VZCZCXRO3343
PP RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #1678/01 0931706
ZNR UUUUU ZZH
P 031706Z APR 07
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC PRIORITY 6293
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEAHLA/DEPT OF HOMELAND SECURITY PRIORITY
RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 MEXICO 001678 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/MEX/ROTH AND EB/TPP/MTA/IPC/WALLACE 
STATE PASS USTR FOR 
EISSENSTAT/ESPINEL/MELLE/SHIGETOMI/BAE/MCCOY 
STATE PASS COPYRIGHT OFFICE 
COMMERCE FOR ITA/JACOBS/WORD/WILSON/WRIGHT 
COMMERCE PASS USPTO 
JUSTICE FOR CCIPS/MERRIAM/KOUAME 
 
E.O. 12958: N/A 
TAGS: KIPR ECON PGOV MX
SUBJECT: PRESIDENT CALDERON, GOVERNOR PENA NIETO, VOW TO 
COMBAT PIRACY 
 
Summary and Comment 
------------------- 
 
¶1. Last week at two separate events, Mexican President 
Calderon and the governor of the State of Mexico vowed to 
combat the trade in pirated and counterfeit goods, arguing 
that strong IPR protection is a necessary condition for 
attracting investment, strengthening competitiveness, and 
generating quality jobs.  Calderon specifically called on the 
Inter-Secretarial Commission for Combating the Illegal 
Economy, spearheaded by the Secretariat of Governance, and 
Mexican Customs to lead the fight at the national level.  The 
following day, Governor Pena Nieto presided over the signing 
of an agreement that pledged his state government to fighting 
piracy in coordination with the federal government and the 
private sector.  Hopefully his example will encourage other 
governors to follow suit.  Political commitment from the top 
will be key to improving Mexico's protection of IPR.  Post 
will be following up to see if federal and state actions 
match last week's welcome rhetoric from the President and the 
governor.  End summary and comment. 
 
Calderon's Speech 
----------------- 
 
¶2. On March 28, President Calderon inaugurated the 52nd 
General Assembly of the National Chamber of Apparel 
Industries.  He used the occasion to deliver a speech in 
which he pledged his government's commitment to combating 
illicit commerce in pirated and counterfeit goods and unfair 
foreign trade practices (see septel for more on the latter 
issue).  Regarding the former, Calderon argued that an 
economy cannot develop on a foundation of illegality, and 
noted that organized crime groups have now taken control of 
contraband markets in Mexico.  He declared that the state 
cannot permit brazen transgression of any law to pass with 
impunity, and said the legislative, executive and judicial 
branches of government at the national, state, and municipal 
levels need to join hands with all social sectors to fight 
piracy, counterfeiting, and contraband trade.  To that end, 
he said, he had instructed the Secretariat of Governance to 
intensify the efforts of the 'Inter-Secretarial Commission 
for Combating the Illegal Economy' (which Governance chairs 
-- the Prosecutor General of the Republic, or PGR, also 
participates) to go after organized crime.  (Note: Post will 
seek clarification of the respective roles of the 
Inter-Secretarial Commission mentioned by Calderon and 
another GOM interagency initiative -- the Inter-Institutional 
Committee for the Protection of IPR -- which is headed by the 
PGR.  End note.)  He said the government has also set in 
motion a program to modernize and professionalize Mexican 
Customs in order to re-double their anti-piracy efforts. 
 
State of Mexico Signs Agreement 
------------------------------- 
 
¶3. The next day, at a separate event, Governor Enrique Pena 
Nieto of the State of Mexico (the country's most populous 
state -- it does not/not include Mexico City), presided at 
the signing ceremony of the "Coordination Agreement for 
Preventing and Combating IPR Infringement, Contraband, and 
Stolen Merchandise."  The agreement, which was signed by the 
State of Mexico's Secretary General and a representative of 
an umbrella group of IP-related companies and industry 
associations, is modeled on the "National Agreement Against 
Piracy" that was signed by the federal government and private 
industry in 2006.  It is the first such agreement signed by a 
state government, though industry is hoping to convince more 
governors to follow suit, with the State of Morelos appearing 
closest to doing so.  The main objectives of the agreement 
with the State of Mexico are to: fight IPR infringement and 
other forms of illegal commerce; recover the legitimate 
market lost to illegal trade; incentivize vendors of illegal 
goods to switch to legitimate goods; and improve the 
investment climate of the state.  The state government 
pledges to work toward these goals in coordination with 
industry and the federal government.  The director general of 
Mexico's patent and trademark office (IMPI) and the federal 
prosecutor for the State of Mexico were both present.  The 
state government will reform its laws to permit more 
 
MEXICO 00001678  002 OF 002 
 
 
aggressive action against illegal merchants, and make the 
necessary funding available for the activities contemplated 
in the agreement. 
 
¶4. In his speech following the signing ceremony, the governor 
stressed that education, a culture of legality, and sound 
economic development were a proven virtuous circle, noting 
that formal sector employment is far superior to informal 
sector jobs.  He lamented Mexico's poor IPR performance, 
citing last year's Special 301 report, and asserted that 
illicit trade in pirated, counterfeit, and contraband goods 
was increasingly linked to powerful organized crime groups. 
He vowed that the intentions reflected in the agreement would 
become facts, and that his government would immediately 
quicken the pace of enforcement actions in conjunction with 
federal authorities. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity 
GARZA