Microsoft loves to daemonise Brazil for being quite free (liberal) culturally, unlike Hollywood. With the title "MICROSOFT SEES GOB ATTACKS AGAINST IPR" (yes, attacks, on artificial 'intellectual' monopolies) Microsoft and its cronies in government take on the massive nation and try to pressure it to adjust its laws to better suit Microsoft's business model. In the older cable, once again we saw Michel Levy (whom we mentioned in relation to OOXML lobbying) overstepping his authority.
VZCZCXYZ0000 OO RUEHWEB
DE RUEHRH #2340/01 3291436 ZNY CCCCC ZZH O 251436Z NOV 07 FM AMEMBASSY RIYADH TO RUEHC/SECSTATE WASHDC IMMEDIATE 7063 INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
C O N F I D E N T I A L RIYADH 002340
SIPDIS
SENSITIVE SIPDIS
USTR FOR JASON BUNTIN USDOC FOR TYLER HOFFMAN
E.O. 12958: DECL: 09/17/2017 TAGS: ECON, ETRD, KIPR, PGOV, SA SUBJECT: SAUDI ARABIA: MICROSOFT GM'S TAKE ON IPR ENFORCEMENT
REF: STATE 107629
Classified By: Economic Counselor Robert B. Murphy for reasons 1.4 (b) and (d).
1. (SBU) SUMMARY. Khaled al-Dhaher, General Manager of Microsoft in Saudi Arabia, shared his perception of intellectual property rights (IPR) enforcement in the Kingdom during a meeting on November 20, 2007. Al-Dhaher identified three major areas of concern: (a) the failure of the SAG to license most of the Microsoft software it uses, (b) the failure of the SAG to impose deterrent penalties, such as harsh fines and even imprisonment, on IPR violators, and (c) the lack of transparency of the workings of the Violations Review Committee (reftel). He also expressed his opinion that IPR enforcement problems persist in Saudi Arabia because the working-level officials charged with enforcing IPR do not consider IPR violations to be crimes. END SUMMARY.
--------------------------------------------- ----- Legalization, Deterrent Penalties and Transparency --------------------------------------------- -----
2. (C) Khaled al-Dhaher, General Manager of Microsoft in Saudi Arabia, identified three major areas of concern with the enforcement of intellectual property rights (IPR) in the Kingdom during a meeting with Emboffs on November 20, 2007. The first of these areas is the failure of the SAG to license most of the Microsoft software it uses. Al-Dhaher reports that Bill Gates raised this issue with King Abdullah when he visited Saudi Arabia in November 2006. The King agreed to resolve the problem, and al-Dhaher says that the King personally contacted the Saudi Arabian General Investment Authority (SAGIA) to emphasize that legalization should be accomplished. While al-Dhaher believes that SAGIA has been Microsoft's "champion" on this issue, the push for legalization has enjoyed only modest success. Al-Dhaher estimates that the SAG uses about 500,000 PCs with Microsoft software, but has licensed only 25,000 of those computers. The Ministry of Interior recently licensed Microsoft software for 7,000 of its estimated 50-70,000 PCs, while the Ministry of Culture and Information (the ministry to which the Violations Review Committee (VRC) is attached) licensed software for 3,000 of its PCs several months ago. Al-Dhaher believes that legalization problems persist for bureaucratic and budgetary reasons, and suggests that the SAG designate funds for all ministries to use to legalize rather than addressing the issue ministry by ministry or pooling the ministries' technology budgets together.
3. (SBU) Al-Dhaher believes that the imposition of deterrent penalties would enhance the enforcement of IPR in the Kingdom. The VRC, which reviews all copyright cases, is authorized to impose fines up to 100,000 SAR (USD 26,666). The Board of Grievances, the court of appeal for cases heard by the VRC, can impose fines up to 250,000 SAR (USD 66,666) and sentence a defendant to prison. However, the highest fine al-Dhaher is aware of having been levied against an IPR violator is 12,000 SAR (USD 3,200), and he is not aware of any case that has been appealed from the VRC to the Board of Grievances. Al-Dhaher believes that imposing significant penalties in just one IPR case would serve as an effective deterrent example.
4. (SBU) Al-Dhaher echoes long-reported complaints regarding the lack of transparency of the workings of the VRC. However, he is encouraged by the initiative and openness shown by the new head of the VRC, Rafik al-Akeeli. Al-Dhaher says that the VRC has heard more cases in the two months since al-Akeeli has been in charge than it heard in the previous year. Al-Akeeli also recently met with Microsoft representatives for two hours. Given the general difficulty industry has consulting with the SAG, al-Akeeli's willingness to meet with Microsoft was viewed very favorably by al-Dhaher.
