VZCZCXRO0985
OO RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV RUEHSR
DE RUEHTH #0283/01 0641658
ZNR UUUUU ZZH
O 051658Z MAR 09
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3328
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHIK/AMCONSUL THESSALONIKI PRIORITY 2045
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 06 ATHENS 000283 
 
SIPDIS 
 
DEPT FOR EUR/SE - GOODMAN, SCARLATELLI; DEPT FOR 
EEB/TPP/IPE - JURBAN; DEPT PASS TO USTR - JENNIFER GROVES, 
LESLIE YANG; DEPT PASS TO USDOC - HILLEARY SMITH; DEPT PASS 
TO USPTO - MICHAEL SMITH 
 
E.O. 12958: N/A 
TAGS: ECON ETRD GR KIPR
SUBJECT: 2009 SPECIAL 301 REVIEW - GREECE 
 
REF: A. ATHENS 1360 
     ¶B. ATHENS 1456 
     ¶C. BOUZIS-ARGIROPOULOU 09-03-2008 EMAIL 
     ¶D. GREECE'S FEBRUARY 2009 - COMPREHENSIVE ACTION PLAN 
 
ATHENS 00000283  001.2 OF 006 
 
 
Summary 
-------- 
 
¶1.  (SBU) The Greek Government - particularly the Ministry of 
Foreign Affairs (MFA) - responded to Greece's placement on 
the U.S. Special 301 Watch List in 2008 with a genuine effort 
to understand and begin addressing USG concerns.  It has 
welcomed enhanced dialogue with a range of USG agencies, 
including State, the Department of Commerce, its U.S. Patents 
and Trademark Office (USPTO), USTR, as well as post.  As a 
result of this attitude, USG and industry groups have 
observed greater receptivity from the Greek Government to 
constructive engagement on IPR. 
 
¶2.  (SBU) The most significant milestone reached this year 
was the MFA's establishment of an Interministerial 
Coordinating Committee (IMC) on IPR convened under the 
leadership of the Secretary General for International 
Economic Affairs.  This Committee convened five times over 
the course of the year and published in February 2009 a 
comprehensive summary of GoG efforts to support IPR as well 
as an Action Plan outlining a range of actions the GoG is 
contemplating for the future. 
 
¶3.  (SBU) This cable focuses on the results of the USG's IPR 
engagement with Greece, keyed to action areas highlighted by 
the USG's Special 301 Initiative Document.  In spite of the 
good work of the IMC, we still believe it would be premature 
to remove Greece at this time from the Special 301 list.  As 
impressive as Greek efforts were this year, they were uneven, 
a fact even the GoG itself recognizes in the Action Plan. 
The Plan clearly states the need for the GoG to improve 
existing measures to eradicate product piracy and 
counterfeiting and "...reach a higher level of coordination 
among the law enforcement authorities."  We can best support 
Greece by acknowledging its efforts, prominently represented 
by the Action Plan and by, most importantly, encouraging the 
GoG to implement the Plan's suggestions.  End Summary. 
 
The 301 Special Initiative and Greece's Response 
--------------------------------------------- --- 
 
¶4.  (SBU) The USG heightened its engagement with the GoG on 
IPR issues in 2008.  In September 2008, visiting USDOC 
Hilleary Smith and A/Dep EconCouns passed to the GoG a 
"Special 301 Initiative" document consisting of a list of 
steps derived from previous recommendations on how Greece 
could demonstrate that it has improved the protection and 
enforcement of IPR (reftel C).  These steps evolved from 
discussions and consultations with the GoG and rights holders 
in the Economic and Commercial Cooperation Commission (ECCC). 
 
 
¶5.  (SBU) The MFA responded in September 2008 that they would 
consider how best to react to these measures.  The National 
Action Plan (NAP) was apparently drafted with the Special 
Initiative in mind, placing an emphasis on gathering and 
processing statistical data, raising public awareness, and 
increasing training for judiciary and law enforcement 
authorities.  The Plan is an achievement, given the difficult 
context of the competing political and commercial priorities 
of virtually all stakeholders, which so often undermine 
national strategic goals in Greece, including IPR. 
 
