VZCZCXRO6273
PP RUEHFL RUEHNP
DE RUEHRO #1908/01 1811457
ZNR UUUUU ZZH
P 301457Z JUN 06
FM AMEMBASSY ROME
TO RUEHC/SECSTATE WASHDC PRIORITY 5236
INFO RUCPDOC/USDOC WASHDC PRIORITY
RUCNMEU/EU INTEREST COLLECTIVE
RUEHMIL/AMCONSUL MILAN 7316
RUEHNP/AMCONSUL NAPLES 1612
RUEHFL/AMCONSUL FLORENCE 1542
RUEAHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC
RUCPDOC/USDOC WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC

UNCLAS SECTION 01 OF 02 ROME 001908 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EB SR FMERMOUD 
STATE FOR EB A/S SULLIVAN, EB/TPP/IPE JOELLEN URBAN, CANDY GREEN 
STATE PASS USTR FOR JAMES SANFORD 
DOC PASS USPTO 
DOJ FOR DAAG LAURA PARSKY 
DHS PASS ICE 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTENET 
DISTRIBUTION 
E.O. 12356: N/A 
TAGS: ETRD EINV KIPR CH IT
 
SUBJECT: Top GOI Official - IPR Protection Is Priority for the GOI 
 
Refs: A) Rome 1858 B) 05 Rome 4046 
 
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SUMMARY 
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¶1. Special Representative for Commercial and Business Affairs Frank 
Mermoud met June 21 with Mauro Masi,Chief of Staff to Deputy Prime 
Minister Massimo D'Alema (D'Alema is also Italy's Foreign Minister) 
to discuss bilateral collaboration on IPR protection.  Masi said 
that IPR protection is a GOI priority but underscored that the GOI 
must coordinate better internally to combat piracy effectively. 
Masi expressed interest in collaborating with the USG.  He also 
indicated that the GOI will to pursue IPR protection issues within 
the WTO and WIPO.  SR Mermoud and Masi agreed that IPR protection is 
a cultural, as well as an economic, issue.  Masi agreed in principle 
that Italy's participation in the Megaports initiative would 
facilitate customs controls and thus make it harder to introduce 
counterfeit products in Italy. End Summary. 
 
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GOI Committed to IPR Protection. 
-------------------------------- 
 
¶2.  In his meeting with Masi June 21, SR Mermoud outlined the role 
of his office and explained that the USG puts a heavy premium on 
adequate IPR protection when discussing international business and 
commercial affairs.  Mermoud underscored that Italy and the United 
States had come a long way in their collaboration on IPR protection 
over the years, and noted that Italy has good laws on the books. He 
also noted that piracy and counterfeiting levels are nevertheless 
still very high in Italy, with negative impacts on Italy's image and 
its legal economy, and that enforcement needs to be more effective. 
Mermoud offered the USG's collaboration to help combat piracy in 
Italy and suggested that Italy's implementation of Megaports would 
also have the effect of facilitating customs controls on counterfeit 
products. 
 
¶3.  Masi indicated the GOI is aware that piracy and counterfeiting 
are a serious problem and said that combating IPR crimes is a 
priority for this government.  He estimated that piracy and 
counterfeiting cost Italy's legal economy approximately three 
billion Euros per year (Note: Other GOI sources have estimated 
losses to the legal economy in the range of five billion Euros). 
Masi agreed that Italy and the U.S. had worked well together and 
expressed interest and agreed to expand collaboration.  In 
particular, Masi expressed interest in learning more about how the 
U.S. tackles Internet-based piracy.  (Note: Embassy plans to follow 
up on this request.)  Masi also said that Italy would like to 
collaborate with the United States in promoting IPR within 
international fora, such as the WTO and WIPO. 
 
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NEEDED: BETTER COORDINATION, MORE PUBLIC EDUCATION 
--------------------------------------------- ----- 
 
¶4. Masi bemoaned Italy's lack of coordination in its anti-piracy 
activities: copyright protection is split between the Prime 
Minister's office and the Ministry of Culture (Note: Minister of 
Culture Francesco Rutelli is also a Deputy Prime Minister).  Most 
trademark issues fall under the Economic Development Ministry (the 
former Productive Activities Ministry) and the Anti-counterfeiting 
High Commissioner. (Note: the High Commissioner is a relatively new 
office, less than one year old.  The top post is currently vacant, 
but Masi expected this to be filled promptly.  Embassy is exploring 
collaboration opportunities with the Deputy High Commissioner's 
office.)  Masi also noted that enforcement agencies such as the 
financial police (Guardia di Finanza) and gendarmes (Carabinieri) 
could do even better by coordinating more closely. 
 
¶5. Masi and Mermoud agreed that adequate protection of IPR is not 
just an economic problem; it's also a cultural problem.  Masi said 
the GOI needs to educate the Italian public that intellectual 
property piracy is not a petty offense.  It is important for the 
public to realize that piracy is in the hands of organized crime and 
 
ROME 00001908  002.2 OF 002 
 
 
that it seriously damages the legal economy, Masi said.  He 
underlined that cooperation with the U.S. is important and welcome 
in this effort. 
 
¶6. (SBU) Mermoud also broached the Megaports issue with Masi and 
highlighted that the improvement in container security which the 
Megaports program provided would also increase the GOI's ability to 
identify incoming counterfeit products. Masi agreed in principle. 
 
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BACKGROUND ON MAURO MASI 
------------------------ 
 
7.(SBU)  Mauro Masi has been a key Embassy "IPR" contact for over a 
decade.  Though not always in agreement with USG positions, he has 
been forthcoming and willing to discuss the issue. Masi has held top 
civil service posts under both center-left and center-right 
governments. Under the Berlusconi government, he served as Deputy 
Secretary General, and subsequently as Secretary General, of the 
 
SIPDIS 
Prime Minister's office.  Under Prodi, he now serves as Chief of 
Staff to Deputy Prime Minister Massimo D'Alema and also heads the 
Department for Public Communication within the Prime Minister's 
office. (Note: D'Alema is also Italy's Foreign Minister.  Masi does 
not serve as his chief of staff at the MFA).  Masi was also special 
commissioner of Italy's royalty collection society (SIAE) for an 
extended period, which is also responsible for combating copyright 
piracy. 
 
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COMMENT 
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8.(SBU)  Embassy believes it is important to renew our advocacy efforts 
for better IPR protection with Italy's new center-left government 
leadership. We thus welcome top USG officials such as Special 
Representative Mermoud discussing IPR when visiting Italy.  Embassy 
will also engage Italy's new leadership at all levels to raise 
awareness and continue its longstanding sensitization efforts 
(reftels). We are encouraged by Masi's statement that IPR protection 
is high on the GOI agenda.  Our contacts in industry have expressed 
concern that a center-left government might be less attentive.  End 
Comment. 
 
 
Spogli