piracy and counterfeiting 
rampant, and several key obligations unfilled -- most notably the 
failure to provide criminal remedies for commercial scale copyright 
and trademark violations.  With additional time to improve its human 
resource capacity, joined by strong incentives such as Vietnam's 
expressed goal of participating in the Generalized System of 
Preferences (GSP) program and desire to continue to attract record 
levels of foreign direct investment, Vietnam should improve its 
enforcement record.  In the meantime, Vietnam should remain on the 
Special 301 "Watch List".  End Summary. 
 
IPR Situation in Vietnam - Achievements and Challenges 
--------------------------- -------------------------- 
 
¶2. (U) Vietnam's rapid economic development and integration into the 
world economy continued in 2007, highlighted by its January 11, 2007 
accession to the World Trade Organization (WTO).  The Government of 
Vietnam (GVN) also took noticeable strides in 2007 to provide 
adequate and effective protection for intellectual property rights 
and provide market access to U.S. persons who rely on IP protection. 
 Since the Mission's 2007 Special 301 submission (reftels B and C), 
Vietnam has: (1) continued to strengthen its IPR legal regime; (2) 
largely met its commitment to implement the Trade Related Aspects of 
Intellectual Property Rights (TRIPS) agreement upon its January 2007 
WTO accession; (3) modestly improved IPR enforcement and 
coordination of enforcement efforts; (4)signed a landmark agreement 
for GVN agencies to use only licensed software; (5) stopped the 
broadcast of unlicensed content by VTC, the state-owned digital 
terrestrial cable company; (6) stepped up training, public awareness 
and capacity building efforts for GVN officials and the general 
public; (7) joined the Rome Convention for the Protection of 
Performers, Producers of Phonograms and Broadcasting Organizations; 
and (8) enhanced IPR cooperation with the United States and other 
international donors. 
 
¶3. (SBU) Despite this recent progress, many of the problems 
identified in the 2007 Special 301 Review persist.  The Mission has 
reviewed industry and public comments submitted as part of the 2008 
Special 301 review process, and finds that they portray a broadly 
accurate picture of Vietnam's IPR situation.  Enforcement in Vietnam 
remains weak, inconsistent and unreliable, while IPR violations are 
rampant.  Piracy and counterfeiting are of particular concern, with 
industry estimates placing music, software and book piracy rates 
around 90 percent.  Anecdotal evidence supports these estimates. 
Market access barriers, including censorship of "cultural products," 
continue to limit the availability of legitimate products, further 
complicating efforts to combat piracy.  Although the GVN conducted a 
commendable public outreach campaign in 2007, including public 
television programs focused on IPR issues, awareness remains low. 
From the police to the courts, officials in Vietnam's enforcement 
system, especially at the local level, are poorly informed about the 
rights of IPR holders or how to prosecute, adjudicate and enforce 
those rights.  With additional resources and more time to implement 
its relatively new legislative framework, we expect that Vietnam 
will develop a more consistent track record of IPR enforcement.  In 
the meantime, we do not recommend a change in Vietnam's "Watch List" 
status. 
 
Optical Media and Book Piracy 
----------------------------- 
 
¶4. (U) Despite improvements in Vietnam's legal regime and a growing 
understanding of optical media and book piracy among enforcement 
agents, the GVN has made little progress at reducing the amount of 
counterfeit and pirated goods available in Vietnam.  Hanoi, Ho Chi 
 
HANOI 00000194  002.2 OF 008 
 
 
Minh City and most other major cities in Vietnam are rife with music 
CD, VCD, DVD and video shops.  Virtually 100 percent of U.S. and 
foreign products (and most domestic products) for sale or for rent 
are pirated.  Where legitimate media products and books are 
available, they are typically up to five times more expensive than 
pirated versions.  While most pirated goods are still manufactured 
in other countries, locally-produced pirated CDs, VCDs and DVDs are 
becoming more prevalent, and present a growing problem. 
 
¶5. (U) The Ministry of Culture, Sport and Tourism's (MOCST) 
Copyright Office of Vietnam (COV) has commenced drafting new 
legislation on optical disks.  In 2007, COV officials attended a 
seminar organized by IFPI and USAID's Support for Trade AcceleRation 
(STAR) program to review model optical disk laws and best practices 
adopted by other countries.  COV reports that it continues to 
discuss this regulation with other GVN agencies, and hopes to submit 
a draft for government approval in 2008. 
 
Software Piracy 
--------------- 
 
¶6. (SBU) Software industry members estimate that nearly 90 percent 
of software in Vietnam is pirated.  Several events in 2007 indicate 
that this situation could improve in the near future, however. 
Following the Prime Minister's July 2006 Decision 169 requiring 
government agencies to strictly comply with copyright laws, a 
February 2007 Prime Minister's Instruction laid out the functions, 
tasks and budgetary means to meet this goal.  In May 2007, the GVN 
signed a landmark software copyright agreement with Microsoft, under 
which Vietnam will purchase an estimated 300,000 licensed copies of 
Microsoft Office for government workers, provincial officials and 
many university faculty and staff (reftel E).  In a recent meeting, 
Microsoft officials informed the Embassy that they are pleased with 
the GVN's compliance with this agreement, although "implementation 
could be faster."  Reportedly in an attempt to avoid copyright 
infringements, the Communist Party of Vietnam announced in October 
2007 that it would switch its 20,000 computers nationwide to open 
source software.  In December 2007 the Ministry of Information and 
Communication (MIC) issued a list of open-source software products 
that it recommended other GVN agencies use to avoid copyright 
violations. 
 
¶7. (SBU) American software companies report growing cooperation with 
enforcement authorities to reduce the incidence of software piracy. 
In 2007, for example, Microsoft cooperated with the Economic Police 
to conduct five end-user raids (up from only two in 2006), three of 
which were Vietnamese-owned firms.  Microsoft credits this growing 
cooperation to its capacity-building work with MOCST Inspectorate 
and Economic Police staff.  Software companies continue, however, to 
bemoan enforcement authorities' lack of resources and the low level 
of fines, which do not serve as an effective deterrent.  Microsoft 
reported that several penalties from the 2007 end-user raids are 
still pending, but the infringers from these five cases have only 
been forced to pay USD 15,000 in compensation, "a fraction" of the 
value of the infringed software. 
 
Signal Piracy 
------------- 
 
¶8. (SBU) In a significant sign of Vietnam's growing will to meet 
international IPR commitments, continued industry and USG engagement 
finally convinced the state-owned digital terrestrial provider 
Vietnam Multimedia Company (VTC), formerly known as the Vietnam 
Television Technology Investment and Development Corporation, to 
cease its unauthorized re-broadcast of U.S.-owned content in 
September 2007 (reftel F).  Consequently, industry members estimate 
that losses to rights holders due to signal piracy in Vietnam 
reduced from $38 million in 2006 to $10 million in 2007.  Despite 
VTC's shift to a more legitimate business model, copyright 
violations continue in Vietnam's television industry.  Smaller 
provincial cable operators are the most common violators.  The 
Mission continues to hear occasional complaints of national cable 
operators airing DVDs and U.S. movies without authorization. 
 
Data Protection 
--------------- 
 
 
HANOI 00000194  003.2 OF 008 
 
 
¶9. (U) In compliance with its U.S.-Vietnam Bilateral Trade Agreement 
(BTA) and WTO TRIPS commitments, Vietnam included a provision 
(Article 128) in its 2005 Intellectual Property Law and the Ministry 
of Health issued a 2006 Regulation on Data Protection Applied to 
Drug Registration Dossiers, providing data protection and 
non-reliance.  To date, Post is not aware of any cases of U.S. firms 
attempting to avail themselves of data exclusivity as provided in 
these regulations.  We understand that industry members are working 
to engage and build capacity for GVN officials on how other 
countries approach this topic. 
 
WTO and BTA Compliance - Lack of Criminal Remedies 
------------------------ ------------------------- 
 
¶10. (U) Chapter Two of the BTA, which entered into force on December 
10, 2001, codified Vietnam's commitment to bring its IPR legal 
regime and enforcement practices up to international standards, to 
protect intellectual property consistent with WTO TRIPS standards, 
and in some cases, to provide protection stronger than TRIPS.  The 
BTA covers the fields of copyright and related rights, encrypted 
satellite signals, trademarks (including well-known marks), patents, 
layout designs of integrated circuits, trade secrets, industrial 
designs and plant varieties.  Vietnam also agreed to implement the 
WTO TRIPS agreement immediately upon its January 2007 WTO accession. 
 
 
¶11. (SBU) In recent years, Vietnam has undertaken significant 
efforts to promulgate a legal framework to provide for adequate and 
effective protection of IP rights.  As reported in recent years' 
Special 301 submissions, the 2005 Intellectual Property Law, its 
implementing decrees and circulars, as well as a number of other 
related laws and guidance have largely brought Vietnam's legal 
system into compliance with its BTA and TRIPS obligations.  Some 
legal documents, however, remain outstanding or are not yet 
adequately detailed to implement in practice.  Most notably, Vietnam 
has not yet issued provisions for criminal remedies for willful 
trademark counterfeiting or infringement of copyrights or related 
rights on a commercial scale.  Vietnam agreed to issue this circular 
by the time of its WTO accession as a stop-gap measure until it can 
complete required revisions to make its Criminal Code consistent 
with the new IP Law and Vietnam's BTA and TRIPS commitments. 
Despite continued U.S. engagement with the GVN, this commitment 
remains unfulfilled.  While Vietnam reports that it will begin to 
revise its Criminal Code in 2008, Post and USTR continue to press 
urgently for the GVN to meet its commitment on this important 
circular. 
 
IPR-Related Legislative Reforms in 2007 
--------------------------------------- 
 
¶12. (U) The Government of Vietnam issued the following IPR-related 
regulations in 2007: 
 
-- Instruction 04/2007/CT-TTg, dated 22 February 2007, on 
strengthening copyright protection for software.  The Prime Minister 
required government officials and agencies to provide adequate 
protection of software copyrights and to gradually cease the use of 
illegitimate software; 
-- Decision 51/2007/QD, dated 12 April 2007, on the Development Plan 
for Vietnam's Software Industry, 2007-2010; 
-- Decision 08/2007/QD-BTTTT, dated 24 December 2007, on the List of 
Open Source Software That Meets the Requirements for Usage by State 
Agencies and Organizations; 
-- Circular 01/2007/TT-BKHCN, dated 14 February 2007, guiding the 
implementation of Decree 103/2006/ND-CP detailing the procedures for 
registering rights of intellectual property; 
-- Decree 172/2007/ND-CP, dated 28 November 2007, concerning the 
revision and supplementing some Articles of Decree 57/2005/ND-CP on 
Administrative Penalties for the Violations in the Field of Plant 
Varieties; 
-- Decision 56/2007/QD-BNN, dated 12 June 2007, from MARD 
supplementing the list of protected plant species; 
-- Decision 103/2007/QD-BNN, dated 24 December 2007, from MARD 
supplementing the list of protected plant species 
-- Decision 3957/QD-BNN-TT, dated 13 December 2007, on use of 
guidelines to conduct tests for Distinctness, Uniformity and 
Stability of Plant Varieties. 
 
HANOI 00000194  004.2 OF 008 
 
 
 
Legal Updates Expected in 2008 
------------------------------ 
 
¶13. (U) Relevant GVN agencies continue to draft circulars and 
implementing documents for Vietnam's IPR Legal framework.  These 
agencies report the following expected updates in 2008: 
 
-- A Government Decree on Administrative Remedies for copyright and 
related rights infringement; 
-- A joint circular drafted by the Supreme People's Court, Supreme 
People's Procuracy, Ministry of Justice and Ministry of Public 
Security guiding the criminal prosecution for IPR infringement under 
the Criminal Code (see para. 11); 
-- A joint circular drafted by the Supreme People's Court, Supreme 
People's Procuracy and other concerned agencies guiding civil 
prosecution for IPR infringement; 
-- A COV Decree on Management of Optical Disks; 
-- A circular issued by MOST concerning administrative remedies for 
industrial property infringement; 
--  A joint circular drafted by MOCST, MOST, MOF and the Ministry of 
Planning and Investment concerning financial support for the 
purchase of legitimate software as well as guiding the collection 
and distribution of royalties; 
-- A circular issued by MOST guiding the issuance and revocation of 
certificates for examiners and qualified industrial property 
assessment organizations. 
 
¶14. (U) Agencies also report the following expected amendments and 
revisions in 2008: 
 
-- Revision of the Criminal Code; 
-- Revision of Article 8.2 of Decree 154/2005/ND-CP detailing some 
provisions of the Customs Law concerning customs procedures, customs 
investigations and supervision which require applicants to specify 
trademarks of declared goods; 
-- Amendment of Decree 106/2006/ND-CP on administrative remedies for 
IP infringement (The amendment reportedly will note that for 
Customs-related issues, the General Department of Customs' 
Department of Anti-Smuggling will have responsibility for applying 
remedies); 
-- Amendment of the IP Law assigning ex-officio powers to Customs 
officials in the enforcement of intellectual property rights; 
-- Revision of Article 214.3.b of the IP Law concerning 
allowance/disallowance of re-export of IPR infringing goods; 
 
International Agreements 
------------------------ 
 
¶15. (SBU) As reported in reftels B and C, in 2006 Vietnam fulfilled 
its BTA obligation to join five key international IP conventions. 
After completing procedures to join the Rome Convention for the 
Protection of Performers, Producers of Phonograms and Broadcasting 
Organizations in 2006, Vietnam officially joined the Convention on 
March 1, 2007.  National Office of Intellectual Property (NOIP) 
contacts report that the GVN is working on procedures to accede to 
the Hague Agreement Concerning the International Registration of 
Industrial Designs.  COV also claims that it hopes to join the 1996 
WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms 
Treaty (WPPT) once it has met all requirements for these agreements, 
but no specific target date has been set. 
 
Growing Coordination on IPR Enforcement... 
------------------------------------------ 
 
¶16. (U) As outlined in reftels B and C, in 2006 six GVN Ministries - 
MOCST (then the Ministry of Culture and Information), the Ministry 
of Science and Technology (MOST), the Ministry of Agriculture and 
Rural Development (MARD), the Ministry of Finance (MOF), the 
Ministry of Industry and Trade (MOIT), the Ministry of Public 
Security (MPS) and the Ministry of Information and Communications 
(MIC) - jointly signed a "Plan of Action on Cooperation in 
Preventing and Fighting against IPR Violations during the period of 
2006-2010," commonly referred to as Program 168.  The program has 
helped to address one of Vietnam's glaring shortfalls - poor 
coordination among the country's varied enforcement agencies - by 
codifying information sharing, enforcement cooperation and joint 
 
HANOI 00000194  005.2 OF 008 
 
 
training.  Agencies in Ho Chi Minh City report they are using 
Program 168 to facilitate inter-agency cooperation at the city 
level.  There are also signs of growing enforcement coordination at 
the provincial level, including in the infringement-rich China 
border province of Lang Son (reftel D). 
 
... But Enforcement Mechanisms Remain Weak 
------------------------------------------ 
 
¶17. (SBU) Vietnam's IPR enforcement structure, however, remains 
overly complicated and bureaucratic, with no less than seven 
ministries involved.  Multiple agencies are tasked with overlapping 
functions, but there are also gaps in coverage.  Institutional 
experience on IPR enforcement is extremely limited across the board, 
and local law enforcement personnel in particular remain uninformed 
on Vietnam's IP laws and procedures.  Government agencies rely 
heavily on administrative enforcement of IPR laws and typically only 
issue administrative findings or warnings either by letter or orally 
to small retailers of pirated material.  Very few cases have been 
referred for civil or criminal prosecution.  Some rights holders 
have told the Embassy that they often pursue only administrative 
remedies due to the uncertainty over the outcome of civil or 
criminal proceedings, given the lack of experience with IP issues 
among Vietnam's judges and prosecutors. 
 
¶18. (SBU) Under the new IPR regulations, to provide impartiality, 
experts at NOIP, MOST and the provincial Departments of Science and 
Technology (DOST) no longer have the lead in assisting enforcement 
agencies to assess trademark and other infringements (although in 
practice they are still consulted regularly).  Instead, Vietnam 
created in 2007 an Intellectual Property Research Institute, which 
among other tasks, is to provide expert consultations and 
independent assessments on suspected infringement cases.  The 
Institute is headed by former NOIP Director General Dr. Pham Dinh 
Chuong, but it is unclear who will comprise the rest of the staff of 
experts.  The creation of this new body of expertise will likely 
delay dispute resolution.  Since its creation in May 2007, The IP 
Research Institute has not yet provided any independent assessments. 
 The Director of the HCMC Market Management 
Bureau described the curtailment of technical advice from HCMC DOST 
as the primary reason fewer violations were processed in HCMC in 
2007 than in 2006. 
 
Enforcement Efforts in 2007 
--------------------------- 
 
¶19. (U) MOCST:  According to GVN data, MOCST officials fined 4,952 
businesses for infringing upon IP rights in 2007. Of that total, 
cultural inspectors issued warnings to 267 business (down from 519 
businesses in 2006), suspended the operations of 148 businesses 
(down from 289 in 2006), and revoked the business licenses of 43 
businesses (down from 169 in 2006).  Additionally, MOCST officials 
suspended two websites, ordered companies to cease broadcasting 
three movies due to copyright infringement and revoked three 
copyright certificates in the field of applied arts.  MOCST also 
confiscated more than 3.8 million pirated tapes and disks, 1.8 tons 
of semi-final pirated books, 28 VCD and DVD readers and 13 computers 
used to burn illicit disks.  MOCST inspectors collected fines of 
12.3 billion VND (USD 766,000) in 2007 (approximately equal to 2006 
totals), and forwarded one case for criminal prosecution. 
 
¶20. (U) MOST/NOIP:  In 2007, MOST reported it investigated 600 
businesses, settled 136 industrial design infringement cases, 606 
trademark infringement cases, 16 patent infringement cases and three 
geographical indication infringement cases and imposed fines 
totaling VND 2 billion (USD 125,000), up from VND 170.2 million (USD 
10,640) in 2006.  NOIP also provided expert consultation for 
enforcement bodies, local and overseas organizations and individuals 
when requested. 
 
¶21. (U) Market Management Bureau (MMB):  According to the MMB, in 
2007 the agency handled a total of 2,423 cases (over 10 percent more 
than 2006), of which there were 256 industrial design violations, 
2,156 trademark infringements, three commercial name violations, two 
patent infringement cases and six unfair competition cases.  MMB 
imposed fines totaling VND 3.514 billion (USD 220,000), 20 percent 
below 2006 totals. 
 
HANOI 00000194  006.2 OF 008 
 
 
 
¶22. (SBU) Customs: In 2007, Customs received 27 requests to monitor 
potential IPR infringing goods at Vietnam's borders, including from 
companies such as Honda, Nokia, Gucci, Nike, Chanel, Louis Vuitton 
and Wilson.  (Note: Customs officials have claimed they can only 
take action against products where the rights-holder has filed a 
monitoring request.  End Note.)  Customs confiscated infringing 
goods in 13 cases with fines totaling VND 970 million (USD 60,625). 
Confiscated goods included cell phone batteries, cell phone 
chargers, cell phone headsets, laptops, calculators, USB drives, and 
computer parts.  Customs provided the following examples: 
 
-- Haiphong Customs confiscated counterfeit CASIO and NOKIA cell 
phone batteries, chargers, headsets and calculators in a shipment 
from Hong Kong. The total value of the infringing goods is VND 10 
million (USD 625). Officials destroyed the goods and applied 
administrative remedies. 
 
-- Quang Ninh Customs confiscated goods from a customs-bonded 
warehouse including 2,109 KG of cell phone batteries, chargers, 
headsets and calculators.  Authorities destroyed the goods and 
applied administrative remedies. 
 
-- Ho Chi Minh City: Customs confiscated 98 motorbikes that 
infringed the industrial design of SAPPHIRE motorbikes with the 
total value of USD 47,481. 
 
¶23. (U) Courts: According to data provided by NOIP, the court system 
settled 15 of 16 civil IPR-related cases it received (14 cases 
concerned disputes over copyrights, one related to contractual use 
of artistic works and one related to technology transfer).  The 
courts also settled eight of ten criminal cases with six offenders 
sentenced to less than three years prison time and two sentenced to 
three-to- seven years in prison. 
 
¶24. (U) The Economic Police: MPS reports receiving 128 IPR 
infringement cases (down from 156 last year), including: 18 
trademark counterfeiting cases, 67 cases of geographical indication 
infringement, 11 trade name infringement related cases, five 
industrial design related cases and 27 unfair competition cases. 
The Economic Police have settled 86 of these cases.  Confiscated 
goods include 9000 bottles of wine, 10 tons of cosmetics and 3790 
bottles of perfume. 
 
¶25. (U) MIC: MIC settled 1 case related to copyright infringement 
over the broadcast of SEAGAME soccer matches, warned three press 
organizations for not referencing copyrighted source material, cited 
35 press organizations for the unauthorized use of copyrighted 
information, and fined 22 organizations for domain name use without 
MIC's permission (the domain names were reportedly similar or 
identical to registered domain names).  Fines totaled VND 230 
million (USD 14,375). 
 
Growing Costs of IPR Infringement 
--------------------------------- 
 
¶26. (U) Vietnam's average per capita GDP, while still relatively low 
(approximately 840 dollars in 2007 according to the General 
Statistics Office of Vietnam), continues to rise rapidly, 
particularly in the larger cities.  Vietnam's middle class is 
growing and a culture of consumerism is taking hold - increasing the 
losses to U.S. firms from piracy and counterfeiting.  Industry 
estimates show that the cost of pirated business software to U.S. 
firms in 2007 was more than USD 80 million, while pirated books cost 
U.S. companies an additional USD 17 million.  In addition, some 
items deemed "cultural products," (e.g., music, movies, books) are 
still subject to censorship and control regulations that impede 
access to this growing market. 
 
Public Awareness 
---------------- 
 
¶27. (U) Public and private awareness of the value of IPR protection 
is low but continues to grow.  Public television aired a number of 
IPR-related programs, including a game show on IP rights.  According 
to COV, Vietnamese media carried over 1,000 news articles on 
copyright in printed newspapers and a significantly higher number of 
 
HANOI 00000194  007.2 OF 008 
 
 
copyright related articles in online newspapers.  Vietnamese IPR 
agencies, the Vietnam Chamber of Commerce and Industry (VCCI) and 
other business associations organized workshops, panels and public 
forums to help increase awareness of IPR.  The COV website regularly 
updates information on copyright legislation and news, as well as 
provides a database on copyright registration.  The GVN also 
designated November 29 as "Anti-Counterfeit Day," and held IPR 
related activities in conjunction with the event. 
 
¶28. (U) With growing awareness of their rights, individuals and 
businesses are becoming increasingly active in self-protection.  COV 
issued 3,231 copyright certificates in 2006, a slight increase over 
2006.  NOIP received more than 3,080 applications for registration 
of inventions (28 percent higher than 2006), 1,908 applications for 
registration of industrial designs (19 percent higher than 2006), 
almost 32,000 applications for registration of trademarks (39 
percent higher than 2006), four applications for registration of 
geographical indications and one application for registration of 
layout designs of integrated circuits. 
 
¶29. (U) Copyright associations continue to expand their operations. 
The Vietnam Literature Copyright Centre (VLCC) increased its 
membership to more than 500, up from only 350 two years ago.  Total 
royalties of VLCC members in its first three years were VND 500 
million (USD 31,250).  The Vietnam Center for Protection of Music 
Copyright (VCPMC) has also grown; it now represents 1,200 members 
(up 20 percent from last year).  VCPMC members' total revenues 
reached VND 10 billion (USD 625,000) in 2007, up 233 percent from 
2006.  In 2004, the Record Industry Association of Vietnam was 
established and its membership has now grown to 45. 
 
Technical Assistance helps Build Enforcement Capacity 
--------------------------- ------------------------- 
 
¶30. (U) (U) In 2007, Vietnam continued to receive considerable 
IPR-related technical assistance from a number of NGOs and foreign 
donors, including multiple U.S. Government agencies such as USAID, 
Customs, the International Law Enforcement Academy (ILEA), the U.S. 
Patent and Trademark Office (USPTO) and the Department of Justice. 
This assistance included conferences, seminars, study tours and 
review of draft legislation.  For example, the USG funded a two-week 
study tour for 20 senior prosecutors, judges and IP officials to 
understand better how law enforcement agencies and the courts in the 
United States protect intellectual property. 
 
¶31. (U) Other examples of IPR technical assistance conducted in 2007 
include: 
 
-- COV worked with the Cable and Satellite Broadcasting Association 
of Asia (CASBAA) to organize a workshop on "Regularizing Vietnam's 
Pay TV Market" in Ho Chi Minh City.  The U.S. Embassy also 
participated in the seminar; 
-- Together with IFPI and STAR, COV held a workshop on "Optical disk 
regulation and enforcement"; 
-- NOIP worked with USPTO to organize a workshop on "Trademark and 
Domain Name Registration"; 
--NOIP held workshops on "The Role of Automation in Management and 
Service Provision in IPR Organizations" and "IP Strategy for 
Universities, Research and Development" with the assistance of WIPO; 
 
--Vietnam hosted an APEC Seminar on "IP in the Digital Era" and a 
seminar on well-known trademarks and brands with the assistance of 
the Government of Japan; 
-- NOIP reported also receiving other training from the United 
States, the EU, Switzerland, Japan and WIPO; 
-- The Supreme People's Court, in coordination with STAR, USPTO and 
DANIDA's Business Sector Programme Support (BSPS) hosted 2 training 
courses for 175 judges; 
-- Customs receiving training from organizations and governments 
from the United States, the EU, the UN, Japan, China, Belgium, 
France, the UK and Indonesia. 
 
Training needs 
--------------- 
 
¶32. (U) In 2008, the GVN will continue to require detailed legal 
consultations and technical assistance as it completes and "fine 
 
HANOI 00000194  008.2 OF 008 
 
 
tunes" its IPR legal framework.  Two specific areas for further 
engagement are with the Ministry of Justice as it begins revisions 
to the IP-related portions of the Criminal Code and working with COV 
as it works to draft an Optical Disk regulation.  Continued 
cooperation with the various enforcement agencies will be essential 
to raise awareness and build enforcement capacity as these 
organizations seek to take advantage of Vietnam's strengthened 
enforcement provisions.  English language abilities are an oft-cited 
concern among the IPR enforcement agencies, and in-country training 
activities conducted in Vietnamese, when possible, would greatly 
benefit these organizations. 
 
----------------------------- 
Conclusion and Recommendation 
----------------------------- 
 
¶33. (SBU) Vietnam will continue to grapple in the near future with 
the challenge of reducing the massive scale of IPR violations.  GVN 
authorities, including at the highest levels, have publicly 
demonstrated their understanding of the problem and expressed their 
resolve to protect and enforce IP rights.  With a strong legal 
foundation already in place, it will be important to work closely 
with the GVN on its Criminal Code revisions in 2008 to provide 
rights holders with the full cadre of remedies for IPR violations - 
administrative, civil and criminal.  The real challenge, however, 
lies in building the capacity and improving the efficacy of 
Vietnam's enforcement and judicial systems.  While training of 
judges and enforcement officials will be a longer-term fix, 
increasing fines to a level which would deter future violations and 
reversal of the GVN's decision no longer to empower NOIP, MOST and 
provincial DOSTs to provide technical advice to enforcement agencies 
could immediately and visibly reduce IPR violations. 
 
¶34. (SBU) Vietnam's BTA and WTO/TRIPS commitments provide us with 
strong tools for engaging the GVN on IPR enforcement, and the 
recently-signed Trade and Investment Framework Agreement (TIFA) 
provides a useful forum under which to do so.  Vietnam's expressed 
aspirations to be considered for the U.S. Generalized System of 
Preferences (GSP) program and its strong desire to continue as a 
popular destination for foreign direct investment will help 
strengthen our push for the GVN to fulfill its IPR-related BTA and 
WTO commitments. 
 
Recommendation 
-------------- 
 
¶35. (SBU) The Mission believes it is important to maintain 
consistent engagement with Vietnam to enhance the protection and 
enforcement of IPR.  Vietnam has shown a willingness to cooperate 
with the United States and other trading partners to address its 
serious problems with IP violations.  It must now take demonstrable 
and concrete steps to follow through on that commitment.  Given the 
great number of tools available, including the Special 301 process, 
continued pressure from the USG and industry members, and 
capacity-building and training, we expect that Vietnam should 
improve its ability to enforce IP rights.  For 2008, we recommend 
USTR maintain Vietnam on the Special 301 "Watch List." 
 
¶36.  (SBU) This message was coordinated with ConGen Ho Chi Minh 
City. 
 
MICHALAK

Here is another cable:

VZCZCXRO7452
RR RUEHHM
DE RUEHHM #0178/01 0571035
ZNR UUUUU ZZH
R 261035Z FEB 07
FM AMCONSUL HO CHI MINH CITY
TO RUEHC/SECSTATE WASHDC 2151
INFO RUEHHI/AMEMBASSY HANOI 1543
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUEHBK/AMEMBASSY BANGKOK 0220
RUEHGV/USMISSION GENEVA 0027
RUEHHM/AMCONSUL HO CHI MINH CITY 2323

UNCLAS SECTION 01 OF 02 HO CHI MINH CITY 000178 
 
SIPDIS 
 
USDOC 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS AND EB/TPP/BTA/ANA 
STATE PASS USTR DAVID BISBEE 
USDOC FOR 4431/MAC/AP/OPB/VLC/HPPHO AND EMIKALIS 
TREASURY FOR OASIA 
GENEVA FOR USTR 
BANGKOK FOR USPTO JNESS 
 
E.O. 12958: N/A 
TAGS: ETRD [Foreign Trade], ECON [Economic Conditions], WTRO [World Trade Organization], KIPR [Intellectual Property Rights] VM [Vietnam] 
SUBJECT: USTR DISCUSSES WTO MEMBERSHIP, IT AND IPR WITH HCMC BUSINESS 
COMMUNITY 
 
REF: HANOI 233  B) HANOI 310 
 
¶1. (SBU) Summary: Area businesspeople discussed new trading 
rules and changes to Vietnam's legal framework as a result 
of its WTO membership with representatives of the Office of 
the U.S. Trade Representative (USTR) and the U.S. 
Department of Commerce, during a February 5-6 visit to Ho 
Chi Minh City.  The USG visitors provided American Chamber 
of Commerce members with an overview of the U.S. - Vietnam 
bilateral trade relations following Vietnam's accession to 
the World Trade Organization in January of this year, and 
the U.S. proposal to Vietnam to negotiate a Trade and 
Investment Framework Agreement.  USTR also explained many 
of the important commitments Vietnam has undertaken as part 
of its WTO accession agreement including comprehensive 
tariff reductions, significant service sector 
liberalization and adoption of WTO consistent rules in 
areas such as trading rights, IPR, and transparency.   In 
turn, AmCham members outlined their plans to form a WTO 
implementation committee to monitor implementation, and 
asked a broad range of questions relating to specific 
service sector commitments, trading rights, and customs 
duties.  In separate meetings representatives of U.S. 
information technology (IT) companies registered concern 
about new regulations that they believe could make it 
difficult for U.S. companies to qualify for Vietnamese 
government IT contracts.  Legal experts outlined challenges 
to adequately protecting intellectual property rights (IPR) 
under Vietnam's new IPR law. The visit followed meetings on 
February 1-2 in Hanoi and HCMC by Assistant United States 
Trade Representative Barbara Weisel. In those meetings USTR 
proposed to the GVN to move our bilateral relationship 
forward along the path set out under the Enterprise for 
ASEAN Initiative by negotiating a Trade and Investment 
Framework Agreement (TIFA) (ref A).   End summary. 
 
AMCHAM 
------ 
 
¶2. (SBU) David Bisbee, Director for Southeast Asia and 
Pacific Affairs for USTR, and Elena Mikalis, Director for 
ASEAN Affairs for the International Trade Administration at 
the Department of Commerce, visited HCMC February 5-6 to 
discuss Vietnam's WTO obligations and its legal reform 
efforts with members of the U.S. business community here. 
In a lengthy session with the American Chamber of Commerce, 
USTR fielded questions and provided additional details and 
clarifications on the terms and coverage of Vietnam's WTO 
accession package. AmCham members admitted that more study 
of the agreement was needed by members and that to better 
monitor and track implementation of the commitments by 
Vietnam, Amcham was considering forming a WTO 
Implementation Committee. Bisbee encouraged the formation 
of such a group and suggested that AmCham propose a formal 
dialogue with the Ministry of Trade as part of the process 
to facilitate a better understanding of the many legal and 
regulatory developments underway to meet WTO commitments. 
 
¶3. (SBU) The meeting also included lengthy discussions over 
trading rights and distribution services.  Members asked 
for clarification of Vietnam's commitments, which include 
the ability for all Vietnamese and foreign companies and 
individuals to directly import most goods into Vietnam as 
of January 1, 2007. Vietnam's commitments also provide for 
foreign individuals and enterprises without a physical 
presence in Vietnam to act as an importer of record, an 
important provision for many U.S. exporters.  Foreign firms 
can engage in distribution services of most goods without 
going through a Vietnamese intermediary in 2009. In the WTO 
accession agreement, Vietnam improved upon the timetable 
for granting trading rights established in the U.S.-Vietnam 
Bilateral Trade Agreement (BTA) to meet its GATT 
obligations, and reduced the range of products subject to 
transition periods. For distribution services, Vietnam also 
reduced the list of products excluded in Vietnam's WTO 
commitments compared to the BTA. 
 
IT 
-- 
 
HO CHI MIN 00000178  002 OF 002 
 
 
 
¶5. (SBU) Representatives of U.S. IT companies met with 
Bisbee and Mikalis to voice their concerns about an IT 
procurement policy announced by Vietnam in late July 2006 
(Decision 169).  USTR and Embassy Hanoi have worked closely 
with the Ministry of Post and Telecommunication (MPT) since 
July to raise USG and industry concerns about the policy, 
which seeks to provide procurement preferences for 
localized IT products and open source software.  MPT 
released a draft implementing circular on January 30 for 
industry comments, and USTR urged the IT industry members 
to raise their concerns directly with MPT.  In response to 
concerns raised by the USG in July, the MPT has worked to 
revise the original Decision to limit coverage to only 
government agencies and explicitly exclude state owned 
enterprises.  USTR and Hanoi Econoff explained to the 
industry representatives that MPT was open to hearing from 
industry about global procurement best practices, and 
industry was urged to engage the GVN directly on this 
issue. (Note: In meetings in Hanoi, USTR raised industry 
concerns with MPT directly. (Ref B) End note.) 
 
IPR 
--- 
 
¶6. (SBU) Bisbee and Mikalis also met with lawyers and HCMC 
government officials to discuss the implementation of 
Vietnam's new IPR law, which came into effect in 2006.  An 
attorney at a foreign law firm reported that in her opinion 
Vietnam's IPR enforcement activities had slowed as 
authorities familiarized themselves with the new law and 
its regulations.  The attorney and a representative from 
HCMC's Department of Science and Technology (DOST) observed 
that new rules meant to preserve the impartiality of IPR 
enforcement activities (by clearly separating registration 
and enforcement activities) have, in the short term, 
reduced the ability of experts at DOST and other agencies 
to assist enforcement authorities in pursuing IPR 
violations.  During a discussion on USTR's Special 301 
review of IP protection among major trading partners, DOST 
requested USTR's assistance in establishing a dialogue 
mechanism specific to HCMC's local efforts, similar to the 
301 review but on a semi-annual basis. DOST explained that 
provincial level implementation could be supported by 
regular dialogue with USTR and other USG agencies on the 
problems and bottlenecks experienced by the private sector. 
DOST also acknowledged the valuable technical assistance 
received from the U.S. Patent and Trademark Office (USPTO) 
and the USAID-funded Support for Trade Acceleration (STAR) 
program and reiterated the common request among Vietnam's 
IP agencies for increased levels of technical assistance. 
 
¶7. (SBU) The private sector attorney also explained her 
understanding that in order for IPR rights-holders to 
pursue those who sell counterfeit goods or goods that 
violate trademarks, rights-holders must first send "cease 
and desist letters" to violators.  While these letters are 
meant to be used as evidence that violations have taken 
place, they often tip off infringers, who are then able to 
evade prosecution. In subsequent meetings in Hanoi with IP 
authorities and advisors to the STAR program, it was 
clarified that the relevant decree requires 'cease and 
desist' letters only in cases of unfair competition, not in 
cases of clear trademark infringement. 
 
¶8. (U) Mr. Bisbee and Ms. Mikalis cleared this cable. 
WINNICK

These will be the last cables that we cover this year. We wish to thank James Love for organising some cables in Knowledge Ecology International. █

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 
 
¶1.  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 
--------------------------- 
¶2.  (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. 
 
¶3.  (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 
--------------------------- 
¶4.  (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 
 
¶5.  (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 
--------------- 
¶6.  (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. 
 
¶7.  (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 
---------------------------- 
¶8.  (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 
------- 
¶9.  (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 
 
¶1. (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 
--------------------------- 
 
¶2. (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 
--------------------------- 
 
¶3. (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 
 
¶4. (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. 
 
¶5. (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 
-------------------------------------------- 
 
¶6. (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. 
 
¶7. (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 
--------------------------------------------- -- 
 
¶8. (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 
------------------ 
 
¶9. (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 
--------------- 
 
¶10. (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. 
 