 
¶I. Background on the Inter-Ministerial Committee 
--------------------------------------------- --- 
 
¶6.  (SBU) In order to increase senior-level attention to IPR 
issues, the GoG created the IMC in April 2008 pursuant to a 
Ministry of Foreign Affairs (MFA) decree.  Originally, IPR 
issues were discussed informally and at an ad-hoc basis by an 
OPI-initiated Athens Task Force, first established in 2006. 
The IMC, which held its first meeting in May 2008, is chaired 
by the Secretary General of the MFA's General Secretariat for 
Economic and Commercial Affairs.  Members at the SecGen level 
include the Ministries of Development, Culture, Interior, 
Justice, Customs, and Finance.  The IMC coordinates the 
National Action Plan (NAP), enforcement, and reporting on 
statistics.  The IMC finalized the NAP on ebruary 19, 2009. 
 
 
ATHENS 00000283  002.2 OF 006 
 
 
¶7.  (SBU) The IMC created a working-level group (WLG) that 
met five times, beginning in September 2008.  The IMC tasked 
the working-level group (WLG) with studying Greece's current 
legal framework, registering problems and presenting 
proposals on how to face these problems, and compiling a 
comprehensive action plan.  MFA representative Christina 
Argiropoulou said the IMC took industry input into 
consideration as it conducted its work.  At the same time, 
industry is concerned that the newly-formed IMC does not 
include them in their meetings, unlike the original Athens 
Task Force on IPR. 
 
II.  Coordination of Enforcement 
Efforts: Mixed Units Approach 
-------------------------------- 
 
¶8.  (SBU) -- THE PLAN ON ENFORCEMENT: The Action Plan, in of 
itself, is a first step towards the coordination of 
enforcement efforts.  By outlining the role of each pertinent 
GoG body, both policy and ground enforcement, the GoG assigns 
accountability for the activities associated with the 
enforcement and protection of IPR in Greece.  The GoG is 
examining "alternative methods on enhancing coordination 
between Law Enforcement Authorities" especially the use of 
mixed units, also called joint enforcement teams comprised of 
the Municipal Police and the tax police (YPEE) from the 
Ministry of Economy and Finance.  Below, we discuss the 
results from the mixed units in Athens and Thessaloniki.  We 
encourage strengthening and standrdizing the operations of 
these units. 
 
¶9. (SBU) -- RESULTS OF MIXED UNITS OVERALL AND IN ATHENS: 
The local representative of the Motion Picture Association of 
America (MPAA), EPOE, reports that the municipal police do 
not fully participate in the mixed units and often do not 
take their responsibility to confiscate counterfeit goods in 
a serious manner.  This is likely stymied by bureaucratic 
requirements, such as the need for an interagency destruction 
committee to inventory and oversee the destruction of 
counterfeit goods.  Post has also received reports that the 
unarmed municipal police do not apprehend street vendors for 
fear of attack or reprisal.  (Note: The Greek public remains 
vehemently opposed to IPR enforcement activities.  End Note.) 
 At this time, the jurisdiction of these units is limited to 
the borders of the Municipality of Athens with a "special 
emphasis, as expected, on the Historical Center of Athens" 
(reftel D).  (Note:  This is where the most egregious 
examples of IPR violations can be found.  End Note.) 
 
¶10.  (SBU) -- RESULTS ON MIXED UNITS IN THESSALONIKI: In 
Thessaloniki (Greece's second largest city), we have not seen 
evidence of mixed-unit law enforcement efforts.  Senior 
police officials have assured us, however, that the municipal 
police, special control unit officers (YPEE) and Hellenic 
(regular) police do cooperate on an ad hoc basis to fight 
street vendors selling counterfeit CDs, DVDs, and other 
goods.  At a February 2008 meeting, representatives of 
Thessaloniki municipal police, Hellenic Police and YPEE told 
the Senior First Instance Prosecutor of Thessaloniki and 
representatives of MPAA and ConGen Thessaloniki, however, 
that they lacked clear instructions from "political 
authorities" on how they should conduct mixed unit patrols 
against street vendors and sales of counterfeit goods. 
 
