VZCZCXRO8427
RR RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #1522/01 0811730
ZNR UUUUU ZZH
R 221730Z MAR 06
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 9762
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE

UNCLAS SECTION 01 OF 02 MEXICO 001522 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
FOR WHA/MEX, WHA/EPSC, AND EB/TPP/IPE 
USDOC FOR ITA/MAC/NAFTA/ARUDMAN 
TREASURY FOR IA - JASPER HOEK 
DEPT PASS TO USTR FOR J MELLE 
 
E.O. 12958: N/A 
TAGS: ECON PGOV KIPR MX
SUBJECT: NEW PUBLIC AND PRIVATE EFFORTS TO COMBAT PIRACY IN 
MEXICO 
 
REF: A) 2005 MEXICO 893; B) 2005 MEXICO 3999 
 
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SUMMARY 
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¶1. (U) Two new, potentially confrontational, efforts to 
combat contraband and piracy have recently been announced. 
On March 6, President Fox issued a decree to create a new 
Inter-Ministerial Commission to better coordinate 
enforcement of contraband and the illegal economy among GOM 
agencies and trade associations.  A week later, private 
sector groups excluded from Fox's commission created an NGO 
to demand an effective response from IPR enforcement 
authorities and to promote legal reforms to pursue and 
sanction IPR violations.  End summary. 
 
--------------------------------------------- ------ 
COMMISSION TO COMBAT CONTRABAND AND ILLEGAL ECONOMY 
--------------------------------------------- ------ 
 
¶2. (U) On March 6, President Fox issued a decree through the 
Ministry of the Government (Interior) to create an Inter- 
Ministerial Commission to "prevent and combat the illegal 
economy by inhibiting contraband and the distribution of 
illegally imported products in the informal economy."  This 
goal would be accomplished through improved coordination, 
plans, operations, and policies among different government 
agencies, as well as increased private sector participation 
in the elaboration and modification of foreign trade and 
customs regulations.  It also hopes to strengthen the rule 
of law through close collaboration with the Attorney General 
Office (PGR).  Proposals on amendments to the federal 
judicial system aimed at sanctioning contraband and the 
illegal distribution of merchandise would be approved upon 
evaluation of their cost and benefit. 
 
¶3. (U) The Commission will be led by representatives of the 
Ministry of the Interior, the Ministry of Public Security, 
the Ministry of Finance, and the Ministry of Economy.  The 
Attorney General, the Chief of the Tax Administration 
System, the Customs Administrator, the Federal Fiscal 
Auditor, the Under Secretary of Industry and Trade, a member 
of the Presidential staff, and representatives from 
different private associations, chambers and confederations 
will act as permanent members of the Commission.  For 
specific issues, the Commission will be able to invite 
representatives from other Ministries, state-run companies, 
municipalities and states. 
 
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A NEW NGO TO COMBAT PIRACY 
-------------------------- 
 
¶4. (SBU) Roberto Castaneda, chair of the independent 
association Alliance against Piracy (and a manager for 
Nike), complained to Econoff and Econ FSN that the creation 
of the Inter-Ministerial Commission was done behind their 
backs.  He said businesses, like Nike and Microsoft, and 
trade associations, like Motion Pictures Association (MPA) 
and the Mexican Recording Industry Association (Amprofon), 
were left out of the Commission.  Instead, Presidencia 
included larger associations and chambers, such as the 
Mexican Employers Confederation (Coparmex) and the Business 
Coordinating Council (CCE). 
 
¶5. (SBU) Due to the "authorities' inability to combat piracy 
and contraband, and in order to continue making our voices 
heard," Castaneda said representatives of Mexican and U.S. 
companies decided to create their own NGO, called the 
Institute for IPR and Legal Trade Protection (IPPIC).  On 
March 16th the private sector, represented by the recording, 
software, apparel and movies industries, created the first 
NGO in Mexico to combat piracy.  Fernando Hernandez, the 
president of AMPROFON, and Fidel Lopez, the National Apparel 
Chamber's lawyer, were designated President and Director 
General, respectively, of the new Institute. 
 
¶5. (SBU) IPPIC's priorities will be to demand that federal 
and local authorities develop a strategy to effectively 
investigate and do intelligence work to combat organized 
crime; lobby Congress to pass a law that allows PGR to 
pursue IPR crimes "ex officio"; and, urge the Ministries of 
Economy, Finance, and PGR to create a state policy to combat 
 
MEXICO 00001522  002 OF 002 
 
 
the illegal economy.  The Institute will also provide legal 
assistance on IPR issues, trade regulations and re- 
conversion proposals for the illegal markets. 
 
¶6. (SBU) The Alliance against Piracy was the private 
sector's first positive effort to coordinate efforts against 
IPR violations.  Unfortunately, due to a lack of human and 
monetary resources it has not been very effective. 
Castaneda said that the Alliance against Piracy will not 
compete against the recently created NGO, IPPIC.  He said 
their efforts would be coordinated, but the NGO will have 
more access to needed resources. 
 
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COMMENT 
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¶7. (SBU) The new commission demonstrates the GOM's continued 
engagement on IPR and their understanding that improved 
inter-agency coordination is essential for improved IPR 
protection.  Unfortunately, cutting out the leading (and 
most vocal) private sector participants from their anti- 
piracy efforts makes one wonder how serious this effort is. 
In addition, it sets up potential conflicts between the 
commission and the new IPPIC.  Ultimately however, the IPPIC 
and the Alliance Against Piracy only want better IPR 
enforcement.  It will be interesting to see whether this 
commission gets off the ground or bogs down like the big 
National Plan (reftel) which was announced by PGR in June 
2005, was supposed to go into effect last December, but to 
date has not amounted to anything.  End comment. 
KELLY