VZCZCXRO5599
PP RUEHRG
DE RUEHSO #0577/01 1440942
ZNR UUUUU ZZH
P 240942Z MAY 06
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC PRIORITY 5127
INFO RUEHBR/AMEMBASSY BRASILIA 6256
RUEHMN/AMEMBASSY MONTEVIDEO 2001
RHEHNSC/NSC WASHDC
RUCPDOC/USDOC WASHDC 2439
RUEHBU/AMEMBASSY BUENOS AIRES 2264
RUEHSG/AMEMBASSY SANTIAGO 1728
RUEHLP/AMEMBASSY LA PAZ 2819
RUEHRG/AMCONSUL RECIFE 2949
RUEHRI/AMCONSUL RIO DE JANEIRO 7136
RUEHAC/AMEMBASSY ASUNCION 2591
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 03 SAO PAULO 000577 
 
SIPDIS 
 
DEPT FOR WHA/BSC, EB/TPP/IPE, AND INL/C 
STATE PASS TO USTR FOR MSULLIVAN 
STATE PASS TO USPTO/OLIA 
USDOC FOR 4332/ITA/MAC/WH/OLAC/JANDERSEN/ADRISCOLL/MWAR D 
USDOC FOR 3134/ITA/USCS/OIO/WH/RD/SHUPKA 
TREASURY FOR OASIA, DAS LEE AND FPARODI 
NSC FOR SUE CRONIN 
 
SIPDIS 
 
E.O.  12958:  N/A 
TAGS: KIPR ETRD KJUS EIND EAGR BR
SUBJECT: Building on Momentum: Sao Paulo Forms IPR Working Group 
 
 
SUMMARY 
------- 
 
¶1.  (U) Through sustained outreach over the last year, Post has 
successfully raised the profile of IPR problems in the consular 
district and forged relationships with local business and law 
enforcement interlocutors as effective means for encouraging 
improved IPR protection.  To build on recent successes, Post created 
an interagency IPR Working Group (IPRWG) to help strategize and 
coordinate post's efforts in the IPR arena.  The IPRWG takes a broad 
view of IPR efforts, addressing copyright, patent, and trademark, 
with a special emphasis on public outreach.  The recent arrival of 
both a National Standards Officer and a DHS Immigration and Customs 
Enforcement (DHS/ICE) Agent along with the anticipated arrival of a 
Patent and Trademark Officer later this year should provide a 
fill-up to our efforts to build on recent momentum in the IPR arena. 
 We also hope to use the Sao Paulo stop of Commerce Secretary 
Gutierrez's upcoming three-city visit to Brazil to advance this key 
mission objective.  END SUMMARY. 
 
SAO PAULO AND SOUTHEAST:  BRAZIL'S COMMERCIAL AND PIRACY CENTER 
--------------------------------------------- 
 
¶2.  (U) The commercial heart of South America, Sao Paulo is the most 
prosperous and influential state in Brazil and the home to many of 
Brazil's business and industrial leaders.  Sao Paulo and the rest of 
its southeast neighbors are also leaders in piracy given the area's 
population density, relative affluence, and "Tri-border area," the 
principal gateway for counterfeit goods to enter Brazil from 
Paraguay.  As headquarters to both the governing (PT) and opposition 
(PSDB) parties, Sao Paulo also exhibits significant political 
weight.  In this context, ConGen Sao Paulo is working to change the 
IPR landscape here, cognizant that results within our consular 
district can make a major contribution to reducing piracy and 
improving IPR protection overall within Brazil.  The IPRWG is at the 
heart of this ongoing IPR strategy, and we will periodically report 
on its challenges, actions, and successes. 
 
RECENT ACTIONS IN THE SAO PAULO CONSULAR DISTRICT 
--------------------------------------------- 
 
¶3.  (U) POLITICAL LEVEL ENGAGEMENT:  Sao Paulo has been active in 
engaging public officials regarding state and local IPR policies, 
with emphasis in the following areas: 
 
--  STATE PIRACY COUNCILS:  When Brazil's National Council for 
Combating Piracy and Other IP Crimes (CNCP) formulated its Action 
Plan in early 2005, copyright industry council members were 
successful in including in that plan a commitment to seek 
establishment of state anti-piracy councils.  It was envisioned that 
these state councils would focus and organize local anti-piracy 
efforts while coordinating with the CNCP in support of national 
goals.  However, formation of these councils has been slow. 
Outreach by the CG to state political level officials in Sao Paulo 
was instrumental in getting that state's IPR council finally off the 
ground in January 2006.  The CG has also pressed for formation of a 
state piracy council in meetings with the Governor of Santa Catarina 
and the subject will feature prominently in upcoming meetings with 
the Governors of Parana and Mato Grosso do Sul.  We will continue to 
push for every state in Sao Paulo's Consular District to create an 
operating State Piracy Council. 
 