¶11.  (SBU) -- RESULTS ON ENFORCEMENT IN THESSALONIKI: Greek 
political and police officials have expressed a range of 
reasons they are unable adequately to enforce IPR provisions 
of Greek law.  These reasons include the lack of personnel 
and resources to conduct mixed unit patrols on any regular 
basis.  The Mayor of Thessaloniki told ConGen officials in 
March 2008 the municipal police force is too small to devote 
significant time to catching illegal vendors, and that 
improved enforcement would require more help from Hellenic 
Police.  Senior Hellenic Police officials have expressed 
concern about a public backlash against arrests of street 
vendors, since the public sympathizes with the young 
immigrants who comprise the majority of vendors.  Some 
Thessaloniki municipal police have told us that they lack not 
only weapons but also the speed and stamina necessary to 
catch vendors, who usually run away when they see police 
approaching.  ConGen has seen on one occasion two municipal 
police running for over two blocks, but failing to catch a 
youthful vendor carrying stacks of DVDs and CDs in both 
hands. 
 
¶12.  (SBU) Sometimes individual Greek officials make a 
 
ATHENS 00000283  003.2 OF 006 
 
 
concerted effort to address IPR enforcement problems, only to 
move on to other postings.  First Instance Prosecutor of 
Thessaloniki Vassilis Floridis took an active interest in IPR 
enforcement in 2008.  He wrote letters to the Mayor and head 
of northern Greek police urging them to enforce IPR-related 
laws and decrees, including with mixed unit patrols.  He also 
made public statements calling for police to arrest vendors 
of counterfeit and pirated goods.  The Prosecutor submitted a 
proposal for the creation of a new financial police force 
that (unlike the municipal police) would have the authority 
to make arrests and that would be dedicated to fighting IPR 
and other economic crime.  He was transferred at the end of 
2008 to another position with no authority for pursuing such 
initiatives.  Two local business chambers wrote letters and 
made public appeals in 2008 calling on municipal and police 
authorities to stop street vendors. 
 
III.  Regular Updates to USG on 
Statistical and Qualitative Updates 
----------------------------------- 
 
¶13.  (SBU)  While we have been impressed by the GoG's 
enhanced attention to IPR issues in 2008, the GoG has not 
helped itself by severely controlling information flow on IPR 
developments.  In several attempts by Post to obtain updates 
on progress, MFA officials responded that they required 
clearance from the IMC before releasing any details on Action 
Plan developments to the USG.  Obtaining this information 
almost inevitably requires senior-level approaches.  From 
time to time, the MFA and other GoG bodies have provided 
general highlights on broader IPR issues, which have been 
reported by Post. 
 
¶14.  (SBU)  The GoG has a poor record of collecting and 
disseminating statistics on IPR violations.  In his 
presentation to the July 2008 ECCC, Secretary General 
Skylakakis highlighted the importance he ascribed to 
addressing this problem.  This issue remains a sensitive one. 
 As reported in the previous year, the GoG does not have a 
single source of information for IPR-related statistics.  The 
Ministry of Justice does not keep a comprehensive database 
regarding prosecutions and penalties for IPR violations. 
Rather, the Hellenic Copyright Organization (OPI) gathers all 
copyright cases and maintains a database of copyright 
infringements fed in by law enforcement authorities on an ad 
hoc basis.  The police are required to submit lengthy and 
detailed information on the names of all the CDs and movies 
confiscated.  Reportedly, the police are less likely to 
submit this time-consuming information if a large number of 
products is confiscated.  OPI said that it was reviewing 
offers from companies who could handle the electronic 
management of the database.  Separately, the MFA reported in 
December that it was applying for EU funding to compile a 
statistical database of IPR cases in order to better punish 
repeat offenders. 
 