¶11. (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 
------- 
 
¶12. (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 
 
¶1. (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 
-------------------------------- 
 
¶2. (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. 
 
¶3. (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. 
 
¶4. (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 
--------------------------- 
 
¶5. (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 
--------------------------- 
 
¶6. (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 
------------------ 
 
¶7. (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 
--------------- 
 
¶8. (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. 
 
¶9. (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 
------- 
 
¶10. (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. █

Summary: US cables show the attitude towards Venezuela’s adoption of freedom-respecting software

AS we showed earlier this year, US diplomats and Microsoft fight GNU/Linux in Venezuela and according to the following Cablegate cable, they also try to paint the move with the ‘piracy’ brush. “In an effort to move away from proprietary software products, the Government of Venezuela in 2004 introduced a law mandating the use of open-source software in government and public institutions,” says one cable. But it continues: “This is expected to reduce the demand for U.S. software products somewhat, though much software currently in use is unlicensed or pirated.”

Microsoft never seemed to mind this. Gates and other Microsoft executives openly admitted that this so-called ‘piracy’ was beneficial to Microsoft. Let us carry on with ¶29 of the same cable that says: “Unfortunately, pirated software, music and movies remain readily available throughout the country. In the 2003 Annual Review, Venezuela remained on USTR’s Special 301 Watch List.”

We are going to write more about this in the next post. Basically, open source gets mentioned in most such cables and it is lumped in with all sorts of unrelated issue that have it painted as “piracy” and illegalities.

The Cablegate cable is as follows:

UNCLAS  CARACAS 003940 
 
SIPDIS 
 
 
STATE FOR WHA/AND 
STATE FOR EB/MTA/MST 
NSC FOR CBARTON 
TREASURY FOR OASIA-GIANLUCA SIGNORELLI 
USTR FOR G. BLUE 
USTR FOR B. HARMON 
 
E.O. 12958: N/A 
TAGS: ECON [Economic Conditions], EFIN [Financial and Monetary Affairs], ETRD [Foreign Trade], VE [Venezuela] 
SUBJECT: VENEZUELA 2005 NATIONAL TRADE ESTIMATE REPORT 
SUBMISSION 
 
REF: STATE 240980 
 
¶1. (U) Summary: The Following is Embassy Caracas' submission 
for the 2005 National Trade Estimate Report. This document 
was also submitted as a MS Word document to G. Blue and B. 
Harmon at USTR by e-mail on December 23, 2004. End Summary 
 
------------- 
TRADE SUMMARY 
------------- 
 
¶2. (U) The estimated U.S. trade deficit with Venezuela for 
2004 is projected at $19.5 billion, an increase of $5.2 
billion from the trade deficit of $14.3 billion in 2003. 
U.S. goods exports to Venezuela were approximately $4.5 
billion, up $1.8 billion from 2003.  U.S. imports from 
Venezuela are estimated at about $24 billion in 2004, an 
increase of $7 billion from the level of imports in 2003. The 
large increase in imports is related primarily to the 
increase the price of petroleum, which represents the vast 
majority of U.S. imports. 
 
¶3. (U) The stock of U.S. foreign direct investment (FDI) in 
Venezuela in 2003 was $10.8 billion according to U.S. 
Department of Commerce statistics.  U.S. FDI in Venezuela is 
concentrated largely in the petroleum, telecommunications, 
manufacturing and finance sectors. 
 
--------------- 
IMPORT POLICIES 
--------------- 
 
Tariffs 
------- 
 
¶4. (U) Venezuela is part of the Andean Community.  In 2002, 
the five member countries of the Andean Community (Venezuela, 
Peru, Ecuador, Colombia, and Bolivia) agreed to establish an 
Andean free trade zone, a common external tariff (CET), and a 
customs harmonization policy by January 2004.  The CET 
agreement established a unified tariff schedule that would 
have come into effect at the end of 2003 (decision 535).  In 
October 2002 the member Ministers of the Andean Community met 
and agreed upon tariff rates for 62 percent of import items. 
In April 2003 all the Andean members except Peru reached 
consensus on a CET for the remaining 38 percent. 
 
¶5. (U) In December 2003, however, the members decided to 
postpone implementation of the CET, previously set for 
January 1, 2004, until May 10, 2004.  In May members again 
decided to postpone the implementation of the CET, this time 
for a year until May 2005. The members have agreed to review 
the CET,s effect on individual tariffs with the intention of 
possibly modifying the rates.  The CET has a four-tiered 
tariff structure of zero, five percent, ten percent and 
twenty percent. 
 
¶6. (U) In December 2003 the Andean Community signed a free 
trade agreement with MERCOSUR, the Southern Cone Common 
Market. Key elements of the agreement such as the length of 
phase-in periods for tariff removal require further 
negotiation.  In Mid-2004, Venezuela joined MERCOSUR as an 
associate member, which does not provide access to the tariff 
benefits of full membership. Venezuela was among the 12 South 
American countries that signed the "Cuzco Declaration" on 
December 8, 2004 announcing the formation of the South 
American Community of Nations which would ultimately unite 
and replace both the Andean Community and MERCOSUR. Work on 
the mechanics of the new entity is slated to begin in 2005. 
 
¶7. (U) Venezuela has been using the tariffs established under 
the Andean Community,s price band system since 1995 for 
certain agricultural products, including feed grains, 
oilseeds, oilseed products, sugar, rice, wheat, milk, pork 
and poultry.  Yellow corn was added to the price band system 
in 1996, and processed poultry was added in 2001.  Ad valorem 
rates for these products are adjusted according to the 
relationship between commodity market reference prices and 
established floor and ceiling prices.  When the reference 
 
 
price for a particular commodity falls below the established 
floor price, the compensatory tariff for that commodity and 
related products is adjusted upward.  Conversely, when the 
reference price exceeds the established ceiling, the 
compensatory tariff is eliminated.  Floor and ceiling prices 
are set once a year based on average prices during the past 
five years.  Venezuela publishes these prices each April. 
 
¶8. (U) In addition to the traditionally high import tariffs 
of the Andean Community,s price band system, Venezuela also 
protects its agricultural producers through a non-legislated 
system of guaranteed minimum prices and the restrictive use 
of import licenses and permits.  Management of tariff-rate 
quota commitments by the Government of Venezuela has been 
arbitrary and nontransparent and has negatively affected 
trade in basic agricultural commodities as well as processed 
products.  The Venezuelan Government has denied import 
licenses for both in-quota and over-quota quantities, even 
though importers are willing to pay the over-quota tariff for 
additional quantities of products. 
 
¶9. (U) U.S. agricultural exporters advise that the Venezuelan 
Government also routinely fails to open the quotas in a 
timely manner, and for some products, such as pork, has 
refused to "activate" the quota at all.   Venezuela announced 
in 2001 that it would not grant import licenses for corn 
until all domestic white corn had been marketed, resulting in 
an effective import ban.  Venezuela also has restricted the 
issuance of import licenses for sorghum, soybean meal, yellow 
grease, pork, poultry, oilseeds, and some dairy products. 
The government no longer publishes information and statistics 
on license requests or license issuance. 
 
¶10. (U) Under the Andean Community,s Common Automotive 
Policy (CAP), assembled passenger vehicles constitute an 
exception to the 20 percent maximum tariff and are subject to 
35 percent import duties. 
 
 
Non-Tariff Measures 
------------------- 
 
¶11. (U) In response to the rapid decline in the value of the 
national currency, the Bolivar, following a two-month general 
strike that brought oil production to a near standstill, the 
Central Bank of Venezuela halted trade in Bolivars on January 
22, 2003.  President Chavez announced the creation of an 
Exchange Administration Board (CADIVI) on February 5, 2003 to 
regulate the purchase and sale of foreign currency.  During 
much of 2003, CADIVI was unable to process requests for 
authorization of foreign exchange in an efficient and timely 
manner and only supplied $3.6 billion or approximately two 
months worth of transactions.  There has been significant 
improvement over time.  The supply of foreign currency 
reached a level of approximately $15 billion in 2004, or 55 
percent of approved authorizations.  A number of goods have 
also been added to the list of imports eligible for foreign 
exchange including intangibles such as services and the 
repatriation of capital, which totaled $1.5 billion at the 
end of the third quarter.  A new resolution allows importers 
to ship products without pre-approval by the government. 
There continue to be delays with pre-inspection companies 
thereby increasing storage costs.  Although the number of 
currency certificate approvals has increased steeply, 
operating with a 50 percent backlog in liquidations puts 
significant constraints on imports which accounted for 68.5 
percent of requests, followed by private foreign debt with 
12.5 percent and foreign investments with 8.6 percent. 
Exchange control authorities have repeatedly said that the 
exchange control system will be eased but will remain a 
permanent long-term mechanism. 
 
¶12. (U) Agricultural products have received the majority of 
dollars under the CADIVI system, since most basic food 
products are on the import list.  Even so, the problems with 
coordinating the timing of access to dollars, approval of 
import permits and licenses, and contracting the shipments 
have led to numerous delays and cancelled shipments.  Trade 
in higher value products, such as apples, pears, grapes, 
 
 
nectarines and other fruits and nuts, has been dramatically 
reduced as they are not included among the list of high 
priority products for which foreign exchange is available 
under the current currency control regime. 
 
¶13. (U) Venezuela also requires that importers obtain 
sanitary and phytosanitary (SPS) permits from the Ministries 
of Health and Agriculture for most pharmaceutical and 
agricultural imports.  The government increasingly has 
appeared to use this requirement to restrict agricultural and 
food imports without providing evidence of a scientific 
basis, raising concerns about the consistency of these 
practices with World Trade Organization (WTO) requirements. 
The Venezuelan Government continues to issue SPS permits in 
an arbitrary manner without citing specific phytosanitary 
concerns. This restriction in particular affects trade in 
pork, poultry, beef, apples, grapes, pears, nuts, onions and 
potatoes. 
 
¶14. (U) Though the GOV has not published requirements on 
absorption agreements, it has been common practice for years 
to require the purchase of domestic production before issuing 
import licenses or permits.   Imports of yellow corn are 
dependent upon the purchase of local sorghum and/or white 
corn.  Soybean imports are dependent upon the purchase of 
"locally produced" soybean meal, and permits for grape and 
black bean imports have been tied to the purchase of local 
product.  The use of absorption requirements is extremely 
subjective, since Venezuela lacks a good statistical system 
to track levels of domestic crop production. 
 
¶15. (U) This discretionary use of import licensing and permit 
procedures to curtail agricultural imports has become a major 
problem for the United States and other countries.  Various 
countries have notified Venezuelan government officials that 
these and other licensing practices appear to violate their 
WTO commitments.  In 2002, the United States Trade 
Representative initiated formal WTO consultations with 
Venezuela on its agricultural import license procedures for a 
wide-range of products.  Canada, the EU, Chile, Argentina, 
and New Zealand participated in the first round of 
consultations and posed questions to the government of 
Venezuela. 
 
¶16. (U) Venezuela prohibits the importation of used cars, 
used buses, used trucks, used tires and used clothing.  No 
other quantitative import restrictions exist for industrial 
products.  Some products such as cigarette paper, bank notes, 
weapons of war and certain explosives can only be imported by 
government agencies, (tax authorities calculate the cigarette 
tax on the volume of cigarette paper imported by the 
manufacturers).  The government can delegate authority to 
import on its behalf, and can place orders for such products 
with the local sales agents of the foreign manufacturers. 
 
¶17. (U) Venezuelan officials continue to discuss plans to 
improve customs procedures to better control the entry of 
illicit merchandise.  The Venezuelan Commission on 
Antidumping and Safeguards has started investigations on the 
importation of steel and paper products as well as clothing 
and footwear.  It appears that deficient customs procedures 
and the proliferation of contraband were contributing factors 
in those industries, calls for protection. 
 
--------------------------------------------- - 
STANDARDS, TESTING, LABELING AND CERTIFICATION 
--------------------------------------------- - 
 
¶18. (U) Some Venezuelan importers of U.S. products have 
alleged that the Venezuela applies product standards more 
strictly to imports than to domestic products. The 
certification process is expensive, increasing the cost of 
U.S. exports relative to domestic products.  The Venezuelan 
Commission for Industrial Standards normally requires 
certification from independent laboratories located in 
Venezuela but at times accepts a certificate from established 
standards institutes abroad. 
 
¶19. (U) In 2003 the Government of Venezuela passed Decree 
 
 
2444, which requires importers of goods to Venezuela to 
obtain pre-shipment inspections of all imports.  Four 
companies are certified to do these inspections: Bivac 
Venezuela (Veritas Group), SGS Trade Assurance Services, 
COTECNA, and Intertek Foreign Trade Standards. 
 
¶20. (U) With regard to labeling, U.S. industries have raised 
concerns regarding Venezuela,s labeling regulation for 
clothing and footwear.  The regulations as proposed by 
Venezuela,s Autonomous National Service for Standardization, 
Quality, Metrology and Technical Regulations (SENCAMER) were 
notified to the WTO Technical Barriers Trade Committee in 
July 2002 and the notice was published in the Official 
Gazette of Venezuela in August 2002.  The regulations, which 
became effective in December 2002, establish the register of 
domestic manufacturers and importers of clothing and footwear 
and minimum labeling requirements for all clothing and 
footwear products marketed in Venezuela.  Of primary concern 
to U.S. manufacturers is the requirement that labels must be 
customized to include detailed information about the importer 
of the goods. 
 
---------------------- 
GOVERNMENT PROCUREMENT 
---------------------- 
 
¶21. (U) Venezuela,s government procurement law covers 
purchases by government, national universities, and 
autonomous state and municipal institutions.  The law 
requires a contracting agency to prepare a budget estimate 
for a given purchase based on reference prices maintained by 
the Ministry of Production and Commerce.  This estimate is to 
be used in the bidding process.  The law forbids 
discrimination against tenders based on whether they are 
national or international.  However, the law also states that 
the President can mandate temporary changes in the bidding 
process "under exceptional circumstances" or in accordance 
with "economic development plans" to promote national 
development, or to offset adverse conditions for national 
tenders.  These measures can include margins of domestic 
price preference; reservation of contracts for nationals; 
requirements for domestic content, technology transfer and/or 
the use of human resources; and other incentives to purchase 
from companies domiciled in Venezuela.  For example, 
government decree 1892 establishes a 5 percent preference for 
bids from companies with over 20 percent local content.  In 
addition, half of that 20 percent of content must be from 
small to medium sized domestic enterprises. 
 
¶22. (U) In an effort to move away from proprietary software 
products, the Government of Venezuela in 2004 introduced a 
law mandating the use of open-source software in government 
and public institutions.  This is expected to reduce the 
demand for U.S. software products somewhat, though much 
software currently in use is unlicensed or pirated. 
 
¶23. (U) In the international arena, Venezuela has 
reinstituted state controlled purchases of basic food 
products for its new internal distribution system, Mercal, a 
network of state-owned stores aimed at low-income 
Venezuelans.  The state-trading entity, CASA, has to date 
purchased sugar, rice, wheat flour, black beans, milk powder, 
edible oil, margarines, poultry and eggs from a variety of 
countries.  The private sector has complained that CASA has 
an unfair advantage in that its access to dollars is assured, 
as is its access to import licenses and permits. Furthermore, 
CASA, as a government entity, brings in products without 
tariffs and customs duties. 
 
¶24. (U) A new ministry has been created called the Ministry 
of Food. The new ministry is now responsible for a large 
number of activities formerly under the Ministries of 
Agriculture and Lands, Health and Social Development, and 
Production and Commerce.  Among the duties taken away from 
the Ministry of Agriculture and Lands are the issuances of 
sanitary permits and import licenses.  Price setting for all 
food and feed products has been moved from the Ministry of 
Production and Commerce into the Ministry of Food.  In 
addition, the government is working to move food registration 
 
 
from the Ministry of Heath and Social Development into the 
new food ministry. 
 
¶25. (U) Venezuela is not a signatory to the WTO Agreement on 
Government Procurement. 
 
---------------- 
EXPORT SUBSIDIES 
---------------- 
 
¶26. (U) Exporters of selected agricultural products - coffee, 
cocoa, some fruits and certain seafood products - are 
eligible to receive a tax credit equal to 10 percent of the 
export,s value. 
 
--------------------------------------------- 
INTELLECTUAL PROPERTY RIGHTS (IPR) PROTECTION 
--------------------------------------------- 
 
¶27. (U) Venezuela is a member of the World Intellectual 
Property Organization (WIPO).  It is also a signatory to the 
Berne Convention for the Protection of Literary and Artistic 
Works, the Geneva Phonograms Convention, the Universal 
Copyright Convention, and the Paris Convention for the 
Protection of Industrial Property.  Through Andean Community 
Decision 486, Venezuela has ratified the provisions of the 
WTO Agreement on Trade-Related Aspects of Intellectual 
Property Rights (TRIPS). 
 
¶28. (U) The Venezuelan Industrial Property Office (SAPI) 
leaves much room for improvement, and its actions and 
occasional publicly stated antagonism towards IPR often draw 
criticism from IPR advocates and rights holders. Protection 
of IPR is also hindered by the lack of adequate resources for 
the Venezuelan copyright and trademark enforcement police 
(COMANPI) and for the special IPR prosecutor,s office. 
Venezuela's tax agency SENIAT is promoting several measures 
to fight piracy in an effort to reduce tax evasion, including 
a new anti-piracy law and the introduction of a tax on street 
vendors.  According to industry representatives, SENIAT seems 
to be a promising enforcement entity due to its better 
technical and financial capabilities. 
 
¶29. (U) Unfortunately, pirated software, music and movies 
remain readily available throughout the country.  In the 2003 
Annual Review, Venezuela remained on USTR's Special 301 Watch 
List. 
 
Patents and Trademarks 
---------------------- 
 
¶30. (U) Venezuela provides the legal framework for patent and 
trademark protection through Andean Community Decision 486 
and the 1955 National Industrial Property Law.  Andean 
Community Decision 486 takes major steps towards bringing 
Venezuela into WTO TRIPS compliance.  However, without 
corresponding local laws, Venezuela is not completely TRIPS 
compliant.  Andean Community Decision 345 covers patent 
protection for plant varieties. 
 
¶31. (U) U.S. companies remain concerned about the impact of 
the Andean Tribunal's 2002 interpretation of Articles 14 and 
21 of Decision 486, which do not allow for the patenting of 
"second-use" products.  Under pressure from the Andean 
Community and in line with some changes in leadership at 
SAPI, Venezuela has revoked previously issued patents.  Very 
few patents were awarded in 2004.  Since 2002, Venezuela's 
food and drug regulatory agency (INH) began approving the 
commercialization of new drugs, which were the bioequivalents 
of already patented drugs, thereby denying the patent-holding 
companies protection of their test data.  In effect, the 
government now allows the test data of patented drugs or 
those for which patents have been requested, most of which 
required lengthy and expensive development, to be used by 
others seeking approval for their own unlicensed versions of 
the same products. 
 
Copyrights 
---------- 
 
 
¶32. (U) Andean Pact Decision 351 and Venezuela's 1993 
Copyright Law provide the legal framework for the protection 
of copyrights.  The 1993 Copyright Law is modern and 
comprehensive and extends copyright protection to all 
creative works, including computer software.  A National 
Copyright Office was established in October 1995 and given 
responsibility for registering copyrights, as well as for 
controlling, overseeing and ensuring compliance with the 
rights of authors and other copyright holders.  Industry 
experts are concerned about a proposed new copyright law 
proposal, which would require the mandatory registry of 
works, reduce protection terms, hamper distribution 
agreements and increase royalties. 
 
¶33. (U) The Venezuelan copyright and trademark enforcement 
branch of the police (COMANPI) continues to provide copyright 
enforcement support with a small staff of permanent 
investigators.  A lack of personnel, coupled with a very 
limited budget and inadequate storage facilities for seized 
goods, has forced COMANPI to work with the National Guard and 
private industry to improve enforcement of copyrighted 
material.  COMANPI can only act based on a complaint by a 
copyright holder; it cannot carry out an arrest or seizure on 
its own initiative, which leads to weaker enforcement. 
 
----------------- 
SERVICES BARRIERS 
----------------- 
 
¶34. (U) Venezuela maintains restrictions on a number of 
service sectors.  Professions subject to national licensing 
legislation (e.g., engineers, architects, economists, 
business consultants, accountants, lawyers, doctors, 
veterinarians and journalists) are reserved for those 
individuals who meet Venezuelan certification requirements. 
In addition, only Venezuelan nationals may be licensed as 
architects.  Some (particularly government-related) 
accounting and auditing functions require Venezuelan 
citizenship, and only Venezuelan nationals may act as 
accountants for companies with public stock greater than 25 
percent.  Also, foreign professionals wishing to work in 
Venezuela must revalidate their credentials at a Venezuelan 
university on the condition of reciprocity.  A foreign lawyer 
cannot provide legal advice on foreign or international law 
without being licensed in the practice of Venezuelan law. 
 
¶35. (U) Foreigners are required to establish a commercial 
presence for the provision of engineering services.  Foreign 
consulting engineers must work through local firms or employ 
Venezuelan engineers.  There is a law for public tenders, 
which gives preferential treatment to Venezuelan companies if 
they have the capability to carry out the work and if the 
project is financed by public funds.  Foreign capital is 
restricted to a maximum of 19.9 percent in professional 
associations. 
 
¶36. (U) Venezuela limits foreign equity participation (except 
from other Andean Community countries) to 20 percent in 
enterprises engaged in television and radio broadcasting, 
Spanish language newspapers, and professional services whose 
practice is regulated by national laws.  Finally, in any 
enterprise with more than 10 workers, foreign employees are 
restricted to 10 percent of the work force, and Venezuelan 
law limits foreign employee salaries to 20 percent of the 
payroll. 
 
¶37. (U) The government enforces a "one-for-one" policy that 
requires foreign musical performers giving concerts in 
Venezuela to share stage time with national entertainers. 
There is also an annual quota regarding the distribution and 
exhibition of Venezuelan films.  At least half of the 
television programming must be dedicated to national 
programs, and at least half of FM radio broadcasting must be 
dedicated to Venezuelan music. 
 
Financial Services 
------------------ 
 
 
¶38. (U) By signing the 1997 WTO Financial Services Agreement, 
Venezuela made certain commitments to provide market access 
for banking, securities, life and non-life insurance, 
reinsurance and brokerage activities.  Venezuela did not make 
commitments on pensions, or on maritime, aviation and 
transportation insurance, and it reserved the right to apply 
an economic needs test as part of the licensing process. 
Only local insurers may insure imports that receive 
government-approved tariff reductions or government financing. 
 
¶39. (U) New rules governing civil aviation, maritime 
activities and transportation insurance also have been issued 
in the package of 49 laws passed under enabling powers by 
President Chavez.  Many of the laws still need implementing 
regulations.  The impact of the legislation is, therefore, 
still unclear. 
 
------------------- 
INVESTMENT BARRIERS 
------------------- 
 
¶40. (U) The government continues to control key sectors of 
the economy, including oil, petrochemicals and much of the 
mining and aluminum industries.  Venezuela began an ambitious 
program of privatization under the Caldera administration, 
but under President Chavez further privatization has been 
halted. 
 
¶41. (U) Foreign investment continues to be restricted in the 
petroleum sector.  The exploration, production, refining, 
transportation, storage, and foreign and domestic sale of 
hydrocarbons are reserved to the state.  However, private 
companies may engage in hydrocarbons-related activities 
through operating contracts or through equity joint ventures 
with state owned PDVSA.  The Venezuelan constitution reserves 
ownership of the state oil company (PDVSA) to the Venezuelan 
government.  It does allow the sale of subsidiaries and 
affiliates of PDVSA to foreign investors.  In the early 
1990's, the Venezuelan government partially opened the sector 
to private investment in order to promote new petrochemical 
joint ventures and to bring inactive oil fields back into 
production.  Almost 60 foreign companies, representing 14 
different countries, participated in this process.  PDVSA and 
foreign oil companies signed 33 operating contracts for 
marginal fields after three rounds of bidding. 
 
¶42. (U) The Hydrocarbons Law of 2001 has raised concerns in 
the industry as it mandates a minimum 50 percent national 
participation in future projects and increases most royalties 
from 16.67 percent to 30 percent.  No projects have yet been 
negotiated under this law. The Gaseous Hydrocarbons Law 
offers more liberal terms, and Venezuela's government has 
sought foreign investment to develop offshore natural gas 
deposits near the Orinoco delta.  The Venezuelan Government 
recently unilaterally eliminated a royalty holiday ceded to 
joint venture projects devoted to the development of 
Venezuela's extra heavy crude. These projects created as 
strategic associations during the partial opening of the 
sector enjoyed 35 year contracts endorsed by the National 
Congress. 
 
¶43. (U) The government passed legislation in 1998 aimed at 
introducing domestic and foreign competition into the 
domestic gasoline market.  The law allows foreign and 
non-governmental Venezuelan investors to own and operate 
service stations, though the government retains the right to 
set product prices.  Government controlled gasoline prices 
have not risen in several years and a number of currency 
devaluations and a high inflation rate have eliminated profit 
margins. 
 
¶44. (U) Hydroelectric power generation in Venezuela is 
reserved to the state, although private sector participation 
is permitted in transmission and distribution.  In early 
2000, the U.S. power generating company, AES Corporation, 
successfully took control, by means of a stock swap, of 
Electricidad de Caracas (EDC), the local electrical company 
that provides power to the Caracas metropolitan area. 
 
 
¶45. (U) A range of other natural resources - including iron 
ore, coal, bauxite, gold, nickel and diamonds - is gradually 
being opened to greater private investment by means of 
strategic alliances.  In 1996, CVG, the state-owned mining 
firm, announced its first joint venture with a foreign 
company to develop the Las Cristinas gold mine.  President 
Chavez personally announced the beginning of operations in 
May 1999. Low gold prices, however, forced CVG and its 
partners to suspend the project.   In 2001, the concession 
was revoked on grounds of the concessionaire's alleged 
inability to comply with the contract by not developing the 
reserves as stipulated, and the concession has been granted 
to another firm.  In April 1999, the Venezuelan Government 
updated the 1945 Mining Law in order to encourage greater 
private sector participation in mineral extraction.  However, 
in 2003 in line with a policy to centralize mining rights 
under the Ministry of Energy and Mines (MEM), the government 
ratified a 1996 decree requiring CVG to turn over to the 
Ministry the original files on concessions granted by CVG. 
In September 2003 the Ministry acted unilaterally to 
terminate some concession areas of a private diamond mining 
company in southern Venezuela alleging failure to comply with 
the terms of the concession. 
 
¶46. (U) Under the Andean Community Common Automotive Policy, 
Venezuela, Colombia and Ecuador impose local content 
requirements as a condition for reduced duties on imports. 
The local content requirement for passenger vehicles was 32 
percent in 1997.  It was raised to 33 percent for 1998, and 
was then lowered to 24 percent for 2000.  Under the WTO 
Agreement on Trade-Related Investment Measures (TRIMS 
Agreement), the three countries were obligated to eliminate 
local content requirements by the year 2000.  However, in 
December 1999, the Andean Automotive Policy Council 
determined that it would not eliminate the local content 
requirement as it had initially indicated, but instead 
decided to increase it gradually to 34 percent by the year 
2009.  This automotive policy may be inconsistent with 
Venezuela's WTO obligations under the TRIMS Agreement. 
Brownfield 
 
 
NNNN 
      2004CARACA03940 - UNCLASSIFIED

The next post will look at other responses, derived from other cables. █

Summary: A United Nations cable shows the difference between developing countries (oppressed countries) and ruling nations, which obviously get their way

According to the following United Nations-related Cablegate cable, there is truly a struggle between the oppressors and the oppressed, just as we saw in OOXML corruptions, ACTA debates, etc.

Here is the relevant part:

Open Source

¶14. Paragraphs on open source software (OSS) remain open. Brazil proposed the addition of the original “Rio Commitment,” reflecting Brazil’s (and GRULAC’s) promotion of open source software (OSS) over proprietary software products. Ghana, speaking for the African Group, also supported this proposal. The U.S. opposed the addition in that it lacked the requisite technology neutrality previously recognized in the Geneva Declaration of Principles and has proposed technologically neutral language with which Brazil, GRULAC, and Ghana have indicated they could agree. The U.S. resisted Brazil’s attempts to move the technologically neutral language within the paragraph, which would have resulted in promotion of OSS over proprietary software. It appears that all parties are willing to agree to the U.S.’ original suggested placement of the language. Brazil also had communicated its desire to eliminate all other references to OSS anywhere in the final document, in favor of the one reference to OSS in the PoliticalChapeau. This possibility remains an open issue, however, as other references to OSS already were the subject of working group drafts. Drafting group participants have not completed work on all the paragraphs concerned. Australia favored dropping Brazil’s proposal altogether, with which the U.S. would agree. Ghana has indicated to the U.S., however, that it needs this provision on OSS in the Political Chapeau to support its development agenda.

To clarify the obvious, they confuse vendor-neutral with neutral. Open Source is not a company or a product, it is a licensing and development paradigm that helps respect nation’s autonomy and self determination. The word “neural” — like “choice” — is often used by Microsoft and its front groups to mean “not open source”.

Here is the Cablegate cable in full:

UNCLAS SECTION 01 OF 05 GENEVA 002727 
 
SIPDIS 
 
PLEASE PASS TO IO/T FOR JOYCE NAMDE AND EB/CIP FOR SALLY 
SHIPMAN 
 
E.O. 12958: N/A 
TAGS: ECPS [Communications and Postal Systems], EU [Europa Island], IO [Chagos Archipelago; Diego Garcia; British Indian Ocean Territory], TS [Tunisia], WSIS 
SUBJECT: WSIS PREPCOM III MEETS IN GENEVA; LEAVES KEY 
ISSUES UNRESOLVED 
 
 
¶1.  Summary: The third meeting of the Preparatory Committee 
(PrepCom III) for Phase II of the World Summit on the 
Information Society (WSIS) took place in Geneva, Switzerland 
on September 19 ) 30, 2005.  Over 1,900 participants 
attended the PrepCom including 1047 delegates representing 
152 states and the European Commission.  UN agencies, 
international organizations, private sector and civil society 
organizations also participated.  Major issues from the 
PrepCom remain unresolved and negotiations will continue 
during the intersessional period and a resumed PrepCom III 
scheduled for the three days prior to WSIS, in Tunisia.  The 
issue of Internet governance was particularly contentious 
with the EU moving to the extreme and proposing an alternate 
model of management with a high degree of government 
involvement.  WSIS implementation and follow-up also remain 
unresolved with debate centering around which UN body should 
coordinate implementation.  Many freedom of expression 
issues, stemming from Cuban proposals, and debate on 
financial mechanisms from PrepCom II also remain open. 
 
¶2.  The output of the Tunis Phase will be a non-binding 
document comprising a political part (political chapeau) and 
an operational part.  The operational part will consist of 
four chapters: 1) implementation; 2) financing; 3) Internet 
governance; and 4) the way ahead.  PrepCom III focussed on 
the political chapeau, chapters 1, 3 and 4 and the unresolved 
portions of chapter 2 remaining from PrepCom II.  Ambassador 
David Gross, EB/CIP, led the U.S. delegation which included 
Assistant Secretary of Commerce for Communications and 
Information/Administrator of NTIA, Michael Gallagher and 
representatives of State (EB/CIP, EB/CBA IO, DRL, PM, L/EB, 
Mission Geneva), USAID, DOC/NTIA, DOC/PTO, Library of 
Congress, Institute of Museum and Library Services, DOJ, and 
NASA.  End Summary. 
 
Key Issues: 
 
Internet Governance 
 
¶3.  The primary issue of PrepCom III was Internet governance. 
  During Phase I of the WSIS, participants discussed Internet 
governance and adopted a series of principles.  To further 
the discussion,  the various WSIS stakeholders asked the UN 
Secretary General to convene a working group to consider the 
 
SIPDIS 
issue further and to prepare a report in time for discussion 
at the September PrepCom.  The working group released its 
report in July and asked stakeholders to comment.  The U.S. 
delegation submitted views founded primarily on the 
Administration,s principles with respect to the Internet,s 
Domain Name and Address System (DNS) as well as long standing 
U.S. policy on general Internet issues. 
 
¶4.  The Internet governance debate during the PrepCom focused 
on a number of key issues.  First, prepcom participants 
debated the role of the various stakeholders (governments, 
civil society, and private sector).  The U.S. argued firmly 
that the success of the Internet is due, in large measure, to 
the unfettered ability of the Internet community throughout 
the world to innovate and add economic value at the edges of 
the network.  A number of countries, in contrast, supported a 
stronger role for governments in both the technical and 
policy aspects of the Internet.  This discussion quickly 
moved into a debate over whether governmental oversight of 
the Internet is needed. While most delegations agreed, in 
principle, that governments ought not to be involved in the 
day-to-day management of the Internet, there are great 
differences in what is perceived to be part of the technical 
management versus public policy. 
 
¶5.  Second, there was an ongoing debate about the nature of 
change in Internet management ) whether this change should 
be evolutionary or whether a more revolutionary approach is 
warranted.  Those favoring an evolutionary approach supported 
permitting technological change within existing systems. 
Supporters of a revolutionary change are seeking to uproot 
the current system and develop a new mechanism for Internet 
management, which would then be sent to the UN to oversee. 
Supporters of evolutionary change differed on whether 
governments should drive change through additional processes 
and mechanisms or whether the evolutionary change should be 
driven primarily by the technology and new innovation. 
 
¶6.  Third, several delegations expressed dissatisfaction that 
a single government, the United States, has an essential role 
in the management of the Internet, specifically the role by 
the Department of Commerce in authorizing changes or 
modifications to the authoritative root zone file of the DNS. 
 Various formulations were offered as to how to 
&multilateralize8 this role.  The U.S. defended its unique 
role in the system and reiterated the U.S. commitment to 
doing its part to ensure the long-term stability and security 
of the Internet. 
 
¶7.  Lastly, discussions focused on whether or not there was a 
need to develop some sort of forum to continue the debate on 
Internet governance issues broadly.  While most delegations 
agreed that dialogue should continue, disagreements persisted 
over the terms of reference for such a forum.  Some 
governments such as the U.S. and Australia articulated a 
preference to use existing institutions while others called 
for the creation of a new organization to fulfill the role. 
 
¶8.  In a surprise move toward the end of the PrepCom, the EU 
presented a proposal that would transfer much of the 
Internet,s management, both technical and policy-related, to 
an intergovernmental oversight body.  Iran, Cuba, Brazil, 
China and Saudi Arabia, who have long argued for greater 
intergovernmental control of the Internet, promptly supported 
this proposal.  Argentina, with support from Canada, New 
Zealand, Singapore, Mexico and others, tabled an alternative 
proposal that focused on the need to strengthen and improve 
existing institutions, and which called for a forum to 
address public policy issues.  The U.S. has expressed 
interest in the Argentine proposal. 
 
¶9.  While prepcom participants tentatively agreed on 
introductory text on the role of stakeholders and some 
issue-specific text, they did not reach consensus on issues 
related to the authoritative root zone file, Internet 
oversight or a new forum dialogue.  The Subcommittee chairman 
produced a text that sought to bring together the various 
proposals.  The Chair,s proposal, coming at the end of the 
PrepCom, did not help the negotiations; indeed it established 
another element that further confused future negotiations. 
This document has no status and is not considered a baseline 
text by the U.S.  The issue of Internet governance will be 
discussed further during the resumed PrepCom III in Tunis. 
 
¶10.  Additional Internet governance issues include: 
international charging arrangements for Internet services, 
cybersecurity, cybercrime, spam: 
 
(a) International Charging Arrangements for Internet Services 
(ICAIS) 
In the context of measures to promote development, 
disagreements persisted over the need for governments to 
impose a cost-sharing model on interconnection arrangements 
between Internet Service Providers (ISPs), similar to the 
model used in traditional international voice 
telecommunications. The U.S. continued to advocate that 
arrangements for Internet services should continue to be 
negotiated commercially and governments should rely on 
technology and market forces to support expansion of the 
Internet and should not intervene in the process.  Text was 
agreed that supports: the commercial nature of these 
negotiations; the continued development of regional Internet 
Exchange Centers; the development of low cost terminal 
equipment; and the completion of ITU work on this issue.  A 
proposal originally tied to existing multilateral trade rules 
remains bracketed due to ambiguity in drafting. 
 
(b) Cybersecurity 
 
Russia proposed language on security for the political 
chapeau based on that in paragraph 36 of the Geneva 
Declaration of Principles.   In corridor discussions, the 
U.S. worked with Russia to modify that language, which they 
accepted, but Iran, Cuba and El Salvador proposed additional 
sentences drawn from paragraphs 35 and 36 on social and 
economic development and human rights.  While all parties had 
indicated acceptance for the language, Russia and Cuba placed 
the paragraph in brackets.  Upon review, the U.S. will 
propose inclusion of language on the culture of 
cybersecurity, drawn from paragraph 35, to rebalance the 
compromise between paragraphs 35 and 36 reached in the Geneva 
Declaration of Principles. 
 
Much of the U.S. proposed language on cybersecurity in other 
sections was agreed upon.   The agreed language promotes a 
culture of cybersecurity, with specific mention of 
information sharing to develop common standards and exchange 
of best practices.  In addition, the language highlights the 
importance of promoting cybersecurity while respecting 
privacy and human rights. 
 
