VZCZCXRO9846
RR RUEHMA RUEHPA
DE RUEHOS #0357/01 1381444
ZNR UUUUU ZZH
R 181444Z MAY 07
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 8932
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 8745
RUEHBJ/AMEMBASSY BEIJING 0096
RUEHWR/AMEMBASSY WARSAW 0365
RUEHCD/AMCONSUL CIUDAD JUAREZ 0344
RUEHGZ/AMCONSUL GUANGZHOU 0017
RUEHHK/AMCONSUL HONG KONG 0019
RUEHIT/AMCONSUL ISTANBUL 0343
RUEHSO/AMCONSUL SAO PAULO 0337
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 03 LAGOS 000357 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR AF/W 
STATE FOR INR/AA 
TREASURY FOR DPETERS 
DEPARTMENT PASS TO USTR 
USDOC FOR 3317/ITA/OA/KBURRESS 
USDOC FOR 3130/USFC/OIO/ANESA/DHARRIS 
WARSAW FOR LISA PIASCIK 
CIUDAD JUAREZ FOR DONNA BLAIR 
ISTANBUL FOR TASHAWNA SMITH 
SAO PAOLO FOR ANDREW WITHERSPOON 
 
E.O. 12958: N/A 
TAGS: ECON EIND ETRD KIPR NI
SUBJECT: NIGERIA: PRIVATE SECTOR SPEAKS OUT ON IPR, 
ENCOURAGED BY NEW LEGISLATION 
 
REF: ABUJA 683 
 
LAGOS 00000357  001.2 OF 003 
 
 
¶1.  Summary: Since 2004, Nigeria has seen a proliferation of 
Chinese-operated optical disc (OD) pirating factories.  The 
International Federation of the Phonographic Industry (IFPI) 
has pressed for more effective enforcement and new 
legislation to make piracy as difficult as possible for these 
operators.  IFPI officials believe the new legislation, the 
Copyright Optical Discs Plan Regulation 2006 (CODPR), will 
give the Nigerian Copyright Commission (NCC) the enforcement 
power heretofore lacking.  End summary. 
 
---------------------------------- 
OD Production Develops in Nigeria, 
And Piracy Follows Along 
---------------------------------- 
 
¶2.  From virtual nonexistence five years ago, OD production 
has grown to 14 known factories with 51 production lines 
among them.  While some factories engage in legitimate 
business, IFPI and the NCC estimate the level of piracy at 
around 90 percent of production.  Much of this OD piracy 
comes from an influx of Chinese-operated factories to 
Nigeria.  Iain Grant, IFPI Head of Enforcement, told 
pol/econoff IFPI has been focusing attention on Nigeria, 
trying to slow down illicit production.  While halting piracy 
is near impossible, IFPI would like to use existing 
legislation and enforcement to stymie production, according 
to Grant.  IFPI's primary objective is to concentrate on the 
OD factories and their exports, as well as DVD imports from 
East Asia.  Pirating for the domestic market is of secondary 
importance. 
 
---------------------------------- 
Raid in 2004 a First Step for IFPI 
---------------------------------- 
 
¶3.  The Nigerian government's (GON) IPR enforcement has so 
far been desultory.  The NCC was tasked with tackling piracy, 
but has been troubled with a lack of political will to 
effectively handle the problem.  The poorly-funded and 
fragmented NCC has been no match for the pirates; the 
enforcement agency is so riddled with informants that 
enforcement operations are stymied by leaks of sensitive 
information, according to the IFPI.  However, Willem van 
Adrichem, Regional coordinator for IFPI, commented that the 
GON was "seriously embarrassed" in 2004 when law enforcement 
raided the Akina Industries and Nasinma Universal Studio 
plants in Lagos.  These raids helped highlight the problem of 
piracy to the GON. 
 