--  NATIONAL POLITICAL PARTIES:  As Sao Paulo is home to both the 
ruling party (PT) and the principal opposition party (PSDB), ConGen 
enjoys excellent access to political insiders.  The CG pressed IPR 
issues in recent meetings with key PSDB and PFL officials.  While 
piracy is unlikely to be a prominent campaign issue, visits such as 
these have helped ensure that IPR remains on the political radar 
screen during a presidential election year. 
 
--  MUNICIPAL LEVEL:  Post's political outreach extends to the 
municipal level as well.  Coinciding in the second half of 2005 with 
CNCP's campaign to intensify retail level police raids in Sao Paulo, 
Rio de Janeiro, Recife, Belo Horizonte and Brasilia, the CG's 
 
SAO PAULO 00000577  002 OF 003 
 
 
discussions with then-Mayor of Sao Paulo (now gubernatorial 
candidate) Jose Serra, ensured swift and focused police action 
against pirate retail centers in Sao Paulo that had been identified 
as priorities by U.S. copyright industries.  After high-profile 
raids in the "Stand Center," the Mayor called to thank the CG for 
bringing the piracy problem there to his attention and asked to 
"keep the tips coming."  Mayor Serra placed Andrea Matarazzo, PSDB 
insider and Assistant Mayor of downtown Sao Paulo, in charge of 
coordinating with the Consulate on matters of enforcement. 
Matarazzo has now been elevated to the position of coordinator of 
all the city's sub-mayoralties, ensuring that IPR issues will be 
pursued more broadly throughout Sao Paulo city. 
 
--  FOZ DE IGUACU:  Former Ambassador Danilovich's 2005 visit to the 
Tri-border, including meetings with the local Federal Customs 
director, the chief of intelligence for Customs, and Brazil's 
Federal Intelligence Agency (ABIN), reinforced the importance the 
USG attaches to improvements in reducing piracy in this area. 
(Note:  INL training funds have been set aside in the area, but a 
program is not underway yet.  End Note.) 
 
¶4.  (U) LAW ENFORCEMENT OUTREACH:  Post developed important law 
enforcement contacts over the last year.  These contacts have opened 
the door for increased collaboration between local law enforcement 
officials (police and customs) and DHS on piracy, smuggling and 
money laundering issues. 
 
--  POLICE:  EconOffs and post's DHS/ICE agent recently met with 
Mario Jordao Toledo Leme, the police chief in charge of the downtown 
Sao Paulo area, which contains the precincts most active in terms of 
media piracy and counterfeit investigation.  As a result of a 
request made by Leme, DHS officials have agreed to assistance with 
investigations and prosecutions, particularly in implementing newly 
enacted state's evidence laws in piracy cases. 
 
--  CUSTOMS AND PORTS:  The presence of Customs and Border Patrol 
(CBP) officials at the port of Santos, as part of the Container 
Security Initiative, has helped to elevate awareness of smuggling 
generally, and has been an asset for Brazilian Customs officials in 
coordinating counterfeit investigations.  EconOffs and DHS personnel 
have recently visited a number of ports, both sea and air, to 
discuss piracy enforcement with Customs officials and port 
authorities.  Customs and port officials have been very responsive 
to our inquiries regarding IPR enforcement and are open to future 
collaboration, including training opportunities. 
 
¶5.  (U) TRAINING AND PUBLIC OUTREACH:  U.S.-funded training is 
improving the anti-piracy skills of local law enforcement officials, 
and U.S. speakers and official visitors help expand IPR awareness. 
 