(c) Cybercrime 
 
Prepcom participants agreed to the core U.S. language with a 
call for governments to adopt domestic legislation on 
cybercrime, taking into account existing frameworks.  In 
addition, there is a specific acknowledgment of the Council 
of Europe's Convention on Cybercrime as an existing framework 
for fighting cybercrime.  However, the last sentence of new 
paragraph 61 is still in brackets as requested by the Russian 
Federation.  This sentence focuses on the need for 
international cooperation on cybercrime enforcement efforts, 
but avoids a call for any new international agreement on 
cybercrime. 
 
(d) Spam 
 
The core U.S. language was agreed to at PrepCom III. Pursuant 
to U.S. policy, the language explicitly acknowledges the 
London Action Plan, among other multi-lateral memoranda of 
understanding, and calls for a multi-pronged approach to 
counter spam that includes policy elements promoted by the 
U.S. (consumer and business education; appropriate 
legislation; law enforcement authorities and tools; continued 
development of self-regulatory and technical measures; best 
practices; and international cooperation).  In addition, the 
language avoids a call for a global agreement on spam. 
 
WSIS Implementation 
 
¶11.  The issues of coordination and implementation of the 
outcomes of the WSIS remained highly contentious.  Many 
States at the PrepCom want the WSIS to designate specific UN 
agencies to carry out specific tasks related to the WSIS 
outcomes, want the WSIS to specify those tasks and want the 
ITU, UNESCO and UNDP to play a &leading role8 in WSIS 
coordination and implementation.  These States include 
Venezuela, Saudi Arabia, Cuba, Russia, El Salvador, Ghana, 
Iran, Azerbaijan, Brazil, Nigeria and the Dominican Republic. 
 The U.S., the European Union (represented by the UK), 
Norway, Australia and Canada contend that it is not up to the 
WSIS to designate the tasks of UN agencies and that 
coordination on implementation should be carried out through 
the UN Secretary General within the context of the existing 
framework of UN coordination under UNGA Resolution 57/270B 
(on integrated and coordinated implementation of and follow 
up to the outcomes of the major United Nations conferences 
and summits in the economic and social fields) and within 
existing UN mandates and resources.  An extensive debate on 
this issue was conducted over the course of several days in 
PrepCom Subcommittee B (chaired by Lyndall Shope-Mafole of 
South Africa) and the attending States were unable reach 
agreement on the issue.  The issue of WSIS implementation is 
inextricably linked to the issues related to Internet 
governance and is unlikely to be settled until the issue of 
Internet governance is resolved within the WSIS. 
 
Political Issues 
 
¶12.  Freedom of Expression/Role of Media/Unilateral Measures 
Language:  The U.S., EU, Canada and Australia expressed 
strong support repeatedly for reaffirming the commitment made 
to human rights in the Geneva Declaration of Principles, 
without reopening the language.  However, proposals made 
primarily by Cuba attempted to reopen language rejected in 
Phase I instead of utilizing negotiated language already 
agreed.  This was particularly the case regarding references 
to the &removal of obstacles8 in the Political Chapeau and 
the Implementation chapters of the Summit document(s) that 
were geared to evoke criticism of the U.S. embargo and/or 
U.S. media transmissions to Cuba (Radio/TV Marti).  Cuba also 
continued to press for inclusion of paragraphs on the role of 
the media and the &new world information and communication 
order8 that are unacceptable to the U.S. and other 
like-minded nations.  Although the U.S. delegation was able 
to whittle the Cuban proposals down from many paragraphs to a 
more limited number, the end result is that all such language 
remains bracketed in the text.  Cuba is committed to 
&operationalizing8 paragraph 46 of the Geneva Declaration 
(on unilateral measures) and paragraph 45 of that Declaration 
(on legality of management of the radio frequency spectrum). 
Twice Cuba agreed to and then reneged on negotiated language 
on those issues.  Agreement remains a major challenge prior 
to Tunis. 
 
Financial Mechanisms 
 
¶13.  Chapter Two on Financial Mechanisms was substantially 
agreed at PrepCom II.  However, due to lack of time, the few 
remaining bracketed passages were never brought to the 
Committee for final agreement. 
 
Open Source 
 
¶14.  Paragraphs on open source software (OSS) remain open. 
Brazil proposed the addition of the original "Rio 
Commitment," reflecting Brazil's (and GRULAC's) promotion of 
open source software (OSS) over proprietary software 
products.   Ghana, speaking for the African Group, also 
supported this proposal.  The U.S. opposed the addition in 
that it lacked the requisite technology neutrality previously 
recognized in the Geneva Declaration of Principles and has 
proposed technologically neutral language with which Brazil, 
GRULAC, and Ghana have indicated they could agree.  The U.S. 
resisted Brazil's attempts to move the technologically 
neutral language within the paragraph, which would have 
resulted in promotion of OSS over proprietary software.  It 
appears that all parties are willing to agree to the U.S.' 
original suggested placement of the language.  Brazil also 
had communicated its desire to eliminate all other references 
to OSS anywhere in the final document, in favor of the one 
reference to OSS in the Political Chapeau.  This possibility 
remains an open issue, however, as other references to OSS 
already were the subject of working group drafts.  Drafting 
group participants have not completed work on all the 
paragraphs concerned.  Australia favored dropping Brazil's 
proposal altogether, with which the U.S. would agree.   Ghana 
has indicated to the U.S., however, that it needs this 
provision on OSS in the Political Chapeau to support its 
development agenda. 
 
Technology Transfer 
 
¶15.  Technology transfer continues to be an open issue, 
although it is not expected to be a fractious one in that 
there appears to be general agreement to modify the phrase 
with "on mutually agreed terms" or similar modifications such 
as "enabling environment."  Initial clashes with Saudi Arabia 
and Egypt over inclusion of "with mutually agreed terms" were 
resolved through several meetings of the drafting group, in 
which the U.S. pointed to similar references in the Geneva 
Declaration of Principles and the Plan of Action and the 
parties were able to address their disagreement through the 
inclusion of the phrase "enabling environment." 
 
Cultural diversity 
 
¶16.  Several paragraphs relating to cultural diversity/the 
diversity of cultural content and artistic expression appear 
in the political chapeau.  The U.S. agreed to language on 
&respecting cultural and linguistic diversity8 in paragraph 
13; however, debate remains open on paragraph 35 around 
language on the &promotion and protection of cultural 
diversity and identity,8 which the U.S. does not support. A 
working group of Egypt, Ghana, Honduras and the U.S. proposed 
an alternative, which removed reference to protecting 
cultural diversity, which Egypt later rejected.  The working 
group reconvened with the EU, Australia and Guatemala also 
participating to develop the following language which will be 
submitted at the intersessional PrepCom meeting: &We 
reaffirm our commitment to promoting the involvement of all 
peoples in the information society through the development 
and use of local languages in ICTs, thereby promoting, 
affirming, and preserving diverse cultural identities and 
languages.8 
 
Tunisia 
 
¶17.  At the closing plenary of the WSIS PrepCom III, the 
issue of respect for human rights resurfaced in a dramatic 
way.  The Canadian delegation read a statement on behalf of 
the EU, Romania, Bulgaria, Croatia, Serbia/Montenegro, 
Switzerland, Norway, New Zealand, Iceland, Monaco, Australia 
and the U.S. that emphasized, while their governments are 
dedicated to achieving a successful WSIS Summit in Tunis, 
they remain deeply concerned about the human rights situation 
in Tunisia, particularly with recent incidents and issues 
involving limitations on freedom of expression and 
participation by some groups of Tunisian civil society.  The 
statement noted that they expected Tunisia to demonstrate its 
commitment to freedom of expression and opinion as host of 
the Summit. 
 
¶18.  Tunisia responded vehemently by saying that it had 
spared no effort to make WSIS a success and that it had 
provided the conditions for an open and inclusive summit, in 
line with the UN rules and procedures.  The GOT also said 
there was no reason for further concern and that there was no 
reason to raise this issue at the Plenary and that it 
regretted hearing such a statement. 
 
¶19.  Saudi Arabia (on behalf of the Arab Group), Pakistan (on 
behalf of the Asia Group), Ghana (on behalf of the Africa 
Group), and Cuba spoke in support of the Tunisian efforts to 
hold a successful summit.  Saudi Arabia, in particular, 
deplored that this issue was raised in Plenary.  ITU 
Secretary General assured the Plenary that the UN rules would 
 
SIPDIS 
apply to the Tunis Summit and that the inclusive nature of 
WSIS would be upheld.  He claimed that the host country 
agreement, just signed by Tunisia and the ITU, will ensure 
the openness of the summit, in accordance with the UN rules. 
The tension surrounding the issue was clear and the dividing 
lines in the plenary hall were evident. 
 
Accreditation 
 
¶20.  Contentious human rights issues served as the bookends 
for PrepCom III, opening and closing the meeting.  During the 
opening plenary, the United States raised the issue of the 
accreditation of U.S.-based NGO Human Rights in China (HRIC) 
and requested an explanation from the WSIS Secretariat as to 
why HRIC was not accredited for this meeting, given they had 
submitted all necessary paperwork, including audited 
financial statements showing they received no government 
support. This concern was echoed by Canada and the UK on 
behalf of the EU.  Following the Secretariat's explanation 
that HRIC was denied accreditation because it failed to 
disclose information about its anonymous donors, the U.S. 
moved that the HRIC be accredited.   A lengthy procedural 
discussion followed in which China strongly objected, stating 
that discussing a single NGO after the Secretariat had not 
recommended their accreditation would break with standard 
procedures and that all NGOs rejected for accreditation could 
also need to be discussed.  China raised a procedural point 
that the PrepCom should not take up the discussion of NGOs 
not recommended for accreditation by the Secretariat.   In an 
intervention, Cuba supported this position. 
¶21.  Ambassador Karklins, President of the PrepCom, proposed 
postponing the discussion on HRIC to allow time for greater 
examination of the issue and to save precious plenary time. 
However, China expressed concern that, by doing this, a 
precedent would be set and also argued that HRIC does not 
work for the protection of human rights in China.  China then 
called for a roll call vote on its proposal to not discuss 
the issue of NGOs denied accreditation.  Acknowledging that 
there was no guiding precedent in WSIS for this issue, 
Ambassador Karklins called a roll call vote with the 
following results: 52 countries supported China,s proposal, 
35 voted in favor of discussing the accreditation issue, 35 
countries abstained and 70 countries were declared absent, 
primarily because they chose not to respond to the roll call 
(many of them were in the room).   Following the vote, which 
prevented the U.S. motion to accredit HRIC from being 
considered, the U.S. expressed disappointment that the WSIS 
process would not be as transparent and inclusive as the U.S. 
had hoped. 
 
Conclusion/Comments 
 
¶22.  PrepCom III will be remembered as the international 
meeting where the EU dramatically shifted its support from 
the current system of Internet Governance to one it has 
characterized as &a new cooperation model.8   In so doing, 
the EU not only moved away from supporting a system it was 
instrumental in helping to create but in so doing, it clearly 
appeared to rebuke the U.S. and its historic role in the 
management of the Internet system.  This dramatic shift -- 
reflecting the views of Commissioner Viviane Redding -- is in 
sharp contrast to the policies advocated by her predecessor 
Commissioner Erkki Liikonen.  The summit will now be 
remembered for the outcome of the US/EU differences over 
Internet Governance. Consequences of these differences, and 
how they will be dealt with at the Summit, will echo across a 
number of upcoming international meetings, particularly 
during the ITU,s Plenipotentiary Conference to be held in 
Turkey in November 2006. 
Moley

Next up: Venezuela. █

Summary: US diplomatic cables from Sri Lanka reveal interesting stories about the small country’s flirtations with freedom-respecting software

According to the following Cablegate cables (first one in ¶7): “During a March 22 meeting with members of the American Chamber of Commerce, DAS Patterson outlined USG views on regional developments of the past two years and asked for insights into the current domestic political situation and business climate. IBM Managing Director and former Amcham President, Kavan Ratnayaka described IBM efforts to support open source software development, noting that Sri Lanka has become an internationally recognized “brand” in the open source community.”

IBM is right because here in Techrights we accumulated many examples of Free software in Sri Lanka. But just like in Thailand, there is a fight back from Microsoft proxies. Let us remember that “[w]hen the 2004 Indian Ocean tsunami seriously damaged the coastline of Sri Lanka, Virtusa funded salaries and benefits for its employees as they developed open-source software for disaster relief management. It continues to fund its employees as they travel to disaster-affected countries and assist in implementing the software program.” (see cables below)

The BSA (Business Software Alliance) is not happy with the country’s embrace of Free software. Here is what the BSA says according to cables: “While we see this as a step in the right direction, the Business Software Alliance (BSA) is not fully satisfied with the policy and accuses the government of “more funny business.””

So when a country seeks digital independence, that is “funny business” in the eyes of the BSA. Good to know. Perhaps the BSA does not speak for FOSS like it claims to. Here are three Cablegate cables from which we extract the evidence:

C O N F I D E N T I A L SECTION 01 OF 03 COLOMBO 000545 
 
SIPDIS 
 
DEPARTMENT FOR SA, SA/INS, S/CT 
DEPARTMENT PLEASE ALSO PASS TOPEC 
NSC FOR E. MILLARD 
 
E.O. 12958:  DECL:  03-26-14 
TAGS: PGOV [Internal Governmental Affairs], PREL [External Political Relations], ECON [Economic Conditions], 
PTER [Terrorists and Terrorism], CE [Sri Lanka], LTTE [Liberation Tigers of Tamil Eelam] - Peace Process, Elections, ECONOMICS 
SUBJECT:  In visit to Sri Lanka, SA DAS Patterson 
discusses April 2 elections, plus peace and economy 
 
Refs:  Colombo 515, and previous 
 
(U) Classified by Ambassador Jeffrey J. Lunstead. 
Reasons 1.5 (b, d). 
 
¶1.  (C) SUMMARY:  SA DAS Torkel Patterson visited 
Colombo, March 21-23.  Highlights of the visit included 
meetings at the MFA, with a key adviser to President 
Kumaratunga, with local diplomats, and with local 
business leaders, including the American Chamber of 
Commerce.  Key issues discussed included the April 2 
parliamentary elections, the peace process, and the 
economic situation.  The visit served to underscore 
continued high-level USG engagement with Sri Lanka 
during this sensitive timeframe.  END SUMMARY. 
 
------------ 
MFA Meetings 
------------ 
 
¶2.  (C) Deputy Assistant Secretary for South Asian 
Affairs Torkel Patterson visited Colombo, March 21-23. 
On March 22, DAS Patterson and Ambassador Lunstead held 
separate meetings with Foreign Minister Tyronne Fernando 
and Foreign Secretary Bernard Goonetilleke.  Patterson 
and the Ambassador used both meetings to review CHR 
priorities, including the Cuba and China draft 
resolutions, and the Iraq situation (see Reftels).  In a 
brief discussion regarding Sri Lanka's April 2 
parliamentary elections, Goonetilleke remarked that he 
felt that voter turnout might be lower this time around 
due to voter dissatisfaction with the two major parties. 
Foreign Minister Fernando claimed that the campaign of 
his United National Party (UNP) was getting a good 
response among younger voters, but admitted that 
confidence in the UNP on economic issues among "the 
average voter" was low. 
 
------------------------------------- 
Meeting with Key Presidential Adviser 
------------------------------------- 
 
¶3.  (C) On March 22, DAS Patterson and Ambassador also 
met with Lakshman Kadirgamar, former foreign minister 
and a key adviser to President Kumaratunga.  Asked for 
his views on the election campaign, Kadirgamar seemed 
confident that Kumaratunga's "United People's Freedom 
Alliance" (UPFA) would do well.  There had not been much 
violence so far in the campaign, he related.  He 
thought, however, that there could be some post-election 
violence.  President Kumaratunga was prepared to deal 
with any such incidents, he said.  Queried re the split 
in the Liberation Tigers of Tamil Eelam (LTTE) (see 
Reftels), Kadirgamar thought there was some prospect of 
reconciliation between breakaway eastern rebel leader 
Karuna and Tiger leader V. Prabhakaran.  That said, any 
possible reconciliation would likely take place after 
the April 2 election, as would any possible armed 
conflict between the two sides.  DAS Patterson noted the 
degree of control the GSL had over Sri Lanka's media. 
Kadirgamar, who is currently the Minister of Media and 
Communications, agreed that the state-run media outlets 
were quite influential.  There had been attempts to 
reform the situation in the past, but they had all 
failed.  (Per Reftels, the Ambassador also raised the 
issue of the fabrication of results of a poll in 
government-controlled newspapers on March 20.  The poll 
had been partially financed by USAID.  Kadirgamar said 
he would look into the matter.) 
 
--------------------------- 
Dinner with Local Diplomats 
--------------------------- 
 
¶4.  (C) DAS Patterson also attended a March 22 dinner at 
the Ambassador's residence with local diplomats, 
including those from Norway, the UK, the EU, 
Netherlands, and Canada.  The natural focus of 
conversation was the upcoming parliamentary election. 
The overall feeling at the dinner was that it was not 
precisely clear how the political situation was playing 
out.  That said, most agreed that the President's UPFA 
grouping had gotten off to a fast start and was probably 
ahead at this point in the race.  Prime Minister 
Wickremesinghe's UNP had gotten off to a very slow 
start, but its campaign was getting more active. 
Norwegian Ambassador Brattskar noted that the anti-peace 
process JHU party -- in an unprecedented move -- was 
running an all-Buddhist monk candidate slate, and might 
pick up between 2-5 seats in Parliament.  It was not 
clear whether the JHU's support would come from voters 
who might have supported the UPFA, or would come from 
voters who were dissatisfied with the two major parties 
and were looking for other alternatives.  Regarding the 
LTTE split, there was widespread agreement that the main 
LTTE organization would probably wait until after the 
April 2 election to try to displace Karuna via an armed 
attack or by trying to entice Karuna's supporters away 
from him. 
 
------------------------- 
Commerce Ministry Meeting 
------------------------- 
 
¶5.  (C) Secretary of Commerce and Consumer Affairs 
Harsha Wickramasinghe and Director General of Trade K.J. 
Weerasinghe updated DAS Patterson March 22 on current 
political activities, GSL positions in the WTO, and 
progress in BIMST-EC (Bangladesh, India, Myanmar, Sri 
Lanka and Thailand Economic Cooperation) and SAFTA 
(South Asia Free Trade Agreement) talks.  Wickramasinghe 
discussed UNP election tactics designed to discredit the 
JVP's stance that it is a credible political party, by 
highlighting its brutal past actions.  He also noted 
that the pro-LTTE Tamil National Alliance (TNA) had said 
they would not ally with the United People's Freedom 
Alliance (UPFA), but would hold out for as much as they 
could get from the UNP. 
 
¶6.  (C) On WTO issues, Weerasinghe promised that the GSL 
Representative in Geneva would support USG positions on 
UNCTAD and on food aid issues.  The GSL is now busy 
finalizing its proposals for accession to the 
Information Technology Agreement, fulfilling a 
commitment made during the last round of TIFA talks. 
Wickramasinghe mentioned that he saw BIMST-EC as an 
important bridge between SAARC and ASEAN, and as a tool 
to open up Myanmar's trade regime.  Weerasinghe bemoaned 
the multiplicity of bi- and multi-lateral trade regimes, 
and noted the need for convergence. 
 
----------------- 
AMCHAM Roundtable 
----------------- 
 
¶7.  (U) During a March 22 meeting with members of the 
American Chamber of Commerce, DAS Patterson outlined USG 
views on regional developments of the past two years and 
asked for insights into the current domestic political 
situation and business climate.  IBM Managing Director 
and former Amcham President, Kavan Ratnayaka described 
IBM efforts to support open source software development, 
noting that Sri Lanka has become an internationally 
recognized "brand" in the open source community. 
 
¶8.  (SBU) Amcham Director Graetian Gunawardene, whose 
company manufactures Samsonite luggage, noted that the 
export sector has been driving growth and employment. 
He asked specifically for DAS Patterson's support in 
pushing for a U.S.-Sri Lanka Free Trade Agreement (FTA) 
and in returning U.S. visa validity to 5 years.  (Note: 
We are discussing possible changes in our visa 
reciprocity schedule with the GSL.)  Noting that Sri 
Lanka has a long democratic tradition, even through some 
very difficult times, Gunawardene suggested there should 
be closer U.S.-Sri Lanka commercial ties to match their 
shared democratic ideals.  Patterson promised to review 
FTA issues when he got back to  Washington, and urged 
the Amcham to consult with the GSL's Ministry of Foreign 
Affairs to promote a review of the reciprocity issues 
that have led to the limited validity of U.S. visas for 
Sri Lankans. 
 
¶9.  (C) On the current political situation, optimism 
about the future mixed with concerns about short-term 
political realities.  Ratnayaka (a longtime UNP 
supporter whose family is close to the Prime Minister) 
raised concerns about the opposition's ability to move 
forward on the peace process due to the LTTE's lack of 
trust in the President.  Others in the group, including 
Citibank CEO Kapila Jayawardena, thought the LTTE would 
look closely at who wins the April 2 election and would 
be willing to deal with whichever party wins, assuming 
that party has the intention of negotiating a workable 
solution.  Outgoing Energizer Managing Director Sunil de 
Alwis commented that Sri Lanka remains an attractive 
place to do business.  He mentioned Energizer's new USD 
2 million investment, which upgraded its manufacturing 
facility and improved Energizer's ability to meet 
increased domestic demand and a potential export market 
into India as well.  Citibank and Energizer reps said 
their Sri Lankan operations are leading performers in 
their respective companies.  Jayawardene noted that 
American companies tend to do well in Sri Lanka. 
Citibank's own return-on-equity in Sri Lanka is over 50 
percent, the best in Asia. 
 
------- 
COMMENT 
------- 
 
¶10.  (C) As the many threads laid out above indicate, 
this is a very sensitive timeframe for Sri Lankans, who 
have deep worries about the future of the peace process 
and the economy.  These overall concerns are fed by 
specific worries over the unstable pre- and post- 
election period, over what the radical JVP might due in 
power if the UPFA wins, over what the LTTE split means 
for the peace process, etc.  Given this complex, fluid, 
situation, DAS Patterson's visit was reassuring to Sri 
Lankans, who deeply appreciate continued high-level USG 
engagement in support of the peace process.   END 
COMMENT. 
 
¶11.  (U) DAS Patterson was not able to clear on this 
message before departing Post. 
 
¶12.  (U) Minimize considered. 
 
LUNSTEAD

Cable II:

UNCLAS SECTION 01 OF 02 COLOMBO 000851 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EEB/EPPD NSMITH-NISSLEY AND SCA/INS 
DOL/ILAB FOR TINA MCCARTER 
MCC FOR S. GROFF, D. TETER, D. NASSIRY AND E. BURKE 
TREASURY FOR LESLIE HULL 
GENEVA PASS USTR 
 
FOR EEB ASSISTANT SECRETARY SULLIVAN FROM AMBASSADOR BLAKE 
 
E.O 12958: N/A 
TAGS:  ECON [Economic Conditions], BEXP [Trade Expansion and Promotion], ETRD [Foreign Trade],
ELAB [Labor Sector Affairs], KSEP, SENV [Environmental Affairs], AMGT [Management Operations], CE [Sri Lanka] 
SUBJECT:  SRI LANKA - NOMINATION OF VIRTUSA FOR CORPORATE EXCELLENCE 
AWARD 
 
REF: STATE 47222 
 
¶1.  I am pleased to nominate Virtusa for the Secretary's Award for 
Corporate Excellence in the small and medium enterprise category. 
While meeting all eligibility requirements for this award, Virtusa 
has demonstrated outstanding corporate citizenship by assisting 
disaster-ridden countries with an open source disaster recovery 
management system it developed following the 2004 tsunami which 
struck Sri Lanka and other Indian Ocean countries.  Virtusa also 
contributed to the advancement of Sri Lanka's scientific and 
technology policies by enhancing information and communications 
technology (IT) capacity in local universities.  Finally, by 
creating an intensive training program which converts unemployed but 
motivated graduates without sufficient IT training into IT managers, 
Virtusa is directly contributing to Sri Lanka's overall growth and 
development. 
 
OUSTANDING CORPORATE CITIZENSHIP:  VIRTUSA-SPONSORED SYSTEM SPEEDS 
RECOVERY FOLLOWING DISASTERS 
 
¶2.  When the 2004 Indian Ocean tsunami seriously damaged the 
coastline of Sri Lanka, Virtusa funded salaries and benefits for its 
employees as they developed open-source software for disaster relief 
management.  It continues to fund its employees as they travel to 
disaster-affected countries and assist in implementing the software 
program. 
 
¶3.  The system, called Sahana, was initially designed for Sri Lanka 
to have a good disaster recovery system following the tsunami.  It 
has been widely used in recent disasters, including Pakistan 
following its 2005 earthquake, the Philippines following its 2006 
mudslide in Southern Leyte, and Indonesia following the Yogjakarta 
earthquake of 2006.  The software has received several awards, 
including the Free Software Foundation's 2006 Award for Social 
Benefit, the 2006 Good Samaritan Award from Software 2006. Sahana is 
now managed by the non-profit Lanka Software Foundation.  In 
addition to Virtusa's continued support through its personnel, 
Sahana receives funding from IBM and the U.S. National Science 
Foundation. 
 
CONTRIBUTING TO THE ADVANCEMENT OF SRI LANKA'S SCIENTIFIC AND 
TECHNICAL POLICIES:  ENHANCING UNIVERSITIES; ENLIGHTENING STUDENTS 
WITH INFORMATION TECHNOLOGY 
 
¶4.  Sri Lanka has identified IT as a potential growth sector, and is 
actively encouraging its development.  Hundreds of "Virtusans" have 
volunteered their time and skills over the past few years to create 
IT awareness within communities and share best practices with 
academia. In 2006, the company introduced information technology to 
over 700 students in a southern district of Sri Lanka, donated a 
computer lab to a Colombo-based school, provided career guidance and 
leadership skills to thousands of undergraduate and advanced level 
students, and contributed to fostering free and open software 
education in Sri Lanka. 
 
¶5.  Virtusa supplies staff to universities to serve as 
lecturers/trainers.  It shares industry best practices with 
university staff and invites them to Virtusa for special seminars. 
Through Virtusa's Project Enhancement Initiative, university 
undergraduates receive software engineering and management guidance. 
 All of these activities promote the importance of IT to Sri 
Lankans, furthering Sri Lanka's prospects for growth in the IT 
sector. 
 
CONTRIBUTING TO OVERALL ECONOMIC GROWTH:  TRANSITIONING 
PROFESSIONALS FROM OVERSUBSCRIBED PROFESSIONS INTO INFORMATION 
TECHNOLOGY THROUGH TRAINING 
 
¶6.  As Sri Lanka's IT industry continues to grow, the country's 
shortage of IT workers becomes increasingly critical.  Universities 
still have not adapted sufficiently to meet the demands of the IT 
sector.  In 2006, Virtusa implemented a dynamic IT Leadership 
 
COLOMBO 00000851  002 OF 002 
 
 
Conversion Program to help resolve this shortage.  The company 
identifies self-driven, high-aptitude graduates who do not have 
sufficient IT skills.  It then provides these individuals with a 
fast-track career conversion opportunity enabling them to make the 
transition into an IT services career. 
 
¶7.  The company has hired 30 successful Virtusa IT Conversion 
Program graduates from the 40 it trained.  It plans to double the 
number of Conversion Program candidates this year, enabling Sri 
Lanka to meet a greater demand in the growing IT sector. 
 
BLAKE

Cable III:

C O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 000063 
 
SIPDIS 
 
TREASURY FOR USTR MICHAEL DELANEY; 
COMMERCE FOR USPTO KRISTINE SCHLEGELMILCH 
DEPARTMENT FOR EEB/TPP/IPE JOELLEN URBAN 
 
E.O. 12958: DECL: 01/28/2020 
TAGS: KIPR [Intellectual Property Rights], ECON [Economic Conditions], PGOV [Internal Governmental Affairs], CE [Sri Lanka] 
SUBJECT: IPR PROTECTION IN SRI LANKA: BAD, BUT IMPROVING 
 
Classified By: Deputy Chief of Mission Valerie Fowler for Reasons 1.4 ( 
B) and (D). 
 
¶1. (SBU) SUMMARY: Sri Lanka's intellectual property rights 
regime is good on paper but lax on enforcement.  Still, since 
the passage of comprehensive legislation in 2003, things have 
slowly been improving.  The Embassy, American Chamber of 
Commerce, Business Software Alliance, a cadre of specialized 
law firms, and a number of government offices have worked 
hard to increase awareness and provide much-needed training 
for judges, police, and investigators.  While much remains to 
be done, new and ongoing initiatives should reduce the amount 
of pirated and fake items available in the marketplace.  END 
SUMMARY. 
 
BACKGROUND 
 
¶2. (U) Sri Lanka's intellectual property rights (IPR) regime 
is, like that of many emerging economies, good on paper but 
lax on enforcement.  The country enacted a comprehensive IPR 
law in 2003 that governs copyrights and related rights, 
industrial designs, patents, trademarks and service marks, 
trade names, layout designs of integrated circuits, 
geographical indications, unfair competition, databases, 
computer programs, and undisclosed information.  Infringement 
of intellectual property rights is a punishable offense under 
the law and falls under both criminal and civil courts of 
jurisdiction in Sri Lanka.  Recourse available to owners 
includes injunctive relief, seizure and destruction of 
infringing goods and plates or implements used for the making 
of copies, and the prohibition of imports and exports. 
Penalties for the first offense include a prison sentence of 
6 months or a fine of up to Rs 500,000 ($4,425).  Penalties 
can be doubled for a second offense. 
 
¶3. (C) Since the passage of the 2003 IPR law Sri Lanka has 
slowly begun enforcing its provisions.  However, counterfeit 
goods continue to be widely available.  Local agents of 
well-known U.S. and other international companies 
representing recording, software, movie, clothing and 
consumer product industries continue to complain that the 
lack of IPR protection is damaging their businesses.  Piracy 
of sound recordings and software is widespread, making it 
difficult for the legitimate industries to protect their 
market and realize their potential in Sri Lanka.  The Police 
occasionally raid stores selling counterfeit goods -- 
especially garments.  However, it is rare for the Police to 
act without a formal complaint and assistance from an 
aggrieved party.  Several offenders have been charged or 
convicted by courts.  A leading anti-piracy lawyer, Sudath 
Perera, told EconOff that his firm has successfully conducted 
several raids in Colombo in 2008-2009.  In January 2010, 
police and the law firm (representing the rights holders) 
recently raided two outlets in Colombo selling counterfeit 
garments and stationary. 
 
SOFTWARE PIRACY 
 
¶4. (SBU) Software companies complain of the lack of IPR 
enforcement within government institutions and even some 
larger corporations, including several banks.  According to a 
survey commissioned by the Business Software Alliance (BSA) 
and conducted by the IDC, a leading global IT market research 
firm, software piracy in Sri Lanka is as high as 90 percent. 
Sri Lanka,s software companies and the Sri Lankan 
Association for Software and Service Companies (SLASSCOM) 
dispute the findings of the study, questioning the sampling 
methodology used by the IDC.  However, both organizations 
have bottom-line reasons to publicly doubt the study.  For 
example, SLASSCOM's members worry the bad publicity could 
cause potential clients to go elsewhere due to the high 
piracy rate.  ICTA, in collaboration with the SLASSCOM, is 
planning to commission an independent IPR survey covering a 
sample of about 5,000 companies. 
 
¶5. (SBU) Sri Lankan government officials in charge of IPR 
protection acknowledge there is a high software piracy rate 
 
COLOMBO 00000063  002.4 OF 002 
 
 
in the government.  The government and industry leaders are 
taking various actions to improve IPR protection in the 
Information and Communication Technology (ICT) sector.  In 
December 2009, the government of Sri Lanka approved a new 
Information Technology (IT) policy for the government sector 
which includes rules on hardware and software procurement. 
When the new policy will be implemented is not known.  Under 
the new policy, the government will issue IT procurement 
guidelines requiring all government agencies to stick to 
licensed software or open-source software.  If the cost of 
licensed software or maintenance and consultancy fees of 
open-source software is higher than proprietary software, the 
government will provide additional funds to purchase 
proprietary software. 
 
¶6. (C) While we see this as a step in the right direction, 
the Business Software Alliance (BSA) is not fully satisfied 
with the policy and accuses the government of "more funny 
business."  Shalini Ratwatte, BSA's local consultant, told 
EconOff that she sees it as a push for open source software. 
However, she acknowledged that pricing is an issue.  For 
instance, global software producers are not willing to offer 
discounted prices to Sri Lanka (as they do in mass markets 
such as India).  They argue that Sri Lanka, although a 
developing country, does not offer economies of scale to 
justify discounts.  Nevertheless, BSA is contemplating 
starting IPR awareness programs for senior Sri Lanka 
government officials covered by the new procurement policy. 
 
OTHER PROGRESS AND PROGRAMS 
 
¶7. (U) Post,s recent efforts focus on IPR protection in the 
ICT sector.  In a bid to support the ICT sector, Post teamed 
up with BSA to hold an IPR awareness program for the Sri 
Lanka Police on January 8.  The U.S. Department of Justice 
Office of Overseas Prosecutorial Development, Assistance and 
Training (USDOJ/OPDAT) and Business Software Alliance 
provided funds for this workshop.  Approximately 45 police 
officers from the Criminal Investigations Division (CID) of 
the Sri Lanka Police participated.  The program focused on 
the importance of IPR to the economy, elements of IPR law, 
and investigating and prosecuting IP cases.  Industry 
representatives from pharmaceutical, software, and electrical 
product industries provided technical information about 
product identification.  At the conclusion of the seminar, 
participants from the CID requested continued training on IPR 
awareness and education and more involvement from the 
industry. 
 
¶8. (U) Demonstrating a positive trend, well-known vendors of 
branded laptops and computer systems now advertize that their 
products come "only with licensed software."  Previously, 
laptop and desktop computers were sold without any reference 
to software and the sellers and users freely copied software. 
 Furthermore, Dr. D.M. Karunaratne, Director of the National 
IP office, informed EconOff that a World Intellectual 
Property Office,s (WIPO) intellectual property academy will 
soon be established in Sri Lanka.  Sri Lanka has been chosen 
for this academy as a pilot project.  Earlier, WIPO carried 
out a successful pilot project on WIPO outreach programs in 
Sri Lanka. 
 
COMMENT 
 
¶9. (SBU) The end of the war gives an opportunity to refocus 
efforts on IPR enforcement.  The Embassy, the USPTO regional 
office in New Delhi, AMCHAM and BSA are working to pursue 
more aggressive enforcement and enhance public awareness, and 
require the active cooperation of the National IP office of 
Sri Lanka.  Upcoming training programs in the first quarter 
of 2010 for law enforcement agencies include USPTO-sponsored 
training programs for the Attorney General,s Office and Sri 
Lanka Customs, and an AMCHAM/BSA sponsored training program 
for magistrates in the Central, North Central, Eastern and 
Northern Provinces, ensuring that magistrates from all nine 
of Sri Lanka's provinces receive training. 
BUTENIS

Those propaganda workshops are indirectly funded by the likes of Microsoft. To quote, “recent efforts focus on IPR protection in the ICT sector. In a bid to support the ICT sector, Post teamed up with BSA to hold an IPR awareness program for the Sri Lanka Police on January 8. The U.S. Department of Justice Office of Overseas Prosecutorial Development, Assistance and Training (USDOJ/OPDAT) and Business Software Alliance provided funds for this workshop.”

And who provides funds for the BSA? Follow the money. █

Summary: More cables from South Africa and new information that they provide

Frost and Sullivan, a familiar source of anti-FOSS, pro-Microsoft FUD, brings back memories of South Africa's interesting podcast where experts claimed that Microsoft buddies did a lot of work to derail the government’s migration to Free software. According to the following Cablegate cable, the FUD from Frost and Sullivan is bordering the ridiculous. To them, Internet speed if an impediment of Free software development. What utter crock. From the Cablegate cable: “High cost of internet access is stifling South Africa’s software development industry and thwarting the SAG’s open source procurement policy and commitment to use locally developed software. According to Linda McDonald, an analyst for Frost and Sullivan, the SAG’s plan to save million of rands yearly by cutting out annual software license fees, boost local skills and create more jobs as developers are hired to modify open source software to suit the government’s needs, is a false hope unless the cost of Internet access drops. Unless developers can spend numerous hours in online discussions at an affordable rate, they will not be able to create the necessary programs for the SAG’s software. (Business Day, September 25, 2007)”

What utter nonsense. So accessing forums is the impediment for Free software implementation and the primary cost constraint? This sounds so made up that one might consider it a hoax. A sceptic might ask, how can we know she was not sincere? Well, there is an implicit suggestion there that Free software needs a lot of querying (as though proprietary software needs none), that online forums/E-mail are bandwidth intensive, and that the country is not talented enough for the task (Microsoft used the same insulting talking points and it backfired). So if Linda McDonald was honest, she should probably be fired. But we gave examples of some other Microsoft proxies (like Computing Technology Industry Association) that did similar things to have South Africa abandon its ODF and FOSS plans. It’s like a cult assault. Here is another cable from the same nation. From ¶3: “One Laptop Per Child (OLPC) is a nonprofit initiative launched by MIT Media Labs’ Nicholas Negroponte to donate low-cost and rugged notebook computers to poor children of the third world. (For details see http://laptop.org and http://wiki.laptop.org.) The resulting “XO” machine is designed for kids: smaller and lighter than regular PCs, with a waterproof keyboard sized to small fingers, and a carrying handle. Its bright colors prompt comparison to Fischer- Price toys. The XO’s screen resolution is sharp, however, and it comes loaded with an open-source operating system and software ranging from a web browser to e-book reader and puzzle games, as well as applications for word processing, drawing, and composing music. A built-in video camera and wireless modem enable video chat with other users.”

