VZCZCXYZ0000
PP RUEHWEB

DE RUEHTH #2950/01 3131230
ZNY EEEEE ZZH
P 091230Z NOV 06
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC PRIORITY 7404
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
INFO RUEHBS/USEU BRUSSELS PRIORITY

UNCLAS E F T O ATHENS 002950 
 
SIPDIS 
 
NOFORN 
SIPDIS 
 
STATE PLEASE PASS USTR FOR CHRIS WILSON 
PLEASE PASS USPTO FOR MICHAEL SMITH 
DOC FOR 4232/ITA/MAC/KNAJDI/JKIMBELL 
 
E.O. 12958: N/A 
TAGS: ECON GR KIPR
SUBJECT: GREECE'S EFFORTS IN IPR PROTECTION; EARLY SPECIAL 
301 REVIEW VOLUNTARY INPUT 
 
REF: A. STATE 066964 
     ¶B. STATE 180082 
 
¶1. (U)  Summary:  Since the receipt of the USG's Special 301 
action plan for Greece in April 2006, the GoG has made a bona 
fide effort to improve its overall IPR protection stance. 
There has been positive, concrete, action on aspects of the 
action plan, including noteworthy first steps with the 
Judiciary, improved responsiveness from agencies responsible 
for digital IPR protection (software and on-line piracy 
activities), and a commitment to create an informal 
Embassy-Greek Customs working group to discuss the problems 
related to the import of IPR-violating products (primarily 
footwear). 
 
¶2. (U)  There still remains work to be done, however.  In 
particular, Greek legislation and judicial discretion combine 
to gut most of the penalties for individuals found guilty of 
vending pirated products, leaving little deterrent to these 
activities.  Additionally, coordination among the seven Greek 
ministries overseeing GoG IPR policy is still weak at best, 
leaving gaps between IPR policy and effective enforcement. 
Nevertheless, at this time the situation in Greece is 
considerably improved over 6 months ago, and post is 
receiving good GoG cooperation on a variety of fronts.  End 
SQm%arQ.Q 
 
Q& (U)  If April, in response to Re"Tel (A), p)st b%gaj 
working aggressiv%d9 7ith v!r))us G+E -ibistries to improve 
th% ,er%l -b IPR 0Rg4ection in Greece.  Init)a, r%Sp/fqe3 
QeR% lackluster, often marke$ "Y $e"%*1iv%b%3S.  Within a few 
months, (g5e6%r, r%s0-f3es began to improve, and we "e!!n T# 
Rece)Qe better and more productiVe r%3Pmf3es.  At T(is time, 
nearly all o" t(e eicht a2ea1 i. the April action plan h!Qe 
bee& !t ,e!Q4 Preliminary addressed "i Qhe r%le6a*t AcCQ 
authority.  Outside of T(% !at)gb plaf, 0/s4 has also been 
worki.g Qi4( ,o!ad QePR%3ejtative organizations /" 4(e MPAAQ 
a.d RIAA#IFPI in Athens to prod5ce data )f Pe2ce)r%d problems 
with the Hed,ej)c Ju$iciaQy a&$ its responses to piracIQ 
c!s%Q*  Qe haRe 2eceived preliminary dat!$ Wh)c( ib "m4 
eftirely consistent, are a. i-p2o6%e%.4 mv%r t(e total lack 
of data "R'- qh)!h Qe W%2e 5crking earlier. 
 