¶15.  (SBU) In spite of these ongoing difficulties, the Action 
Plan submission represents an important step forward as it 
conveys a range of important, if still incomplete, 
statistical information on IPR seizures and other data. 
According to the statistics provided by the GoG on 
enforcement, we noted the following information on IPR 
confiscations and cases in 2008: 
 
-- mixed-units (municipal and Hellenic police forces) made 
774 confiscations with almost 47,000 euros of fines, 
-- municipal police made 357 confiscations, including 50,100 
CDs, 14,150 DVDs, and 16,500 handbags, 
-- customs confiscated 83 cases containing 855,784 goods, and 
 
-- Hellenic Police dealt with 1,116 cases of IPR violations 
of DVDs and CDs. 
 
IV.  Public Awareness Efforts 
----------------------------- 
 
¶16.  (SBU) OPI can be credited with the majority of public 
awareness efforts in Greece, which are targeted to a broad 
audience of youth, academics, civil servants, and businesses 
entities.  OPI has used media outreach, internet, brochures, 
and conferences to highlight IPR issues and raise awareness 
among Greek communities.  Post commends these efforts and 
believes that continued campaigns, together with greater 
enforcement, can generate greater understanding of and 
respect for IPR, especially among the youth, who are the 
highest users of internet and the target market for illegally 
 
ATHENS 00000283  004.2 OF 006 
 
 
copyrighted material.  OPI's public outreach efforts in 2008 
included presentations and conferences at universities, 
online and print educational guides on IPR, and various 
IPR-awareness raising events. 
 
¶V.  Foster Cooperation between ISPs and Rights Holders 
--------------------------------------------- --------- 
 
¶17.  (SBU) The GoG expresses in the Action Plan the 
difficulties it is having in addressing internet piracy.  It 
notes, for instance, that strict data-privacy laws prevent 
the GoG from actively pursuing Internet service providers to 
target copyright infringers.  (Note:  Greece has a 
sensitivity to the collection of personal information due to 
its period under a military dictatorship from 1967-1974.  End 
Note.)  ISPs are legally prohibited from disclosing their 
subscribers' names or physical addresses without a court 
order.  Greek ISPs do not cooperate with right holders group 
for fear of losing business.  For its part, industry 
continues to encourage a graduated-response program to shut 
down accounts without the need for releasing personal 
subscriber information.  The Association of Greek Producers 
of Phonograms (IFPI) reports that the Vice-Chairman of the 
Greek National Regulating Authority promised to schedule a 
meeting with the ISPs and copyright organizations to discuss 
the issue.  We believe this problem will continue to plague 
the GoG.  According to industry reports, the downloading of 
illegal software and copyrighted content is anticipated to 
increase as internet penetration rises.  At present, 35 
percent of the population, or 3.8 million people, use the 
internet, a low figure by EU standards. 
 
¶18.  (SBU) The MPAA was one of the industry organizations 
closely following the ISP issue; however, Post was informed 
that the MPAA plans to shut down its offices in 11 countries, 
including Greece, due to budget constraints.  The MPAA has 
decided to focus on anti-camcording legislation in key target 
markets.  As a result, we believe that this will limit 
industry's ability to liaise with ISPs on this important 
issue. 
 
VI.  Increase Judicial Training 
------------------------------- 
 
¶19.  (SBU) The Greek Government has worked hard to raise 
awareness of judges to IPR issues.  In particular, OPI 
co-organized with Post a February 20 USPTO-roundtable in 
Athens on the enforcement of copyright law.  Over 35 judges 
participated in the roundtable, with over 15 judges from 
outside of Athens.  This is the second in a series of events 
designed to sensitize judges to the challenges and issues 
involved in copyright law.  In June 2008, USPTO and OPI 
organized an international conference on the topic of 
"Copyright Policies and the Role of Stakeholders".  The event 
included representatives from the EU and European 
universities.  The MFA has also planned an upcoming IPR 
conference in April for prosecutors on copyright law.  Post 
views these events as a positive effort on the part of the 
GoG to bring attention to IPR issues. 
 