Here is another interesting cable from South Africa. The two newer ones (to us) are:

VZCZCXRO3994
RR RUEHDU RUEHJO
DE RUEHSA #3538/01 2820641
ZNR UUUUU ZZH
R 090641Z OCT 07
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 2184
RUCPCIM/CIMS NTDB WASHDC
RUCPDC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHJO/AMCONSUL JOHANNESBURG 7593
RUEHTN/AMCONSUL CAPE TOWN 4938
RUEHDU/AMCONSUL DURBAN 9252

UNCLAS SECTION 01 OF 03 PRETORIA 003538 
 
SIPDIS 
 
DEPT FOR AF/S/RMARBURG; AF/EPS; EB/IFD/OMA 
USDOC FOR 4510/ITA/MAC/AME/OA/DIEMOND 
TREASURY FOR OAISA/RALYEA/CUSHMAN 
USTR FOR COLEMAN 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON [Economic Conditions], EFIN [Financial and Monetary Affairs], EINV [Foreign Investments], 
ETRD [Foreign Trade], EMIN [Minerals and Metals], EPET [Petroleum and Natural Gas], ENRG [Energy and Power],
 BEXP [Trade Expansion and Promotion], KTDB [National Trade Data Bank], SENV [Environmental Affairs], 
PGOV [Internal Governmental Affairs], SF [South Africa] 
SUBJECT: SOUTH AFRICA ECONOMIC NEWS WEEKLY NEWSLETTER OCOTOBER 5, 
2007 ISSUE 
 
 
¶1. (U) Summary.  This is Volume 7, issue 40 of U.S. Embassy 
Pretoria's South Africa Economic News weekly newsletter. 
 
Topics of this week's newsletter are: 
- Trade Deficit Disappoints Market 
- Internet Costs Stifle SAG Open Source Policy 
- Car Sales Decline Again 
- Critic Claims Climate Consciousness Dims at Energy Summit 
- Biofuel Won't Burn Food Prices 
- SARB Transparent Despite Personal Cost 
- Completing the Supply Chain 
- AngloGold Still Optimistic About Fatality-Free Deep-Level Mining 
 
End Summary. 
 
-------------------------------- 
Trade Deficit Disappoints Market 
-------------------------------- 
¶2.  (U) South Africa's trade deficit in August totaled R9.1 billion, 
barely changed from last month and well above forecasts.  The trade 
gap suggests the current account deficit could widen further, 
putting additional pressure on the rand.  Exports rose .8% while 
imports increased .1% compared with July.  The cumulative deficit 
for the calendar year is R50.1 billion, a significant increase over 
the R41.6 billion deficit for the same period last year.  With the 
strength of the rand eroding the appeal of exports and an 
infrastructure plan boosting the need for imports of machinery and 
equipment, South Africa's international trade position "is still 
very weak," according to Efficient Research Economist Nico Kelder. 
(Business Day, October 1, 2007) 
 
----=--------------------------------------- 
Internet Costs Stifle SAG Open Source Policy 
-------------------------------------------- 
¶3. (U) High cost of internet access is stifling South Africa's 
software development industry and thwarting the SAG's open source 
procurement policy and commitment to use locally developed software. 
 According to Linda McDonald, an analyst for Frost and Sullivan, the 
SAG's plan to save million of rands yearly by cutting out annual 
software license fees, boost local skills and create more jobs as 
developers are hired to modify open source software to suit the 
government's needs, is a false hope unless the cost of Internet 
access drops.  Unless developers can spend numerous hours in online 
discussions at an affordable rate, they will not be able to create 
the necessary programs for the SAG's software.  (Business Day, 
September 25, 2007) 
 
----------------------- 
Car Sales Decline Again 
----------------------- 
¶4. (U) New vehicle sales continued their decline, plunging in August 
by 13% compared with August 2006.  This is the biggest fall in 
nearly five years and marks the sixth monthly decline in a row. 
Annual sales year-to-date are down by 3.2%.  In the year to last 
month, sales for passenger cars and commercial vehicles plunged 
14.1% and 11%, respectively.  Heavy commercial vehicles increased, 
reflecting heavy public and private sector spending on 
infrastructure.  Standard Bank Economist Danelee van Dyk estimated 
that South Africa will experience a 5-7% fall in the whole market 
this year.  Higher interest rates, stricter lending criteria and 
strikes in the motor industry have added to the pressures on demand. 
 (Business Day, October 2, 2007) 
--------------------------------------------- ----- 
Critic Claims Climate Consciousness Dims at Energy Summit 
--------------------------------------------- ----- 
 
¶5. (U) Johannesburg Earthlife Africa Sustainable Energy and Climate 
Change Project Coordinator Richard Worthington offered a contrarian 
view of the September 25-26 Energy Summit in a Business Day 
editorial on October 3.  The Energy Summit was organized by the SAG 
Department of Energy to engage stake-holders in a reassessment of 
the 1998 national energy policy white paper.  Worthington criticized 
the energy summit for being too focused on security of energy supply 
and set on a significant expansion of coal and nuclear power, 
including an emphasis on coal-to-liquid technology (with significant 
carbon emissions) and "new-fangled and unproven" Pebble Bed Modular 
Reactor technology.  Worthington lamented that the SAG has failed to 
implement the commitment in the 1998 energy policy "to ensure that 
an equitable level of national resources is invested in renewable 
energy technologies" - as reiterated in the Department of Energy 
 
PRETORIA 00003538  002 OF 003 
 
 
paper released at the Summit.  Worthington concluded his editorial 
by criticizing the linkage between minerals and energy. (Business 
Day, October 3, 2007) 
 
------------------------------ 
Biofuel Won't Burn Food Prices 
------------------------------ 
 
¶6. (U) Department of Energy Chief Director of Clean Energy Sandile 
Tyata said South Africa's commitment to biofuel production would not 
overly burden food prices due to increased demand for corn.  He 
stressed that biofuels would not be a "free-for-all" and there would 
be guidelines and limitations on what could be done when it was 
introduced.  Tyata was responding to cautionary statements that the 
biofuel industry would keep food prices high, and questions about 
the wisdom of using corn and sugar as sources of ethanol as a 
biofuel additive to gasoline.  South African Reserve Bank Governor 
Tito Mboweni noted the risks to food prices in comments in August. 
Tyata said the SAG was finalizing its biofuels strategy, so he could 
not comment on details of the plan.  It is expected that 1.2 billion 
of liters of bioethanol will be produced in South Africa by 2010, 
according to the President of the SA Biofuels Association Andrew 
Makenete, who asserted that the introduction of biofuels would be 
good for the food industry.  (Business Report, October 3, 2007) 
 
-------------------------------------- 
SARB Transparent Despite Personal Cost 
-------------------------------------- 
 
¶7. (U) South African Reserve Bank (SARB) Governor Tito Mboweni 
emphasized the need for SARB transparency in a recent speech in 
Pretoria.  He acknowledged, however, that transparency sometimes has 
a personal cost.  "For instance, we publish the governor's 
compensation package.  The first year we did that people complained 
I earned more than the Finance Minister and the President earned." 
Publication of the package even sparked a shareholder's revolt in 
2003, which led to the replacement of the head of SARB's 
Remuneration Committee.  However, the public outcry was not the 
worst of Mboweni's worries.  "It was particularly a problem for me 
as a divorcee," he told the audience.  "My ex-wife found out how 
much I earned and asked for more maintenance."  (Pretoria News, 
October 2, 2007) 
 
--------------------------- 
Completing the Supply Chain 
--------------------------- 
 
¶8. (U) Engineering News previously reported that last year only 9% 
of the 745 million tons per year of freight transported in South 
Africa used rail.  Some 88% of freight transport takes place on the 
country's road infrastructure, exacerbating congestion, accidents, 
and the deterioration of infrastructure.  Council for Scientific and 
Industrial Research (CSIR) supply chain analyst Emma Maspero called 
for greater coordination of the supply chain, including inter-modal 
transfer of containers between road and rail and to and from ports. 
He claimed that more freight carried by rail would generate 
significant savings to the economy.  CSIR is working on a number of 
initiatives with the Transnet National Ports Authority that address 
increasing containerization and aim at increased planning and 
efficiencies.  Current infrastructure development includes deepening 
and widening the entrance channel at the Port of Durban, designing 
and constructing a new port at Ngqura in the Eastern Cape, and 
upgrading the container terminal at the Cape Town Port. 
(Engineering News, October 1, 2007) 
 
--------------------------------------------- - 
AngloGold Still Optimistic About Fatality-Free Deep-Level Mining 
--------------------------------------------- - 
 
¶9. (U) Africa's leading gold producer AngloGold Ashanti said on 
Tuesday it believed it was possible to mine at deep levels without 
suffering fatalities, after four of its workers were killed 
following seismic events at its Mponeng mine on Friday.  COO Neville 
Nicolau said it was not a solution to close down the shafts that had 
fatalities, as many people depended on these mines for jobs, a 
sentiment which was shared by labor representatives.  Instead, 
companies like AngloGold Ashanti needed to work with labor and 
government to effect a cultural change that led workers to 
thoroughly understand the reasons for safety, and not just act to 
appease their supervisors.  South Africa has some of the world's 
 
PRETORIA 00003538  003 OF 003 
 
 
deepest gold mines, and their owners have repeatedly come under fire 
from the unions and government for the high fatality rates in these 
mines.  AngloGold Ashanti owned many of these mines and has already 
suffered 23 fatalities so far this year.  (Mining Weekly, October 3, 
2007) 
 
BALL

And the second cable:

VZCZCXRO3994
RR RUEHDU RUEHJO
DE RUEHSA #3538/01 2820641
ZNR UUUUU ZZH
R 090641Z OCT 07
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 2184
RUCPCIM/CIMS NTDB WASHDC
RUCPDC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHJO/AMCONSUL JOHANNESBURG 7593
RUEHTN/AMCONSUL CAPE TOWN 4938
RUEHDU/AMCONSUL DURBAN 9252

UNCLAS SECTION 01 OF 03 PRETORIA 003538 
 
SIPDIS 
 
DEPT FOR AF/S/RMARBURG; AF/EPS; EB/IFD/OMA 
USDOC FOR 4510/ITA/MAC/AME/OA/DIEMOND 
TREASURY FOR OAISA/RALYEA/CUSHMAN 
USTR FOR COLEMAN 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON [Economic Conditions], EFIN [Financial and Monetary Affairs], EINV [Foreign Investments], 
ETRD [Foreign Trade], EMIN [Minerals and Metals], EPET [Petroleum and Natural Gas], ENRG [Energy and Power], 
BEXP [Trade Expansion and Promotion], KTDB [National Trade Data Bank], SENV [Environmental Affairs], 
PGOV [Internal Governmental Affairs], SF [South Africa] 
SUBJECT: SOUTH AFRICA ECONOMIC NEWS WEEKLY NEWSLETTER OCOTOBER 5, 
2007 ISSUE 
 
 
¶1. (U) Summary.  This is Volume 7, issue 40 of U.S. Embassy 
Pretoria's South Africa Economic News weekly newsletter. 
 
Topics of this week's newsletter are: 
- Trade Deficit Disappoints Market 
- Internet Costs Stifle SAG Open Source Policy 
- Car Sales Decline Again 
- Critic Claims Climate Consciousness Dims at Energy Summit 
- Biofuel Won't Burn Food Prices 
- SARB Transparent Despite Personal Cost 
- Completing the Supply Chain 
- AngloGold Still Optimistic About Fatality-Free Deep-Level Mining 
 
End Summary. 
 
-------------------------------- 
Trade Deficit Disappoints Market 
-------------------------------- 
¶2.  (U) South Africa's trade deficit in August totaled R9.1 billion, 
barely changed from last month and well above forecasts.  The trade 
gap suggests the current account deficit could widen further, 
putting additional pressure on the rand.  Exports rose .8% while 
imports increased .1% compared with July.  The cumulative deficit 
for the calendar year is R50.1 billion, a significant increase over 
the R41.6 billion deficit for the same period last year.  With the 
strength of the rand eroding the appeal of exports and an 
infrastructure plan boosting the need for imports of machinery and 
equipment, South Africa's international trade position "is still 
very weak," according to Efficient Research Economist Nico Kelder. 
(Business Day, October 1, 2007) 
 
----=--------------------------------------- 
Internet Costs Stifle SAG Open Source Policy 
-------------------------------------------- 
¶3. (U) High cost of internet access is stifling South Africa's 
software development industry and thwarting the SAG's open source 
procurement policy and commitment to use locally developed software. 
 According to Linda McDonald, an analyst for Frost and Sullivan, the 
SAG's plan to save million of rands yearly by cutting out annual 
software license fees, boost local skills and create more jobs as 
developers are hired to modify open source software to suit the 
government's needs, is a false hope unless the cost of Internet 
access drops.  Unless developers can spend numerous hours in online 
discussions at an affordable rate, they will not be able to create 
the necessary programs for the SAG's software.  (Business Day, 
September 25, 2007) 
 
----------------------- 
Car Sales Decline Again 
----------------------- 
¶4. (U) New vehicle sales continued their decline, plunging in August 
by 13% compared with August 2006.  This is the biggest fall in 
nearly five years and marks the sixth monthly decline in a row. 
Annual sales year-to-date are down by 3.2%.  In the year to last 
month, sales for passenger cars and commercial vehicles plunged 
14.1% and 11%, respectively.  Heavy commercial vehicles increased, 
reflecting heavy public and private sector spending on 
infrastructure.  Standard Bank Economist Danelee van Dyk estimated 
that South Africa will experience a 5-7% fall in the whole market 
this year.  Higher interest rates, stricter lending criteria and 
strikes in the motor industry have added to the pressures on demand. 
 (Business Day, October 2, 2007) 
--------------------------------------------- ----- 
Critic Claims Climate Consciousness Dims at Energy Summit 
--------------------------------------------- ----- 
 
¶5. (U) Johannesburg Earthlife Africa Sustainable Energy and Climate 
Change Project Coordinator Richard Worthington offered a contrarian 
view of the September 25-26 Energy Summit in a Business Day 
editorial on October 3.  The Energy Summit was organized by the SAG 
Department of Energy to engage stake-holders in a reassessment of 
the 1998 national energy policy white paper.  Worthington criticized 
the energy summit for being too focused on security of energy supply 
and set on a significant expansion of coal and nuclear power, 
including an emphasis on coal-to-liquid technology (with significant 
carbon emissions) and "new-fangled and unproven" Pebble Bed Modular 
Reactor technology.  Worthington lamented that the SAG has failed to 
implement the commitment in the 1998 energy policy "to ensure that 
an equitable level of national resources is invested in renewable 
energy technologies" - as reiterated in the Department of Energy 
 
PRETORIA 00003538  002 OF 003 
 
 
paper released at the Summit.  Worthington concluded his editorial 
by criticizing the linkage between minerals and energy. (Business 
Day, October 3, 2007) 
 
------------------------------ 
Biofuel Won't Burn Food Prices 
------------------------------ 
 
¶6. (U) Department of Energy Chief Director of Clean Energy Sandile 
Tyata said South Africa's commitment to biofuel production would not 
overly burden food prices due to increased demand for corn.  He 
stressed that biofuels would not be a "free-for-all" and there would 
be guidelines and limitations on what could be done when it was 
introduced.  Tyata was responding to cautionary statements that the 
biofuel industry would keep food prices high, and questions about 
the wisdom of using corn and sugar as sources of ethanol as a 
biofuel additive to gasoline.  South African Reserve Bank Governor 
Tito Mboweni noted the risks to food prices in comments in August. 
Tyata said the SAG was finalizing its biofuels strategy, so he could 
not comment on details of the plan.  It is expected that 1.2 billion 
of liters of bioethanol will be produced in South Africa by 2010, 
according to the President of the SA Biofuels Association Andrew 
Makenete, who asserted that the introduction of biofuels would be 
good for the food industry.  (Business Report, October 3, 2007) 
 
-------------------------------------- 
SARB Transparent Despite Personal Cost 
-------------------------------------- 
 
¶7. (U) South African Reserve Bank (SARB) Governor Tito Mboweni 
emphasized the need for SARB transparency in a recent speech in 
Pretoria.  He acknowledged, however, that transparency sometimes has 
a personal cost.  "For instance, we publish the governor's 
compensation package.  The first year we did that people complained 
I earned more than the Finance Minister and the President earned." 
Publication of the package even sparked a shareholder's revolt in 
2003, which led to the replacement of the head of SARB's 
Remuneration Committee.  However, the public outcry was not the 
worst of Mboweni's worries.  "It was particularly a problem for me 
as a divorcee," he told the audience.  "My ex-wife found out how 
much I earned and asked for more maintenance."  (Pretoria News, 
October 2, 2007) 
 
--------------------------- 
Completing the Supply Chain 
--------------------------- 
 
¶8. (U) Engineering News previously reported that last year only 9% 
of the 745 million tons per year of freight transported in South 
Africa used rail.  Some 88% of freight transport takes place on the 
country's road infrastructure, exacerbating congestion, accidents, 
and the deterioration of infrastructure.  Council for Scientific and 
Industrial Research (CSIR) supply chain analyst Emma Maspero called 
for greater coordination of the supply chain, including inter-modal 
transfer of containers between road and rail and to and from ports. 
He claimed that more freight carried by rail would generate 
significant savings to the economy.  CSIR is working on a number of 
initiatives with the Transnet National Ports Authority that address 
increasing containerization and aim at increased planning and 
efficiencies.  Current infrastructure development includes deepening 
and widening the entrance channel at the Port of Durban, designing 
and constructing a new port at Ngqura in the Eastern Cape, and 
upgrading the container terminal at the Cape Town Port. 
(Engineering News, October 1, 2007) 
 
--------------------------------------------- - 
AngloGold Still Optimistic About Fatality-Free Deep-Level Mining 
--------------------------------------------- - 
 
¶9. (U) Africa's leading gold producer AngloGold Ashanti said on 
Tuesday it believed it was possible to mine at deep levels without 
suffering fatalities, after four of its workers were killed 
following seismic events at its Mponeng mine on Friday.  COO Neville 
Nicolau said it was not a solution to close down the shafts that had 
fatalities, as many people depended on these mines for jobs, a 
sentiment which was shared by labor representatives.  Instead, 
companies like AngloGold Ashanti needed to work with labor and 
government to effect a cultural change that led workers to 
thoroughly understand the reasons for safety, and not just act to 
appease their supervisors.  South Africa has some of the world's 
 
PRETORIA 00003538  003 OF 003 
 
 
deepest gold mines, and their owners have repeatedly come under fire 
from the unions and government for the high fatality rates in these 
mines.  AngloGold Ashanti owned many of these mines and has already 
suffered 23 fatalities so far this year.  (Mining Weekly, October 3, 
2007) 
 
BALL

A lot of the above is not software related but we did not omit it because we usually leave cables untampered with, for context. █

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

Cable II:

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

Cable III:

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. █

Summary: What a cable about lobbying in Lithuania reveals about Free/open source software

IN Lithuania, the “USE OF GOVERNMENT SOFTWARE” saw some changes not too long ago. According to the following Cablegate cable,”[a] A Government Information Society Development Committee is considering a draft resolution which will recommend that government institutions use open source computer software programs. The GOL does not have a timeframe for the resolution’s adoption, but intends to allocate funds to support training to familiarize agencies with the new software.”

This is not he first time we write about Lithuania, but sometimes we do. The relevance of this cable is that it shows yet another example where blacklists or shame lists are used to oppress and subjugate countries that are sceptical of patent/copyright regimes. We gave many such examples before, e.g. in Turkey. Here is the entire cable:

UNCLAS SECTION 01 OF 05 VILNIUS 000165 
 
SIPDIS 
 
STATE FOR EB/IPE SWILSON AND EUR/NB GERMANO 
STATE PLEASE PASS TO USTR JCHOE-GROVES AND LOC STEPP 
COMMERCE FOR JBOGER AND USPTO JURBAN 
 
E.O. 12958: N/A 
TAGS: ECON [Economic Conditions], KIPR [Intellectual Property Rights], ETRD [Foreign Trade], LH [Lithuania], HT24 
SUBJECT: LITHUANIA: YEAR 2005 SPECIAL 301 REVIEW 
 
REF:  A. SECSTATE 23950 
 
 B. 04 VILNIUS 00226 
 C. 04 VILNIUS 00241 
 D. 04 VILNIUS 00273 
 E. 04 VILNIUS 00372 
 
 
------- 
SUMMARY 
------- 
 
¶1.  Lithuania is making progress against intellectual 
property rights (IPR), but it should remain on the Watch 
List for 2005 due to persistent weaknesses in its 
enforcement system.  A local industry association estimates 
that the rate of piracy for recorded music, films, and 
games dropped to 40 percent of the total product in 
circulation, down from 55-65 percent in 2003.  Local IPR 
advocates indicate that two large organized crime 
syndicates with Russian links control piracy activities 
related to these items.  The GOL conducted an IPR Public 
Awareness Campaign, but has still not decided whether to 
require mandatory source identification coding on optical 
discs.  It seized 316,948 units of audio CDs, DVDs, videos, 
PC games and other pirated products, (up from 142,800 units 
in 2003) worth USD 3,548,966, launched cases against six of 
an estimated 20 distributors of illegal works on the 
internet, and filed 131 criminal cases and 180 
administrative protocols (versus 86 pretrial investigations 
and 171 administrative protocols in 2003).  Court 
procedures remain slow and cumbersome.  Fines levied 
against IPR violators are low and do not deter pirating. 
The police are understaffed in the IP section, and border 
surveillance is inadequate.  End Summary. 
 
------------------- 
OVERALL PIRACY RATE 
------------------- 
 
¶2.  The Lithuanian Music Industry Association (LMIA), which 
collects and maintains general piracy statistics, estimates 
the general level of piracy for music, films, and games in 
the Lithuanian market at about 40 percent, down from 55-65 
percent in 2003.  Definitive figures, LMIA cautions, are 
difficult to derive due to problems with tracking the use 
of rented films and internet games.  LMIA's figures reveal 
a piracy level of musical works of 30-40 percent, with 
international repertoire representing 58 percent of the 
total.  This is significantly lower than the International 
Intellectual Property Alliance's (IIPA) figures of 80 
percent for records and music, 65 percent for motion 
pictures, 58 percent for business software, and 85 percent 
for entertainment software.  The Chairman of the Board of 
the Phonogram Producers and Distributors Association (FGPA) 
in Lithuania stated that the piracy rate of phonograms 
(CDs, musical videos, and DVDs) is greater than 70 percent, 
resulting in annual losses of USD 20 million. 
 
¶3.  FGPA stated that at least two large organized crime 
groups, likely under Russian mafia control, coordinate and 
control piracy in Lithuania.  The FGPA estimates that each 
of these Vilnius-based groups has stockpiled 200-300,000 
illegal CDs, and sells nearly 300,000 discs per month 
equally to Lithuanian and foreign customers.  Over 50 
percent of this volume has pirated American content.  The 
FGPA Chairman explained that organized crime sells its CDs 
through direct marketing to cafes, bars, offices, and at 
marketplaces, and by exporting them to Poland, Germany, 
Latvia and Estonia.  More than 90 percent of the illegal 
product is imported from Russia, Belarus, Ukraine and 
Poland, while the rest is burned locally. 
 
------------------- 
LAWS PROTECTING IPR 
------------------- 
 
¶4.  Lithuania did not modify its IPR-related laws in 2004. 
A GOL working group has been charged with drafting the 
relevant legal amendments by August 2005.  These amendments 
will bring the country's copyright and industrial property 
rights laws into line with EU standards.  The amendments 
will require the publication of court judgments in 
newspapers as a preventive measure to discourage IPR 
violations. 
 
------------ 
GOL OUTREACH 
------------ 
 
¶5.  The GOL conducted an IPR Public Awareness Program in 
2004.  The Ministry of Culture organized public 
consultations in each of the country's ten largest cities. 
The Ministry invited representatives of cultural 
institutions (libraries, museums, theaters, publishers) and 
small businesses to attend these sessions in order to 
discuss copyright agreements and the identification of 
protected works. 
 
-------------------- 
OPTICAL MEDIA PIRACY 
-------------------- 
 
¶6.  The GOL has not decided whether to require mandatory 
source identification coding (SID) of all optical discs 
produced in the country.  The Ministry of Culture will make 
a decision following a meeting with representatives of the 
recording industry in early 2005.  We question the impact 
of such a rule, however, since most pirated CDs are 
manufactured outside of Lithuania. 
 
-------------------------- 
USE OF GOVERNMENT SOFTWARE 
-------------------------- 
 
¶7.  A Government Information Society Development Committee 
is considering a draft resolution which will recommend that 
government institutions use open source computer software 
programs.  The GOL does not have a timeframe for the 
resolution's adoption, but intends to allocate funds to 
support training to familiarize agencies with the new 
software. 
 
--------------- 
INTERNET PIRACY 
--------------- 
 
¶8.  The GOL intends to include in its amendments to the 
copyright law procedures that would clarify its Ecomas 
Directive of 2000, which required an internet service 
provider (ISP) to act expeditiously and block content, upon 
the request of the appropriate IP right holder.  The 
amendments will define the requirements that the request 
must fulfill, and a timeframe for the ISP to act.  The 
Managing Director of the Lithuanian Neighboring Rights 
Association (Agata) informed us that the issue of who 
should take lead responsibility for internet content is 
under consideration by Lithuania's Constitutional Court. 
 
------------------------------------------- 
TRIPS COMPLIANCE AND OTHER IP-RELATED ISUES 
------------------------------------------- 
 
¶9.  On January 1, 2004, the GOL implemented a six percent 
tax on blank media carriers to help remunerate the authors 
of copyrighted works.  The Agency of the Lithuanian 
Copyright Protection Association (LATGAA) collected LTL 2 
million (USD 757,576) in blank media carrier taxes in 2004, 
and distributed this sum to authors. 
 
¶10.  The GOL amended its trademark law on February 19, 
2004, and its design law on April 29, 2004, to conform to 
EU regulations and directives.  Community trademarks and 
designs were given precedence over corresponding national 
products.  The GOL did not modify its patent law in 2004. 
Parliament, however, will consider amendments during its 
Spring 2005 session that will harmonize Lithuanian law with 
an EU directive on biotechnological inventions.  All 
Lithuanian legal limitations to the exclusive rights of 
copyright owners and producers of sound recordings conform 
to TRIPS exceptions and EU law. 
 
¶11.  Three Lithuanian laws protect geographical indicators: 
the Law on Plant Variety Protection, the Law on 
Competition, which prohibits the declaration of improper 
origin, and the Law on Trademarks, which bars the 
registration of a trademark with misleading geographical 
indicators (GI).  Prior to joining the EU, the GOL, on 
April 26, 2004, modified its Order "On the Protection of 
Geographical Indicators in Agricultural Products and 
Foodstuffs" to implement the EU regulation protecting GIs. 
The Patent Law (effective February 1, 1994) provides patent 
protection to all technical products, including those 
derived from genetic resource sharing.  There was no change 
in 2004 to Lithuania's June 16, 1998, Law on the Legal 
Protection of Topographies of Semiconductor Products, which 
covers integrated circuits.  The Law on folklore 
supervision protects the rights of folklore artists, 
registers their works, and requires publisher-author 
agreement on remuneration. 
 
------------------------------------ 
LITHUANIA HAS RATIFIED WIPO TREATIES 
------------------------------------ 
¶12.  The GOL ratified the two World Intellectual Property 
Organization (WIPO) treaties in 2002 and incorporated their 
requirements into national law via amendments to the 
copyright law of March 5, 2003.  Enforcement of the law has 
been weak.  The police initiated only five criminal cases 
against internet piracy in 2004, up from four in 2003. 
Embassy feels that this modest progress made little headway 
in combating the high level of internet piracy in the 
country. 
 
----------------------------------------- 
GOL'S RESPONSE TO IIPA'S LEGAL CRITICISMS 
----------------------------------------- 
 
¶13.  The Ministry of Culture responded to criticisms of its 
Copyright Act that IIPA included in its 2005 Special 301 
submission to the Department.  IIPA noted that it was 
unclear whether Lithuania assesses damages for each act of 
infringement or for each work infringed.  The Ministry 
noted that it is considering the introduction of a sampling 
procedure under the Civil Procedure to help identify the 
legality of an entire batch of products.  Though the IIPA 
alleges that the term of protection is too short, the 
Ministry states that it provides an adequate term of 
protection for works (for 70 years of an author's life, and 
an additional 70 years after his death).  The Ministry 
stated it had not heard of the "private copying exception" 
mentioned by IIPA in its submission.  Article 3 of 
Lithuania's Law on the Protection of Intellectual Property 
and Neighboring Rights covers the first release or 
simultaneous publication -- in Lithuania -- of works or 
phonograms.  Lithuanian law confirms the rights of 
broadcasters to receive royalties, in compliance with the 
International Rome Convention (Article 12) and the WIPO 
treaty (Article 15).  Agata collects these broadcasting 
royalties. 
 
----------- 
ENFORCEMENT 
----------- 
 
Police 
------ 
 
¶14.  The Criminal Police, together with LMIA, conducted 
inspections of 239 companies and retailers in 2004.  It 
seized 316,948 units of pirated products, mostly audio CDs. 
65 percent of black market sales in Lithuania were for 
musical products, 31 percent were for audiovisual works, 
and four percent for games.    The corresponding proportion of 
these products in the legal market is music - 52.25 
percent, audiovisual works - 26.75 percent, and games - 21 
percent.  In 2003, the police confiscated 142,800 units of 
CDs, videos and computer software, and brought three 
actions against organized crime groups in 2004.  In 
February, it seized 36,000 units, including 11,000 
audiocassettes and 20,000 audio CDs, of pirated product 
from an illegal warehouse in Vilnius.  It seized another 
170,000 units from a second Vilnius warehouse and from a 
production facility in July, and more than 30,000 CDRs 
(including 10,000 blank CDRs) and 2,800 DVDs smuggled from 
Russia in Kaunas in December. 
 
¶15.  The total value of products seized by the police in 
2004, utilizing the lowest legal retail prices, was LTL 
9,369,270 (USD 3,548,966), of which music works constituted 
LTL 6,149,970 (USD 2,329,534) of the total, audiovisual 
works LTL 2,940,960 (USD 1,114,000), and games programs LTL 
278,340 (USD 105,432).  LMIA's data suggests that losses to 
the owners of international repertoire music works rights 
in 2004 were about USD 6.13 million. 
 
¶16.  An LMIA representative reported that, following the 
establishment of a five-person specialized IPR police unit, 
crime bosses masterminding piracy activities and retails 
outlets selling pirated goods have increasingly been 
targeted by law enforcement.  The specialized unit utilizes 
city police officers to conduct the raids and undercover 
stings.  Every major police department in Lithuania 
dedicates one officer to coordinating IPR activities. 
 
--------------- 
INTERNET PIRACY 
--------------- 
 
¶17.  The police launched six cases (one administrative, 
five criminal) against internet distributors.  In one raid, 
police seized 2,900 films from a distributor.  In 2003, 
police initiated four criminal prosecutions against 
websites marketing pirated products.  LMIA estimates that 
there may be as many as 20 distributors selling pirated 
products over the internet.  Agata and FGPA are trying to 
establish cooperative agreements between ISPs and rights 
holders under which the ISPs will agree to block the 
broadcasting of protected works.  The Agata Managing 
Director noted the difficulty in getting permits from 
international phonogram producers, since many don't have 
local offices in Lithuania.  Protecting IPR rights on the 
internet, she said, is an area of particular interest for 
her organization, since there is a growing potential for 
abuse of IPR on the internet. 
 
------------------------------------ 
INADEQUATE INTER-AGENCY COORDINATION 
------------------------------------ 
 
¶18.  The coordination between GOL agencies charged with IPR 
protections could improve. 
 
Customs 
------- 
 
¶19.  Customs intercepted few pirated products in 2004. 
Most pirated products are smuggled into Lithuania without 
an opportunity for Customs inspection.  Further, now that 
Lithuania is part of the EU, Customs does no inspection of 
vehicles entering through Poland and Latvia.  They only 
inspect at the borders with Belarus and Kaliningrad, 
reducing the amount of contraband they might find.  The FGPA 
Chairman criticized the Customs Intelligence Service for 
not being more active in identifying corrupt Customs 
officers and cars carrying smuggled goods.  He noted that 
one car is capable of concealing 6-10,000 CDs. 
 
The Courts 
---------- 
 
¶20.  The police filed 131 criminal cases and 180 
administrative protocols for IPR violations in 2004. (An 
administrative protocol is a description of a violation of 
the Administrative Code, which is judged by an 
Administrative Court.)  In 2003, the police began 86 
pretrial investigations, and filed 171 administrative 
protocols. 
 
¶21.  The maximum penalty for piracy is LTL 2,000 (USD 758), 
but courts usually award penalties of between LTL 100-200 
(USD 38-76).  Pirates often receive lower penalties by 
claiming mitigating circumstances as a basis for leniency. 
Industry representatives told us that these fines fail to 
adequately deter piracy.  Pirates, they tell us, fear 
retaliation from organized crime more than penalties 
imposed by the judicial system.  The Ministry of Culture 
told us that a draft law under consideration by parliament 
would increase the maximum fine for individuals under the 
new Administrative Code to LTL 5,000 (USD 1,894), and for 
legal persons to LTL 10,000 (USD 3,788). 
 
¶22.  The relevant laws are new, and experts cite the need 
for judges to receive training in interpreting these laws. 
During a December 2004 USG-funded visit by U.S. Patent and 
Trademark Office Senior Counselor Michael Keplinger, Court 
of Appeals Judge Virginija Cekanauskaite remarked that her 
colleagues could use training in how U.S. and other foreign 
judges interpret IPR statutes. 
 
¶23.  IIPA and FGPA raise valid concerns about the 
cumbersome nature of the court-mandated expert review 
process.  The courts require that experts submit reports 
after identifying, examining, and translating the title of 
each seized album.  Courts require these reports to confirm 
that the stolen intellectual property belongs to the rights 
holder, a process that necessitates the comparison of each 
CD code with corresponding legal CD codes.  By contrast, 
common European practice sanctions the use of sampling. 
 
------------------------- 
BALTIC OPTICAL DISC PLANT 
------------------------- 
 
¶24.  In its submission, IIPA noted the recording industry's 
complaint alleging pirate production at the Baltic Optical 
Disc (BOD) plant.  The LMIA and FGPA told us that the plant 
is "clean."  LMIA opined that production of pirated goods 
at BOD is unlikely, because the plant is inspected by the 
police, LATGAA, LMIA and NCB (the Nordic Copyright Bureau). 
LMIA added that these inspections had found no evidence of 
piracy. 
--------------------------------------------- ----- 
RECOMMENDATION -- KEEP LITHUANIA ON THE WATCH LIST 
--------------------------------------------- ----- 
¶25.  Lithuania continues to have IPR problems, despite its 
progress.  We concur with the thrust of IIPA's criticisms, 
and with its recommendation that Lithuania remain on the 
Watch List for 2005.  The piracy rate dropped to about 40 
percent from 55-65 percent in 2003, the government 
conducted a Public Awareness Campaign on IPR protections, 
and is making a good faith effort to tackle internet 
piracy, launching cases against six of an estimated 20 
distributors of illegal media.  The Criminal Police seized 
316,948 units of pirated products, up from 142,800 units in 
2003.  The police brought three actions against organized 
crime groups in 2004.  Enforcement, however, remains the 
weakest element in the country's IPR protection system. 
There appears to be insufficient political will to tackle 
the problem.  Additional high-level attention focused on 
the importance of IPR protections would be beneficial on 
the ground.  The law enforcement effort against piracy is 
constrained by inadequate resources, corruption, low fines, 
and a slow and cumbersome process of redress in court. 
 
-------------------------------------------- 
EMBASSY'S EFFORTS TO PROMOTE IPR PROTECTIONS 
-------------------------------------------- 
 
¶26.  We will continue to urge Lithuania to make greater 
efforts to address weaknesses in its enforcement system. 
USG-funded programs made it possible for U.S. experts to 
hold a two-week training session for Lithuanian Customs and 
Police officers in January 2005, for two Lithuanian Court 
of Appeals judges to participate in an IPR business- 
judicial roundtable in Bratislava, and for a U.S. copyright 
expert to speak at a GOL conference to commemorate the 10th 
anniversary of Lithuania's membership in the Berne 
Convention.  We also solicited and arranged the first ever 
visit to Lithuania of a representative of the Motion 
Picture Association of America to discuss piracy issues 
with key distributors and government officials.  We will 
encourage the GOL to approach IPR violations within the 
broader context of complex crimes encompassing tax evasion 
and illegal employment, and to continue to go after the 
organized crime bosses masterminding piracy in Lithuania. 
 