Jud)c)ad T2!i*ij% 
%---------------- 
 
¶4. (U)  The GiE (ThQg5gh the Hellenic Judicial Aca$e-Y) h!SQ 
0,edged t) hold a two-day, in-s%Rv)ce j5$icia, see)na2 for 
sitting judges, as 7e,l as t2!i*ee judges, in March 2007.Q 
T(% d%t!id1 c& 4h)S seminar are not finaliZe$$ buT 4(e G)GQ 
(as requested USG input inte 4he a'ebda, i.c,uding suggesting 
speaker1 and tc0icS"  A&ter discussions with USPTM )n %arliQ 
Oc4-beR$ post understands theR% i1 a g+-d ch!fae 4hat one or 
two U.S. *Ud'e1 siTh a fk!uQ '* IPR may be available 4o 
0ar4i#ip!Te i& t(is event; this would be a. %Qc%llen4 
-0QorQunity to highlight our d%QiRe Qg 5k2k Qith 4he Hellenic 
Judiciar9 gj IPR&  Addit)ej!lly, post has received m&"ic)alQ 
GcC *m4ibication that the Helleni! J5d)c)ad Acadee9 3ill 
introduce a perman%j4 a.d %!n$at+Qi IPR course for all judges 
)n it3 2Q01%0Q #U2riculum.  The details o& t(e ac5Rs% !Re f#QQ 
yet known, but it i1 d)kedi Tc be a 2 $a9$ 10 hour course. 
Th%Se t7m !o5RseS !R% g%kd starts to educating bcQh cuRRejt 
!nd fuTure judges on the imp+R4!nce if IPR.  W% w)ll 
encourage the GoG Tg cc.s)de2 4he ib-s%Rvice seminar not as aQ 
g.e-ti-e %r%nt, but as a necessary and rep%at!ble %le-e.T if 
keeping sitting judgeQ 0e2)k$ic!l$Q QefQeshed on IPR matters. 
 
¶5. (U)  Th% GkG (as fot, however, been able tm q#he$Ud% !fQ 
interagency IPR conference to follow-on to its successful 
December 2005 event.  The Ministry of Foreign Affairs was the 
coordinator for the conference, and the office in charge has 
not had any leadership since June of this year.  Post, with 
desk officers from State and Commerce, met with MFA officials 
assigned to the Greek Embassy in Washington D.C. to press 
home the useful role that the MFA could play in assisting IPR 
protection in Greece, either as a coordinator for interagency 
events such as the 2005 IPR conference or in occasionally 
providing moral suasion to keep IPR issues moving when they 
hit sticky spots in the GoG bureaucracy.  We hope this 
message will find resonance with the new leadership to be 
installed in the MFA directorate in charge of IPR issues. 
 
Arrests and Prosecution 
----------------------- 
 
¶6. (U)  The lack of deterrent penalties levied on IPR 
 
violators continues to be a problem.  Post has worked closely 
with industry representatives to collect data on 
prosecutions, which has heretofore been unavailable.  This 
data was not collected through rigorous methodology, but does 
provide a back-of-the-envelope estimate of the situation. 
 
¶7. (U)  EPOE figures on movie piracy covered January 2005 to 
September 2006.  The following is a breakdown of significant 
statistics: 
 
-- There were a total of 358 cases brought by EPOE against 
violators 
-- 141 cases were postponed at the defendant's request (39 
percent); 
-- 25 cases were postponed at the request of EPOE (7 percent); 
-- 37 cases resulted in an acquittal (10 percent); 
-- 151 cases resulted in convictions (43 percent); 
-- 4 cases were settled out of court (1 percent). 
 
Of the convictions: 
 
-- 44 were given less than 6 months in prison (29 percent); 
-- 38 were sentenced to between 6-12 months in prison (25 
percent); 
-- 69 were sentenced to 12 or more months in prison (46 
percent). 
 
¶8. (U) According to Greek copyright law, the minimum sentence 
for a conviction is 12 months in prison, so less than half of 
violators convicted were in fact, given a sentence in line 
with the statutory minimum.  However, of those convicted, 
fewer than 2 percent actually served any prison time.  For 
the rest the sentences were suspended in accordance with 
Greek penal codes which specify that first time offenders 
sentenced to less than three years of prison time are to be 
given suspended sentences.  Suspended sentences are carried 
for three years, during which time any recidivist activity 
causes an automatic reinstitution of the penalty as well as 
any new penalties.  However in practice, because of poor 
record keeping and information sharing between court 
jurisdictions, almost no repeat offenders are identified as 
such.  As a consequence, the current system does not seem to 
provide adequate deterrent penalties for IPR offenders, even 
as conviction levels are relatively high.  This seems to stem 
both from judicial reluctance to impose high penalties (which 
would avoid the automatic suspension rules), as well as 
awkward statutory regulations. 
 