-- IPR ENFORCEMENT TRAINING:  In partnership with the local 
Association for the Defense of Intellectual Property (the Motion 
Picture Association's enforcement group), AmEmbassy Brasilia is 
organizing five IPR enforcement training sessions to be held 
throughout Brazil this year with INL funding.  Two sessions, which 
will reach about 80 law enforcement officers, will be held in Sao 
Paulo's consular district -- in Porto Alegre and Sao Paulo. 
 
--  U.S. SPEAKERS:  In a recent visit, ex-Congresswoman and 
President of the Association of American Publishers (AAP) Patricia 
Schroeder met with a working group to discuss fair use issues, and 
gave a keynote address on protecting copyrights in the publishing 
field at an event hosted by the Brazilian Association of Author's 
Rights.  Much of the discussion focused on copyright protection for 
digital works and on using U.S. experience in crafting Brazilian 
fair use rules.  Mrs. Schroeder provided as an example an agreement 
worked out between U.S. Universities and the AAP entitled "Campus 
Copyright Rights and Responsibilities." The Public Affairs Section 
has translated this document into Portuguese, and will be working 
with Brazilian publishers and copyright associations on ways to 
reduce piracy in the publishing field.  The event attracted 
significant press and helped generate interest in copyright issues 
specific to publishing copyright, an area that receives 
comparatively little interest in Brazil's IPR discussion.  Post 
 
SAO PAULO 00000577  003 OF 003 
 
 
plans to continue to utilize Public Affairs funding and resources to 
bring additional IPR speakers to the consular district. 
 
-- U.S. OFFICIAL VISITORS:  Because of its prominence in commercial 
affairs, Sao Paulo is a frequent destination for congressional 
delegations and other USG visitors.  These visits often include an 
IPR component.  For example, IPR was a major focus of a 2005 visit 
to Sao Paulo by Senator Norm Coleman (MN), Chairman of the Western 
Hemisphere Sub-Committee of the Senate Foreign Relations Committee. 
The Senator met Minister of Development, Industry and Trade Luis 
Furlan, and with the powerful Sao Paulo State Federation of 
Industries (FIESP), as well as exchanged views with leading IPR 
industry executives.  The upcoming visit of Commerce Secretary 
Gutierrez to Sao Paulo also has a significant IPR component, with 
emphasis being given to recent copyright enforcement successes. 
 
¶6.  (U) BUSINESS PARTNERSHIPS:  Located in the business capital of 
South America, ConGen Sao Paulo is especially well-placed to engage 
Brazil's business community.  Two of our biggest partners are the 
American Chamber of Commerce (AmCham) and FIESP.  Both have special 
committees focused on IPR issues with whom we engage frequently. 
Post also maintains a close working relationship with associations 
representing local and U.S. IPR interests, such as the Motion 
Picture Association (MPA), the Business Software Alliance (BSA), and 
Interfarma.  Post and USG visitors actively participate in IPR 
outreach events organized by and with these business partners, 
including roundtables on piracy and pharmaceutical patent issues. 
 
THE IPR WORKING GROUP 
--------------------- 
 
¶7.  (U) INTERAGENCY PERSPECTIVES:  Post recently created an IPR 
Working Group (IPRWG) to develop a cohesive strategy for 
capitalizing in the consular district on the improved IPR policy 
environment in Brazil and to address the systemic and cross-cutting 
nature of many IPR issues.  ConGen Sao Paulo counts with the 
presence of several members of the interagency community which deal 
with IPR issues, including:  State, Commerce (USFCS), Department of 
Homeland Security (DHS), and others.  Moreover, our numbers at Post 
are increasing - e.g., the recent arrival of our National Standards 
Officer and the addition of a DHS/ICE Agent.  Later this year, Sao 
Paulo will welcome a new employee from the U.S. Patent and Trademark 
Office (USPTO).  Establishment of the IPRWG will build on 
interagency synergies, allow for better coordination, and ensure 
that Mission policy and guidance is fully disseminated among 
sections and agencies at post working IPR issues. 
 
¶9.  (U) FULL-COURT PRESS:  Post's IPR approach includes engagement 
with policy makers, public outreach, law enforcement, and private 
sector players.  With the upcoming addition of a USPTO officer, our 
efforts will begin to be applied more uniformly, as additional 
attention is given to patent and trademark issues. 
 
¶10.  (U) This cable was coordinated with AmEmbassy Brasilia. 
 
Wolfe