MULL

Notice how these US diplomats bat for Hollywood and other such ‘IP’ interests. It’s like an extension of the commercial sector, funded exclusively by taxpayers. █

Summary: Interesting cable from Tripoli and its items regarding software

According to the following Cablegate cable from the US embassy at Tripoli, “UNESCO Reinforces Capacities of Public Administrations through the Use of Free Software: The Arab Federation of Technical Education, the UNESCO Office in Rabat, and ISESCO, in cooperation with the Libyan Ministry of the Labor and Training, organized a workshop at the Higher Institute of Computer Technology in Tripoli, Libya. The workshop aimed to reinforce capacities of public administrations through Free and Open Source Software (FOSS). During the three-day workshop, experts from the Maghreb countries presented best practices in using FOSS in their respective countries. This enabled participants to reinforce the capacities of universities in the field of technical education through the use of FOSS, and to develop tools in order to make public services more transparent. [UNESCO, 12/19/2008]“

We also wrote about UNESCO one day ago, in relation to what Microsoft was doing there to derail Free software preference. Here is today’s cable

VZCZCXRO3549
RR RUEHTRO
DE RUEHTRO #0151/01 0471652
ZNR UUUUU ZZH
R 161652Z FEB 09
FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC 4492
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFISS/DEPT OF ENERGY WASHINGTON DC
RUEHTU/AMEMBASSY TUNIS 0757
RUEHEG/AMEMBASSY CAIRO 1399
RUEHAS/AMEMBASSY ALGIERS 0892
RUEHRB/AMEMBASSY RABAT 0830
RUEHVT/AMEMBASSY VALLETTA 0378
RUEHCL/AMCONSUL CASABLANCA 0016
RUEHAM/AMEMBASSY AMMAN 0090
RUEHLO/AMEMBASSY LONDON 1005
RUEHFR/AMEMBASSY PARIS 0691
RUEHTRO/AMEMBASSY TRIPOLI 5017

UNCLAS SECTION 01 OF 06 TRIPOLI 000151 
 
SIPDIS 
 
STATE FOR NEA/MAG, 
COMMERCE FOR NATE MASON, 
ENERGY FOR GINA ERIKSON, 
STATE PASS USTR (BURKHEAD) AND USAID (MCCLOUD) 
USDOC FOR ITA/MAC/ONE (NATHAN MASON), ADVOCACY CTR (REITZA), AND 
CLDP (TEJTEL AND MCMANUS) 
CASABLANCA FOR FCS (ORTIZ) 
AMMAN FOR ESTH HUB (BHALLA) 
CAIRO FOR FINANCIAL ATTACHE (SEVERENS) 
LONDON AND PARIS FOR NEA WATCHER 
 
E.O. 12958: N/A 
TAGS: ECON [Economic Conditions], EFIN [Financial and Monetary Affairs], ETRD [Foreign Trade], EINV [Foreign Investments], 
EIND [Industry and Manufacturing], EPET [Petroleum and Natural Gas], ENRG [Energy and Power], 
PGOV [Internal Governmental Affairs], LY [Libya] 
SUBJECT: LIBYA COMMERCIAL ROUND-UP FOR DECEMBER 2008 AND JANUARY 
2009 
 
ENERGY 
 
¶1. (U) State-Owned Zwara Oil Refinery Company Has Appointed HSBC 
as Financial Adviser: Zwara Oil Refinery Company (Zorco) plans 
to develop a 200,000 barrels-a-day crude oil refinery. The 
development of the refinery will be tender on a 
build-own-operate basis. The refinery is the first major 
government sponsored project in the country to seek commercial 
finance. Earlier in 2008 bankers pulled out of talks on 
financing the project and Nigeria's Africa Finance Corporation 
and Citadel Capital of Egypt both decided against investing in 
the plant. The project is estimated to cost about $4 billion 
U.S. dollars and should be completed in 2014.[MEED, 12/4/2008] 
 
¶2. (U) Chinese CNPC to Bid for Verenex Asset in Libya: China 
National Petroleum Corporation (CNPC) is bidding for Canadian 
energy firm Verenex Energy in a transaction valued at as much as 
$300 million; adding a successful bid would broaden CNPC's 
assets in Africa. Indonesia's state oil firm, Pertamina, had 
announced its interest to participate in the Libyan oil area of 
the Canadian energy company Verenex. [Reuters, 12/15/2008] 
 
¶3. (U) AGOCO Announces Oil Discovery: The National Oil 
Corporation (NOC) announced that the state-owned oil company 
Arabian Gulf Oil Company (AGOCO) made an oil discovery in the 
Ghadames Basin. The well is located approximately 500 kilometers 
south of Tripoli. The initial production testing established an 
oil rate of 5,000 barrels per day, and a gas rate of 150 million 
standard cubic feet per day. [HYPERLINK 
"http://en.noclibya.com.ly/ 
 "http://en.noclibya.com.ly 
 , 12/16/2008] 
 
¶4. (U) Hess Discovers Oil in Libya Sirte Offshore: In Libya, 
well A1-54/01, which is located 38 miles offshore in the Sirte 
Basin, was drilled to a depth of 11,077 feet in 2,807 feet of 
water. The well encountered a gross hydrocarbon section of 
approximately 500 feet at various intervals. Hess holds a 12.4 
percent share and the NOC holds the remaining 87.6 percent. 
[rigzone.com, 12/17/2008] 
 
¶5. (U) Turkish Petroleum Overseas Company Pre-Qualifies More 
than Ten Companies to Provide Drilling Services: A 
prequalification notice had been issued, and the companies in 
the running, all based in Libya, now have until the end of 
January to make their bid quotations. The tender is for 1,500 
horsepower drilling rig services in the Murzuq basin. The 
project comprises two firm and five optional wild cat wells to 
be drilled within the range of 9,000-11,000 feet. [MEED, 
12/30/2008] 
 
¶6. (U) Libya Orders to Cut Production by 270,000 Barrels per 
Day: Effective Jan 1, Libya ordered oil companies operating in 
Libya to cut production by 270,000 barrels per day, which is 
more than Libya is requested to do under OPEC agreement to slash 
the cartel's production by 2.2 billion barrels per day. [JANA, 
12/30/2008] 
 
¶7. (U) Five Firms Are Expected to Bid for an Onshore Drilling 
Contract: Total Exploration & Production Libya, a subsidiary of 
France's Total expects to formally begin the tender process in 
early January. Prequalification entries were accepted until 
early December, and around five firms were left in the running 
after that process ended. The contract is for the provision of 
onshore drilling rig services and the testing of two exploration 
onshore wells with possible options in the west of Libya. The 
proposed land rig would have a maximum drilling depth of 
approximately 21,000 feet. The well spud is planned for the 
third quarter of 2009. [MEED, 12/31/2008] 
 
 
TRIPOLI 00000151  002 OF 006 
 
 
¶8. (U) Libya Gains $5.4 Billion Dollars from Altering Oil Deals: 
The NOC reported earnings of $5.4 billion U.S. dollars in 
additional oil revenues from changes to contracts with foreign 
companies ENI, Petro-Canada and two consortiums led respectively 
by U.S. Occidental and Spain's Repsol last year. The changes of 
deals yielded $2.4 billion U.S. dollars extra earnings during 
the first nine months of 2008. The companies also accepted to 
pay a total of $3 billion U.S. dollars as up-front payments. NOC 
said negotiations were underway with other companies to reach 
similar changes which would boost oil earnings further. 
[HYPERLINK "http://en.noclibya.com.ly/ 
 "http://en.noclibya.com.ly 
 , 1/18/2009] 
 
¶9. (U) New Oil and Gas Discovery by Australian Woodside: NOC 
announced that an exploratory well drilled by Woodside in the 
Ghadames Basin, 900 kilometers South of Tripoli, produced oil 
and gas when tested. The well, F1-NC210, is the fourth discovery 
drilled by Woodside Energy in the contract area NC210, awarded 
by the NOC in May 2003. Under the contract, Woodside has a 37 
percent production share and the NOC has 63 percent. 
[Libyaonline.com, 1/15/2009] 
 
¶10. (U) Canadian Verenex Confirms Oil and Gas Discovery in 
Libya: Canadian company Verenex has made its tenth oil discovery 
in Libya's western region of Ghadames since drilling began in 
September 2006. So far, Verenex has drilled four appraisal 
wells, and fourteen exploratory wells. The last four wells 
drilled are yet to be tested. Verenex, Indonesia's Medco Energi 
and Libyan National Oil Corporation (NOC) signed a 30-year 
production-sharing agreement in 2005, where the two foreign 
companies will take 13.7 percent of production and the NOC 86.3 
percent. [Tripoli Post, 1/18/2009] 
 
¶11. (U) Shell Awards Seismic Contract: The UK/Dutch Shell Group 
has awarded a seismic contract to BGP, the geophysical division 
of Chinese oil company China National Petroleum Corporation 
(CNPC), for a survey on the gas exploration block 89N in the 
onshore Sirte Basin.  It is considered a difficult area to work 
in due to the potential risk from landmines. Shell won blocks 1 
and 3 in contract area 89 in the Sirte Basin in Libya's first 
gas exploration licensing round in 2007. [MEED 1/20/08] 
 
¶12. (U) Mitsubishi, Libya University to Jointly Study Green 
Energy: On January 28, the two parties signed a memorandum of 
understanding to begin joint research and development of 
reusable energy sources. Under the agreement, the Japanese 
trading company will support research into reusable energy by 
Libya's largest university, supplying test materials and sending 
specialists to the university from 2009 to 2011. The first 
initiative between the two will involve field-tests of solar 
power generation systems at the university. The plan is for the 
university to accumulate technology and expertise, and then 
cultivate leaders for the new industry. [AsiaPulse, 1/26/2009] 
 
CONSTRUCTION 
 
¶13. (U) South Korea's Hanil Wins a $902.5 Billion Work Order in 
Libya: South Korean builder Hanil Engineering and Construction 
said that it had secured an order worth $902.5 billion from 
Libya. Hanil said in a regulatory filing that Libya's 
Organization for the Development of Administrative Centers 
placed the order to build houses and infrastructure in Libya. 
[Reuters, 12/22/08] 
 
¶14. (U) Indian Company Simplex Projects Ltd Gets Construction 
Contract in Libya: The contract is to develop a housing project 
in Libya, which comprises the construction of 2,000 houses, a 
public building, and roads, drainage and sewage systems; the 
project is scheduled to be completed in 36 months. This is the 
 
TRIPOLI 00000151  003 OF 006 
 
 
first overseas project for the Indian company. [Reuters, 
1/13/2009] 
 
¶15. (U) Indian Company Wins $267 million U.S. Contract in Libya: 
The Libyan Housing and Infrastructure Board awarded a $267 
million U.S. dollars contract to the Indian construction and 
engineering firm Punj Lloyd Ltd. The 40-month project involves 
the engineering, procurement, construction and commissioning of 
infrastructure networks including water mains, sewerage tunnels, 
and roads in the Souk Al-Juma area, in Tripoli. In early January 
Punj Lloyd was awarded a similar contract worth $214 million 
U.S. dollars in a joint venture with the Public Works Company 
Tripoli (PWCT). The four-year project involves upgrading the 
infrastructure in the Arada area of Tripoli. [The Tripoli Post, 
1/18/2009] 
 
¶16. (U) China Railway Wins $805 million dollars contract in 
Libya: The contract worth $805 million dollars is to build a 172 
kilometer railway that will connect Tripoli with the 
Libya-Tunisia border. The construction of the line is expected 
to take around 54 months. The deal follows a $2.6 billion dollar 
contract, signed last year to build two other rail lines, a 352 
kilometer railway along Libya's Mediterranean coast, and an 800 
kilometer line in the south. The coastal railroad is slated for 
completion in four years, and the southern line is expected to 
be completed in three years. [libyaninvestment.com, 1/23/2009] 
 
FOREIGN TRADE 
 
¶17. (U) Italy-Libya Trade Tops 14 Billion Euros in 2008 First 
Eight Months: While Libya tries to enter into Eni's capital, 
trade relations with Italy continue to grow, with import-exports 
in the first eight months of the year exceeding 14 billion Euros 
and confirming the North African country as Italy's top trading 
partner in the Mediterranean. The figures emerge from a study 
made by the Milan Chamber of Commerce into the latest figures 
for import-export between Italy and 13 Mediterranean basin 
countries (Morocco, Algeria, Tunisia, Libya, Egypt, Malta, 
Turkey, Cyprus, Lebanon, Syria, Israel, the Palestinian 
Territories, Jordan). In January-August imports from Libya grew 
by 40% compared with the first eight months of 2007, exceeding 
12.4 billion Euros. Exports grew by 57%, exceeding 1.7 billion 
Euros. The figure makes Libya the fifth largest market for Italy 
in the Mediterranean. [ANSAmed, 12/09/08] 
 
REGIONAL ISSUES 
 
¶18. (U) Libya to Take Half Million Bangladeshi Workers: 
Secretary of Manpower Training and Employment, Maa'touk Mohammad 
Maa'touk, said that Libya would take half a million Bangladeshi 
skilled, semi-skilled and general workers for different projects 
soon. Maa'touk stressed that the Embassy of Bangladesh should 
verify the issues of job, salary, housing and fringe benefits of 
every worker before they could come to Libya from Bangladesh. 
[www.nation.ittefaq.com, 12/13/2008] 
 
¶19. (U) Oman, Libya Sign $500 Million JV Deal: The Sultanate of 
Oman and Libya have signed a $500 million deal to establish a 
joint investment company to be based in Tripoli. The company 
will invest in real estate, tourism, industrial, services and 
energy projects and will also set up joint stock companies to 
undertake different projects, according to a joint statement. 
The State General Reserve Fund will represent Oman in the 
Oman-Libya Investment Holding Company. [Khaleej Times, 
12/14/2008] 
 
¶20. (U) Global Grain Rush Under Way as Rich Nations Snap up 
Farmland Overseas: Under a proposed agreement with Kiev, Libya 
would lease 247,000 acres of Ukraine's rich black land to grow 
wheat. The harvest would then be shipped back to Libya, giving 
 
TRIPOLI 00000151  004 OF 006 
 
 
the desert nation a more secure supply of food in the face of 
predictions about higher food prices and potential shortages in 
decades to come. Ukraine, in turn, would get access to Libyan 
oil fields, helping free it from dependence on Russia for its 
energy needs. [Chicago Tribune, 12/14/2008] 
 
¶21. (U) Irrigation, Key for Africa's Food Security: On December 
15, a conference on Water for Agriculture and Energy in Africa: 
The Challenges of Climate Change opened. It was organized by FAO 
together with the Libyan Government and in collaboration with 
stakeholders including the African Union, the African Ministers' 
Council on Water Development, the African Development Bank and 
the Economic Commission for Africa. The conference aims at 
setting the scene for moving from talk to action on a $65 
billion, 20-year program for irrigation and hydroenergy 
investments required in each country. [African Press 
Organization (APO), 12/15/08] 
 
¶22. (U) Trade Exchange between Libya and Tunisia Reached 2.2 
Billion Libyan Dinars during 2008: The trade exchange exceeded 
the specified value by 10%; the Secretary of the Libyan General 
People's Committee said that this value is expected to hit 2.5 
billion by the end of 2008. The secretary mentioned that one of 
the most important of these projects is laying a strategic gas 
pipeline that will connect Libya with Tunisia; this project will 
be executed by a Libyan-Tunisian Joint committee starting in 
2009. Currently, there are teams working in the areas of 
education, trade, and investment to boost bilateral integration 
between the countries. [JANA, 12/27/08] 
 
¶23. (U) Libya to Invest in Oil Refinery in Egypt: Libya will 
invest in an oil refinery and a number of construction projects 
in Egypt under a deal signed in December 2008, during a visit to 
Tripoli by Egyptian President Hosni Mubarak. Aside from the 
refinery, Libya will also build service stations as well as an 
industrial and residential complex in Egypt. The two countries 
are also working towards establishing a free exchange zone on 
their border. The number of Libyan companies working in Egypt 
reached 236 companies, and Egyptian investment companies are 
currently working in Libya.  Volume of trade exchange between 
the two countries is expected to increase to two billion 
dollars. [Tripoli Post, 1/1/2009] 
 
INVESTMENT 
 
¶24. (U) Libyan Fund in Talks over Kaupthing Unit-Luxembourg: 
Talks have taken place over the possible sale of the Luxembourg 
arm of troubled Icelandic bank Kaupthing to a Libyan sovereign 
fund. Budget and Treasury Minister Luc Frieden, said there had 
been discussions with several possible buyers which have to be 
concluded by year's-end. The Libyan Investment Authority fund 
had emerged as the front-runner to buy Kaupthing Luxembourg. 
Other suitors that have been cited to have shown interest in 
picking up the Kaupthing's Belgian customers include online bank 
Keytrade Bank, a subsidiary of France's Credit Agricole and 
German bank Landesbank Nord. [Reuters, 12/10/2008] 
 
¶25. (U) Libya Emerges from Sanctions with Investment: The Libyan 
Investment Authority (LIA) is set to complete Libya's first UK 
commercial property transaction since the suspension of economic 
sanctions at the end of the 1990s. Part of the LIA has agreed to 
buy a large office building in the City of London for about #120 
million UK pounds from German fund manager IVG. The 172,000 
square feet former Lloyds' City headquarters at 14 Cornhill will 
be sold for a yield of about 6 per cent. DTZ and Knight Frank 
are advising IVG. None of the parties involved would comment on 
the sale. [Financial Times, 12/12/2008] 
 
¶26. (U) Libya to List Ten Companies on Libyan Stock Market: 
Libya plans to sell shares in more state-owned companies as the 
 
TRIPOLI 00000151  005 OF 006 
 
 
government seeks to boost the economy and develop the bourse set 
up last year. The state-run Economic and Social Development Fund 
aims to offer foreign investors about 15 percent of 10 
companies. Libya's Al-Jomhuria Bank is among the 10 companies 
that may be sold on the stock market following further sales of 
shares in Al Wahda Bank and Al Sahara Bank, both of which are 
already traded on the exchange. Arab Bank, Jordan's largest 
publicly traded bank, bought a 19 percent stake in Libya's Wahda 
Bank in February for 210 million euros. BNP Paribas SA, France's 
biggest bank, purchased 19 percent of Libya's state-owned Sahara 
Bank for 145 million euros on Oct. 4. [Bloomberg, 12/17/2008] 
 
IT 
 
¶27. (U) STS PayONE Voucher powers Bank of Commerce and 
Development in Libya: STS, MENA's leading enterprise ePayment 
solutions provider and system integrator, furnished Bank of 
Commerce and Development in Libya with an enterprise-level 
platform for the management and distribution of its electronic 
voucher service at several point-of-sale terminals located 
throughout the Libyan retail outlets. Bank of Commerce and 
Development will be able to support multiple service delivery 
channels including dial-up, GSM, ATMS, IVR and SMS. It provides 
management and dispensing capabilities for the GSM prepaid 
airtime, with the ability to add more services and access 
channels to achieve higher customer satisfaction and fulfill 
expansion goals. [menafn.com, 12/1/2008] 
 
¶28. (U) UNESCO Reinforces Capacities of Public Administrations 
through the Use of Free Software: The Arab Federation of 
Technical Education, the UNESCO Office in Rabat, and ISESCO, in 
cooperation with the Libyan Ministry of the Labor and Training, 
organized a workshop at the Higher Institute of Computer 
Technology in Tripoli, Libya. The workshop aimed to reinforce 
capacities of public administrations through Free and Open 
Source Software (FOSS). During the three-day workshop, experts 
from the Maghreb countries presented best practices in using 
FOSS in their respective countries. This enabled participants to 
reinforce the capacities of universities in the field of 
technical education through the use of FOSS, and to develop 
tools in order to make public services more transparent. 
[UNESCO, 12/19/2008] 
 
¶29. (U) Libya Introduces WiMAX Mobile Service: Libya Telecom and 
Technology (LTT) launched on January 22, the WiMAX mobile 
service in Libya. In the first phase, LTT aims to provide the 
WiMAX mobile service to 300,000 subscribers in the country. LTT 
worked along with Alcatel, ZTE, and Huawei companies for the 
realization of the project. The WiMAX service is currently 
available in eighteen Libyan cities. [libyaonline.com, 
01/25/2009] 
 
TRANSPORTATION 
 
¶30. (U) Libya Buys Six Oil Tankers for $400 Million Dollars: 
Libya's national maritime transport company announced on 
Wednesday the purchase of six oil tankers valued at a total of 
400 million dollars. The contracts were signed with Korean naval 
construction group Samsung Heavy Industries and Japanese 
constructor Sasebo Heavy Industries. Four tankers will be built 
by Samsung and the other two by Sasebo. The tankers will have a 
total capacity of 700,000 tons, or the equivalent of five 
million barrels of crude. Headed by Hannibal al-Qadhafi, the 
company exercises a near-monopoly in the transport of Libyan 
oil. Its fleet currently comprises 18 tankers with a total 
capacity of 11.8 million barrels. [AFP, 12/24/08] 
 
¶31. (U) Libya Bans Swiss Flights: Libya has banned Switzerland's 
national carrier, Swiss International Air Lines, from flying to 
Tripoli. This is the latest twist in ongoing diplomatic row 
 
TRIPOLI 00000151  006 OF 006 
 
 
between the two countries after the arrest of Muammar 
al-Qadhafi's son, Hannibal. Switzerland's national carrier had 
three weekly flights from Zurich to Tripoli until mid-July when 
the Libyan authorities reduced them to one, citing "technical 
reasons." Swiss Air Lines spokeswoman says the company received 
a letter saying it had to stop its last remaining flight due to 
technical reasons. [www.voa.com, 12/25/08] 
 
¶32. (U) U.S. Shipping Carrier Nordana Introduces New Service in 
Libya: Beginning in February, Nordana will include the Port of 
Misurata to its services in Libyan ports. The Port of Misurata 
will be called on all sailings to Libya with a frequency of 17 
to 18 days. Since trade relations reopened between the U.S. and 
Libya in 2004, Nordana has been operating regular roll on / roll 
off vessels and breakbulk services from the U.S. into Libya. 
Nordana also serves the Libyan ports of Benghazi, Marsa El 
Brega, and Tripoli. [breakbulk.com, 1/12/2009] 
 
LAW 
 
¶33. (U) Libyan Tax Authority Director Calls on Foreign Companies 
to Abide by Law: The Director of the Libyan Tax Authority, Mr. 
Al Bueshi Maa'toug Al Alafi, has called on both local and 
foreign companies operating in Libya to help his organization by 
abiding by the law and paying their taxes regularly. Mr. Bueshi 
advised foreign companies operating in Libya to strictly 
implement public laws and make sure that they are hiring 
competent financial managers and good lawyers who would advise 
them on legal matters accordingly. Mr. Bueshi made the call 
during a symposium on reforming the Tax System held in Tripoli. 
[Tripoli Post, 12/11/08] 
 
BANKING 
 
¶34. (U) Libyan Bank Named among the Best Emerging Market Banks 
in Africa 2008: Global Finance magazine has named Wahda Bank of 
Libya among the "Best Emerging Market Banks in Africa 2008". 
Global Finance editors with input from industry analysts, 
corporate executives and banking consultants selects the best 
emerging market bank based on growth in assets, profitability, 
strategic relationships, customer service, competitive pricing, 
and innovative products within the region. Wahda Bank ranked 
number 90 among 100 banks in Africa, but for it to be among the 
best emerging market banks in Africa remains an important sign 
that the banking system in Libya is advancing after many years 
of total stagnation. [Tripoli Post, 12/13/08] 
CRETZ

We are doing to make an effort to release the rest of the cables of interest to us before this year ends. They all come handy as references at a later date. █

Summary: Folks from MIT (home of the FSF/GNU) were said to be using “open-source software” for an “Intranet [that] would rely on radio and satellite data links to avoid dependence on Iraq’s telecom system” and more

“Gatti said MIT plans to set up the system using open-source software,” claims the following Cablegate cable, which speaks about setting up some communication infrastructure for post-invasion Iraq. Here is the full cable:

C O N F I D E N T I A L  ROME 002050 
 
SIPDIS 
 
 
SECDEF FOR OSD/AJTORRES 
JOINT STAFF FOR SYIKE 
 
E.O. 12958: DECL: 05/22/2014 
TAGS: EAID [Foreign Economic Assistance], EINT [Economic and Commercial Internet], PREL [External Political Relations], IT [Italy], IZ [Iraq], IRAQI FREEDOM 
SUBJECT: IRAQ: SECURITY CONCERNS PUT E-GOV PROGRAM IN LIMBO 
 
Classified By: Economic Minister-Counselor Scott Kilner 
for reasons 1.4 (b)(d) 
 
SUMMARY 
------- 
 
¶1. (C) Italy's Ministry of Innovation and Technology (MIT) is 
ready to send a team to Baghdad to start work on a Euro 11 
million project to build an Intranet system for the Iraqi 
government.  According to an aide to MIT Minister Lucio 
Stanca, however, the Italian Foreign Ministry will not 
approve the trip because of security concerns.  The completed 
system would link 20-30 Iraqi government departments to each 
other and the Internet using a mix of radio and satellite 
links.  End summary. 
 
Safety Concerns Delay E-Government Project. 
------------------------------------------- 
 
¶2. (C) Stefano Gatti (protect), Diplomatic Advisor to 
Innovation and Technology Minister Lucio Stanca, recently 
gave Econoff an update of Italy's Euro 10-11 million project 
to provide the Iraqi government with a basic Intranet 
infrastructure.  The MIT has a team ready to go to Baghdad to 
conduct an initial survey of the Iraqi Ministries' 
requirements; but, Gatti explained with some exasperation, 
the Ministry of Foreign Affairs (MFA) is delaying approval of 
the trip.  Gatti speculated that the MFA was nervous about 
sending additional Italian officials to Baghdad given the 
unresolved status of three Italian hostages, the death this 
month of an Italian soldier in Nasiriyah, and the 
assassination of Interim Governing Council President Ezzedine 
Salim outside the Green Zone.  In this environment, Gatti 
said, the GOI is reluctant to send more people to Baghdad. 
Gatti said the MIT has pared down the team from eight to four 
people in deference to the MFA's security concerns, but the 
MFA is still withholding approval. 
 
Need for Iraqi Coordinator 
-------------------------- 
 
¶3. (SBU) A second problem the project has encountered, Gatti 
remarked, is finding an Iraqi agency to coordinate with the 
MIT team.  He explained that, since the project involves 
hooking up several Iraqi ministries to a central Intranet 
hub, Italy must find an Iraqi authority capable of overseeing 
such a government-wide project.  Gatti predicted, however, 
that this problem would be overcome once the Ministry has its 
own people on the ground in Baghdad. 
 
Background 
---------- 
 
¶4. (SBU) MIT's proposed Euro 10-11 million Iraqi Government 
Intranet project is designed to give the Iraqi government a 
basic system for electronically linking ministries and, 
possibly, municipal and provincial governments.  The initial 
budget covers the cost of a central server bank, connections 
for 20-30 government departments (each with 20 work 
stations), a remote back-up system (possibly located in 
Italy), plus training and technical support.  The Iraqi 
Intranet would rely on radio and satellite data links to 
avoid dependence on Iraq's telecom system.  In addition to 
providing Iraqi officials with basic email and Internet 
connectivity, the Intranet network could also be used for 
telephone service among government departments.  Gatti said 
MIT plans to set up the system using open-source software. 
 
(Note: A copy of Italy's proposal for the Iraqi Government 
Intranet is available on Rome's Classnet homepage under the 
section "Italy Background Notes."  Please do not distribute 
this document outside the USG.  End note.) 
 
Start-up Funding Available from MFA and World Bank 
--------------------------------------------- ----- 
 
¶5. (SBU) Gatti said the MFA already has Euro two million 
available to start the project.  The MIT expects to receive 
another Euro two million from the World Bank's Development 
Gateway Foundation, he said.  The MIT, Gatti asserted, is 
ready to start the project even though it has yet to secure 
the full Euro 10-11 million in funding.  Gatti predicted the 
 
additional money would fall into place once the project got 
underway.  (Note: The GOI is counting this project as part of 
its Euro 200 million Madrid pledge. End note.) 
 
COMMENT 
------- 
 
¶6. (C) The delay in sending the MIT team to Baghdad 
demonstrates how the continuing Italian hostage ordeal and 
recent violence around Nasiriyah is creating government 
nervousness with negative consequences for reconstruction 
work.  However, assuming the security situation stabilizes 
and there are no more high-profile attacks or kidnappings 
that target Italians, we expect that the MIT team will be 
cleared to go to Baghdad in coming weeks. 
 
¶7. (U) MINIMIZE CONSIDERED. 
 
Visit Rome's Classified Website: 
http://www.state.sgov.gov/p/eur/rome/index.cf m 
 
SEMBLER 
 
 
NNNN 
        2004ROME02050 - Classification: CONFIDENTIAL

It is possible that a lot of systems were built with proprietary systems (contractors helping other contractors), but the above is noteworthy nonetheless. █

Summary: Lobbying from Microsoft shows just how far the company is willing to go to criminalise its own end users

YESTERDAY we wrote about Apple's use of blackmail to influence French copyright law. According to the following Cablegate cable from Tel Aviv, Microsoft has been doing the same type of thing and met resistance. To quote: “Microsoft Israel has been the most successful of the interested parties in lobbying for changes in the Copyright Bill. Government Affairs Manager for Microsoft Israel, Shai-lee Spigelman, told EconCouns on July 13 that Microsoft has formed a coalition of foreign and Israeli software development companies to push for changes in the bill. Microsoft’s key concerns center around the provisions for creating back-up copies and the unlimited exemptions granted to public libraries. Anti-piracy manager at Microsoft Israel, Gil May-Tal, told Econoff that he has also pushed the MoJ to define end-user piracy as a crime, but found MoJ’s Afori entrenched in opposition to such a change. While Microsoft wants to see end-user piracy defined as a crime in the legislation, May-Tal deemed it not worth pushing, and thereby risking the positive relationship that Microsoft has built with the Afori. May-Tal said Afori is inclined to consider changes to the back-up copy and library usage clauses as recommended by Microsoft. Microsoft execs report that the drafting of the legislation was influenced by proponents of the EU’s open source movement.”

Here is the full Cablegate cable, which speaks more broadly about Israel’s copyright legislation

null
Carol X Weakley  10/18/2006 02:46:18 PM  From  DB/Inbox:  Carol X Weakley

Cable 
Text:                                                                      
                                                                           
      
S E C R E T        TEL AVIV 04106

SIPDIS
CXTelA:
    ACTION: ECON
    INFO:   IPSC SCI IMO CONS RES POL DCM AMB AID ADM FCS
            PD

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: ECON:WWEINSTEIN
DRAFTED: ECON:BMASILKO
CLEARED: ECON: JWITOW

VZCZCTVI955
PP RUEHC RUCPDOC
DE RUEHTV #4106/01 2901552
ZNY SSSSS ZZH
P 171552Z OCT 06
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 7010
INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

S E C R E T SECTION 01 OF 02 TEL AVIV 004106 
 
SIPDIS 
 
DEPARTMENT PLEASE PASS TO USTR: E.SAUMS AND S.DONNELLY 
 
E.O. 12958: DECL: 10/13/2016 
TAGS: ECON [Economic Conditions], ETRD [Foreign Trade], PGOV [Internal Governmental Affairs], KIPR [Intellectual Property Rights], IS [Israel] 
SUBJECT: UPDATE ON ISRAEL'S COPYRIGHT LEGISLATION 
 
REF: A. TEL AVIV 03785 
 
     B. TEL AVIV 03843 
 
Classified By: Economic Counselor William Weinstein for reasons 1.4 (b) 
 and (d) 
 
¶1. (S) Summary: Israel is moving forward with legislation to 
modernize and unify its existing copyright law.  Three pieces 
of pending copyright legislation have a direct impact on U.S. 
industry.  Working-level contacts at Ministry of Justice 
(MoJ), who drafted the legislation, display varying degrees 
of flexibility in responding to U.S. industry concerns. 
While these concerns tend to focus on the specific provisions 
of the legislation (as applicable to a given industry), all 
of Posts' contacts oppose the legislation's decriminalization 
of end-user piracy and its lack of protection for digital 
media.  Per Washington's request EconCouns has requested that 
the Ministry of Industry, Trade, and Labor (MOITAL) engage 
with the MoJ to review the draft legislation and begin 
immediate consultations with the USG.  End Summary. 
 
--------------------- 
Status of Legislation 
--------------------- 
 
¶2. (C) Currently, three different pieces of legislation 
related to copyrights -- in various stages of completion -- 
are being circulated.  The 2005 Copyright Bill passed a first 
reading in the Knesset on July 20, 2005 and is being 
considered by the Knesset Economic Committee.  The 2006 
Copyright Tribunal Bill was published on July 10, 2006 and 
has also passed a first reading and been forwarded to the 
Knesset Economic Committee.  These two bills will likely be 
considered together by the Committee.  The Ministry of 
Justice is the originator and sponsor of the 2005 Copyright 
Bill and the 2006 Copyright Tribunal Bill.  U.S. industry has 
voiced serious concerns over key provisions of these two 
draft pieces of legislation.  A private bill submitted by 
members of the Meretz party on July 17, 2006 -- aimed at 
preventing digital piracy -- has not been voted on by the 
Knesset. 
 
------------------- 
Ministry of Justice 
------------------- 
 
¶3. (S) As the drafter of the Copyright Bill and the Copyright 
Tribunal Bill, the MoJ has championed the legislation.  With 
the resignation of Minister of Justice Haim Ramon, pending an 
investigation into allegations of sexual harassment, Meir 
Sheetrit assumed the position of acting Minister of Justice 
in August 2006.  In a September 19 meeting with the 
Ambassador, Sheetrit promised to look into the pending 
copyright legislation (reftel a).  In a follow-up-letter and 
phone call to the Ambassador, Sheetrit said that the 
copyright legislation had already "passed."  (Comment: 
Technically Sheetrit is correct.  The legislation "passed" 
the ministerial committee and was forwarded to the Knesset as 
a government bill.  However, the legislation is far from 
becoming law.  It appears as if Sheetrit's staff is telling 
him that the legislation is being handled by the Knesset 
Economic Committee and is out of their hands.  However, past 
experience with pharmaceutical IPR legislation championed by 
the MOITAL indicates that the drafting Ministry has 
considerable influence over the Knesset's consideration of 
the legislation, especially draft legislation as long and 
technical as the Copyright Bill.  End comment).  Copyright 
legislation at the MoJ is the responsibility of Advocate 
Tamir Afori, who has been working on the draft legislation 
since joining the MoJ six years ago. 
 
----------------- 
Industry Concerns 
----------------- 
 
¶4. (S) The software, music, and movie industries agree that 
while the Copyright Bill is an improvement on existing law -- 
a mix of British era legislation -- it fundamentally fails to 
implement the necessary safeguards for intellectual property 
in a digital world.  Another concern shared by the majority 
of the copyright industries is the failure of the legislation 
to designate end-user piracy as a criminal offense.  During 
the period of the 2006 Special 301 review, Econoff 
highlighted these concerns to Afori at MoJ.  His response was 
explosive and unexpected -- he railed against U.S. industry 
wanting to "make everything a crime" and questioned the logic 
in designating it as such, given that Israel has no intention 
of prosecuting end-users who commit just a single act of 
piracy.  Afori commented that he was tired of the U.S. 
"hinting" at the problem and proposed that the U.S. either 
quote the relevant law requiring that end-user piracy be 
declared a criminal offense, or drop the matter. 
 
----------------- 
Software Industry 
----------------- 
 
¶5. (S) Microsoft Israel has been the most successful of the 
interested parties in lobbying for changes in the Copyright 
Bill.  Government Affairs Manager for Microsoft Israel, 
Shai-lee Spigelman, told EconCouns on July 13 that Microsoft 
has formed a coalition of foreign and Israeli software 
development companies to push for changes in the bill. 
Microsoft's key concerns center around the provisions for 
creating back-up copies and the unlimited exemptions granted 
to public libraries.  Anti-piracy manager at Microsoft 
Israel, Gil May-Tal, told Econoff that he has also pushed the 
MoJ to define end-user piracy as a crime, but found MoJ's 
Afori entrenched in opposition to such a change.  While 
Microsoft wants to see end-user piracy defined as a crime in 
the legislation, May-Tal deemed it not worth pushing, and 
thereby risking the positive relationship that Microsoft has 
built with the Afori.  May-Tal said Afori is inclined to 
consider changes to the back-up copy and library usage 
clauses as recommended by Microsoft.  Microsoft execs report 
that the drafting of the legislation was influenced by 
proponents of the EU's open source movement. 
 
-------------- 
Movie Industry 
-------------- 
 
¶6. (C) ALIS, the Motion Picture Association of Israel, has 
thus far not commented on the draft copyright legislation. 
However, the Cinema Industry Association in Israel wrote to 
the Ambassador on September 11 to urge USG support for a 
draft proposal submitted by the Meretz Party.  The 
legislation is aimed at combating digital and on-line piracy. 
 Among the key provisions of this bill are: prohibiting the 
posting of creations on digital networks without the 
permission of the creator, prohibiting the listening to or 
viewing of pirated copies of creations, and imposing varying 
degrees of responsibility on Internet service providers for 
the content its users are able to access. 
 
------------------ 
Recording Industry 
------------------ 
 
¶7. (S) Some of the most damaging clauses of the Copyright 
Bill affect the recording industry.  Itshak Sheffer, Managing 
Director of the International Federation of Phonographic 
Industry (IFPI) Israel, told EconOff that he suspects the MoJ 
might be pursuing a discriminatory policy towards the 
recording industry in part because IFPI has been successful 
in winning several court cases against the MoJ.  One of the 
industry's main concerns is that the Copyright Bill could 
deny foreign sound recordings remuneration for public 
broadcast and performance.  The recording industry also 
expressed concern over the Copyright Tribunal Act -- 
legislation which will unify the collection of royalties 
under one umbrella organization. 
 
