VZCZCXRO4246
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHFR #0156/01 0291755
ZNR UUUUU ZZH
P 291755Z JAN 08
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC PRIORITY 1821
INFO RUCPDOC/USDOC WASHDC
RUCNMEM/EU MEMBER STATES COLLECTIVE

UNCLAS SECTION 01 OF 02 PARIS 000156 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
PASS CEA 
PASS USTR: ATTN AMB VERONEAU 
STATE FOR EB and EUR/WE 
 
E.O. 12958: N/A 
TAGS: ECON EIPR ETRD PGOV FR
SUBJECT: FRANCE AND IPR - OPPORTUNITIES FOR ENGAGEMENT 
 
¶1. (SBU) Summary: As France prepares for its 2008 EU Presidency, 
President Sarkozy is placing a high priority on Intellectual 
Property Rights, pushing forward several initiatives that could 
influence the global evolution of online IPR.  The Olivennes 
Commission Report on digital piracy, commissioned by Sarkozy, made a 
number of far-reaching recommendations on combatting counterfeiting 
and protecting copyrights in the digital marketplace.  The French 
government continues to be especially attentive to the interplay 
between technology and culture and its consequences for France. 
France's EU presidency provides an opportunity to ratchet up 
engagement with France on our IPR issues.  End Summary. 
 
"OLIVENNES" REFORMS 
------------------- 
 
¶2. (U) To address what he called the challenge of the "protection of 
cultural works in the new networks of communication," President 
Sarkozy in August 2007 appointed Denis Olivennes, CEO of the leading 
French entertainment retailer FNAC, to head a committee to meet with 
entertainment producers, copyright holders, and Internet service 
providers (ISPs).  The Committee focused on three areas: fighting 
internet piracy, developing a model for legal online purchases of 
music and movies, and helping the French entertainment industry to 
adapt to the digital marketplace.  The Olivennes committee completed 
its work at the end of November and issued a series of proposals to 
combat internet piracy and stimulate the growth of a legal digital 
music and movie market. 
 
¶3. (U) Olivennes proposed denying internet access to repeat 
offenders who illegally download material.    The report calls for 
the establishment of a new enforcement authority with the authority 
to issues alerts, warnings and finally suspend or terminate internet 
service for individuals suspected of illegal downloading.  This 
authority would also have the power to sanction ISPs that fail to 
comply with its injunctions.  According to Culture Minister 
Christine Albanel, over "a billion music and movie files were 
illegally shared in France in 2006." 
 
¶4. (SBU) Olivennes has proven adept at mixing technology and culture 
and bringing together disparate constituencies and his report has 
received widespread support.  Sarkozy welcomed his proposals in a 
speech calling for "a civilized internet."    The report is under 
consideration in the French parliament with a number of the 
recommendations, including new "filtering" rules that will impact 
ISPs likely to enter into force in 2008 either by decree or new 
legislation. 
 
¶5. (U) Olivennes' recommendations have generated headlines globally, 
with media reports terming his report "radical" and "revolutionary." 
 John Kennedy, head of the association representing the recording 
industry worldwide (IFPI), termed the Olivennes report "as the 
single most important initiative yet to help win the war on online 
piracy."  What is unprecedented is Olivennes' success in forging an 
agreement between film and music rights holders and technology and 
service providers, two groups that have not always seen eye-to-eye 
on combating illegal downloads   However, the French consumer 
organization, "UFC-Que Choisir," has criticized the proposal for 
creating a new internet policeman, calling it a threat to civil 
liberties. 
 
DRM DEBATE: INTEROPERABILITY AND SOURCE CODES 
--------------------------------------------- 
¶6. (U) A Technical Measures Regulation Authority (TMRA), created in 
April 2007 subsequent to passage of France's Digital Copyright law, 
is now in place, though its future role, under any changes that may 
flow form the Olivennes report, is not completely clear.  The TMRA 
was established to regulate issues relating to the "mandated" 
interoperability of digital rights management (DRM) systems, as well 
as rights to copy original works for private use.  It has yet to 
hear a single case. 
 
¶7.  (SBU) The Business Software Alliance (BSA) has filed a formal 
complaint with the European Commission in Brussels regarding the 
French law.  According to BSA's complaint, the law, in particular 
its potential for mandated interoperability, is inconsistent with 
France's obligations under community rules.  Specifically, BSA 
claims it impedes the free movement of services in contravention of 
Article 49 of the EC Treaty and disadvantages the activities of 
service providers established outside of France by imposing 
restrictions on companies using DRMs that are both unjustified and 
disproportionate.  BSA also comments that the French law reportedly 
has not been formally "notified" to the EC, which contravenes EU 
regulations.  Apple Inc has filed a similar complaint with the 
French State Council, which reviews the legality and 
constitutionality of French decrees and legislation.  The Council 
has not yet taken any action on the complaint. 
 
 
PARIS 00000156  002 OF 002 
 
 
¶8.  (SBU) The GOF intends to complete the implementation of the 2006 
Digital Copyright Law by issuing a decree related to the potential 
requirement of disclosure of source codes to a government authority 
(Article 15.)  We understand that the draft decree will be 
circulated within the French government by the end of February and 
then forwarded to the French State Council for approval. The decree 
could impose source code disclosure obligations or new testing 
requirements on technical protection measures used in DRM software. 
 
The Year Ahead 
- - - - - - -- 
¶9. (SBU) The next twelve months provide important opportunities to 
work with the French in advancing our IPR agenda, both bilaterally 
and regarding IPR issues globally.  We are making some progress on 
France's Digital Copyright law working with the newly established 
TMRA ("Autorite de Regulation des Mesures Techniques") and with U.S. 
industry to discuss means of protecting against spyware and other 
French concerns without requiring the sharing of source codes. 
 
¶10. (SBU) The French have expressed support for the Trans Atlantic 
Economic Council (TEC) and are looking for headline issues to 
address during the French EU presidency. Since France will be 
hosting an EU-China summit during its Presidency, we should consider 
initiating a TEC dialogue on key third country and strategic issues 
to include IPR protection and trade. 
 
¶11. (SBU) The French government remains very interested in the 
proposed Anti-Counterfeit Trade Agreement (ACTA).  It agrees with 
U.S. objectives but believes discussions thus far have been too 
Brussels-oriented.  France also continues to advocate inclusion of 
at least a limited number of developing nations in ACTA, as well as 
some G-8 input into the process.  A more active dialogue with the 
French on ACTA could help to ensure that we continue to make 
progress on these negotiations during the French EU Presidency. 
 
EMBASSY IPR CONFERENCE 
---------------------- 
¶12. (SBU) IPR - in particular how it relates to the internet and new 
technologies - is a personal interest of President Sarkozy and a 
high priority for his government.  French initiatives on IPR and the 
digital economy have the potential to be precedent-setting globally, 
with significant consequences for the U.S.  Given strong French 
interest in IPR issues, and to encourage further dialogue between 
U.S. and French government and business leaders, Embassy Paris is 
planning to organize a one-day conference tentatively entitled: 
"Counterfeit and Copyright in the Digital Age" in early June 2008. 
Embassy Paris will coordinate with relevant Washington agencies and 
the Department as we move forward on the conference. 
 
PEKALA