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Viewing cable 07TALLINN138, ESTONIA LOSING KEY INDUSTRY SUPPORT FOR IPR

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Reference ID Created Released Classification Origin
07TALLINN138 2007-03-02 15:48 2011-08-26 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Tallinn
VZCZCXYZ0000
RR RUEHWEB

DE RUEHTL #0138/01 0611548
ZNR UUUUU ZZH
R 021548Z MAR 07
FM AMEMBASSY TALLINN
TO RUEHC/SECSTATE WASHDC 9589
INFO RUCPDOC/USDOC WASHDC
RUEHBS/USEU BRUSSELS
RUEHHE/AMEMBASSY HELSINKI 5175
RUEHRA/AMEMBASSY RIGA 2858
RUEHVL/AMEMBASSY VILNIUS 6612
RUEHMO/AMEMBASSY MOSCOW 2476
UNCLAS TALLINN 000138 
 
SIPDIS 
 
DEPT FOR EEB/TTP/IPE AND FOR EUR/NB 
STATE PLEASE PASS TO USTR Laurie Molnar 
DOC PLEASE PASS USPTO Robert Stoll 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETRD KIPR ECON EN
SUBJECT: ESTONIA LOSING KEY INDUSTRY SUPPORT FOR IPR 
PROTECTION 
 
Ref:   A) TALLINN 66    B) TALLINN 112 
 
1.  (U) Action request; please see paragraph 5. 
 
2.  (U) Summary: Loss of funding from the Motion 
Picture Association of America (MPAA) and the 
International Federation of the Phonographic Industry 
(IFPI) will likely result in the closing of Estonia's 
only anti-piracy NGO, the Estonian Organization for 
Copyright Protection (EOCP), which provides invaluable 
training and educational services for police and other 
GOE officials. EOCP frequently contributes expert 
testimony in IPR court cases in Estonia, and acts in 
place of industries that do not have local 
representation.  The U.S. audio/video industry stands 
to lose one of its strongest advocates in the region, 
and may lose market share to increased piracy as well. 
End Summary. 
 
3.  (U) The Motion Picture Association of America 
(MPAA), through its international counterpart the MPA, 
has announced it will withdraw critical funding for 
EOCP, one of Estonia's most active NGOs working in the 
field of Intellectual Property Rights (IPR) education 
and enforcement.  This small but effective NGO, 
established by the MPA in 1998, represents industry and 
artists in the fight against piracy and copyright 
infringement.  It is the only anti-piracy organization 
in Estonia and provides GOE agencies with an especially 
valuable source of expertise on fighting IPR violations 
in the digital environment and on the internet.  EOCP 
staff have partnered with Embassy Tallinn to provide 
training to police, judges and prosecutors in Estonia 
and throughout the Baltic region, including during 
several recent seminars in Tallinn sponsored by the 
local AmCham IPR Committee and the U.S. Patent and 
Trademark Office (USPTO). (Ref A) 
 
4.  (SBU) According to Erik Mandre, EOCP's Managing 
Director, the MPA has decided to give up its membership 
in EOCP effective May 1, 2007, and therefore will 
withdraw their funding as of that date.  MPA's annual 
contribution of USD $36,500 amounts to roughly one- 
third of EOCP's annual budget, the loss of which Mandre 
feels will force EOCP to close their doors.  Brendan 
Hudson, Vice President (Anti-Piracy) in MPA's Brussels 
office, confirmed to Econoff MPA's plan to withdraw 
from EOCP.  Hudson stated that MPA is "reassessing 
current practices" and moving toward a more "world- 
wide" allocation of resources.  Only a few months 
before, the International Federation of the 
Phonographic Industry (IFPI) also informed EOCP that 
they had decided to cut an equivalent amount of 
funding.  Thus, in short order, one of Estonia's most 
active and effective anti-piracy NGOs faces the loss of 
two-thirds of its annual budget.  Contributions from 
local members provide the remainder of EOCP's budget. 
Since the domestic industry in Estonia is extremely 
small, the MPA and the IFPI were the main contributors. 
The EOCP has reduced its work-force to three employees 
already, and with the loss of MPA funds, Mandre 
estimates the organization will probably not survive 
more than 90 days. 
 
5. (SBU) Since its establishment, the EOCP has 
developed a successful liaison relationship with police 
and customs officials, organizing raids, giving expert 
opinion on seized goods, and arranging training for 
law-enforcement agencies. EOCP is also instrumental in 
the fight against Internet piracy - the biggest IPR 
challenge in Estonia. In 2006, EOCP closed 2,080 
Internet sites involved in illegal IPR-infringing 
activity and removed 29,676 bootleg files from local 
public file transfer protocol (FTP) servers.  The EOCP 
also belongs to the IPR expert committee of the 
Ministry of Culture and participates in drafting and 
lobbying for firmer IPR regimes.  As very few IP rights 
holders maintain local offices in Estonia, EOCP has 
powers-of-attorney with many industry groups to 
represent them in court cases where infringement of 
their rights is alleged.  In short, EOCP's activities 
 
have a powerful multiplier effect throughout Estonian 
society and beyond, through its ability to leverage 
expertise at many levels of the GOE, and with education 
for the public at large. 
 
6. (SBU) The EOCP estimates that closing down their 
anti-piracy operations could result in the loss up to 
40 percent of legitimate audio/video sales to the black 
market.  This estimate is based on EOCP data that MPAA 
and the International Intellectual Property Alliance 
(IIPA) routinely use in their annual reports. 
 
7.  (U) Action Request: Post asks that Washington 
Agencies engage with MPAA and urge reconsideration of 
this decision.  The issue of copyright, trademark and 
patent protection is a shared interest for both the USG 
and private industry.  Both U.S. and Estonian law 
enforcement bodies frequently stress that digital 
piracy is a growing threat, with the potential to 
attract organized crime because of relatively low risks 
and high profit margins associated with it.  The work 
of the EOCP has been instrumental to Estonia's success 
in protecting IPR.  For six years, Estonia is the only 
Baltic country that has not been included in the USTR 
Special 301 list.  If the EOCP is forced to close 
because of the withdrawal of MPAA and IFPI support, the 
U.S. audio/video industry will lose one of its 
strongest advocates in the region, and may lose market 
share to increased piracy as well. 
 
GOLDSTEIN