---------- 
Next Steps 
---------- 
 
¶8. (S) Director of the International Trade Administration at 
MOITAL Boaz Hirsch promised EconCouns on October 5 that he 
will schedule a meeting including the Director General of the 
MoJ and Emboffs to discuss U.S. concerns about the copyright 
legislation immediately after the Succot holidays.  Post 
continues to emphasize with the MOITAL that this legislation 
will impact US-Israel trade, and that discussions should not 
be confined to MoJ legal staff.  The Knesset Economic 
Committee is currently led by a Likud MK, and Likud chairman 
Bibi Netanyahu has promised to look into the legislation 
(reftel b).  While Post believes that inclusion of the MOITAL 
will broaden discussion of the impact of the legislation on 
U.S. industry, concurrent technical consultations between 
U.S. legal experts and the MoJ's IPR legal team are essential 
to full USG understanding of the legislation.  Local analysts 
predict that the committee will hold hearings and consider 
the legislation section-by-section before recommending any 
amendments.  During this time the MoJ, if it chooses, will 
also be able to recommend changes to the committee. 
 
********************************************* ******************** 
Visit Embassy Tel Aviv's Classified Website: 

http://www.state.sgov.gov/p/nea/telaviv

You can also access this site through the State Department's 
Classified SIPRNET website. 
********************************************* ******************** 
CRETZ

Incidentally, for those who are interested in how copyright and patent laws get subverted by the Gates Foundation, we are going to separately post this new video from Max Keiser and Stacy Herbert. █

Summary: Two cables showing the use of Free software in Indonesia “in order to reduce dependence on proprietary systems.”

IN PREVIOUS posts about Indonesia we showed some good news but also a fair deal of mischief from Microsoft. In reverse-chronological order:

• Cablegate: Microsoft Attacks Free/Open Source Software in Indonesian Government With ‘Piracy’ Claims and a Secret 80% Discount, Breaks 1999 Monopolies Law
• Cablegate: With Microsoft Front Group Taking on Indonesia, a Call for Open Source Software Adoption
• Cablegate: Bill Gates Uses AIDS to Bring Microsoft Windows to Indonesia at Expense of Linux-based OLPC (Updated)
• OpenDocument Format in Indonesia and OOXML in Court
• Indonesia is Moving to OpenDocument Format (ODF)
• Will Microsoft Sign an MOU with Indonesia?

According to the following couple of Cablegate cables, “The Head of the Information and Computer Systems Division of Indonesia’s Agency for Technology Research and Application (BPPT) announced that BPPT is developing several computer applications using Free open source Software (FOSS) in order to reduce dependence on proprietary systems. Applications currently in development include e-office (Kantaya), e-learning (Kutahu), and Local Management Information System (Simda) software. BPPT is assisting several local governments (Jembrana, Pekalongan, Banyuwangi, Kuala Kapuas and Sawah Lunto) to implement FOSS-based applications. By 2014, BPPT plans to develop FOSS-based applications for computer driver and kernel technologies, mining data programs, Indonesian language processing, simulation and computerization.” In another cable (the second one) it says that “the international community has developed GIS applications using free open source software for use by countries such as Indonesia. Around 30 participants with key disaster mitigation responsibilities in the Indonesian government took part in the training.”

UNCLAS SECTION 01 OF 04 JAKARTA 001243 
 
SIPDIS 
 
DEPT FOR EAP/MTS, OES/ETC, OES/STC, OES/SAT, OES/PCI 
 
E.O. 12958: N/A 
TAGS: SENV [Environmental Affairs], TPHY [Physical Sciences], TBIO [Biological and Medical Science], TRGY [Energy Technology], ENRG [Energy and Power], ID [Indonesia] 
SUBJECT: INDONESIA ESTH HIGHLIGHTS: MAY 2008 
 
IN THIS ISSUE 
------------- 
 
-- Government Phasing out Large-Scale AC Units 
-- Papua Signs USD30 Million Forest Carbon Deal 
-- Reclamation for an Integrated New City in Tangerang 
-- Oil Palm Threatens Sentarum Lake National Park 
-- Orangutans Close to Extinction 
-- Rare Javan Rhino Caught on Video 
-- Sumatran Tiger Population Critical 
-- Legal Reform Initiative Seeks to Protect Habitat for Orangutans 
-- Mangrove Planting in Surabaya 
-- Lax Enforcement and High Waste Treatment Costs Blamed for 
Continued Dumping 
-- Mushroom Farmers Switch from Kerosene to Firewood 
-- BPPT Developing Open Source Software 
-- Nuclear Technology in High School Curriculum 
-- Tackling HIV Infection Rates Among Surabaya's Children 
-- No Blood Transfusion Facilities in Half of Country 
 
ENVIRONMENT: 
 
Government Phasing out Large-Scale AC Units 
------------------------------------------- 
¶1.  According to Tri Widayati, Director of Ozone Protection of the 
State Ministry of Environment (MOE), most operators of 
industrial-size chilling/air-conditioning units will have replaced 
those units with new ones that use environmentally friendly Freon, 
such as hydrochlorofluorocarbon (HCFC) 123 and hydrofluorocarbon 
(HFC) 134, by the end of June 2008.  The MOE says that only 400 
large-scale AC units remain in operation.  The Government of 
Indonesia (GOI) banned the further importation of chlorofluorocarbon 
(CFC) 11 and CFC 12 after January 1, 2008 to meet its obligations 
under the Montreal Protocol.  This will lead to a gradual phase-out 
of older AC units.  The MOE is helping to provide soft loans to 
companies to finance the replacement of older units.  The Ministry 
is also working with voluntary associations to disseminate 
information to the public about the transition process. 
 
Papua Signs USD30 Million Forest Carbon Deal 
-------------------------------------------- 
¶2.  Papua has signed a carbon deal worth up to USD 30 million for 
100,000 hectares of forestland.  On May 13, Governor of Papua 
Barnabas Suebu signed a Memorandum of Understanding with New Forests 
Asset Management (NFAM) Pty Ltd.  During the following two months, 
NFAM and the Papua Provincial Government will do a preliminary 
survey to identify three locations for this carbon project.  At the 
end of 2008, Papua will receive USD 10 million of guaranteed revenue 
for the first five years and receive dividends totaling up to USD 20 
million over the same period.  NFAM is collaborating with Generation 
Investment Management, owned by former U.S. Vice President Al Gore. 
 
 
Tangerang Plans New Integrated City on Reclaimed Land 
--------------------------------------------- -------- 
¶3.  On May 15, Head of Tangerang Land Use Office Didin Samsudin 
confirmed that Tangerang Regency would reclaim 9,000 hectares of its 
northern coastal areas for a planned new "integrated" city.  The 
Tangerang Regent has already issued Local Regulation (Perda) No. 8 
of 2007 on Reclamation.  This new development will contain hotels, a 
marina, a business center, residential areas, and an integrated 
container terminal and port.  The new city will cover approximately 
8,000 hectares and cost Rp. 20 trillion or USD 1.3 billion. 
Tangerang is about 21 km from Jakarta. 
 
Oil Palm Threatens Sentarum Lake National Park 
--------------------------------------------- - 
¶4.  Budi Suriansyah, the Head of Danau Sentarum National Park, says 
that the palm oil plantation in the Kapuas Hulu region of West 
Kalimantan threaten the 132,000-hectare park's ecosystem, which is 
dependent on Betung Kerihun National Park.  The development of palm 
oil plantations as well as illegal logging is causing water 
pollution, and local fishers are finding it increasingly difficult 
to find local endemic fish such as jelawat and arwana.  There are 11 
palm oil plantation companies and 9 subsidiaries of PT Sinar Mas, 
operating on 160 thousand hectares in areas bordering Betung Kerihun 
National Park. 
 
Orangutans Close to Extinction 
------------------------------ 
¶5.  On May 8, the Executive Director of the Center for Orangutan 
Protection (COP) stated that, based on a COP study in Central 
 
JAKARTA 00001243  002 OF 004 
 
 
Kalimantan, orangutans will disappear from the region within 2-3 
years.  The investigation found 242 palm oil plantations with 
activities that having an impact on orangutans and their habitat. 
According to COP, these companies include members of the Roundtable 
on Sustainable Palm Oil (RSPO), such as Wilmar, IOI and Agro Group. 
In 2004, a Population and Habitat Viability Assessment (PHVA) 
reported that there were 58,575 orangutans left in Borneo, with an 
annual decrease in population of 9 percent leading to extinction by 
2015.  Darori, Director General for Forest Protection and Nature 
Conservation, is skeptical of the investigation's projections, and 
emphasizes that the government will not allow the conversion of 
natural forest to other purposes such as palm oil cultivation. 
 
Rare Javan Rhino Caught on Video 
-------------------------------- 
¶6. At the end of May, a video recorder installed by Ujung Kulon 
National Park and the World Wide Fund for Nature-Indonesia 
(WWF-Indonesia) caught footage of the extremely rare Javan 
Rhinoceros (Rhinoceros sondaicus).  Speaking about the incident on 
May 29, Agus Priambudi, Head of Ujung Kulon National Park, said the 
recording would help researchers and conservationists learn more 
about the Javan rhino's behavior, as well as assist efforts to 
reduce threats to the remaining population.  The Java rhino is the 
rarest among five rhino species in the world.  There are only an 
estimated 50-60 Java rhinos in Ujung Kulon National Park.  The Java 
rhino is on the International Union for Nature Conservation's "Red 
List" of endangered species. 
 
Sumatran Tiger Population Critical 
---------------------------------- 
¶7.  On May 25, the Coalition for Protected Animal Monitoring stated 
that there were approximately 250 Sumatran tigers (panthera tigris 
Sumatrae) left in the wild.  The decrease in this species' 
population is due to hunting, conflict with humans, and illegal 
logging and land clearing leading to the fragmentation of its 
habitat.  Poachers hunt the animal for its skin, bones, fang/tooth 
and claws.  Tiger skins sell for approximately 3-5 million Rupiah 
(USD 322-537) apiece in local markets and up to USD 3,300 in 
international markets.  Although Law No. 5 of 1990 on Natural 
Resources Conservation and Ecosystem protects this species, 
enforcement of the law is weak. 
 
Legal Reform Initiative Seeks to Protect Habitat for Orangutans 
---------------------------------------- 
¶8.  The Orangutan Conservation Services Program (OCSP) and Wildlife 
Conservation Society (WCS) launched a media campaign in late May, to 
commemorate World Environment Day, in order to draw attention to the 
urgency of legal protection for orangutan habitat and to support 
survival of orangutans in the wild.  WCS is spearheading a policy 
reform effort that seeks to protect habitat of endangered species 
from conversion to non-forest land uses.  In Indonesia today, it is 
illegal to kill an orangutan but it is still legal to convert the 
little remaining orangutan habitat to non-forest uses.  Habitat 
conversion effectively eliminates whole populations of orangutans 
and other critically endangered species as their habitat becomes 
fragmented and deforested. 
 
Mangrove Planting in Surabaya 
----------------------------- 
¶9.  On May 11, people from various organizations planted 8,000 
mangroves along the seashore at Wonorejo in eastern Surabaya. 
Wonorejo is poised to become a center for mangrove research, 
cultivation, and tourism.  The Surabaya city government is actively 
restoring mangrove forests in eastern Surabaya.  Illegal logging has 
destroyed at least 40 percent of a total 6,000 hectares of mangrove 
forest near Wonorejo.  According to the head of Wonorejo Mangrove 
Farming Association, various groups in eastern Surabaya have planted 
at least 25,000 more mangrove trees this year than last year. 
Unfortunately, last year's mangroves were poorly protected.  For 
example, 4,000 mangroves planted in the Kenjeran beach area in 
January had died by the end of May, due to high ocean waves and poor 
treatment. 
 
Lax Enforcement and High Waste Treatment Costs Blamed for Continued 
Dumping 
------------------------------------ 
¶10.  At least 16 companies in East Java have disposed of industrial 
waste in the Brantas River through underground pipelines or during 
the heavy rainy season through open ditches.  The companies have 
waste treatment facilities but prefer to cut costs by dumping 
untreated waste, according to Purnawan, a lecturer at Brawijaya 
University and a member of East Java Walhi, an environmental NGO. 
 
JAKARTA 00001243  003 OF 004 
 
 
The phenol content of industrial waste these companies are dumping 
in the Brantas is dangerously high, according to Purnawan.  Just 
three hours south of Surabaya in Malang, waste from paper and 
cassava-processing plants has reportedly resulted in serious 
pollution and a major fish kill in the lake behind the Sutami Dam. 
Local media report that Malang's city government is reluctant to 
take action as paper factories are a major contributor to regional 
revenue. 
 
Mushroom Farmers Switch from Kerosene to Firewood 
--------------------------------------------- ---- 
¶11.  Mushroom farmers in Karawang, West Java, are switching from 
kerosene to firewood because of the high cost and scarcity of 
kerosene.  Mushroom farmers use fuel to boil water and use the 
evaporated water to regulate the level of humidity required for 
mushroom growth.  Kerosene's retail cost has increased from 2,310 
Rupiah (USD 0.25) to between 2,500-3,000 Rupiah (USD 0.27-0.32), 
making the price of firewood relatively cheaper.  During a planting 
period of one month, the farmers require on average 80-120 liters of 
kerosene or three cubic meters of firewood.  With the current 
kerosene price, the farmers' production costs are between 
200,000-300,000 Rupiah, but only 150,000 Rupiah if using firewood. 
Besides the shift by many farmers to firewood, others have closed 
down their mushroom production houses altogether. 
 
SCIENCE AND TECHNOLOGY: 
 
BPPT Developing Open Source Software 
------------------------------------ 
¶12.  The Head of the Information and Computer Systems Division of 
Indonesia's Agency for Technology Research and Application (BPPT) 
announced that BPPT is developing several computer applications 
using Free Open Source Software (FOSS) in order to reduce dependence 
on proprietary systems.  Applications currently in development 
include e-office (Kantaya), e-learning (Kutahu), and Local 
Management Information System (Simda) software.  BPPT is assisting 
several local governments (Jembrana, Pekalongan, Banyuwangi, Kuala 
Kapuas and Sawah Lunto) to implement FOSS-based applications.  By 
2014, BPPT plans to develop FOSS-based applications for computer 
driver and kernel technologies, mining data programs, Indonesian 
language processing, simulation and computerization. 
 
Nuclear Education in High School Curriculum 
------------------------------------------- 
¶13.  On May 2, Dr. Taswanda Taryo, Deputy Chairman for R&D 
Productivity and Public Acceptance of Nuclear Science and 
Technology, BATAN (National Nuclear Energy Agency), announced plans 
for a program to include education on nuclear technology in school 
curricula, especially high schools.  Eko Madi, Head of the 
Subdivision for Nuclear Energy Science and Technology Dissemination, 
BATAN, explained that BATAN and the Ministry of Education would 
establish an expert team to begin drafting physics, chemistry, and 
biology curricula on nuclear technology.  In addition, BATAN is 
conducting outreach to educate teachers, students, and NGOs about 
nuclear technology.  BATAN will also establish three Centers for 
Nuclear Education and Information, including one in Jepara (Central 
Java), which is close to Muria Bay, the location for a proposed 
nuclear plant. 
 
HEALTH: 
 
Tackling HIV Infection Rates Among Surabaya's Children 
--------------------------------------------- --------- 
¶14.  The Surabaya City Health Department announced that 37 babies in 
Surabaya contracted HIV/AIDS between January and March 2008.  At a 
workshop on HIV/AIDS, Surabaya's Vice Mayor, Arief Afandi, confirmed 
that HIV/AIDS cases are spreading in all 31 districts in Surabaya. 
The Surabaya City government will take a new approach to the problem 
by training students to be HIV/AIDS cadre who will provide 
information and training to their peers.  The Surabaya City 
government will also involve more children and students in future 
HIV/AIDS workshops.  So far, it has selected 10 junior high schools 
and 10 senior high/vocational schools in Surabaya as HIV/AIDS test 
sites for this campaign. 
 
No Blood Transfusion Facilities in Half of Country 
--------------------------------------------- ---- 
¶15.  During a public hearing before the Jakarta regional parliament 
on May 12, Dr. Ratna Rosita, Director of Basic Medical Services and 
Nutrition of the Ministry of Health, stated that Indonesia lacks 
Blood Transfusion Units (UTDs) in 226 regions.  Ministry of Health 
statistics (2006) show that only 231 of 457 regencies/cities in 
 
JAKARTA 00001243  004 OF 004 
 
 
Indonesia have UTDs, including those operated by the Indonesian Red 
Cross (PMI), provincial governments and hospitals.  PMI's Chairman 
Mari'e Muhammad and Adang Dorodjatun, Chairman of Indonesia Blood 
Donors, also attended the public hearing.  PMI currently has 212 
UTDs, of which 24 percent are located within hospitals and 76 
percent outside of hospitals. 
 
HUME

Here is the second cable.

UNCLAS SECTION 01 OF 03 JAKARTA 003185 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EAP/MTS AND OES/ETC 
 
E.O. 12958: N/A 
TAGS: SENV [Environmental Affairs], TPHY [Physical Sciences], TBIO [Biological and Medical Science], TRGY [Energy Technology], ENRG [Energy and Power], ID [Indonesia] 
SUBJECT: INDONESIA ESTH HIGHLIGHTS: AUGUST - OCTOBER 2007 
 
¶1. Summary: The Indonesian Supreme Court hosted a judiciary workshop 
on wildlife crime and prosecution under the ASEAN Wildlife 
Enforcement Network (WEN) program in August.  The Vice Governor of 
Jakarta announced on September 27 that Jakarta could potentially 
receive $2 million in funding from developed countries under the 
Kyoto Protocol if it can reduce its CO2 emissions. A 2007 survey 
found that despite overall decreases in other parts of the island, 
Sumatran rhino populations in Bukit Barisan Selatan National Park 
and Way Kambas National Park in Lampung increased by up to 30 
animals.  On September 29, Vice President Yusuf Kalla announced that 
starting in 2008, Indonesia would increase its reforestation target 
from 1 million to 2 million hectares per year.  On September 25, the 
Head of Forest Office of West Papua said that the Governors of Papua 
and West Papua provinces would release a joint decree to ban log 
exports from Papua.  The State Ministry of Environment announced on 
September 15 that it aims to phase out imports of ozone-depleting 
substances by the end of 2007 as set in the Montreal Protocol. On 
October 7, Customs officials successfully foiled efforts to smuggle 
70 rare animals through Soekarno-Hatta Airport in Jakarta.  The 
State Ministry for Research and Technology and the United Nations 
Development Programme conducted a "Train the Trainer" session on 
open-source geographic information system software in Jakarta on 
October 22-27. On October 3, the Jakarta provincial government 
granted Rp 40 billion ($4.4 million) to improve health and education 
services in eight of its satellite cities.  At a ceremony to 
commemorate World Sight Day, the Ministry of Health (MOH) announced 
that it would increase its focus on reducing the numbers of 
vision-impaired children. Several residents of Wolotau Village in 
the Kota Baru sub-district of the Ende Regency were stricken with 
anthrax after eating contaminated buffalo meat in mid-October.  The 
Anak Krakatau, or "Child of Krakatau" Volcano, began spitting out 
flaming rocks and smoke in late October.  On October 23, the WWF 
Program Coordinator for West Kalimantan Hermayani Putera announced 
that poachers had smuggled rare plant species including orchids and 
nepenthes (also known as tropical pitcher plants) from Kalimantan to 
Malaysia. End Summary 
 
Indonesia Hosts ASEAN WEN Judiciary Training 
--------------------------------------------- --- 
 
¶2.  The Indonesian Supreme Court hosted a judiciary workshop on 
wildlife crime and prosecution under the ASEAN WEN program in August 
in Jakarta. The two-day workshop brought together representatives 
from Indonesia's judicial sector and focused on prosecution, 
investigation, Indonesian laws governing protection of wild animals 
and plants, local and trans-national cooperation with other 
agencies, and ASEAN-wide initiatives on Mutual Legal Assistance. 
Judicial officers from Thailand, Malaysia and the United States 
joined the event in order to share best practices and increase 
international cooperation to fight trans-national criminals involved 
in the wildlife trade.  Indonesia plans a follow-up training for the 
national police in February 2008. 
 
Jakarta May Be Eligible for Funding for CO2 Reduction 
--------------------------------------------- -------- 
 
¶3.  On September 27, Vice Governor of Jakarta Fauzi Wibowo announced 
that Jakarta could potentially receive $2 million in funding from 
developed countries under the Kyoto Protocol if it can reduce its 
CO2 emissions. To be eligible for the funding, Jakarta would have to 
meet United Nations Environment Program (UNEP) certification 
requirements.  Fauzi stated that the Jakarta administration is 
implementing a clean air project to try to meet the UNEP standards. 
Dollaris R. Suhadi, Project Manager of the Clean Air Project, 
explained that achieving UNEP certification will take up to a year 
of research and between $500,000 and $1 million in funding.  Jakarta 
officials are optimistic that the city will be able to meet UNEP 
requirements, citing for example that since the city's bus ways 
became operational in 2004-2005, the total number of private 
vehicles on the road has decreased by 14%. 
 
Survey Shows Sumatran Rhino Population on the Rise 
--------------------------------------------- ----- 
 
¶4.  A 2007 survey conducted by the Rhino Protection Unit (RPU) and 
Yayasan Badak Indonesia found that despite overall decreases in 
other parts of the island, Sumatran rhino populations in Bukit 
Barisan Selatan National Park and Way Kambas National Park in 
Lampung increased by between 24 and 30 animals (to a total of 60 and 
85 in each park, respectively).  Coordinator of the RPU Arief 
Rubiyanto stated the increase was unexpected, considering the many 
threats to the rare animals from poachers and territorial 
encroachment due to illegal logging and forest conversion 
activities.  RPU patrolling activities in both parks and the curbing 
of poaching contributed to the improved numbers.  In recognition of 
 
JAKARTA 00003185  002 OF 003 
 
 
his efforts, Rubiyanto received the Disney Conservation Award from 
the Walt Disney Corporation. 
 
Indonesia Reforestation Target Raised to 2 Million Hectares Per 
Year 
--------------------------------------------- ------ 
 
¶5.  On September 29, Vice President Yusuf Kalla announced that 
starting in 2008, Indonesia would increase its reforestation target 
from 1 million to 2 million hectares per year.  Kalla added that the 
international community could not blame Indonesia for cutting its 
forests in the past, since timber consuming countries such as the 
U.S., Japan and Korea invested in the concession business. Note: 
Although the central government's sets the target, responsibility 
for implementation falls to the regional governments, who may face 
difficulty meeting the increased level. 
 
Papua Provincial Government Bans Log Exports 
--------------------------------------------- ---- 
 
¶6.  On September 25, the Head of Forest Office of West Papua 
Province said that the Governor of Papua Barnabas Suebu and Governor 
of West Papua Abraham O. Atururi would release a joint decree to ban 
log exports from Papua.  The Papuan administration wants to push 
investors to open wood processing facilities in Papua rather than 
shipping logs out from Papua.  There are currently 25 concessions 
within a 4.6 million hectare area, while there is only one wood 
processing facility, which is located in Sorong.  The Papuan 
government will implement the ban incrementally, beginning with a 
moratorium on 30 percent of log exports. TIME magazine highlighted 
Governor Suebu in October as an environmental hero for his 
conservation efforts. 
 
Government to Halt Ozone-Depleting Imports 
------------------------------------------- 
 
¶7.  The State Ministry of Environment announced on September 15 that 
it aims to phase out imports of ozone-depleting substances by the 
end of 2007 as set in the Montreal Protocol.  The Ministry said that 
as of August, imports of chlorofluorocarbons (CFCs) for the year had 
reached 193 metric tons, down from 2,331 metric tons in 2006. 
Officials stated that the ministry had phased out the use of 1,209 
metric tons of CFCs from several sectors in 2006 and would eliminate 
use of CFCs from the industrial sector by June 2008. 
 
Indonesian Customs Officials Foil Animal Smugglers 
--------------------------------------------- ------ 
 
¶8.  On October 7, Customs officials successfully foiled efforts to 
smuggle 70 rare animals through Soekarno-Hatta Airport in Jakarta. 
The Ministry of Finance's Investigation and Enforcement Section 
reported that Indonesian citizen Jonathan Leo Nardha had tried to 
smuggle the rare animals in speaker boxes.  Nardha was transporting 
the animals from Malaysia for Indonesian customers in Jakarta. 
 
Disaster Data Base Training Conducted in Jakarta 
--------------------------------------------- ----- 
 
¶9.  The State Ministry for Research and Technology and the United 
Nations Development Programme (UNDP) conducted a "Train the Trainer" 
session on open-source geographic information system (GIS) software 
in Jakarta on October 22-27.  Francis Sarmiento III, Project Officer 
for the UNDP's ASEAN Plus Three Sub-regional Node International Open 
Source Network, explained that Indonesia needed good, efficient, 
effective and fast local and national databases and information 
systems to anticipate and manage natural disasters.  Sarmiento 
explained that database and GIS implementation using closed software 
sources is difficult for developing countries due budget 
limitations.  To address this challenge, the international community 
has developed GIS applications using free open source software for 
use by countries such as Indonesia.  Around 30 participants with key 
disaster mitigation responsibilities in the Indonesian government 
took part in the training. 
 
Jakarta Grants Funding for Health Services 
------------------------------------------- 
 
¶10.  On October 3, the Jakarta provincial government granted Rp 40 
billion ($4.4 million) to improve health and education services in 
eight of its satellite cities.  The grant would support efforts to 
establish community health centers and reduce the number of 
outbreaks of communal diseases.  The grant includes the surrounding 
cities of Bogor, Depok, Bekasi and Cianjur in West java Province, as 
well as Tangerang in Banten. 
 
 
JAKARTA 00003185  003 OF 003 
 
 
GOI Seeks to Reduce Vision Impaired Numbers 
-------------------------------------------- 
 
¶11.  At a ceremony to commemorate World Sight Day, the Ministry of 
Health (MOH) announced that it would increase its focus on reducing 
the numbers of visually impaired children. The MOH has conducted 
several programs under this initiative, including preventative 
measures through early detection of blindness in community health 
centers, provision of vitamin A supplements to combat deficiencies 
that raise the risk of blindness, and subsidies for regular exams 
and eyeglasses for poorer families. The MOH has established a 
national commission to tackle blindness and other sight disorders. 
 
 
Anthrax attacks villagers in East Nusa Tenggara 
--------------------------------------------- --- 
 
¶12.  The Head of East Nusa Tenggara (NTT) Sub Office of Veterinary 
of Livestock Office, Maria Geong, reported on October 30 that 
several residents of Wolotau Village in the Kota Baru sub-district 
of the Ende Regency were stricken with anthrax after eating 
contaminated buffalo meat.  Around 20 villagers were in critical 
condition and hospitalized.  Geong instructed the Health and 
Livestock Offices to isolate the area, and the Ende Health Office 
sent medical teams to the village to support the effort.  Ende 
Regency has been an endemic anthrax area since 1994, where anthrax 
spores can live up to 60 years. 
 
Anak Krakatau Volcano Spits Flames 
----------------------------------- 
 
¶13.  The Anak Krakatau, or "Child of Krakatau" Volcano, began 
spitting out flaming rocks and smoke in late October. Saut 
Simatupang of Indonesia's Center for Vulcanology and Geological 
Hazard Mitigation predicted that the volcano would continue to 
rumble for some time but posed little danger to the area.  Anak 
Krakatau sits in the Sunda Strait between Java and Sumatra. 
 
"Nepenthes" Flies from Kalimantan 
--------------------------------- 
 
¶14.  On October 23, the WWF Program Coordinator for West Kalimantan 
Hermayani Putera announced that poachers had smuggled rare plant 
species including orchids and nepenthes (also known as tropical 
pitcher plants) from Kalimantan to Malaysia.  They hunted the plants 
in the Meratus Mountain area and the Hampangin Forest, located in 
the Katingan Ilir Sub-district of Katinan Regency (approximately 40 
miles from Palangkaraya, Central Kalimantan).  Demand for these 
species has increased in Malaysia, leading to an increase in 
poaching in Indonesia.  The Indonesian Orchid Association expressed 
worry that these activities are threatening the sustainability of 
the species.  Malaysian consumers allegedly pay local people to 
collect the rare and protected plants in Kalimantan's forests for 
sale.  One pot of Nepenthes is worth Rp 20,000 (approximately 
$2.00), and the price for a Black Orchid ranges from Rp 45,000 to Rp 
75,000 (approximately $4.80 to $8.10). To minimize the threat of 
poaching, the West Kalimantan Natural Resources Conservation Office 
has trained local residents to develop nurseries for the endangered 
plants. 
 
 
HUME

The story of Indonesia is an interesting one especially because of Microsoft’s response to ODF and FOSS adoption. It’s not unique to Indonesia and we have some antitrust material to show how Microsoft systematically identifies and then attacks deployments of FOSS. █

Summary: Cables shed light on how Hollywood and a Microsoft front group pressured Indonesian authorities, which had also proposed moving to Free/open source software

We previously covered cables from Indonesia, just shortly after we wrote about ODF there and years after we wrote about a Microsoft MOU. According to the following Cablegate cable, Microsoft’s front group, the BSA, complained about “lack resources to move and properly store cumbersome and sensitive optical disk production machinery seized during raids.” It is in the same cable that we found (in ¶8): “Tanduk provided Katz with an impressive, newly-published handbook titled “Optical Disk Regulation Implementation Guide.” The hard-cover, Indonesian language publication caps a highly successful series of USAID-funded training workshops for the OD factory monitoring team. It includes relevant GOI laws and regulations, color photographs, and detailed technical and procedural guidance for the team. The technical advisor who ran the USAID project, a former Business Software Alliance (BSA) and Motion Picture Association (MPA) local representative, has recently agreed to continue his ODR work with the MOI for another year as a Department of Justice ICITAP senior technical advisor.

Just above that it says: “The heads of several agencies — Trade, Research and Technology, Economic Planning (Bapenas) and the DG for IPR — also pledged to replace pirated software in their agencies computers with open source or legal products.”

As we already know with Cablegate aside, Microsoft used the usual tricks to impede the adoption of FOSS in Indonesia (more on that later). In any event, here is the cable in question:

VZCZCXRO2803
PP RUEHCHI RUEHDT RUEHHM
DE RUEHJA #8114/01 1790836
ZNR UUUUU ZZH
P 280836Z JUN 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 6462
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 05 JAKARTA 008114 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
FOR EAP/MTS; EB/IPE/EAP 
COMMERCE FOR GOLIKE/4430 
COMMERCE PLEASE PASS USPTO FOR JOELLEN URBAN 
DEPT PASS TO USTR DKATZ, JGROVES, RBAE, VESPINEL 
 
E.O. 12598: N/A 
TAGS: KIPR [Intellectual Property Rights], ETRD [Foreign Trade], 
WTO [World Tourism Organization], ECON [Economic Conditions], ID [Indonesia] 
SUBJECT: IPR Update - GOI Making Steady Progress 
 
¶1. (SBU) Summary: At the first meeting of the Indonesian 
Government's (GOI) newly-established National Intellectual 
Property Rights (IPR) Task Force on June 7 Indonesia 
National Police (INP) Chief General Sutanto and Attorney 
General Abdul Rachman Saleh pledged to improve IPR 
enforcement and Minister of Trade Mari Pangestu outlined the 
importance of IPR to the country's economic development. 
The Task Force's senior working level committee is drafting 
short and medium term plans of action, as well as 
coordinating efforts to collect better IPR enforcement data. 
The Ministry of Industry (MOI) optical disk (OD) factory 
monitoring team has registered 26 factories,  provided them 
with source identification (SID) codes, and established a 
schedule of unannounced factory visits.  It is also in the 
process of registering the remaining three factories that 
have been identified by the intellectual property (IP) 
industry.  In response to GOI demands, local OD producers 
have voluntarily surrendered over 180 OD stampers without 
SID codes.  Local OD producers and distributors have agreed 
with the GOI that, after this year, any optical disk sold 
without SID code can be considered a pirated copy.  Local IP 
industry representatives report that police cooperation has 
improved. For the first time, police are conducting vendor 
and factory raids on their own initiative.  Jakarta district 
and national police have promised to continue raids, 
particularly against Jakarta's most notorious malls. Police 
and prosecutor collaboration remains weak and there is a 
large discrepancy between the number of cases police turn 
over to the Attorney General's *~cQnzvh-0`eia and Pacific 
Affairs Director Disited Jakarta June 20-22 to discuss Indonesia's 
current Special 301 OCR with key GOI officials and IP 
industry representatives.  GOI officials expressed general 
disappointment with Indonesia's retention on the Special 301 
Priority Watch List in May.  They welcomed, though, the U.S. 
Government's (USG) decision to conduct a second consecutive 
OCR.  Katz informed them that the timing of the OCR would 
depend on GOI efforts and that it could take place as early 
as the end of August or September.  He also stressed to GOI 
officials and IP industry representatives the importance of 
providing regular enforcement data and other information in 
support of the OCR. 
 
National IPR Task Force Holds First Meetings 
-------------------------------------------- 
 
¶3. (SBU) Ministry of Justice Director General of IPR Abdul 
Bari Azed informed Katz on June 20 that the GOI's newly- 
established National IPR Task Force held its first monthly 
senior working level meeting in May and quarterly 
ministerial-level meeting on June 7.  Bari reported that on 
June 7 Indonesian National Police Chief Sutanto and Attorney 
General Abdul Rachman Saleh along with other key cabinet 
officials pledged to improve IPR enforcement. (Note: Katz 
confirmed Bari's account in subsequent meetings with the 
MOI, MOT and police. End note.)  Minister of Trade (MOT) 
Mari Pangestu, vice chair of the Task Force, explained the 
importance of IPR protection and enforcement to Indonesia's 
investment climate and economic development.  The heads of 
several agencies -- Trade, Research and Technology, Economic 
Planning (Bapenas) and the DG for IPR -- also pledged to 
replace pirated software in their agencies computers with 
open source or legal products. 
 
¶4. (SBU) According to Bari, General Sutanto promised INP 
support for MOI OD factory monitoring team inspections and 
continued police raids on pirate OD vendors and factories, 
with emphasis on Ratu Plaza and Mangga Dua Mall, two of 
Jakarta's most notorious pirate OD markets.  Sutanto pointed 
out the challenges inherent in conducting aggressive raids 
against Harko-Glodok, Jakarta's primary pirate OD 
distribution center, noting that it risked social disorder. 
(Note: Harko-Glodok is located in an ethnic Chinese majority 
area of Jakarta and is thought to have links to organized 
crime.  A police raid on the area several years ago led to 
riots, a fire, and several deaths, with police paying 
compensation for some of the damage. End note.) 
 
¶5. (SBU) Bari, who serves as chairman of the Task Force's 
 
JAKARTA 00008114  002 OF 005 
 
 
senior working level committee, said his group would meet 
again in July to agree on text of short and medium term 
plans of action.  Priorities will include OD Regulation 
(ODR) implementation and collecting better data and 
information on GOI IPR enforcement efforts, particularly 
from Indonesia's major urban centers (greater Jakarta, 
Surabaya, Medan, Bandung, Makasar and Denpasar).  Bari noted 
that members of the senior working level committee met 
recently with officials at the Supreme Court to request data 
on civil and criminal IPR cases.  According to Bari, the 
committee is also establishing sub-committees to focus on 
specific issues.  One subcommittee, led by Ministry of Trade 
Senior Advisor Halida Miljani, would liaise with IP industry 
representatives and associations, and another with donors 
and the diplomatic community.  (Note: Miljani on May 30 
briefed American Chamber of Commerce IPR Committee members 
on the National Task Force. End note.) 
 
OD Factory Monitoring Team Sets Schedule 
--------------------------------- 
 
¶6.  (SBU) MOI Directorate General for Chemical, Agriculture 
and Forestry Based Industry Director Tony Tanduk on June 21 
told Katz that the MOI has registered 26 OD factories  and 
distributed SID codes to each of them.  It is also in the 
process of registering the remaining three OD factories 
identified by the IP industry.  The MOI has allocated Rp 300 
million (approximately USD 30,000) per year to the OD 
factory monitoring team. The team, which now includes 
members of the INP, has set a schedule of six unannounced 
factory visits per month.  The first three inspections 
occurred on June 13.  While all three factories had SID 
codes engraved in their moulds and stampers, none were 
producing ODs.  Tanduk remarked, somewhat sheepishly, that 
managers at all three factories claimed that they were 
waiting to ensure the accuracy of copyright documentation. 
 
¶7.  (SBU) Under an agreement with the MOI, owners of 
stampers without SIDs have agreed to turn them in to MOI by 
June 15.  Tanduk showed Katz one surrendered stamper and 
said he has collected 186 to date; he expects to receive 
another 100 in the coming weeks.  The MOI plans to destroy 
the stampers at an IPR public destruction ceremony with the 
police sometime in July.  The agreement also stipulates 
that, after December 31, 2006, the GOI will consider all ODs 
sold without SID codes as illegal pirated copies.  Some 
owners of stampers and factories have delayed using SID 
codes, as it requires them to send stampers and molds to 
Singapore or Hong Kong for engraving.  Katz suggested that 
Tanduk send a letter to all registered factories warning 
them that all their molds and stampers must include engraved 
SIDs codes.  Tanduk agreed. 
 