-------------------------------------------- Persistence of Problems with IPR Enforcement --------------------------------------------
5. (C) Emboffs asked al-Dhaher reasons he believes the SAG is not better addressing these areas of concern. Al-Dhaher does not think that corruption is significant, and only partly blames bureaucratic roadblocks and lack of capacity for insufficient progress. He believes the root cause is that many officials charged with enforcing IPR do not really believe that IPR violations are criminal acts. Al-Dhaher suggests that this might because IPR violations seem like victimless offenses, or that violations are not viewed as significant because the stakeholder is a wealthy, non-Muslim business. He fears that this perception persists despite industry having secured an official Saudi fatwa (religious ruling) that IPR violations are violations of Muslim law. GFOELLER
VZCZCXRO3571 PP RUEHDE RUEHDIR RUEHROV DE RUEHRH #1271 2320455 ZNY CCCCC ZZH P 190455Z AUG 08 FM AMEMBASSY RIYADH TO RUEHC/SECSTATE WASHDC PRIORITY 9017 INFO RUEHXK/ARAB ISRAELI COLLECTIVE RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE RUCPDOC/DEPT OF COMMERCE WASHDC C O N F I D E N T I A L RIYADH 001271
SIPDIS
STATE FOR EEB/TPP/IPE AND NEA/ARP STATE PASS TO USTR FOR JASON BUNTIN USDOC FOR TYLER HOFFMAN
E.O. 12958: DECL: 09/17/2017 TAGS: ECON, ETRD, EINV, PGOV, KIPR, KTFN, SA SUBJECT: MICROSOFT LEADING COLLABORATION WITH SAG TO COMBAT IPR VIOLATIONS
REF: 07 RIYADH 2437
Classified By: Political/Economic Counselor Horacio Ureta for reasons 1.4 (b) and (d).
1. (C) Summary: Intellectual property rights (IPR) violations in Saudi Arabia are receiving increased attention from the Saudi government (SAG). The SAG has made significant efforts to address IPR violations, which in the Kingdom occur most notably in the pharmaceutical and software sectors. With regard to software infringement, the SAG is now collaborating directly with a Microsoft-led private sector group, calling itself the "Rights-Holders", on a six-point plan to combat IPR issues. This plan seeks to ensure transparency in IPR cases, establish and enforce deterrent penalties, and improve coordination between SAG entities with IPR related equities. Rights-Holders is claiming the existence of a link between IPR piracy and terrorism finance. Intellectual property rights issues are also being covered increasingly in the Saudi news media. End summary.
2. (C) In a meeting August 13 EconOff met with Scott Butler of the Raven Anti-Piracy Alliance (RAPA), a Dubai based group that is linked to the Business Software Alliance (BSA), a group of 13 software companies in the Kingdom which includes Microsoft, Autodisc, Symantec, and Adobe. RAPA also has powers of attorney with regional entertainment companies such as Rotana and Viva and liaises between these licensees and entertainment studios. Butler told EconOff that earlier in the day he and Ayman Takrori, Partners Group Director for Microsoft and de facto representative of a private group of "Rights-Holders" (of which BSA is a part) met with Ministry of Culture and Information Under Secretary Abdul Rahman Al-Hazaa, who holds a mandate from Culture and Information Minister Dr. Eyad Madani to "fix the IPR issue."
3. (C) Butler related that RAPA had presented al-Hazaa with a six point plan to address IPR issues: 1) ensure complete transparency in all IPR cases; 2) establish and enforce deterrent penalties to create real fear in the market; 3) eradicate street vendor piracy; 4) establish a mechanism to address internet piracy; 5) ensure the SAG uses software that was legally acquired; and 6) ensure effective coordination between the Ministries of Culture and Information, Interior, and Customs Enforcement. According to Butler and Takrori, Under Secretary al-Hazaa pledged complete support from the SAG for all points.
4. (C) The Rights-Holders's six-point plan includes fully populating the Violations Review Committee's online case-tracking database in both Arabic and English, imprisoning violators in lieu of simply imposing fines (Note: According to Butler, there is precedent legislation in the UAE for imprisoning IPR violators. End Note.), and providing training for inspectors and police on IPR and on how to conduct raids. Butler also related a story of a raid conducted in 2006 that yielded 20 million pirated music and software CDs in a warehouse. In the same warehouse weapons were found which led to the arrest and prosecution of several members of an organized crime ring. Butler asserted that a clear link exists between piracy and organized crime, to include terrorism finance.
5. (SBU) On August 17, Al-Watan, a moderate Arabic-language daily, published a full page story on IPR violations. In the article both SAG officials and economists were quoted as saying that software piracy is both more lucrative and less risky than drug trafficking.
6. (C) Comment: The SAG has made significant progress in IPR enforcement but continues to cite lack of capacity to justify a dearth of major developments (Reftel). Engagement at the ministerial level is an encouraging step and demonstrates an increase in political will to address the problem. Ministry of Interior (MOI) interest is crucial to further progress in enforcement and prosecution, and would be critical to implement any of the directives outlined in the Rights-Holders six-point plan. Previously, MOI involvement has been sub-optimal, but might be stimulated if a strong link were to be substantiated between the supposedly "victimless" crime of IPR violations and and organized crime or even terrorism financing. End comment. GFOELLER