VII.  Administrative Fines and Confiscation Measures 
--------------------------------------------- ------ 
 
¶20.  (SBU) While the GoG has begun the limited imposition of 
administrative fines, it faces ongoing challenges in 
standardizing fines.  As we discuss in paragraph 26, the GoG 
has had better success with administrative fines in business 
software.  In 2008, OPI collected data on 400 infringements 
engendering fines across the board, as announced by the 
control services, also known as the tax police, who have the 
responsibility for imposing fines.  Industry reports that 
suspects prefer to ask for a trial, which takes several years 
to resolve, rather than agreeing to pay a standard fine. 
MPAA's Greek representative (EPOE) has also complained to 
post that Greek judges have not yet applied industry's 
recommendations to use standard and deterrent penalties to 
copyright cases in their courtrooms.  In general, Greek 
judges tend to issue light penalties resulting in suspended 
sentences.  EPOE believes the use of standard penalties would 
send a strong signal to would-be infringers of potential 
punishment. As reported above, OPI is the only source for the 
collection of data on GoG's imposition of administrative 
fines and it relies heavily on the information provided by 
law enforcement authorities. 
 
VIII.  Enforcement and Prosecution of Penalties 
 
ATHENS 00000283  005.2 OF 006 
 
 
--------------------------------------------- -- 
 
¶21.  (SBU) Industry continues to highlight that Greek courts 
do not adequately enforce copyright law.  At a February 20 
USPTO-funded judicial roundtable, Greek judges complained of 
an enormous backlog of cases and were impressed to hear from 
visiting U.S. Judge Michael Chagares that only 10 percent of 
cases in the U.S. court system actually go to trial.  They 
explained to Judge Chagares that all of their cases go to 
trial which contributes to the congestion and backlog of 
cases in the court system.  Greek judges also said that they 
were less inclined to apply deterrent penalties to the poor 
immigrants that appear in their court rooms, whom they 
perceive to be single-operators trying to feed their 
families.  Defendants that face more severe penalties tend to 
pursue tactics such as filing an appeal or not appearing for 
their scheduled hearing, further delaying a decision on their 
sentencing. 
 
IX.  Building up Capacity and Training 
Law-Enforcement and Customs 
-------------------------------------- 
 
¶22.  (SBU) Greece places a priority on training enforcement 
authorities.  The NAP outlines a plan to train 200 police 
officers on the topic of "financial crime" in which IPR is to 
be included.  In addition, the Customs Services has 
identified three programs on IPR to be included into the 
program of the Ministry of Finance Training School (SEYYO) 
while the tax police (YPEE) submitted a proposal for an 
individualized program on "Protection of IPR" in regional 
areas of Greece.  In 2008, YPEE worked with OPI and BSA to 
provide training to enforcement authorities on illegal 
software and IPR protection.  IIPA identified the area of IPR 
training and education as a key area for positive 
collaboration between industry, the USG, and the GoG.  In 
April 2008, OPI co-organized with ConGen Thessaloniki an 
educational seminar on counterfeited goods to law enforcement 
authorities. 
 
¶23.  (SBU) Within the Special Initiative, the Hellenic 
Customs Service are asked to work toward effectively 
controlling the import of pirated and counterfeit goods and 
regularly engage with neighboring countries.  As a result, 
the GoG has indicated in its Plan that special customs 
control units should be responsible for activities on the 
border. 
 
¶X.  Combating Software Piracy 
------------------------------- 
 
¶24.  (SBU) Of all its IPR-related efforts, the GoG's actions 
against software piracy appear to have been the most 
effective.  As we discuss in the following paragraphs, their 
efforts have been concentrated in the private-sector, where 
they have succeeded in applying some administrative fines. 
The Special Tax Police (YPEE) provided the USG in September 
with a list of the number of investigations of the illegal 
use of software by private sector companies.  According to 
Greece's national action plan, the YPEE, issued 224 orders in 
2008 to audit companies using illegal software.  137 
companies were reportedly investigated and 15 companies were 
found in breach of IPR laws.  They sent two waves of letters 
in 2008 to small and medium-sized companies requesting that 
they provide information on their software use.  YPEE 
evaluated the responses, and conducted an undisclosed number 
of raids followed the letters. 
 
