VZCZCXRO9674
PP RUEHCD
DE RUEHUJA #1163/01 1591101
ZNR UUUUU ZZH
P 081101Z JUN 07
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 9793
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 7074
RUEHWR/AMEMBASSY WARSAW 0360
RUEHCD/AMCONSUL CIUDAD JUAREZ 0361
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEBWJA/DEPT OF JUSTICE WASH DC

UNCLAS SECTION 01 OF 03 ABUJA 001163 
 
SIPDIS 
 
SIPDIS 
 
DEPARMENT FOR CLACROSSE (EB/IPR) 
DEPARTMENT PASS TO USTR (AGAMA) 
TREASURY FOR DPETERS 
JUSTICE FOR OMETZGAR 
USDOC FOR 3317/ITA/OA/KBURRESS 
USDOC FOR 3130/USFC/OIO/ANESA/DHARRIS 
 
E.O. 12598: N/A 
TAGS: ECON KIPR ETRD NI
SUBJECT: NIGERIA INL PROJECT PROPOSAL: TRAINING RELATED TO REDUCING 
OPTICAL DISC PIRACY 
 
REF: A. SECSTATE 55928 
 
 ¶B. ABUJA 942 
 ¶C. ABUJA 683 
 ¶D. LAGOS 357 
 
¶1.  Summary.  Embassy Abuja submits this proposal to obtain funds 
from the 2007 IPR Enforcement Training Funds Program, per reftel A. 
Embassy Abuja proposes a training program in Nigeria for officials 
from the Nigerian Copyright Commission (NCC), the Nigerian Economic 
and Financial Crimes Commission (EFCC), judges, prosecutors, police 
and customs officials.  The subject of the training will be reducing 
optical disc (OD) piracy, with a focus on recently promulgated 
regulations related to licensing of OD factories.  The goal will be 
to eliminate factories that are producing illegal copies of U.S. 
copyrighted works.  The estimated program budget will be $47,780. 
End Summary. 
. 
Background 
----------- 
. 
¶2.  Nigeria is the largest market in Africa, and the U.S. copyright 
industry estimate in 2006 that the record and music piracy rate was 
95%, and business software piracy rate 82%.  Estimated trade losses 
in 2006 due to copyright piracy were $119 million, and that figure 
does not include losses due to piracy of motion pictures or 
entertainment software.  These losses have grown dramatically in 
recent years:  for example, losses due to business software piracy 
climbed from $4.3 million in 2002 to $59 million in 2006. 
 
¶3.  One of the principal reasons for this piracy explosion is the 
recent proliferation of OD factories in Nigeria.  There are 15 known 
factories and 52 production lines capable of producing well over 100 
million discs a year.  Nigeria has become an "optical disc piracy 
hotspot." 
 
¶4.  Many of the plants are operated by Asian pirates displaced by 
enforcement activities elsewhere.  The output of these plants is 
intended not only for Nigeria but also for export to the region. 
Some estimates put the current capacity of these plants at over 180 
million discs a year, more than Nigeria's population of 140 million. 
 Not surprisingly, it has been reported that pirated product from 
Nigeria hav been found in Algeria, Senegal, Ghana, Zambia and South 
Africa.  The industry also reports that people come from all over 
West Africa to buy pirated discs at the Alaba International Market 
in Lagos. 
 
¶5.  Overall the GON's efforts to stem this tide have been 
unimpressive, but improving.  The NCC has conducted raids of illegal 
OD factories over the past few years, and recently, in December 
2006, promulgated regulations that control production of optical 
discs.  These regulations are fairly comprehensive, and an unusual 
step for the region.  The regulations require that all OD factories 
obtain a license from the NCC, obtain approval from the NCC prior to 
importing or exporting ODs or OD manufacturing equipment, mark every 
OD manufactured with a prescribed code, and keep certain records. 
They also empower the NCC to conduct inspections of factories, 
revoke licenses, and assess penalties for violations.  The chief of 
the newly formed Nigerian Intellectual Property Commission 
("NIPCOM"), Adebampo Adewopo, was formerly the head of the NCC, and 
is committed to combating piracy (See reftel B).  The GON has 
expressed its openness to cooperation and training (See reftels B, C 
and D).  The International Federation of the Phonographic Industry 
("IFPI") has also been successful at enlisting the EFCC into the 
fight against OD piracy, by tying OD piracy to the EFCC's campaign 
against corruption and scams. 
 
¶6.  The Mission believes this is an opportune moment for training 
related to OD enforcement in Nigeria.  The recent OD regulations 
provide momentum, a new enforcement structure, and the NCC and EFCC 
have the will and manpower to improve enforcement.  With additional 
training, the GON could significantly reduce illegal OD production 
in Nigeria. 
. 
Project Description 
------------------- 
. 
¶7.  The Mission proposes a training program for law enforcement 
officials and copyright policymakers that will focus on reducing OD 
piracy, with an emphasis on enforcement of the new OD regulations. 
 
ABUJA 00001163  002 OF 003 
 
 
The program would be two days in Abuja (where most of the 
policymakers are located), and two days in Lagos (where most of the 
factories are located). 
 