¶9. (U)  IFPI data covered only January to December 2005. 
 
-- There were a total of 1538 confiscatory raids in 2005; 
-- 702 offenders were arrested in these raids (46 percent). 
 
Of the arrests: 
-- 177 cases had incomplete or unavailable data (25 percent); 
-- 109 cases are still pending (15 percent); 
-- 367 cases resulted in convictions (53 percent); 
-- 6 cases resulted in an acquittal (1 percent); 
-- 43 cases involved juveniles which are not handled by the 
regular statutory process (6 percent). 
 
Of the convictions: 
 
-- 133 were sentenced to less than 6 months in prison (36 
percent); 
-- 77 were sentenced to between 6 and 12 months in prison (21 
percent); 
-- 140 were sentenced to 12 or more months in prison (38 
percent); 
-- 17 cases have incomplete or have no data (5 percent). 
 
¶10. (U) Interestingly, IFPI statistics show that of the 350 
convictions on which there is data, only 144 (41 percent) 
received suspended sentences, a considerably lower number 
than that reported by EPOE.  At this time post has no 
explanation for this discrepancy.  IFPI did report, however, 
that at the appellate level "practically all the sentences 
are suspended."  It is worth noting that this month, EPOE and 
IFPI won a joint victory when an IPR violator (caught with 
CDs, DVDs, Playstation games, and various burning equipment) 
was sentenced to 7 years in prison and given a 20,000 euro 
fine.  Although the case is being appealed, the court ruled 
that the prison sentence would not be suspended pending the 
appeal, and the pirate has been incarcerated.  Although this 
is just one case, and the majority of cases are still being 
suspended, it is a good sign, and EPOE and IFPI are both 
 
pleased with the outcome. 
 
Fighting Piracy 
--------------- 
 
¶11. (U) No corporate representatives have informed us of any 
problem with the Hellenic Police or prosecutors in regards to 
making raids or bringing charges against IPR violators. 
Quite the opposite, most organizations have told us that they 
have received excellent cooperation on this level, and that 
they believe they would receive even more if the police 
believed that their efforts would result in more than the 
violator being back on the streets within a matter of days. 
In the one area of concern, the Special Tax Authority (YPEE), 
which has oversight over computer piracy (including software 
piracy as well as piracy conducted via the Internet) has 
increased its activities in this area.  Business Software 
Alliance (BSA) has been very appreciative of YPEE's efforts 
in sending out compliance letters to over 30,000 large Greek 
businesses requesting their existing software licenses.  This 
information will be used later to confirm compliance with 
applicable copyright laws. In addition, one U.S. 
apparel/footwear manufacturer informed post that it has 
successfully conducted at least a half-dozen raids with the 
YPEE against vendors who are using the Internet to market 
pirated versions of its product. 
 
Increased IP-Related Staff 
-------------------------- 
 
¶12. (U) It is difficult to quantify GoG compliance with this 
request.  Post has been informed by two offices that they 
have received increased funding and personnel; the Copyright 
office in the Ministry of Culture (OPI), and YPEE.  OPI 
continues to be one of the staunchest supporters of IPR 
protection in Greece and YPEE has certainly been more 
proactive on IPR issues, receiving high commendations from 
both BSA and apparel companies.  Even without necessarily 
having received increased funding, the Hellenic Police 
continue to provide adequate time and resources to battling 
IPR violations, and no local IPR representatives have 
indicated that there is a lack of willingness to help them at 
that level.  Although obviously more could be done with more 
resources, given Greece's relatively poor status vis-a-vis 
other EU members, the resources currently available do not 
seem to be a major limiting factor in IPR violations in the 
country. The lack of judicial support in applying deterrent 
punishment probably plays a greater role in any enforcement 
difficulties than a lack of resources. 
 
