VZCZCXYZ0009
PP RUEHWEB

DE RUEHMD #0520/01 1301734
ZNR UUUUU ZZH
P 091734Z MAY 08
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC PRIORITY 4744
INFO RUEHFR/AMEMBASSY PARIS 1493

UNCLAS MADRID 000520 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EEB/TPP/IPE, EUR/WE 
STATE PASS USTR 
 
E.O. 12958: N/A 
TAGS: ETRD KIPR SP
SUBJECT: SPECIAL 301 IPR FOLLOWUP MEETING WITH SECSTATE ROS 
 
REF: A. MADRID 477 
 
     ¶B. MADRID 293 
     ¶C. MADRID 211 
     ¶D. 07 MADRID 2128 
 
¶1. (SBU) Summary: The vice-minister responsible for 
intellectual property rights (IPR), Francisco Ros, told 
Charge on May 6 that the ending of the national election 
season meant that this was the time for the new GOS to make 
progress on IPR issues.  He said the GOS intended to pass a 
new IPR law during this legislature, and he thought the new 
law could increase the visibility of the existing 
interministerial anti-piracy commission.  He cautioned that 
the U.S. and Spanish legal systems were not compatible and 
that it might not be possible to take the exact steps the USG 
wanted, particularly on the 2006 Justice Ministry file 
sharing Circular.  Charge urged Ros to amend the Circular to 
address industry concerns, and Ros emphasized that his office 
understood the concerns and would see what it could do.  He 
agreed to set up a working group on IPR issues with Embassy 
staff, and he welcomed the idea of visiting the U.S. to 
discuss IPR and other issues.  Although Ros complained about 
the phrasing of the Special 301 report and appeared at times 
to be focusing too much on philosophical questions, he also 
showed a clear determination to make progress now that it is 
politically possible.   End Summary. 
 
¶2. (U) Charge Llorens met on May 6 with Francisco Ros, GOS 
Secretary of State (vice minister) for Telecommunications and 
the Information Society within the Ministry of Industry, 
Tourism, and Commerce, to discuss USG IPR concerns and follow 
up on the Special 301 Watch List announcement and the 
Ambassador's April 24 meeting with Ros' minister, Minister of 
Industry, Tourism, and Commerce Miguel Sebastian (ref a). 
Charge was accompanied by EconCouns.  Ros was accompanied by 
Information Society Development Director General David Cierco 
Jimenez and Deputy Director General for Information Society 
Services Salvador Soriano. 
 
No Surprise on Watch List, but Disagreement over Phrasing 
--------------------------------------------- ------------ 
¶3. (SBU) Ros said he had realized it would be difficult for 
Spain to avoid Watch List placement this year.  He said on 
several occasions during the meeting that the election season 
had made certain actions politically impossible during the 
last year.  Ros described some of the language in the report 
as "a little excessive."  In questioning whether it was 
necessary or accurate to call the GOS' efforts inadequate, he 
reviewed positive developments during the last year, 
including a high-profile international conference his office 
had organized (ref d), GOS promotion of negotiations between 
ISPs and rights holders, a GOS program to reduce use of 
illicit software, and significant declines in the rate of 
software piracy and street piracy.  He said that during the 
visit two weeks ago of Microsoft CEO Steve Ballmer, unlike on 
previous visits Ballmer had no complaints about GOS actions 
against piracy.  He also questioned the U.S. copyright 
industry's statement that Spain has one of Europe's worst 
internet piracy problems, saying that he was not aware of any 
hard data that could be used to compare piracy rates between 
countries.  He cited an International Intellectual Property 
Alliance (IIPA) report as saying that music piracy and 
entertainment software piracy rates had declined, and he said 
Culture Ministry data showed that the piracy rate was below 
IIPA's estimate. 
 