¶8.  The program would include in each location, 30 participants 
comprising five each from the NCC; Ministry of Justice prosecutors; 
judges; police; EFCC; and Customs.  There would be four USG trainers 
- two from USDOJ; one from the U.S. Copyright Office; and one from 
U.S. Customs.  There would also be between one and three industry 
trainers from Microsoft; IFPI; and/or Hewlett Packard.  In addition, 
GON IP officials such as DG Adewopo of NIPCOM could also participate 
on the panels. 
 
¶9.  The following topics would be reviewed: 
 
-- The importance of controlling optical disc piracy; 
-- The damage caused by OD piracy to copyright industries and the 
economy in general, such as loss of tax revenues; 
-- The damage widespread infringement does to incentives to invest 
in creative industries in Nigeria; and 
-- Introduction to the 2006 OD regulations. 
 
¶10.  Topics for police and customs only would be: 
 
-- How to investigate optical disc piracy, including how to connect 
street vendor's product with specific factories and best practices 
for control of evidence; 
-- Best practices for prosecution of illegal OD manufacturing; 
-- How to enforce OD regulations at the border; and 
-- Forensic methods of determining the factory that produced a 
particular optical disc. 
 
¶11.  Topics for judges and policymakers only would be: 
 
-- Ways that Nigeria's new regulations could be improved; 
-- Ways civil law enforcement can supplement a criminal enforcement 
regime; and 
-- Ways to improve laws regarding border control. 
. 
Budget 
------ 
. 
¶12.  Total amount for the proposed program is $47,780, and broken 
down as shown below. 
 
Abuja (two days) 
-- $1,500 tea break and snacks for two days 
-- $1,500 training materials 
-- $1,000 miscellaneous expenses 
 
Lagos (2 days) 
-- $5,000 conference hall & equipment rental 
-- $500 tea break for two days 
-- $1,500 training materials 
-- $1,000 miscellaneous expenses 
 
USG personnel 
-- $35,780 ($8,945 per person x 4). 
Breakdown per person: 
-- Airfare:  $7,000 
-- Abuja hotel & food:  $618 ($309 per day x 2) 
-- Lagos hotel & food:  $716 ($358 per day x 2) 
-- two travel days food: $211 (one day at Abuja rate ($116) plus one 
day at Lagos rate ($95)) 
-- Incidentals:  $400 
. 
Project Evaluation Metrics 
-------------------------- 
. 
¶13.  Targeted to U.S. Priorities.  Nigeria is the most populous 
country, and largest market, in Africa and the piracy rates for 
copyrighted works are extremely high-and illegal OD factories are a 
significant driver of the economy in pirated goods.  As noted above, 
trade losses due to copyright piracy were estimated to be $119 
million in 2006, and this figure did not even include motion 
pictures or entertainment software.  Moreover, the massive OD 
production in Nigeria is contaminating the whole African region with 
illegal product. 
 
 
ABUJA 00001163  003 OF 003 
 
 
¶14.  Strong Support of Host Government.  As discussed above (See 
reftels B, C and D), the GON has expressly welcomed IPR training. 
NIPCOM has volunteered to cover the costs of a site for the training 
in Abuja.  DG Adewopo recently reiterated previous requests for USG 
assistance.  The political will of the GON to address the OD factory 
problem is evidenced by the fact that Nigeria took the initiative to 
promulgate the OD regulations.  Moreover, this proposal supports the 
elements within the GON that are most committed to making change, 
such as DG Adewopo of NIPCOM. 
 
¶15.  Addresses Key Gaps or Is a Fundamental Part of a Strategy to 
Improve IPR Enforcement.  The new regulations are in place, but the 
NCC has little experience enforcing them.  Training by USG personnel 
will help fill the gap in the strategy of targeting copyright piracy 
by shutting down the factories that make the ODs. 
 
¶16.  Has the Capacity To Make Near Term, Measurable Success, with 
Clear Benchmarks.  Fifteen OD factories have already been 
identified.  Following this training, the treatment of those 
factories can be reviewed and progress can be measured by how (1) 
how many have been licensed; (2) how many have been inspected, and 
how often; and (3) how many have been sanctioned or closed.  NCC 
inspections of these factories can occur in the short term following 
the training. 
 
¶17.  Has Strong Oversight and Accountability Measures.  The training 
will be entirely in the hands of Embassy Abuja, and all expenditures 
and accounting will be handled through post.  Embassy Abuja will 
also report on the training after it occurs. 
. 
COMMENT 
------- 
. 
¶18.  The Nigerian government's willingness to participate and host 
the training is an example of the strong support this training will 
receive.  Where possible, it is generally better to move up the 
supply chain in copyright enforcement; one does not have to chase 
after small street vendors of illegal discs if the vendors are cut 
off from their wholesale supplies of discs.  The recent surge in OD 
factories in Nigeria presents many problems for U.S. rightholders, 
but, the GON's increased regulatory attention to this problem, 
presents a rare opportunity for the USG to assist regulatory and 
enforcement agencies to cut off significant supply.  The proposed 
training program would significantly advance the GON's capacity for 
achieving this goal, and would also signal to the GON that the USG 
is serious in its concern over this problem. 
 
CAMPBELL