Bring Cases to Court in a Timely Manner 
--------------------------------------- 
 
¶13. (U)  The data obtained from OPOE and IFPI suggests that 
prosecutors are in fact bringing cases in a reasonable time. 
Local representatives were not aware of any case in which 
prosecutors or judges had refused to hear a case, or delayed 
the case to the detriment of the plaintiff.  However, the 
Greek system does allow for defenders to avail themselves of 
postponements, which can be lengthy, and these requests are 
routinely granted.  Approximately 55 percent of IPR cases at 
the trial court level are postponed at least one time. 
Although these delays are a nuisance, it is not clear that 
the use of these delays is abusive or injurious to the 
prosecution. 
 
¶14. (U)  In a related vein, however, local representatives 
have complained that the courts often release accused IPR 
violators without imposing bail, with the effect that 
violators then fail to show up for their scheduled court 
appearances.  Unfortunately post has received no data on the 
frequency of this occurrence. 
 
Establish Attica IPR Session Court 
---------------------------------- 
 
¶15. (U)  There is no provision in Greek law for specialized 
courts for criminal cases and the GoG has indicated that it 
would be difficult to justify the creation of such a special 
court.  In principle, Greek law stresses that all criminal 
cases are supposed to be treated equally because the 
penalties can include loss of liberty.  Our judicial contacts 
have indicated that a special IPR court for criminal cases 
would be seen as creating a "separate" criminal system, which 
could raise the specter of the Junta years in the public eye. 
  However, civil IPR cases (such as those brought by BSA 
 
against businesses who have not complied with software 
licensing agreements) are heard in a special IPR-only session 
of court one day every month in both Thessaloniki and Attica. 
 We have been informed by both GoG and industry 
representatives that this is adequate given the relatively 
few civil IPR cases being brought to court.  In fact, BSA 
representatives told us that more than half of any complaints 
they file are settled before trial, and that they are 
relatively satisfied with the judicial system.  The GoG is 
considering whether or not to implement a similar dedicated 
session at the appellate level. 
 
Work with Apparel Industry 
-------------------------- 
 
¶16. (U)  The sole representative of the U.S. apparel industry 
that has approached the Embassy with concerns about piracy in 
Greece has indicated that his firm is receiving good 
cooperation from the Hellenic Police, YPEE, and other GoG 
organizations.  The company is concerned about the amount of 
pirated product being imported into Greece through customs, 
however, as well as the openness with which stores in a 
particular neighborhood of Athens continue to vend pirated 
products.  The company, however, has indicated that it wishes 
to handle the situation on its own for the time being, and 
does not wish to be named openly in Embassy communications 
with the GoG on IPR.  To address the issue of customs 
enforcement, however, the Embassy and Ministry of Finance 
have agreed to the creation of an informal working group on 
IPR, which will feature customs and YPEE officials from the 
GoG side, and DOS, DOC, DHS, and possibly LEGAT from the USG 
side.  The primary issue will be how to improve Hellenic 
Customs performance, especially as it regards the illegal 
import of pirated products. 
 
Conclusion 
---------- 
 
¶17. (U)  Compared with the level of official GoG attention 
IPR was receiving this time last year, there has been a 
tremendous improvement.  In particular, the action plan 
appears to have achieved its goal of focusing attention on 
particular areas of concern.  More needs to be done, of 
course, and a certain amount of pressure must be maintained 
to keep the GoG on task. In particular the situation with the 
judiciary is a hard nut to crack.  As a result of 
constitutional changes made after the Junta years in Greece 
guaranteeing judicial independence, approaching the judiciary 
to discuss sentencing is an enormously touchy and politically 
explosive issue.  Our contacts at the Ministry of Justice 
have told us flat out that politically they cannot approach 
the judges with suggestions on their rulings, and that having 
a U.S. representative approach the judiciary could seriously 
backfire.  Although we are convinced that the judicial system 
is key to improved IPR protection in Greece, next steps will 
have to be considered carefully and progress is likely to be 
incremental. 
RIES