Next Steps and New Law 
---------------------- 
¶4. (SBU) Looking to the future, Ros assured Charge of the 
GOS' determination to address IPR concerns and said his 
office wanted to see what it could do as soon as possible, 
saying this was the best moment for action.  He echoed 
Minister Sebastian's statement that the GOS intended to pass 
a new intellectual property law.  The lead was with the 
Culture Ministry, which had asked Ros' secretariat for 
assistance.  On notice and takedown and the Justice 
Ministry's 2006 Circular, he cautioned that mechanisms in 
U.S. law could not be transferred directly to Spanish law. 
He said he had spoken to the Prosecutor General ("Fiscal 
General"), who had assured him that peer-to-peer file sharing 
in and of itself was not in fact illegal under Spanish law, 
although judicial action was possible if it was proven that 
file sharing was used illegally (i.e., to violate property 
rights).  He added that Spain would need to find other ways 
to protect IPR.  The Charge emphasized that businesses viewed 
the Circular as prejudicing their legitimate efforts to 
protect their property, and he urged Ros to see how the 
Circular could be changed to address these concerns. 
¶5. (SBU) Ros said that unauthorized downloads were a 
difficult topic that posed problems for all countries, and he 
acknowledged that many Spanish users did not see them as 
wrong.  He said his secretariat would consider whether it 
could do "something in this line."  He said his office would 
be looking closely at France's experience.  His impression 
was that to date, France's announced system had not yet been 
put in practice, and it was not entirely clear how or whether 
the system would work.  (Note: As a result of our 
encouragement, Cierco and Soriano both plan to attend Embassy 
Paris' June 2 copyright and counterfeit conference.) 
 
Intragovernmental Coordination 
------------------------------ 
¶6. (SBU) In response to Charge's comments about the 
importance of improved coordination of GOS IPR efforts, Ros 
noted that the existing intellectual property law had 
established an interministerial anti-piracy commission under 
the leadership of the Ministry of Culture.  He thought that 
as part of the new law it might be possible to give that 
commission more visibility and media prominence.  The Charge 
welcomed this possibility.  He stressed the value of 
increased public outreach efforts by the GOS, noting that 
while the French system may not be in place, President 
Sarkozy has laid down a marker about the importance of IPR 
protection. 
 
Coordination with USG and Visit to U.S. 
--------------------------------------- 
¶7. (SBU) Ros agreed to set up a working group with Embassy 
staff to consider IPR issues.  Post and Ros' staff are 
seeking to meet within two weeks.  The Charge encouraged Ros 
to visit the U.S. to discuss its efforts and plans with the 
USG and industry representatives. Ros was very receptive and 
spoke of the possibility of going in June or early July. 
Cierco noted that Spain's rapid growth in internet use meant 
that it should be a potentially attractive market for U.S. 
companies.  Post will follow up separately on plans for a 
trip. 
 
MPA Access 
---------- 
¶8. (SBU) Ros expressed concern at having heard from his 
minister that the new Motion Picture Association (MPA) 
representative in Madrid thought he did not have sufficient 
access to the GOS.  One of the representative's main concerns 
is that he and other content provider representatives are not 
members of the GOS Telecommunications and Information Society 
Advisory Council (CATSI).  Ros acknowledged that the CATSI's 
composition was outdated and no longer realistic, but he said 
it could only be changed by law and that there had not been 
time to do so before the March elections.  He said that the 
GOS hoped to make that change, and he noted that the internet 
service provider association REDTEL also did not participate 
and wanted to do so.  He welcomed the prospect of suggestions 
from MPA or other industry groups. 
 
Deputy Chief of Staff 
--------------------- 
¶9. (SBU) Separately, EconCouns met on May 6 with Minister 
Sebastian's deputy chief of staff, Juan Abascal, to follow up 
on the meeting with the Minister and provide Abascal, who is 
new in his position, with background on USG concerns. 
Abascal brought up the Minister's interest in an Embassy-GOS 
working group and promised to help set one up.  He said First 
Vice President Fernandez de la Vega's office had been heading 
the effort to draft a new IPR law and had been working with 
the Ministry of Culture as well as Industry and Commerce. 
 
Comment 
------- 
¶10. (SBU) Comment:  Although Ros appeared to us at times to 
be focusing on philosophical questions and nonessential 
details, we were encouraged by his determination to make 
progress now that the GOS believes it is politically 
possible.  The drafting of a new law should offer a 
significant opportunity, and we will engage with the Ministry 
of Culture as well as Ros' office.  The interest in raising 
the profile of the interministerial piracy group is welcome. 
While Ros noted several times that the Spanish and U.S. legal 
systems were not compatible and so some of what we wanted 
might not be possible in the way we wanted, our interest is 
in addressing the problem effectively regardless of which 
mechanisms are used.  Interestingly, Ros did not devote much 
time in the meeting to discussing the talks his ministry has 
encouraged between content providers and ISPs.  After several 
weeks of working on process issues, the first substantive 
working group meetings took place this week, and we are 
seeking industry reactions.  We also were pleased with Ros' 
interest in visiting the U.S. and will work with Washington 
agencies and industry groups to arrange a strong program that 
can help advance our interests.  End Comment. 
Llorens