¶25.  (SBU) Industry commends the GoG on their action and 
encourages them to continue the momentum on this issue.  BSA 
has told us that such raids send a strong signal to the 
companies engaging in copyright infringement and has urged 
their increased use by the GoG.  The International 
Intellectual Property Alliance (IIPA) praised YPEE's work in 
past years, stating in their submission, "BSA notes that the 
level of software piracy remains high, but has declined 
slightly in recent years (from 61 percent to 58 percent in 
2008)...Much of this decline over the last few years may be 
attributable in part to the work of the Tax Police (YPEE) and 
their sending software audit letters to small- and 
medium-sized businesses in Greece."  IIPA said YPEE could be 
even more effective by imposing standard administrative 
fines. 
 
¶26.  (SBU) In general, administrative fines have been more 
difficult to impose across the board.  As we noted in 
 
ATHENS 00000283  006.2 OF 006 
 
 
paragraph 20, suspects are able to get a stay of the 
imposition of these fines, by asking for a court case.  The 
YPEE has had better success with the imposition of 
administrative fines on companies with pirated software.  We 
will continue to follow up with BSA and the tax police on 
this information. 
 
¶27.  (SBU) Although the software piracy efforts have yielded 
the most results, they have been concentrated in the 
private-sector.  The use of unlicensed software is widespread 
in the public sector, according to reports from industry, 
although some software companies reported to Post that they 
believe public procurement is conducted according to EU 
regulations, and is transparent, in theory.  As reported in 
reftel A, YPEE has complained that it is not able to hold 
ministers accountable for violations in their ministries and 
it would take up extensive political capital and resources to 
undertake an audit of Greece's large bureaucracy. 
 
¶28.  (SBU) In a recent development concerning alleged public 
sector software piracy, a U.S. software firm in 2007 
initiated a lawsuit against a Greek public sector 
organization, which allegedly replicated its software without 
obtaining the necessary licenses.  In 2008, the Greek public 
sector organization counter-sued the company for making false 
and slanderous statements and for the malfunctioning of the 
software, asking for damages in excess of 100 times the 
amount specified in the original suit by the U.S. software 
firm. 
 
Comment 
------- 
 
¶29.  (SBU) While Post does not recommend that Greece be taken 
off the Special 301 list, it believes progress has been made 
over the past year.  This should be recognized in the 301 
report and other public statements.  We must not 
underestimate the Ministry of Foreign Affairs' efforts 
spearheading the IMC, calling IMC meetings over five times in 
2008, organizing a comprehensive and thorough report, 
essentially getting consensus from multiple agencies and 
ministries.  Nevertheless, we believe it is important to see 
progress reflected in accurate, quantitative measurements of 
piracy. 
 
¶30.  (SBU) We are struck by the GoG's change in attitude in 
the NAP from previous years, as it openly admits concerns on 
its own IPR record and questions how best to move forward to 
implement a stronger IPR regime.  The USG should take 
advantage of this opportunity by calling on the GoG in 2009 
actually to implement the Action Plan.  This includes: 
encouraging the Ministry of Justice to compile statistics and 
data on fines and sentencing on IPR cases; continued 
follow-up by the Tax Police on software piracy; and increased 
training of judicial and enforcement authorities. 
 
¶31.  (SBU) On this last item, we believe that USG should 
continue its support of workshops and roundtables of the 
judicial and law enforcement arms.  Specifically, we could 
strengthen and regularize enforcement by hosting workshops 
for the joint action teams (police and municipality police). 
In addition, we believe we could support the GoG in 
increasing the effectiveness of the judiciary arm through an 
inter-governmental database, one that would collect 
statistical information on IPR violations as well as 
copyright cases, and could be used to track repeat offenders. 
 
¶32. (SBU) In the same vein, it was a close call this year 
given the significant amount of work that Greece has done. 
Greece deserves credit for its hard work in a politically 
contentious climate and should be encouraged to keep the 
momentum on this issue.  If they are able to implement their 
National Action Plan, we should consider removing them from 
the Watch List.  End Comment. 
SPECKHARD