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Viewing cable 09SOFIA37, BULGARIA: IPR EFFORTS LOSE STEAM

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Reference ID Created Released Classification Origin
09SOFIA37 2009-01-23 15:50 2011-08-26 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Sofia
VZCZCXRO3767
PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHNP RUEHPOD RUEHROV RUEHSK RUEHSR RUEHVK RUEHYG
DE RUEHSF #0037/01 0231550
ZNR UUUUU ZZH
P 231550Z JAN 09
FM AMEMBASSY SOFIA
TO RUEHC/SECSTATE WASHDC PRIORITY 5724
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCPDOC/USDOC WASHDC
UNCLAS SECTION 01 OF 02 SOFIA 000037 
 
STATE FOR USTR JCHOE-GROVES, FOR EB/IPE URBAN and MCGOWAN; JBOGER 
AND EUR/CE 
COMMERCE FOR SSAVICH 
DOJ FOR CALEXANDRE 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON KIPR ETRD BU
SUBJECT: BULGARIA:  IPR EFFORTS LOSE STEAM 
 
Ref:  08 Sofia 0522 
 
1.  (SBU) SUMMARY: The Deputy Chief of Mission informed the relevant 
deputy ministers of Culture, Economy and Foreign Affairs January 22 
that, despite modest progress in some areas, Bulgarian IPR efforts 
were not hitting the mark.  In order to improve performance, 
Bulgaria has to take urgent action in two areas: cooperation with 
industry and internet piracy-related prosecutions and legislation. 
End Summary. 
 
COOPERATION WITH INDUSTRY 
------------------------- 
 
2.  (SBU) In 2006 Bulgaria created a model intergovernmental IPR 
Council which, in close cooperation and full partnership with 
industry, spearheaded Bulgaria's efforts on IPR.  Partly as a result 
of the tremendous accomplishments of this Council, Bulgaria was not 
placed on the Special 301 Watch List in 2007 and 2008.  In spring 
2008, a new Deputy Minister of Culture restricted Council membership 
to representatives of government entities and allowed industry 
participation only on a case-by-case basis (reftel).  Instead of 
participating during Council meetings, industry representatives now 
meet separately with the Deputy Minister, who then, in theory, 
raises industry concerns at Council meetings. 
 
3.  (SBU) Industry representatives, led by the Bulgarian Association 
of Music Producers and the Business Software Alliance, say they have 
effectively lost their voice on governmental IPR matters.  At the 
same time, the Council has lost focus and dynamism.  Key ministries, 
including Economy, Finance and Justice now send lower level 
officials who do not actively take part and often do not bother to 
show up.  Embassy representatives have raised the issue on numerous 
occasions with the responsible Deputy Minister of Culture, as well 
as with the Minister of Culture, but it has not been resolved. 
 
LACK OF PROGRESS ON PROSECUTING INTERNET PIRACY CASES 
--------------------------------------------- ------- 
 
4.  (SBU) In the last two or so years, the Cyber Crime Unit of the 
Ministry of Interior has conducted a number of successful raids on 
pirate internet sites, including in December 2006, March 2007, and 
June 2008.  This unit has also been able to shut down a number of 
pirate sites, in some cases for good.  In addition, in November 
2008, the Bulgarian National Investigative Service conducted a 
training conference for investigating magistrates and other 
enforcement officials from around the country on a variety of 
topics.  DOJ participated in the conference, providing guidance on 
-- among other things -- investigating and prosecuting the most 
heavily used internet pirate sites, known as BitTorrent trackers. 
 
5. (SBU) Unfortunately, despite successful investigative efforts 
taken against the largest pirate sites in Bulgaria, only one case 
has been presented to court.  This case is particularly significant 
because it involves arenabg.com, the second biggest pirate site in 
Bulgaria and one of the most popular websites in the country. 
Moreover, the arenabg.com prosecution is possibly the first 
BitTorrent criminal court case in Eastern Europe.  Unfortunately, 
the judge assigned to the case has now returned it twice to 
prosecutors because of problems with the indictment.  In addition, 
at least two more cases involving BitTorrent trackers -- including 
one against zamunda.net, the largest pirate site in Bulgaria -- are 
still in the investigative stage.  It is unclear when prosecutors 
will present them to court.  Worse, even though arenabg.com and 
zamunda.net were shut down temporarily after raids, they are back in 
business.  They are both among the 15 most popular sites in 
Bulgaria. 
 
6.  (SBU) Representatives of the relevant ministries on the IPR 
Council rightly argue that they do not control Bulgaria's 
independent but inefficient court system.  But a dynamic IPR 
Council, working with industry, could develop ways to improve the 
handling of internet piracy cases, support an already-functioning 
informal task force to exchange best practices on internet piracy 
cases, and encourage more participation and input from enforcement 
authorities.  Despite our urging, these efforts have not taken 
place. 
 
DEBILITATING COURT DECISION ON ACCESS TO DATA 
--------------------------------------------- 
 
7.  (SBU) DCM expressed concern to the Deputy Ministers of Culture, 
Foreign Affairs and Economy over the November 11 Supreme 
Administrative Court's decision to strike down an article in 
"Ordinance 40" to the Act on Electronic Communication, legislation 
passed to harmonize Bulgarian legislation with relevant EU 
directives.  This article guaranteed the right of the competent 
 
SOFIA 00000037  002 OF 002 
 
 
directorate at the Ministry of Interior to access data stored by 
Internet Service Providers on behalf of their customers -- an 
essential tool for obtaining evidence in internet piracy cases, not 
to mention other types of crime involving computers.  The Court 
struck down the data access article as a violation of constitutional 
rights to information privacy. 
 
8. (SBU) Until the problem identified by the Supreme Administrative 
Court is fixed, the Court's decision could deal a crippling blow to 
the ability of the police to investigate internet piracy and other 
computer crimes.  While the Intergovernmental IPR Council does not 
have control over the court decision, it could still play a 
constructive role here.  For example, the Council could provide 
input to develop a legally sound version of the data access article, 
one that gives law enforcement legitimate access to criminal 
evidence but still protects privacy rights.  Moreover, a dynamic IPR 
Council could also support efforts by industry to encourage ISPs to 
take responsibility for the content on their sites. 
9.  (SBU) Comment:  Bulgaria's judicial system is infamous for 
inefficiency and lack of transparency.  There are no quick fixes. 
But reinvigoration of the government's once-model IPR Council is 
critical.  The Deputy Minister in charge of the Council won't budge 
from a very legalistic and procedurally-narrow stand.  The IPR 
Council has both symbolic and substantive importance.  It alone, 
though, can't compensate for the judicial logjam.  But it can 
demonstrate greater activism and determination on the top 
priorities.  As a result, despite a successful recent track record 
of IPR-related inspections, raids and seizures, Bulgaria's IPR 
regime and reputation have taken a hit. 
 
MCELDOWNEY