¶8.  (SBU) Tanduk provided Katz with an impressive, newly- 
published handbook titled "Optical Disk Regulation 
Implementation Guide."  The hard-cover, Indonesian language 
publication caps a highly successful series of USAID-funded 
training workshops for the OD factory monitoring team.  It 
includes relevant GOI laws and regulations, color 
photographs, and detailed technical and procedural guidance 
for the team.  The technical advisor who ran the USAID 
project, a former Business Software Alliance (BSA) and 
Motion Picture Association (MPA) local representative, has 
recently agreed to continue his ODR work with the MOI for 
another year as a Department of Justice ICITAP senior 
technical advisor. 
 
Police Continue Raids 
--------------------- 
 
¶9. (SBU) Jakarta Metropolitan Police (Metropolda) Special 
Crimes Lieutenant Colonel Police Agus Adriyanto and Chief of 
Investigation Umar Surya Fana on June 23 provided Katz with 
a spreadsheet detailing 267 IPR raids on pirate OD vendors 
that police conducted throughout the greater Jakarta 
metropolitan area since the beginning of this year. 
According to the report, police seized roughly 1.2 million 
pirated ODs, and at least temporarily detained 433. 
According to a local MPA representative, these figures do 
not include a raid on Ratu Plaza late on June 23, during 
which Metropolda police seized roughly 100,000 pirated ODs 
and arrested several people.  The 267 raids also do not 
include West Jakarta Police's seizure on June 1 of 140 DVD 
burners and 55,000 pirated ODs and the arrest of two 
persons.  Metropolda also seized 55 burners and 360,000 
pirated ODs and arrested two persons in a separate raid on 
 
JAKARTA 00008114  003 OF 005 
 
 
April 27.  Based on leads from this raid, police raided a 
small distribution warehouse where they seized 30,000 
pirated ODs and arrested another two individuals. 
 
¶10. (SBU) Umar explained that police had investigated and 
referred all 267 cases to the AGO.  He also showed Katz a 
wall chart indicating that 16 individuals remained in 
Metropolda's temporary detention facilities on IPR-related 
charges.  Umar could not say how many of the 433 individuals 
arrested in 2006 were transferred to AGO holding facilities 
along with their case files.  He complained that once police 
sent cases to the AGO, it was very difficult to obtain 
information on their outcomes from the AGO or courts.  Katz 
suggested that joint workshops with the police, AGO and 
courts on IPR evidence collection, investigations and 
prosecutions might facilitate greater cooperation between 
these groups.  Both Agus and Umar welcomed the idea. 
 
¶11.  (SBU) Katz congratulated Agus and Umar on their 
successes and noted that reports of their actions had been 
received in Washington.  He encouraged them to continue 
their efforts, and suggested particular attention be paid to 
Jakarta's most notorious malls.  Umar said his unit would 
remain focused on Ratu Plaza, Mangga Dua and Harko-Glodok, 
but added that raids on Harko-Glodok posed risks.  On June 
22 some Jakarta police ran into physical resistance when 
they attempted to conduct a limited raid on Harko-Glodok's 
street vendors, located some distance away from its main 
wholesale distribution center. 
 
¶12.  (SBU) Umar, a son-in-law of Indonesia Anti-Corruption 
Chairman Taufikurrahman Ruki, said that support for 
Metropolda's efforts came directly to him from General 
Sutanto.   He provided Katz with a tour of Metropolda's 
halls and warehouse filled with growing sacks of seized 
pirated ODs and DVD burners.  Sometime in July, the police 
plan to hold a public destruction ceremony with support from 
the Motion Pictures Association (MPA).  An investigator for 
a local law firm, who works part-time for MPA and supports 
Metropolda's raids, has recently accepted a second DOJ 
ICITAP one-year senior technical advisor position to support 
INP IPR enforcement efforts. 
 
¶13. (SBU) In a separate meeting on June 23, INP Headquarters 
Special Economic Crimes Colonel Police Rycko Amelza Danniel 
told Katz that INP Police Chief General Sutanto has ordered 
his unit to work with North Jakarta police units to develop 
a plan for shutting down Harko-Glodok.  Rycko added that his 
unit would also begin collecting data from police raids, 
seizures and arrests from major urban centers across 
Indonesia. 
 
AGO Remains Weak But Interested 
------------------------------- 
 
¶14. (SBU) Although he did not provide detailed information, 
AGO Acting Deputy Attorney General for Special Crimes Abdul 
Hakim Ritonga on June 23 informed Katz that the Jakarta AGO 
had prosecuted roughly a dozen IPR cases over the past year. 
He admitted that until recently IPR has not been a high 
priority.  He suggested the AGO could raise the profile of 
IPR by including it under the purview of the AGO's newly 
created Transnational Crimes Task Force.  Katz remarked that 
detailed data on IPR prosecutions and convictions throughout 
Indonesia would be very useful for the Special 301 decision- 
making process.  Ritonga said that he could gather such 
information, provided the U.S. Embassy formally requested 
it. 
 
¶15.  (SBU) Katz showed the Ritonga Metropolda's data on 
raids, arrests and investigations since the beginning of 
this year, and asked if the AGO could tell us what happened 
with each case.  Ritonga said it was possible, but warned 
that, while police have recently referred many IPR-related 
case files to the AGO, their cases were often poorly 
investigated, lacked sufficient evidence, or were intended 
to simply to boost police arrest numbers and impress 
superiors.  Ritonga said he would support joint workshops 
with the police, AGO and courts on IPR evidence collection, 
investigations and prosecutions. 
 
Draft Customs Law Includes Ex Officio Powers 
-------------------------------------------- 
 
¶16. (SBU) Ministry of Finance Directorate General of Customs 
IPR Unit Chief Okto Iranto on June 22 told Katz that the 
 
JAKARTA 00008114  004 OF 005 
 
 
GOI's new draft customs law contained the same ex officio 
powers contained in the existing 1995 customs law.  The new 
customs law, however, is intended to resolve court 
jurisdiction issues that held up the issuance of 
implementing regulations for the ex officio power. Okto said 
that Indonesia Customs is eager to obtain the new authority, 
as it will enable customs officers to detain temporarily 
suspected shipments of pirate or counterfeit goods.  He 
added that Customs has consulted closely with local IP 
industry representatives on the status of ex officio powers 
in the draft law, including the  American Chamber of 
Commerce IPR Committee on May 2.  The issue was also 
discussed throughout a May 16-18 USPTO-Indonesia Customs 
workshop in Jakarta that included presentations and 
participation by senior Customs officials and IP industry 
representatives.  Okto said that the GOI has set a deadline 
by the end of this year to enact the new Customs law and 
accompanying implementing regulations. 
 
Other GOI Efforts 
----------------- 
 
¶17. (SBU) During their June 21 meeting, Bari informed Katz 
of several other ongoing IPR related efforts within his 
office.  The Directorate of IPR is cooperating with the 
Japan International Cooperation Agency (JICA) in conducting 
15 IPR public awareness seminars throughout Indonesia this 
year for officials, academics, students and the press.  DG 
IPR also collaborated with the European Commission-ASEAN IPR 
Co-operation Program] in holding a May 22-23 workshop in 
Jakarta on civil and criminal court proceedings.  Lastly, DG 
IPR Abdul Bari Azed on June 6 gave opening remarks at the 
opening of a BSA representative office in Jakarta. 
 
Amcham Members See Improved Enforcement and Cooperation 
--------------------------------------------- ---------- 
 
¶18. (SBU) At a June 22 meeting with Katz, Amcham IPR 
Committee members were in agreement that police were 
improving IPR enforcement and cooperation.  An MPA 
representative said that, for the first time, police were 
conducting raids on their own initiative and were no longer 
requiring formal complaints to act.  She attributed this to 
General Sutanto's December 2005 instruction to district 
police chiefs ordering them to step up IPR enforcement 
activities, particularly against pirated ODs.  The MPA 
representative noted that Jakarta police raids on Ratu Plaza 
and Mangga Dua Mall, however, stopped after Indonesia was 
retained on the Priority Watch List in May, but that police 
continued raids at other locations across the city. 
 
¶19. (SBU) A representative of a major U.S. cigarette 
manufacturer said that he has received very good cooperation 
from police and customs over the last year in seizing large 
shipments of counterfeit cigarettes.  In these cases, 
customs is able to make seizures without ex officio powers 
because the counterfeit cigarettes have counterfeit excise 
stickers that violate Indonesia's tax laws.  He added that 
his company was considering a plan to provide equipment and 
training to some police units.  He noted that one unit he 
works closely with in the Riau Islands has 70 officers but 
severely lacks other resources: it has only two vehicles, 
one telephone line, no internet, and a yearly operating 
budget of USD 12,000. 
 
¶20. (SBU) A Business Software Alliance (BSA) representative 
added that police also lack resources to move and properly 
store cumbersome and sensitive optical disk production 
machinery seized during raids.  Police are scared that if 
the machinery is damaged while under their custody, the 
courts may rule that they pay compensation to the owners. 
Consequently, police customarily seal OD machinery with 
police tape at factories, and it is often just a matter of 
days before pirates break the seals move the machinery or 
simply begin operating again. 
 
Comment 
------- 
 
¶21.  (SBU)  The GOI continues to make steady progress on 
IPR, and high level backing from the Police Chief and 
Attorney General bodes well.  Closer cooperation between the 
MOI, police and AGO will be important for ensuring effective 
factory monitoring and greater prosecutions of pirates.  Our 
new senior technical advisors at the MOI and police, and a 
new Embassy resident legal advisor with considerable IPR 
 
JAKARTA 00008114  005 OF 005 
 
 
experience, should provide valuable new tools for assisting 
the GOI with these challenges. 
 
¶22. (U) USTR Director David Katz has cleared this cable. 
SILVER

A separate cable says that “[o]ne of the ICT National Team’s stated objectives is to work towards legalizing all government software, regardless of whether it is open source or licensed.” Here is the full cable:

UNCLAS SECTION 01 OF 03 JAKARTA 000475 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
FOR EAP/MTS; EB/TPP/IPE JBOGER 
COMMERCE FOR 4430/BERLINGUETTE AND PETERS 
COMMERCE PASS USPTO FOR URBAN AND FOWLER 
DEPT PASS USTR FOR DKATZ, JGROVES, RBAE, CCOLLEY 
 
E.O. 12598: N/A 
TAGS: ECON [Economic Conditions], ETRD [Foreign Trade], KIPR [Intellectual Property Rights], ID [Indonesia] 
SUBJECT: INDONESIA IPR - ANNUAL SPECIAL 301 SUBMISSION 
 
Ref: a) State 07944; b) Jakarta 00011 
 
¶1. (SBU) Summary:  Since Indonesia's upgrade to the Special 301 
Watch List in November 2006, the Government of Indonesia (GOI) has 
continued to make steady progress towards improving its enforcement 
and protection of intellectual property rights (IPR).  A National 
Intellectual Property (IP) Task Force now holds regular interagency 
coordination meetings, and President Yudhoyono (SBY) signed a decree 
in November 2006 committing the GOI to legalize all its computer 
software.  Parliament passed a new Customs Law on November 15 that, 
when fully implemented, will provide ex officio powers for Customs 
Officials to seize suspected infringing products.  Jakarta 
Metropolitan Police continue to elicit praise from local and 
regional International Intellectual Property Association (IIPA) 
representatives for raids on notorious malls, vendors, distributors 
and factories.  The Ministry of Industry's Optical Disk Factory 
Monitoring Team (ODFMT) inspected registered factories in November 
2006 and February 2007 and issued initial warning letters to some 12 
optical disk (OD) factories.  The Ministry of Industry (MOI) plans 
to assign full-time staff to the ODFMT, conduct more regular 
inspections (including inspections after hours), and begin 
sanctioning non-compliant factories.  A recent Supreme Court ruling 
in favor of the company Intel in a trademark infringement case case 
bodes well for future cases. 
 
¶2.  (SBU) Summary, continued. Despite these steps, the GOI needs to 
further improve the operations of the ODFMT and involve the police 
more closely in the ODFMT's operations.  It also needs to step up 
prosecutions and deterrent convictions of IPR violators and combat 
book piracy and pharmaceutical counterfeiting.  But the GOI is 
steadily taking ownership over the IPR issue, and our interactions 
with Indonesia on the issue have grown less confrontational and more 
collaborative.  To further encourage this important U.S. policy 
success, we recommend that Indonesia remain on the Watch List for 
the entire 2007 Special 301 regular cycle.  End Summary. 
 
¶3.  (SBU) In response to Ref A, we reviewed this year's Special 301 
submissions from the GOI, IIPA, Intel, PhRMA, and the Phillip Morris 
Company.  In general, we agree with their data, characterizations, 
and assessments of the state of IPR protection and enforcement in 
Indonesia.  Piracy and counterfeiting rates remain high and, 
although improving, enforcement remains weak.  At the same time, GOI 
engagement and political will continue to improve and are gaining 
their own momentum. 
 
National IP Task Force Remains Active 
------------------------------------- 
 
¶4. (SBU) According to GOI contacts, The National IP Task Force 
continues hold regularly scheduled quarterly working level meetings, 
as well less frequent senior and Ministerial-level meetings.  At the 
working level, the Task Force has developed a national IP strategy 
and strengthened data collection and interagency coordination. 
However, the lack of a formal budget continues to hamper the Task 
Force, and it must rely on limited funding from the Ministry of 
Justice Directorate General for IPR.  Nevertheless, the Task Force's 
regular interagency meetings, particularly those of senior and 
ministerial level officials, are encouraging greater GOI focus on 
IPR.  Following the first Task Force meeting last year, for example, 
the Minister of Justice and National Police Chief collaborated in 
developing a clever, animated TV spot emphasizing the costs of 
piracy on Indonesia's culture and creative arts. 
 
SBY Leads Efforts to Legalize GOI Software 
------------------------------------------ 
 
¶5.  (SBU) There are other recent examples of growing GOI initiative 
and high-level political will to improve IPR protection.  On 
November 13, SBY signed a decree establishing an Information 
Communication Technology National Team.  The team consists of 
academics, business leaders and GOI officials and aims to create an 
IT regulatory regime that can contribute to economic growth, job 
creation and poverty alleviation.  One of the ICT National Team's 
stated objectives is to work towards legalizing all government 
software, regardless of whether it is open source or licensed. 
Further, the Team will also pursue approaches to cracking down on 
the use of pirate software in internet cafes, universities and the 
private businesses.  The ICT team will report directly to President 
SBY and work out of an office at the Ministry of Communication and 
Information Technology. 
 
¶6.  (SBU) Two months after SBY signed the decree, Minister of 
Communication and Information Sofyan Djalil signed an MOU with PT. 
Microsoft Indonesia, under which the software maker will help GOI 
ministries legalize and upgrade their MS Windows products at a 
significantly discounted price.  Although there has been some public 
 
JAKARTA 00000475  002 OF 003 
 
 
criticism of the MOU, including by State Minister for Research and 
Technology Kusmayanto Kadiman, SBY has stood behind the agreement. 
PT Microsoft Indonesia President Director Tony Chen recently told us 
he was "astonished" by the GOI's growing commitment to legalize its 
software and recommended we encourage the GOI by maintaining 
Indonesia on the Special 301 Watch List. 
 
Customs Law Enacted with Ex Officio Powers 
------------------------------------------ 
 
¶7.  (SBU) Parliament passed a new Customs Law on November 15, 2006, 
that, when fully implemented, will provide ex officio powers for 
Indonesian Customs officials to seize suspected infringing products 
without a court order.  The new law retains ex officio powers that 
existed in the old law, but also clears up court jurisdictional 
issues that had blocked their implementation.  Indonesia Customs 
expects to promulgate the new law's implementing regulations, 
including those pertaining to ex officio powers, by the end of 
2007. 
 
Jakarta Police Sustaining Enforcement 
------------------------------------- 
 
¶8. (SBU) As noted in the GOI's submission, and confirmed by local 
IIPA representatives, the Jakarta Metropolitan Police have sustained 
enforcement actions against malls, vendors, distributors and 
factories of pirated optical discs.  Ratu Plaza, Indonesia's most 
notorious modern market for pirated ODs, has been the subject of 
repeated raids, and one Motion Pictures Association (MPA) regional 
representative told us recently that some of Ratu's vendors have 
given up or moved to other, less-centrally located malls.  That same 
MPA representative described the Jakarta Police's continuing police 
cooperation as "brilliant" and he too recommended Indonesia remain 
on the Watch List.  Our EEB-funded senior IPR technical advisor has 
been instrumental in training and encouraging the Jakarta Police to 
step up their IPR enforcement.  Looking forward, the advisor will 
work to encourage greater police collaboration with the ODFMT and 
prosecutors, as well as greater police enforcement actions beyond 
the boundaries of metropolitan Jakarta. 
 
Monitoring Team Yielding Some Results 
------------------------------------- 
 
¶9. (SBU) As noted in ref b, the ODFMT, with training and planning 
support from our second EEB-funded advisor, conducted monitoring 
visits to all registered optical disc factories in November 2006. 
The MOI subsequently sent 12 warning letters to factories observed 
to have irregularities.  However, the letters highlighted only minor 
infractions, and there has been little ODFMT follow-up.  Although 
the visits revealed weaknesses in the ODFMT's capacity and security 
procedures, they also gleaned useful baseline data on the capacity 
and activities of registered optical disc factories.  More 
importantly, the visits allowed the ODFMT to collect forensic 
exemplars from a majority of the known production machines in 
Indonesia's registered factories.  The International Federtion of 
the Phonographic" Industry (IFPI) continus to analyze tthese 
exemplars in its forensic laboratory in London, and already they are 
yielding important information. 
 
¶10.  (SBU) The ODFMT still requires considerable institution and 
capacity building to be fully effective.  The ODFMT does not have 
full-time monitors, and relies largely on MOI and Police officials 
temporarily seconded from other positions.  t needs direct support 
from the police, particulrly if it is tt c"n*duct visits at night 
and to wlll guarded factories.  The ODFMT also needs to impe ment a 
more credible system of warning and sanctioning factories in 
violation of laws and regulations. 
 
¶11.  (SBU) MOI Director General for Downstream Chemical Industries 
Benny Wahyudi told us on February 20 that the ODFMT visited seven 
factories on February 17, and inspected the five that were open and 
operating.  He promised to provide us with the results of those 
visits as soon as they were compiled.  Wahyudi agreed that the 
Monitoring Team needs at least one full-time staff member.  He 
noted, though, that this person might have to be a contractor, as 
the MOI did not have a specific budget and position set aside to 
staff the ODFMT.  Wahyudi also agreed that the MOI would need to 
work closer with the police and develop a more effective system of 
warning and sanctions.  He suggested that the Embassy senior advisor 
for the ODFMT would be instrumental in helping the MOI address these 
challenges. 
 
Glimmer of Hope in Intel Case 
----------------------------- 
 
¶12. (SBU) The Supreme Court's February 1 ruling in favor of Intel in 
 
JAKARTA 00000475  003 OF 003 
 
 
the Intel Jeans case is also a favorable development.  In the case, 
the court cancelled the trademark of a local brand of jeans, Intel 
Jeans, and ruled that Intel is entitled to trademark protection as a 
well known brand.  The ruling bodes well for the Supreme Court's 
upcoming decision in the appeal of Intel's Panggung case (the 
Indonesian firm PT Panggung produces a number of electronics 
products under the registered trademark "Intel").  While the 
Commercial Court's previous rulings against Intel in the Panggung 
case have been setbacks, Intel's legal counsel recently described 
the case as an aberration in the Commercial Court's otherwise 
respectable record in handling civil IPR cases, particularly those 
involving trademarks. 
 
Significant Concerns Remain 
--------------------------- 
 
¶13. (SBU) Despite the clear momentum on IPR issues, there are 
remaining concerns.  Indonesia's record on IPR prosecutions remains 
poor.  Frequent prosecutor rotations, lack of transparency, and 
corruption make this a daunting task; and high level political will 
and support will be critical to making headway on IPR convictions 
and prosecutions.  Pharmaceutical counterfeiting and book piracy 
also remain largely unchecked.  GOI officials tell us frequently 
that they consider pharmaceutical counterfeiting to be a serious 
health concern for the country, as well as a potential rallying 
point for greater public support for IPR protection and enforcement. 
 Key GOI officials have endorsed a University of Indonesia study 
revealing alarming pharmaceutical counterfeiting rates and its high 
cost to the Indonesian economy.  The GOI, however, has yet to 
effectively engage the pharmaceutical industry on these issues. 
Book piracy remains rampant in universities and local bookshops. 
Indonesia has yet to develop an association or other means through 
which publishers and authors can collect and distribute book 
royalties.  The GOI would very likely welcome U.S. technical 
assistance in this area. 
 
Watch List is the Best Option 
----------------------------- 
 
¶14. (SBU) Over the past two years, the combination of a 
reform-minded government in Indonesia and five regular or 
out-of-cycle Special 301 reviews has done much to change our 
interactions with the GOI on IPR issues.  GOI leaders are pursuing 
initiatives to promote IPR that were a only short time ago beyond 
our expectations.  At the same time, our relationships with working 
level contacts have become much more collaborative, particularly 
following Indonesia's removal from the Priority Watch List last 
November.  Four months later, although much work remains, the GOI is 
moving forward on IPR issues largely under its own steam.  With the 
GOI taking increasing ownership of the issue and steadily improving 
its IPR enforcement and protection, we believe a third consecutive 
OCR would be counterproductive.  Accordingly, Embassy Jakarta 
recommends strongly that Washington agencies retain Indonesia on the 
Special 301 Watch List for the 2007 regular Special 301 cycle, with 
no OCR. 
 
HEFFERN

We will cover some more Indonesia cables in a separate post. █

Summary: A diplomatic cable about IBM, Linux and Free/open source software

The following Cablegate cable talks about IBM and Linux. It also states that “[t]he use of an open source code Linux is another area of focus for IBM India. The company formed an IBM Linux Competency Center and Linux Solution Center in Bangalore to establish product standards, further Linux R&D as well as to localize products for an increasingly global customer base with local content requirements. State governments in India are big customers as they prefer open source code that enables development of local language fonts.”

Here is the Cablegate cable in full:

VZCZCXRO6031
RR RUEHBI RUEHCI
DE RUEHCG #2571/01 3260727
ZNR UUUUU ZZH
R 220727Z NOV 06
FM AMCONSUL CHENNAI
TO RUEHC/SECSTATE WASHDC 0443
INFO RUEHNE/AMEMBASSY NEW DELHI 2087
RUEHBI/AMCONSUL MUMBAI 4907
RUEHCI/AMCONSUL CALCUTTA 0647
Hide header
UNCLAS SECTION 01 OF 03 CHENNAI 002571 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON [Economic Conditions], EINV [Foreign Investments], 
EINT [Economic and Commercial Internet], IN [India; Andaman Islands; 
Lakshadweep Islands; Nicobar Islands] 
SUBJECT: IBM INVESTS BIG IN INDIA: HUMAN RESOURCES 
ARE KEY 
 
REF: CHENNAI 1187 
 
¶1. (U) Summary:  Riding the crest of a $6 billion 
investment, IBM India plans to expand its Bangalore 
research and development (R&D) operations and in 
doing so will unleash a new human capital thrust in 
already talent-hungry south India.  The company 
anticipates its Indian workforce will triple in the 
next five years.  An expanding market in India for 
U.S. manufactured mainframes and network software 
services presents an opportunity the company does not 
plan to miss. Increasing demand for remote management 
of global client networks is another revenue stream 
for IBM India. Simultaneous investments in open 
source software protocol and capacity building 
spearhead the companyQs effort to market e-governance 
solutions in the Indian market.  To meet its expanded 
human resource requirements, IBM plans to initiate 
in-house staff training programs, marking a notable 
shift from its past strategy of hiring employees away 
from competitors.  Indian software companies, already 
experiencing a human capital crunch, are now 
struggling to quickly respond and prevent attrition, 
fearful of losing skilled employees to their 
competitors.  End summary. 
 
----------------- 
All bets on India 
----------------- 
 
¶2. (U) On June 6 Sam Palmisano, IBMQs Chairman, 
announced investment plans in India of $6 billion 
over a five year period (reftel).  The company 
remains reluctant to disclose the details of its 
investment strategy, but during a recent meeting in 
Bangalore with visiting New Delhi DCM Pyatt, Inder 
Thukral, Director Strategy and Business Development 
at IBM India told post that emphasis will be on 
research and development of telecommunication and 
netware solutions for IBM operations worldwide.  The 
desire to leverage even further IndiaQs large highly- 
skilled labor force led to this investment move, 
Shankar Annasamy, Managing Director IBM India told 
us.  The company expects to triple its workforce from 
the current 47,000 employees at 25 locations in the 
next five years. 
 
----------------------------------------- 
India: IBMQs research and development hub 
----------------------------------------- 
 
¶3. (U) IBM India, with $2 billion in current 
investments, is the proverbial Q800-pound gorillaQ of 
IT research and development in the country.  The 
companyQs India-based teams account for over 30% of 
IBMQs global R&D on network and communications 
solutions.  With its latest investment, the company 
has rapidly diversified to meet its R&D needs:  The 
IBM Innovation Center in Bangalore provides an 
institutional platform for software service suppliers 
and is a critical testing ground for new products in 
both the Indian and global market. IBMQs India 
Software Lab, with facilities in Bangalore and Pune, 
also develops and supports IBM software products for 
worldwide operations.  In addition, the high- 
performance On Demand Lab develops specialized 
software to automate and virtualize the complex 
information technology infrastructure of clients 
located in the south Asian region.  To further 
hardware development, the Engineering and Technology 
Services Center designs advanced chips, cards and 
systems to meet customer requirements across Asia. 
 
------------------------------------------ 
India: A big market for US made mainframes 
------------------------------------------ 
 
¶4. (U) IBMQs U.S. manufactured main frames have 
captured the booming Indian main frame market.  The 
company holds an 80 percent share of IndiaQs 
estimated $250 million market for main frames.  The 
market is currently growing at 55 percent, with much 
of the growth coming from mid-sized Indian 
businesses.  Main frames offered to the Indian market 
are pre-positioned at the companyQs Bangalore-based 
Innovation Center to enable potential customers to 
experience the computing power and capabilities of 
the machines.  IBMQs service oriented architecture 
that facilitates communication between different 
business segments located in various locations has 
 
CHENNAI 00002571  002 OF 003 
 
 
found favor in India and helped IBM secure a $100 
million deal with Bharti-Airtel, one of IndiaQs 
largest mobile phone service providers. 
 
------------------------------------------- 
Open source products spearhead E-governance 
------------------------------------------- 
 
¶5. (U) The use of an open source code Linux is 
another area of focus for IBM India.  The company 
formed an IBM Linux Competency Center and Linux 
Solution Center in Bangalore to establish product 
standards, further Linux R&D as well as to localize 
products for an increasingly global customer base 
with local content requirements.  State governments 
in India are big customers as they prefer open source 
code that enables development of local language 
fonts. 
 
-------------------------------- 
IBMQs BPOs transform outsourcing 
-------------------------------- 
 
¶6. (U) Leveraging IndiaQs large talent pool of 
network managers, IBM India services clients around 
the world via satellite and fiber optic networks from 
its global operations hub in Bangalore.  IBM Daksh, a 
back office unit which the company acquired in 2004, 
accounts for nearly 50% of the companyQs staff in 
India and is expected to contribute over half of the 
company revenues in the next five years.  Similar to 
other BPO operations such as local giants Infosys and 
Wipro, Daksh provides services for clients involved 
in retail, technology, banking, mortgage, energy and 
life insurance.  The range of services includes 
application processing, account maintenance, data 
conversion services, logistics management, claims 
processing, email support and financial services. 
According to IBM executives, this line of business 
registered some of the fastest growth rates for IBM 
in recent history. 
 
---------------------------------------- 
In-house training to meet in-house needs 
---------------------------------------- 
 
¶7. (U) IBMQs recent investment spike comes at a time 
when a fiercely competitive hiring climate is forcing 
top leadership to rethink its human resource 
strategy. In the past the company notoriously 
QpoachedQ experienced individuals from local firms. 
Looking for new HR capacity building vehicles, 
company executives are emphasizing university 
recruitment to attract and train new waves of fresh 
engineering graduates, or Qfreshers.Q  Yet this may 
be a tall order in a time when A-list tech firms are 
vying for talent, and freshers with experience under 
their belt are job-hopping for bigger and better 
packages.  Nonetheless, IBM executives are betting on 
a combination of higher salaries and their global 
brand equity to ensure a steady talent pool. 
 
¶8. (U) Strategic partnerships with elite Indian 
technology institutions are also enabling IBM India 
to further leverage local human capital expertise. 
IBMQs Center for Advanced Studies, for example, 
maintains a close relationship with prestigious 
institutions such as the Indian Institute of 
Technology (IIT) Chennai that leads directly into 
software R&D.  The company has a similar program with 
the Indian Institute of Science in Bangalore and 
plans to expand its partnerships with other high- 
caliber institutions across India. 
 
--------------------------------------------- -------- 
Expansion plans leave Indian software companies 
scared 
--------------------------------------------- -------- 
___ 
 
¶9. (U) Comment:  IBMQs investment announcement sent a 
minor wave of anxiety through the Indian software 
industry, which is already struggling to control 
costs.  InfosysQ Human Resource Director told us his 
company is trying to preempt potential attrition by 
offering a 30% salary hike.  Mindtree Consulting, a 
medium sized software development company, plans to 
tap bright talent as early as the secondary school 
level.  The company hopes to partner with U.S.-based 
universities to offer recruits a degree in 
 
CHENNAI 00002571  003 OF 003 
 
 
engineering at the end of a five year stint. 
Whatever strategy adopted, representatives of both 
Infosys and Mindtree told us that IBMQs investment 
plans will dramatically alter IndiaQs software 
business landscape and long-term human capital 
strategy. End comment. 
 
¶10. (U) This message was coordinated with Embassy New 
Delhi. 
 
HOPPER

In later cable we are going to see some more evidence of warming up to FOSS. █

Summary: Some interesting words from Brazil (source: CSTD Paris panel meeting on WSIS)

According to the following Cablegate cable, Brazil’s representative “emphasized that free and open source software helps to reduce costs, particularly in e-government.”

Also, “Brazil noted that the elements for a roadmap for digital inclusion included [...] the usefulness of free, open source software.”

null
Lucia A Keegan  11/17/2006 11:17:27 AM  From  DB/Inbox:  Lucia A Keegan

Cable 
Text:                                                                      
                                                                           
      
UNCLAS    SENSITIVE     PARIS 07358

SIPDIS
cxparis:
    ACTION: SCI
    INFO:   DCM POL LABO ENGO ECSO AGR UNESCO AMBO SCIO AMB
            ECON ESCI

DISSEMINATION: SCIX
CHARGE: PROG

APPROVED: ESTH RDRY/ECON SDWYE
DRAFTED: ECON: HSULLIVAN; EST
CLEARED: CLEAR: USOECD: JMALLORY

VZCZCFRI245
RR RUEHC RUCNDT RUEHGV RUEHZN
DE RUEHFR #7358/01 3171627
ZNR UUUUU ZZH
R 131627Z NOV 06
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 3066
RUCNDT/USUN NEW YORK
RUEHGV/USMISSION GENEVA 2524
RUEHZN/EST COLLECTIVE 

UNCLAS SECTION 01 OF 05 PARIS 007358 
 
SIPDIS 
 
STATE FOR IO/EDA, OES, EB/CIP, EUR/WE 
 
SENSITIVE BUT UNCLASSIFIED 
 
E.O. 12958:  N/A 
TAGS: ECPS [Communications and Postal Systems], TINT [Internet Technology], KWWW [World Wide Web Site], PREL [External Political Relations], FR [France; Corsica] 
SUBJECT: CSTD PARIS PANEL MEETING ON WSIS OUTCOME PRODUCES GUIDANCE 
DOCUMENT 
 
NOT FOR INTERNET DISTRIBUTION. 
 
¶1.  (U) Summary: The November 6-8, 2006 Paris Panel Meeting of the 
UN Commission on Science and Technology for Development (CSTD) Panel 
Meeting on WSIS outcome "Promoting the building of people-centered, 
development-oriented, and inclusive information society, with a view 
to enhancing digital opportunities for all people" did not raise 
significant 'red flags' for the U.S., with the exception of Brazil's 
occasional assertions that the Committee should address "internet 
governance."  On the margins of the meeting, U.S. officers who 
attended as observers reminded Commission leadership and staff that 
internet governance issues were not appropriate subjects for the 
Panel Meeting, and Commission leadership agreed.  Some participants 
(e.g., Brazil, Germany) were clearly taking directions from their 
capitals while others (e.g., Ethiopia) appeared little aware at the 
beginning of the meeting why the Commission was focusing on the 
Information Society.  In general, however, delegates came 
well-informed and engaged in the discussions.  Commission leadership 
appreciated the presence of U.S. officers as observers.  The Panel 
produced a document -- still subject to minor language editing 
changes -- in response to ECOSOC's resolution 2006/46, which had 
requested the Commission's review of this WSIS outcome.  The 
document is produced in full at para. 15, below.  End Summary. 
 
----------------------------------------- 
Information Society - People-centered and Inclusive 
----------------------------------------- 
 
¶2. (U)  The UNCTAD-provided Secretariat began the three-day meeting 
by explaining the purposes for the Commission's Panel Meeting and 
defining the concept of a people-centered, development-oriented and 
inclusive information society as a framework for development.  The 
Secretariat provided a chart showing the differences of internet 
 
SIPDIS 
penetration in various continents and also on the varying rates of 
growth.  The Secretariat noted that in Africa, although internet 
penetration in 2005 was only 3.6 percent, over the decade 1995-2005, 
internet use grew by 600%.  The Secretariat noted that governments 
should focus on a people-centered, development-oriented, inclusive 
Information Society, consistent with WSIS decisions.  Inclusive 
means that all stakeholders should participate, with benefits and 
opportunities available to all.  The purpose of the Information 
Society is to improve the quality of life for consumers, the 
Secretariat continued.  Various stakeholders have different roles. 
 
SIPDIS 
The government should develop national e-strategies, create an 
investment-friendly environment, deregulate, privatize, and 
liberalize the telecommunications sector.  The private sector will 
develop and finance the internet and its infrastructure.  Civil 
society will focus on local issues, while international 
organizations will help implement the WSIS. 
 
¶3. (U)  According to the Secretariat, the main obstacles to 
narrowing the digital divide are: 
 
- The high cost of telecommunications for the poor in developing 
countries; 
 
- Lack of human resources to develop the information infrastructure 
exacerbated by a brain drain of qualified personnel; 
 
- Lack of local content, which limits its usefulness to poor, rural 
populations. 
 
¶4. (SBU) In the ensuing discussion session, Charles Geiger, WSIS 
Executive Director from 2003 to 2005, commented substantively that 
governments should not try to control the direction of technology or 
internet growth since the technology was moving faster than 
governments could grasp developments.  For example, he suggested, 
the growth in mobile telephony occurred organically, not as a result 
of WSIS outcomes.  However, governments should use information 
communication technology (ICT) in the health sector, to promote 
transparent government (e-government), and improve distance 
learning.  These measures would promote social development, 
according to Geiger. 
 
¶5. (U) The Greek delegate said that he was surprised that in some of 
the examples of countries discussed that mobile telephony 
penetration surpassed that of fixed line.  Geiger replied that, in 
many areas of the developing world, mobile penetration is greater 
because of the lack of protection, as in the wireline world.  He 
noted that in India, one might have to wait seven years for a 
wireline telephone, but consumers could get mobile phones in 24 
hours.  Additionally, the decrease in mobile phone rates have made 
them more affordable than fixed line telephones in many areas. 
 
--------------------------------------------- ---- 
Brazil Opposes a Focus on Investment; CSTD Demurs 
--------------------------------------------- ---- 
 
¶6. (SBU) The Brazil representative thought that CSTD should focus on 
decentralization.  If governments tried to plan too much, they would 
not succeed because technology evolves faster than governments can 
plan.  Second, the Commission should downplay the role of foreign 
investment since the primary development should be at the community 
level.  Brazil, he commented, had 90 percent television penetration, 
while the internet had only reached 13 percent.  To wait for this 
percentage to slowly increase would be slower than the switch to 
digital TV, which would allow for interaction between the two 
systems.  He also emphasized that free and open source software 
helps to reduce costs, particularly in e-government.  No one else 
took up these points, except that Sudan expressed interest in the 
technology permitting greater interactivity with television systems. 
 Geiger emphasized that UNCTAD was not the WTO (implying that Brazil 
should not bring its GATS telecom mode 3 agenda into this forum.) 
 
------------------------------ 
CSTD Reviews WSIS Action Items 
------------------------------ 
 
¶7. (U) In a subsequent intervention, Geiger ran through the eleven 
action items from the Geneva WSIS Summit, reviewing which 
organizations were responsible for follow-up on each action item. 
He noted that the UN Group on Information Society (UNGIS) was 
created on July 14, 2006 to coordinate implementation of WSIS.  Its 
effectiveness would be proportionate to the extent that responsible 
UN agencies (primarily the ITU, UNDP, and UNESCO) provided it input, 
he suggested.  On April 17, 2006, the Global Alliance for 
Information and Communication Technology formed to provide private 
sector and civil society input into the CSTD's work.  Likewise, 
according to Geiger, the UNDP and the World Bank ought to be engaged 
with the CSTD's work so that its recommendations could be filtered 
into organizations that had financing capabilities. 
 