¶4.  IFPI was disappointed the court cases against the plant 
owners made little headway.  Van Adrichem said the process 
foundered; the actual case evidence was somehow burned and 
lost.  Even now, IFPI suspects the Akina plant is still 
involved in piracy.  Van Adrichem said when he visited the 
factory, despite it being involved exclusively for domestic 
production he saw only Chinese employees.  The Managing 
Director had a pile of US dollars on his desk, and van 
Adrichem wondered aloud how all this foreign cash became 
available if this plant was only intended for domestic 
production.  Other well-connected factories have escaped 
scrutiny as well.  Magnet Integrated Ventures, another target 
of IFPI, is part-owned by Vice-President Atiku Abubakar's 
son, Adamu, and according to IFPI is well-protected by the 
police. 
 
--------------------------------------------- --- 
New Legislation to Battle Piracy Encourages IFPI 
 
LAGOS 00000357  002.2 OF 003 
 
 
--------------------------------------------- --- 
 
¶5.  The need to find a dedicated enforcement body with 
sufficient powers led IFPI to enlist the assistance of the 
Economic and Financial Crimes Commission (EFCC).  IFPI 
officials tied OD piracy to the EFCC's campaign against 
corruption and 419 scams, and the EFCC's broad mandate allows 
it to cover piracy matters and intellectual property theft. 
The EFCC's willingness to assist lends a strong enforcement 
body to the battle against piracy and this development has 
been encouraging to IFPI, van Adrichem remarked. 
 
¶6.  In March, IFPI met with the Ministry of Justice about the 
upcoming OD regulations, which were eventually signed and 
published as CODPR (reftel).  These regulations give the NCC 
authority to conduct unannounced inspections and more 
effectively prosecute violators Grant said the new 
regulations, coupled with adequate enforcement could 
eventually make things so difficult for the pirates they 
would have to depart Nigeria.  Grant thought a key to 
catching the perpetrators was to get the imported 
polycarbonate data from the Deputy Chief Comptroller for 
Customs.  Polycarbonate is a key ingredient for disc 
production, and IFPI could match the polycarbonate data with 
reported legal production to determine which of the factories 
committed the most piracy. 
 
--------------------------------------------- - 
Local Artists Will Benefit from IFPI's Efforts 
--------------------------------------------- - 
 
¶7.  The domestic market has received less attention from 
IFPI, though the new legislation was largely passed to 
protect the local entertainment industry.  However, attitudes 
in Nigeria's Nollywood movie and recording industry also need 
to change.  The local Adobe office has complained that 
Nollywood uses pirated products.  IFPI's National Coordinator 
for Nigeria, Akeem Aponmade, has coordinated the local 
IPR-awareness campaign by working with local vendors to 
change attitudes toward piracy. 
 
¶8.  Working with the Audio and Video CD Sellers Association 
of Nigeria, Aponmade believed he has made headway in slowing 
the pirating of local works.  When Aponmade presented at the 
Association's monthly meeting, over two hundred vendors 
attended.  The key, Aponmade felt, is to use peer pressure to 
change attitudes.  After receiving permission from the 
police, Aponmade visited vendors at the Otigba "Computer 
Village" in Lagos to encourage reform and educate vendors 
about respecting local IPR.  Aponmade collected fake products 
from vendors which he gave to the Association's Chairman for 
burning, and he has asked Nu Metro, a local media company 
which produces copyrighted works, to lower their prices so 
vendors could afford to sell legitimate works. 
 
------- 
Comment 
------- 
 
¶9.  Nigeria's efforts to enforce IPR have so far been 
ineffective, but IFPI's optimism is not misguided.  The new 
legislation is a landmark in battling IPR piracy and with 
effective enforcement should make an impact.  IFPI has so far 
been disappointed in the work of the NCC, but has found a 
willing partner in the EFCC, and the new legislation should 
encourage the NCC to be more aggressive in its prosecution. 
One ancillary effect of IFPI's efforts is that stricter 
enforcement will assist the domestic movie and recording 
industry.  These developments will take time and continued 
 
LAGOS 00000357  003.2 OF 003 
 
 
monitoring to see if Nigeria will make progress in reducing 
IPR piracy. 
BROWNE