¶8. (SBU) Brazil responded by noting that the CSTD's role is to 
review and assess implementation of WSIS, not implementation itself. 
 However, to do so effectively, the CSTD needed to have better 
feedback on what the various UN agencies were doing to implement the 
WSIS outcomes.  Furthermore, the eleven action items from the Geneva 
conference should not be the sole scope of coverage since limiting 
its work to those would ignore the outcomes from the second WSIS 
Summit in Tunis.  Geiger agreed.  He noted that Brazil's position on 
internet governance "has always been very strong," but questioned 
the extent that the CSTD could effectively work on all WSIS issues. 
 
 
¶9. (SBU) The Romanian delegate suggested that CSTD create five 
parallel groups that would focus on implementation of the various 
recommendations.  Turkey noted that the recommendations were not 
mutually exclusive. 
 
------------------------------------- 
Summary of Individual Country Reports 
------------------------------------- 
 
¶10. (SBU) Commission members gave a number of reports regarding the 
state of the information society in their respective countries.  The 
German representative presented on a study that the GOG performed 
for the German Parliament on internet usage in Sub-Saharan African 
educational institutions.  It concluded, inter alia, that the 
internet could not solve many of the problems that African 
educational institutions faced such as large class sizes, poor 
salaries for teachers, and lack of funding.  However, it could, for 
example, spur joint programs between various institutions to share 
ideas about curriculum development. 
 
¶11. (U) The Lesotho representative gave a brief presentation about 
efforts it is undertaking to provide an environment conducive to 
building an information society involving, for example, new 
telecommunications laws.  Lesotho said that it would need 
multilateral assistance to achieve its goals.  Sudan presented its 
experiences, noting that internet only exists in big cities and 
towns, while 75 percent of the population lives in rural areas. 
Sudan uses solar energy to power its ICT in rural areas.  It has 
placed emphasis on connecting its universities and polytechnic 
institutions.  Sudan plans to establish a science park managed by 
specialized professionals to stimulate and manage the flow of 
knowledge and technology among universities, R&D institutions, 
companies and markets.  It also aims to facilitate the creation and 
growth of innovation-based companies through incubation, spin-off 
processes, and provision of other value-added services.  Sudan did a 
feasibility study on whether its science park could attract foreign 
and private sector investment.  The science park will cost USD 500 
million.  Phase One would cost USD 150 million, which a large Arab 
Gulf country has already provided.  This sum will finance, inter 
alia, communications and fiber optics requirements. 
 
¶12. (SBU) The Brazilian representative said that 97.2 percent of 
households have electricity, but, in the Amazon region, the 
percentage of households with electricity is much lower.  The 
percentage of the population with access to the internet is also not 
evenly distributed, but in no area is it over 30 percent except for 
Brazilia.  Brazil therefore has planned to introduce digital TV with 
the possibility of interactivity.  Through a remote control system, 
Brazilians can access TV on demand.  This is an opportunity for 
digital inclusion since internet reaches so few people and will take 
a long time to grow organically.  Brazil noted that the elements for 
a roadmap for digital inclusion included: noting countries' 
experience; promoting democratic governance based on transparency, 
accountability, and participation; infrastructure according to 
community interest; commitment to local development; the promotion 
of e-government; and the usefulness of free, open source software. 
The role for ECOSOC and CSTD should be to coordinate public policy 
issues at the international level and internet governance, according 
to the Brazilian representative. 
 
¶13. (U) The Moroccan representative discussed various initiatives 
the government was taking to promote connectivity in its educational 
system. She also mentioned the Casablanca Technopark, which boasts 
140 ICT companies with 750 permanent job positions. 
 
¶14. (U) Geiger, Hamdi, the delegates from Brazil, Chile, the GAID, 
and another NGO met following closure of the second day to propose 
how the instant CSTD Panel Meeting should make recommendations for 
the benefit of the tenth session of the CSTD, to be held in May 
2007.  That group prepared a document which was accepted - subject 
to minor revisions (yet to be included in the draft) on the 
following day.  The document, read by the Chilean delegate is as 
follows: 
 
---------------------------- 
CSTD Recommendation Document 
---------------------------- 
 
¶15. (U) The text of the 'Recommendation' document produced by the 
special CSTD Panel Meeting held in Paris, November 6-8, 2006 to 
provide guidance to the CSTD's Tenth Session to be held in May 2007 
follows.  Begin text: 
 
"The World Summit on the Information Society (WSIS) adopted a vision 
of a people-centered, development-oriented, and inclusive 
information society, with the view to creating digital opportunities 
for all people.  The Tunis Agenda for the Information Society, 
adopted in 2005 by the WSIS and endorsed by General Assembly 
Resolution 60/252, requests the Council to oversee the system-wide 
follow-up of the Geneva and Tunis outcomes of the Summit, and to 
that end, requests the Council, at its substantive session of 2006, 
to review the mandate, agenda and composition of the Commission on 
Science and Technology for Development, including considering 
strengthening the Commission, taking into account the 
multi-stakeholder approach, 
 
In this regard, the ECOSOC Resolution 2006/46 requests the 
Commission to review and assess the progress made in implementing 
the outcomes of the Summit and advise the Council thereon, including 
through the elaboration of recommendations to the Council aimed at 
furthering the implementation of the Summit outcomes, and that to 
that end, the Commission shall: 
 
-- review and assess progress at the international and regional 
levels in the implementation of Action Lines, recommendations and 
commitments contained in the outcome documents of WSIS; 
 
-- share best and effective practices and lessons learned, and 
identify obstacles and constraints encountered, actions and 
initiatives to overcome them and important measures for further 
implementation of WSIS outcomes; 
 
-- promote dialogue and foster partnerships in coordination with 
other appropriate UN funds, programs and specialized agencies to 
contribute to the attainment of the WSIS objectives and 
implementation of its outcomes, to use ICT for development and the 
achievement of internationally agreed development goals, with the 
participation of governments, the private sector, civil society, and 
the UN and other international organizations according to their 
different roles and responsibilities; 
 
Bearing in mind that the comprehensive review by the GA of WSIS will 
take place in 2015, and the ECOSOC requested that in its next 
session the Commission shall develop a multiyear work program, the 
Panel takes note of the issues paper presented by the Secretariat, 
and after considering this matter requests the Secretariat to make 
consultations with relevant stakeholders and to present to the 
Commission a draft program of work that should be flexible and 
inclusive. 
 
In order for the ECOSOC, through CSTD, to carry out its mandate of 
overseeing system-wide follow up of the WSIS effectively, it will 
require that the Commission has an effective interface with all 
agencies and mechanisms that are tasked with implementation of WSIS 
outcomes and other post-WSIS activities. 
 
In this regard, the Panel proposes the following: 
 
Multi-year work program and methods of work: 
 
The Panel requests the UNCTAD Secretariat to prepare a Note for 
consideration at the Tenth Session, which contains proposals for a 
multi-year work program of the Commission and new methods of work. 
This Note should take into account the timeframe for the 
comprehensive review, as well as the clustering and sequencing of 
thematic issues from WSIS outcome documents.  The work program 
should adequately address the thematic concerns of WSIS, but also be 
flexible enough to accommodate any future need for adjustment, in 
view of the fast pace of technological development.  To gather 
inputs on the work program, the Secretariat will carry out informal, 
open-ended consultations before February 2007, with a wide range of 
stakeholders.  These consultations could be scheduled back-to-back 
with meetings of action line facilitators and moderators. 
 
The Note should also elaborate on new methods of work of the 
Commission, including through interactive dialogues during its 
annual session, with the active participation of action line 
facilitators, and other agencies and mechanisms involved with the 
implementation of WSIS outcomes.  Additionally, the Note should 
propose concrete ways to explore development-friendly and innovative 
use of electronic media, drawing upon existing online databases on 
best practices, partnership projects and initiatives, as well as 
other collaborative electronic platforms, which would allow all 
stakeholders to contribute to follow up efforts, share information, 
learning from the experience of others and explore opportunities for 
partnerships. 
 
Since WSIS implementation constitutes ongoing activities over a wide 
area, which will be fast evolving, the Commission may have a wide 
range of topics to examine every year.  The Panel suggests that the 
Commission could invite the facilitators of action lines, and other 
agencies and mechanisms involved in implementation of WSIS, as well 
as members of other stakeholder groups, to participate in its annual 
session. 
 
The Panel also proposes that the Commission at its Tenth Session in 
May 2007 requests the United Nations system entities, including the 
regional commissions, engaged in the implementation of the Geneva 
and Tunis outcomes of the World Summit for the Information Society 
to collaborate closely with the Commission on Science and Technology 
for Development by providing it with periodic reports on the 
progress made in the implementation of the main themes and Action 
Lines of the World Summit for the Information Society, with a view 
to enabling the Commission to monitor, review and appraise progress 
achieved and problems encountered in the implementation, and to 
advise the Council thereon."  End text of document. 
 
------------------------------ 
CSTD leadership and commentary 
------------------------------ 
 
¶16. (SBU) Below are the CSTD leaders, who guided the discussion 
during the meeting: 
 
Chairman - Stefan Moravek, former Slovak Ambassador to South Korea 
and Kenya.  Aware of U.S. positions and 'red lines.'  Would welcome 
a U.S. return to the Commission. 
 
Vice President - Dr. Arnoldo K. Ventura, Special Adviser to the 
Prime Minister on Science and Technology, Jamaica. 
 
Executive Director - Charles Geiger.  Knows the WSIS 'inside out' 
having participated in both the Geneva and Tunis WSIS Summits.  Also 
aware of USG sensitivities regarding internet governance, and worked 
to assure this item remained "off the agenda."  He would like to see 
the U.S. become more involved in the work of the Commission. 
 
Secretariat -- Mongi Hamdi, Secretary to the UN Commission on 
 
SIPDIS 
Science and Technology for Development, Office of the Secretary 
General for UN Conference on Trade and Development (UNCTAD)  - Spent 
nearly 20 years in the U.S., first studying at Harvard and 
University of Southern California, followed by a long spell at UN 
Headquarters in New York (14 years).  His interventions emphasized 
the importance of investment in building infrastructure; the 
importance of deregulation; and focusing the role of government and 
international organizations on issues such as the digital divide. 
On the margins of the meeting, he asked U.S. observers to relay a 
request to Washington to rejoin the Commission, noting that USG 
interests could best be served by working as an insider rather than 
an outsider. 
 
President of Prepcom WSIS Tunis Phase - Ambassador Janis Karkins. In 
a WSIS follow-up presentation, he urged members and UN bodies 
working on WSIS issues to adhere to its mandate, to avoid reopening 
discussion of issues already addressed, and to operate within the 
allocated resources. 
 
¶17.  (SBU) Comment: The CSTD principals welcomed U.S. officers who 
observed (from USOECD, Science Officer Mallory on 11/6; Embassy 
Paris, ECON/Telcoms Officer Sullivan on 11/7; and Embassy Paris ESTH 
Couns Dry on 11/8).  They expressed interest in the USG becoming 
more engaged in the Committee, and believed with the expansion from 
30 to 40 members, there would be more participants that are 
"like-minded" with the U.S. on Information Society issues.  Many 
participants were clearly taking directions from their capitals, and 
delegates came well-informed and engaged in the discussions.  That 
said, the "reform" of this Commission is "a work in progress," 
although its work clearly is important to the task of development. 
Its present focus on WSIS implementation also makes its work 
relevant to the U.S.  End Comment. 
 
STAPLETON

More Cablegate cables will be covered here tomorrow. █

Summary: A cable from 5 years ago shows that UNESCO deals we often criticise meet opposition behinds the scenes too

WHENEVER UNESCO promises to promote Free software we quickly see Microsoft showing up and turning UNESCO into what seems like corrupt imposition of Microsoft software on children. According to the following Cablegate cable, we are not alone with these concerns and to quote ¶6, ” The Indian Ambassador criticized UNESCO for signing a software agreement with Microsoft, stating that such an agreement had resulted in UNESCO abandoning efforts to develop open-source software. (COMMENT: It is not clear whether the Indian Ambassador is motivated by anti- globalization ideals, as she might like to suggest, or national interest, though we suspect the latter. The UNESCO open-source software project “Enrich” is being developed, in large part, by Indian software engineers. END COMMENT.) ADG Khan defended this partnership by stating that developing software is vital for capacity building, and added that UNESCO continues to work on open-source software. The Tunis Agenda, he reminded the audience, calls for private sector partnerships in this area, and UNESCO plans to increase them. The DG stated that UNESCO must maintain momentum in building partnerships with the private sector in areas covered by WSIS. The agreement with Microsoft does not mean that UNESCO will stop pursuing the idea of free and open software.”

Here is the full cable:

UNCLAS SECTION 01 OF 02 PARIS 001007 
 
SIPDIS 
 
FROM USMISSION UNESCO PARIS 
 
SENSITIVE 
 
E.O. 12958:    N/A 
TAGS: KPAO [Public Affairs Office], ECPS [Communications and Postal Systems], ETRD [Foreign Trade], 
ECON [Economic Conditions], EINT [Economic and Commercial Internet], ETTC [Trade and Technology Controls], 
UNESCO [UN Educational Scientific and Cultural Organization] 
SUBJECT:  FOLLOW-UP ON THE IMPLICATIONS OF THE TUNIS AGENDA 
FOR UNESCO 
 
REF:  PARIS 431 
 
¶1.   (SBU) SUMMARY:  On February 2, 2006 the UNESCO Director 
General (DG), Koichiro Matsuura, and Assistant Director 
General (ADG) for Communication and Information, Khan, held 
an information session for UNESCO's permanent delegations to 
outline the implications for UNESCO of the World Information 
Summit on the Information Society's (WSIS) Tunis Agenda. 
UNESCO's strategy at WSIS featured four key principles: 1) 
Freedom of expression, 2) Universal access to information 
and knowledge, 3) Respect for cultural and linguistic 
diversity, 4) Quality education for all.  According to the 
DG, UNESCO's delegation to Tunis clarified which action 
lines it would work on, distanced itself from the Internet 
governance debate, did not rule out the creation of new 
normative instruments, and reiterated its commitment to 
private sector partnerships.  END SUMMARY. 
 
-------------------------------------------- 
IMPLICATIONS OF THE TUNIS AGENDA FOR UNESCO 
-------------------------------------------- 
 
¶2.  (SBU) The Tunis Agenda designates UNESCO as a 
moderator/facilitator for 7 Action Lines: 1) Access to 
information and knowledge, 2)E-learning, 3)E-science, 4) 
Cultural diversity and identity, linguistic diversity and 
local content, 5) Media, 6) Ethical dimensions of 
Information Society, 7) International and regional 
cooperation. The DG stressed that UNESCO expects to actively 
participate along with ITU and UNDP in the overall 
coordination of multi-stakeholder implementation of the WSIS 
outcomes. 
 
--------------------- 
INTERNET GOVERNANCE 
--------------------- 
 
¶3.  (SBU) UNESCO will participate in the Internet Governance 
Forum (IGF) as established by the Tunis Agenda.  Any 
preference that UNESCO had for the location of the IGF 
Secretariat was not discussed. The Brazilian Ambassador 
 
SIPDIS 
asked how "enhanced cooperation," as mentioned in the Tunis 
Agenda, would be addressed, noting that the language was 
deliberately imprecise.  The DG stated that UNESCO would 
play a role in identifying what was meant by enhanced 
cooperation, so that all parties are involved.  (COMMENT: 
He did not offer specifics.  END COMMENT.)  He also affirmed 
that UNESCO would be engaged in three aspects of Internet 
governance: 1) Openness, 2) Linguistic diversity, 3) Access 
(meaning interoperability). 
 
--------------------- 
CALL FOR INSTRUMENTS 
--------------------- 
 
¶4.  (SBU) The Japanese DCM asked if the DG saw scope for 
normative instruments in the area of Internet governance. 
The DG responded that at the moment he does not envisage any 
normative instruments in the Communication and Information 
sector, but UNESCO's important mission is to formulate 
normative instruments in key areas.  If there is further 
need for instruments in Communication and Information, he 
added, UNESCO should not shy away.  ADG Khan noted that the 
IGF could advance areas of concern with member state 
support.  The Communication and Information sector did not, 
he said, need normative instruments today, but since 
technology was changing so fast, he could not say that 
UNESCO would not consider them in the future.  (COMMENT: 
World Press Freedom Committee Representative Rony Koven's 
reaction to this comment was, "We'll worry about the future 
when we get there.  The main thing is that he sees no need 
for instruments now."  Koven is a thirty-year advocate of 
media freedom at UNESCO, an active WSIS stakeholder, and 
seasoned observer of the UNESCO scene, who will participate 
as a stakeholder in the Internet Governance Forum.  END 
COMMENT.) 
 
--------------------------- 
UNESCO'S ROLE INADEQUATE? 
--------------------------- 
 
¶5.  (SBU) Delegates from Brazil, India, and Japan questioned 
whether UNESCO had been given its "due" role in the process. 
The Indian Ambassador stated that, according to the Indian 
delegate at WSIS, UNESCO was not allowed to play the role it 
wanted to have because of "certain key delegations." 
(COMMENT:  Is this the same Indian Delegate to WSIS that the 
USG worked well with?  We wonder if the Indian Ambassador is 
articulating her own version of WSIS events here.  END 
COMMENT.)  This echoed concerns that UNESCO ambassadors, 
including the Indian Ambassador, raised with Ambassador 
Gross on January 18, 2006 (reftel).  The DG responded that 
while he shared this concern, it was useless to complain. 
UNESCO, he stated, had wanted to represent member states in 
the WSIS process and its only ambition was to fulfill its 
mandate. 
 
------------------------------------------ 
CRITICISM OF PUBLIC SECTOR PARTNERSHIPS 
------------------------------------------ 
 
¶6.  (SBU) The Indian Ambassador criticized UNESCO for 
signing a software agreement with Microsoft, stating that 
such an agreement had resulted in UNESCO abandoning efforts 
to develop open-source software.  (COMMENT:  It is not clear 
whether the Indian Ambassador is motivated by anti- 
globalization ideals, as she might like to suggest, or 
national interest, though we suspect the latter.  The UNESCO 
open-source software project "Enrich" is being developed, in 
large part, by Indian software engineers.  END COMMENT.) 
ADG Khan defended this partnership by stating that 
developing software is vital for capacity building, and 
added that UNESCO continues to work on open-source software. 
The Tunis Agenda, he reminded the audience, calls for 
private sector partnerships in this area, and UNESCO plans 
to increase them.  The DG stated that UNESCO must maintain 
momentum in building partnerships with the private sector in 
areas covered by WSIS.  The agreement with Microsoft does 
not mean that UNESCO will stop pursuing the idea of free and 
open software. 
 
¶7.  (SBU) COMMENT:  While it is disturbing that the DG 
stated that the Communication and Information sector "should 
not shy away" from new instruments, we note that some 
Communication and Information junkies at UNESCO find little 
evidence that this will happen in the next biennium.  The 
Mission will remain vigilant in its efforts to promote media 
freedom and Internet status quo at UNESCO.  END COMMENT. 
Oliver

It is reassuring to see that some politicians too let their opposition be known. The Microsoft/UNESCO PR needs to be countered. █

Update: There is also a cable that says: “UNESCO staff noted the “Preservation of Digital Heritage” program, UNESCO-sponsored open source software for digital libraries, and a 2003 declaration on Multilingualism and Cyberspace.”

The cable in full:

UNCLAS PARIS 001733 
 
SIPDIS 
 
FROM USMISSION UNESCO PARIS 
FOR IO/UNESCO 
E.O. 12958:    N/A 
 
TAGS: KPAO [Public Affairs Office], ECPS [Communications and Postal Systems], ETRD [Foreign Trade], 
ECON [Economic Conditions], EINT [Economic and Commercial Internet], ETTC [Trade and Technology Controls], 
EAID [Foreign Economic Assistance], UNESCO [UN Educational Scientific and Cultural Organization] 
SUBJECT:  UNESCO AND THE WORLD DIGITAL LIBRARY 
¶1.   (SBU) SUMMARY AND GUIDANCE REQUEST:  Deanna 
Marcum, Associate Librarian for Library Services and 
Chair of the Memory of the World Programme 
International Advisory Committee met with the UNESCO 
Communication and Information Sector and the Director 
 
General (DG) on March 8, 2006 to discuss the Library of 
Congress' (LOC) initiative to develop a plan for the 
World Digital Library (WDL).  She also discussed the 
UNESCO Memory of the World Program with the Director 
General. The DG and other senior level staff were 
enthusiastic about the WDL project, but working level 
staff, who discussed the LOC's initial planning stage 
with Marcum, were suspicious of Google motives to fund 
the WDL plan.   Marcum stated that Google had stepped 
out of the picture after making its donation. The 
UNESCO Secretariat is confused as to whether Marcum is 
the point of contact on the WDL, or another LOC 
staffer.  Marcum has told post that, in her view, her 
meetings at UNESCO Headquarters were "unofficial," and 
mentioned that another LOC staffer would be designated 
as the project manager and would come to UNESCO to 
discuss the WDL further.  Mission requests guidance on 
who is going to be the LOC's WDL point of contact and 
what its vision of the WDL is, and asks IO/UNESCO to 
remind U.S. officials request country clearance from 
the Mission rather than setting up their own meetings 
at UNESCO.  Mission notes that the UNESCO Secretariat 
does not consider meetings between U.S. officials and 
the DG to be "unofficial."  END SUMMARY AND GUIDANCE 
REQUEST. 
--------------- 
MEETING THE DG: 
--------------- 
¶2.  (SBU) Marcum met with the UNESCO Director General 
Koichiro Matsuura on March 8.  He stated his strong 
support for the WDL and noted UNESCO's desire to 
contribute to the project.  Marcum stated that the 
question was how to formulate a partnership with UNESCO 
on the WDL, noted that Google had provided 3 million 
USD in finances, and stated that Project Manager John 
van Oudenarem would be in contact with UNESCO to follow 
up.  The Communication and Information Sector's 
Director for the Information Society, Elizabeth 
Longworth, cited UNESCO's experience and familiarity 
with digitization, ability to provide a neutral 
platform, interest in building standards around 
metadata, expertise on governance and interoperability 
issues and commitment to spreading digitization. 
Matsuura instructed Longworth to continue to work with 
the LOC on an agreed-upon approach to the WDL, and 
stated that UNESCO could hold an international meeting 
to promote the WDL. 
¶3.  (SBU) Marcum brought up her recent election as 
Chair of the Memory of the World Programme 
International Advisory Committee and indicated her 
interest in encouraging U.S. institutions to put forth 
nominations for the programme.  The Director General 
responded with enthusiasm.  Ambassador Oliver noted 
that this was a good idea that ought to be discussed 
with the U.S. National Commission for UNESCO and urged 
Marcum to coordinate with them. 
---------------------------------- 
Working Level - Developing a Plan: 
---------------------------------- 
¶4.  (SBU) The UNESCO Communication and Information 
Sector convened a meeting for Marcum to meet with 
working-level representatives of the Division on the 
Information Society and UNESCO librarians and 
archivists from the Administrative Section in order to 
have a more detailed discussion on the WDL.  Marcum 
emphasized that she had come to UNESCO to listen and to 
describe the idea for a WDL and clarified that she did 
not have a proposal in hand to present to UNESCO staff. 
(COMMENT: The lack of a proposal appeared to take them 
by surprise, but they welcomed the opportunity to 
contribute to plans.  END COMMENT.)   The main issues, 
she stated, were governance, selection and 
architecture.  The LOC had identified a project manager 
for the WDL, and the goal would be to draft a report by 
October 2006, she said.  Marcum stated that the LOC 
could bring the principle of the library to the digital 
world, as an aggregation of lots of different 
information, not as a repository.  She stated that it 
was important for the WDL not to be politicized. 
¶5.  (SBU) She provided a history of the concept of a 
WDL dating beyond the American Memory and Global 
Gateway websites.  Global gateway projects, she noted, 
were bilaterally arranged with Russia, Brazil, France, 
Spain, The Netherlands and Egypt.  Each one addressed 
an area where U.S. culture intersected with these 
countries, and from this project, the LOC started to 
think about bilingual digital images of collections. 
The Librarian of Congress, James Billington, she 
emphasized, wanted to find ways to help people 
understand one another and use information exchange as 
a basis for global understanding. 
¶6.  (SBU) She stated that Billington spoke to the U.S. 
NATCOM last June to ask them to think about what steps 
to take to create a WDL.  The LOC had also reached out 
to the Digital Library Federation (mostly U.S. 
libraries, plus the British and Australian libraries) 
to look at standards, best practices, architecture, and 
metadata.  Marcum noted that many libraries around the 
world have started digital libraries already for items 
not covered by copyright.  Examples include the 
European library, the British Library/Microsoft 
partnership or the test project of the "Google 5" 
libraries.  (The University of Michigan, The New York 
City Public Library, Harvard University, Oxford, and 
Stanford University.)  A key difference here is that 
unlike the other projects, the European Library, 
spearheaded by France last year as a move "against 
googlization" and including the national libraries of 
Austria, Belgium, the Czech Republic, Denmark, Estonia, 
Finland, France, Germany, Greece, Hungary, Italy, 
Lithuania, Luxembourg, Netherlands, Poland, Slovenia, 
Slovakia, Spain and Sweden, is government funded. 
¶7. (SBU) Marcum explained that Google was impressed 
with Billington's desire to promote mutual 
understanding through on-line access to other cultures, 
and therefore donated 3 million USD for the LOC to 
devise a plan for a WDL.  The brand name of Google, she 
acknowledged, raises questions for many.  She added 
that there is probably every reason to be concerned 
about Google's influence on open access when one looks 
at the details.  She noted that the LOC did not pursue 
mass digitalization with Google because of concerns 
about how this would mesh with the LOC housing the U.S. 
copyright office.  She explained that there was almost 
nothing in writing in terms of an agreement between the 
LOC and Google:  it had handed over the check, and that 
was the end of its involvement in the WDL plan. 
---------------- 
UNESCO CONCERNS: 
---------------- 
¶8.  (SBU) Above all, suspicion of Google and its role 
in the plan dominated UNESCO concerns at the working 
level.  Staff asked if there was an outline of how the 
LOC would use the Google funds (Comment:  UNESCO staff 
does not appear to know a lot about private 
philanthropy in the U.S and expected there would be an 
MOU-type document.  END COMMENT.)  One UNESCO staffer 
stated that he believed the Google 3 million USD 
donation was seed money for it to come in later on the 
WDL.  A French UNESCO staffer asked if Google 
involvement was even necessary. 
¶9.  (SBU) Another staffer stated that the U.S. 
initiative on the WDL was a lot like the U.S. position 
on Internet Governance while another stated that the 
U.S. should refer to the WSIS Geneva declarations 
(2003) which states that libraries should be accessed 
electronically.  UNESCO staff also noted that the LOC's 
"Global Gateway" project, cited by Marcum as an example 
of intergovernmental cooperation on digital items, had 
generated editorially driven electronic publications 
and that the WDL should not use this model. 
¶10.  (SBU) UNESCO staff strongly urged that the U.S. 
reaches out to a wide variety of international actors 
on this project.  The Communication and Information 
Sector's Director for the Information Society, 
Elizabeth Longworth noted the potential for 
politicization of the WDL, given the documented -- and 
French-led - negative European reaction.  Longworth 
suggested that the U.S. and UNESCO draw lessons from 
the Internet governance debate. (COMMENT:  Some at 
UNESCO feel the perception that other countries could 
not have a role in internet governance undermined the 
U.S. position in the lead up to WSIS II in Tunis last 
November.  END COMMENT.) She also asked who the LOC's 
stakeholders were in the project while other staff 
noted that Marcum did not mention libraries in Latin 
America, Arab States, Asia and Africa.  They mentioned 
a digital library project led by the Philippines and 
financed by Intel for 20 Asian countries link their 
public domain material. 
------------------- 
UNESCO Value Added: 
------------------- 
¶11.  (SBU) UNESCO staff made many suggestions on how 
UNESCO might contribute to the WDL, many of which were 
repeated by Longworth in Marcum's meeting with the DG. 
They noted above all that UNESCO has the power to 
convene people, help with capacity building and 
training and to provide a neutral platform.  UNESCO 
also had a library portal with some 14,000 links and 
was active in the development of small digital 
libraries, such as the El Dorado library for Latin 
America and the Caribbean (Note: Only a Bolivian 
contribution to this project exists thus far, although 
in terms of other regions, the Palestinians also asked 
UNESCO to help them build either a virtual or actual 
library.) 
¶12.  (SBU) UNESCO staff noted the "Preservation of 
Digital Heritage" program, UNESCO-sponsored open source 
software for digital libraries, and a 2003 declaration 
on Multilingualism and Cyberspace.  UNESCO's French- 
chaired Information for All Programme could be 
involved, they suggested.  They offered to hold a panel 
discussion on the WDL at the next UNESCO Open Forum, 
and suggested that the LOC work with IFLA and UNESCO on 
this.  UNESCO could also call a conference on the 
issue, they added.  One staffer suggested UNESCO could 
create standard setting instruments in the area of 
digital libraries. (COMMENT:  Mission strongly advises 
against this.  END COMMENT.) 
¶13.  (SBU) The UNESCO Archivist stated that one 
excellent source of primary documents for a WDL would 
be the United Nations.  He cited the United Nations 
Intellectual History Project (UNIHP) whose secretariat 
was established at the Ralph Bunche Institute for 
International Studies of The Graduate Center of The 
City University of New York in 1999.  There was a 
potential copyright issue with some UN publications, he 
warned.  But there was a goldmine of material in UN and 
UNESCO archives, he added.  Other staff cited UNESCO's 
e-science program and its scientific information 
commons may be able to contribute. 
-------- 
COMMENT: 
-------- 
¶14.  (SBU) COMMENT:  At a high level, UNESCO staff has 
received the WDL project with open arms.  However, at 
the working level, suspicion of Google's role in the 
project as well as a lack of understanding of how 
private philanthropy works in the United States must be 
addressed for the project to succeed.  In addition, the 
LOC will want to demonstrate to UNESCO that it has a 
wide -- and significantly international - stable of WDL 
stakeholders.  Procedurally, the Secretariat has 
advised the Mission that meetings with the Director 
General and other senior officials at UNESCO 
Headquarters are indeed official, and we ask IO/UNESCO 
to convey to all USG agencies and branches that engage 
with UNESCO that country clearance and a briefing with 
the Mission Country team is essential to their visit. 
Mission also requests clarification of who leads the 
WDL project at the LOC, and, if this person is not 
Marcum, whether his views on the entire project are the 
same as the ones she conveyed.  END COMMENT. 
 
Oliver

Summary: Cable from Burma shows American diplomats who “would also like to assist in distributing USB sticks Internews has developed, which allow the activists to utilize open source software”

According to the following Cablegate cable, activists and antagonists (even subversives) are seen as beneficial to US embassies if they support the tenets of democracy (usually something subservient to the West), so the government supports foreign activists in Burma and says: “We would also like to assist in distributing USB sticks Internews has developed, which allow the activists to utilize open source software to launch programs, and enables them to use web browsers without leaving a digital footprint.”

They also say: “We will need considerably more assistance from Washington to facilitate communications by the activists with the outside world.”

Previously in Techrights we covered back doors and spy ‘features’ that exist in proprietary software such as Microsoft’s. Here we may have more incidental concordance courtesy of Cablegate:

VZCZCXRO8235
OO RUEHCHI RUEHDT RUEHHM RUEHNH RUEHTRO
DE RUEHGO #0181/01 0670922
ZNY SSSSS ZZH
O 070922Z MAR 08
FM AMEMBASSY RANGOON
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7276
INFO RHEHNSC/NSC WASHDC IMMEDIATE
RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHGG/UN SECURITY COUNCIL COLLECTIVE
RUEHBY/AMEMBASSY CANBERRA 0976
RUEHNE/AMEMBASSY NEW DELHI 4529
RUEHUL/AMEMBASSY SEOUL 8067
RUEHKO/AMEMBASSY TOKYO 5628
RUEHCHI/AMCONSUL CHIANG MAI 1444
RHHMUNA/CDR USPACOM HONOLULU HI
RUCNDT/USMISSION USUN NEW YORK 1392
RUEKJCS/SECDEF WASHDC
RUEKJCS/JOINT STAFF WASHDC

S E C R E T SECTION 01 OF 02 RANGOON 000181 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EAP/MLS, DRL, AND IO 
PACOM FOR FPA 
 
E.O. 12958: DECL: 03/06/2018 
TAGS: PGOV [Internal Governmental Affairs],QL, PHUM [Human Rights], BM [Burma] 
SUBJECT: BURMA: SUPPORTING STRATEGIES FOR THE REFERENDUM 
 
REF: A. RANGOON 153 
     B. RANGOON 145 
     C. RANGOON 134 
     D. CARL-YODER-COPE 10/15/2007 E-MAIL 
 
RANGOON 00000181  001.2 OF 002 
 
 
Classified By: P/E Chief Leslie Hayden for Reasons 1.4 (b) & (d) 
 
¶1.  (S/NF) Burma's pro-democracy opposition continues to 
struggle to organize a coordinated effort to respond to the 
upcoming constitutional referendum.  We expect the regime 
will continue its severe restrictions on free speech and 
association, making it impossible for the opposition to carry 
out a widespread, public campaign.  Activists inside Burma 
plan to carry out a "vote no" educational campaign via 
word-of-mouth, and using posters, stickers, and T-shirts. 
What would most help them succeed is funding for travel and 
equipment such as memory sticks, MP3 players, and cell 
phones.  We are confidant we could discreetly distribute 
these items.  $200,000 in additional funding to this Embassy 
would enable us to quickly assist the activists.  End summary. 
 
------------- 
Reality Check 
------------- 
 
¶1.  (C) Burma's fractured pro-democracy opposition continues 
to grapple with how to address the regime's upcoming 
constitutional referendum (Refs B and C).  The only group 
that has outlined a concrete plan to us (and this includes 
U.S.- funded exile groups on the Thai-Burma border) is 88 
Generation Students.  NLD spokesman Nyan Win told us today 
that the NLD still had not finalized a concrete plan for 
their "vote no" campaign.  He anticipated they would have it 
ready by next week.  Ethnic pro-democracy leaders inside 
Burma told us last week that they had no concrete plan to 
oppose the referendum either, even though most oppose the 
referendum. 
 
¶2.  (C) In the lead-up to the referendum, we do not 
anticipate the regime will loosen the tighter restrictions 
imposed since the September protests.  We expect a massive 
military and police presence as the date of the referendum 
approaches to prevent any protests or civil unrest. 
Activists are likely to be closely watched during this time. 
Likewise, anyone attempting to approach polling stations to 
conduct an exit poll not sanctioned by the regime is certain 
to be arrested. 
 
¶3.  (C) Regardless of these restrictions, 88 Generation 
activists who are not in prison, and remain in Burma, are 
determined to go forward with their "vote no" campaign.  The 
campaign will rely mostly on education via word-of-mouth. 
They plan on using sympathetic monks to educate their 
constituencies on why the constitution, in its present form, 
is not a step forward for democracy in Burma.  Additionally, 
they will dispatch members of their organization throughout 
Burma to distribute educational materials by hand. 
 
-------------- 
What They Need 
-------------- 
 
¶4.  (S/NF) 88 Generation has requested approximately $4,300 
for "vote no" posters, $2,600 for stickers, and $2,000 for 
its members to travel throughout Burma to coordinate with 
their members in other states and divisions.  We can use the 
Embassy print shop and copiers to assist them in making 
flyers and pamphlets for their campaigns. 
 
¶5.  (S/NF) In addition, the opposition needs memory sticks 
and MP3 players, which they intend to load with educational 
material and distribute throughout the country.  The players 
and memory sticks can be hidden and hand delivered from town 
to town by the activists during their travels. 
 
¶6.  (S/NF) Cell phones in Burma are prohibitively expensive, 
costing approximately $2,300 each.  Since many of their cell 
phones were confiscated after the September protests, 
 
RANGOON 00000181  002.2 OF 002 
 
 
activists urgently need cell phones to facilitate 
communication and coordination.  Their traditional suppliers 
from Thailand have not been able to get them the equipment. 
Since cameras are very dangerous to carry, the opposition 
would like to procure cell phones with cameras so they can 
discreetly take pictures of their campaigns and document 
abuses by the regime during the referendum process. 
 
¶7.  (S/NF) Since September, internet communication has been 
monitored much more closely by the regime, and Special Branch 
Police confiscated many of the activists' computers.  Post 
again recommends support for the wireless internet connection 
we proposed last October (Ref D), to assist the activists in 
communicating with pro-democracy groups inside and outside 
Burma to organize a coordinated response to the referendum. 
 
¶8.  (S/NF) We would also like to assist in distributing USB 
sticks Internews has developed, which allow the activists to 
utilize open source software to launch programs, and enables 
them to use web browsers without leaving a digital footprint. 
 These would be invaluable tools for aiding their 
communication with each other. 
 
¶9.  (S/NF) Comment:  The faster we can move this equipment 
and money to the activists the better.  The regime plans on 
holding its referendum in May, and their "vote yes" campaign 
is already in full force.  A large, sophisticated, public 
campaign will not happen in Burma: the regime shows every 
intent of halting any sign of public opposition.  The Embassy 
has gained experience in distributing small amounts of funds 
without attracting additional regime scrutiny of the Embassy 
or our recipients.  The activists need funds now to prepare 
for a vote that could take place as early as two months from 
now.  We estimate that $200,000 would enable us to assist the 
activists with their equipment needs.  We will need 
considerably more assistance from Washington to facilitate 
communications by the activists with the outside world.  End 
comment. 
 
 
 
 
 
 
VILLAROSA

Without ascending (or descending) to politics, the important point here is that Free software helps people’s freedom. █