VZCZCXRO9320
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBD #0095/01 1170157
ZNR UUUUU ZZH
R 270157Z APR 09
FM AMEMBASSY BANDAR SERI BEGAWAN
TO RUEHC/SECSTATE WASHDC 4510
INFO RUEHBK/AMEMBASSY BANGKOK 2046
RUEHGP/AMEMBASSY SINGAPORE 3501
RUCNASE/ASEAN MEMBER COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 BANDAR SERI BEGAWAN 000095 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT PASS FOR EAP/MTS/COPPOLAMG, EEB/TPP/IPE/URBANJ 
STATE PASS TO USTR EHLERK, BAER 
STATE PASS TO USPTO 
SINGAPORE FOR FINATT BAKERS 
BANGKOK FOR FCS/NESSJ 
 
E.O. 12958: N/A 
TAGS: KIPR ECON ETRD USTR WTRO BX
 
SUBJECT:  GOVERNMENT OF BRUNEI HOSTS MUCH NEEDED TALKS WITH 
MALAYSIAN RECORDING INDUSTRY 
 
SUMMARY 
-------- 
 
¶1. (SBU) Representatives of Recording Industry Association of 
Malaysia (RIM) were back in Brunei on April 21 to discuss RIM's IPR 
concerns with the Brunei Attorney General's Chambers, Judiciary 
Department, Royal Brunei Police Force, and Royal Customs & Excise. 
After the meeting with GoB agencies in the morning, RIM had an open 
session with vendors in the afternoon, with the support and 
participation of the AGC, MFAT, and Police.  Embassy Commercial 
Assistant was invited to attend the vendor session. RIM stated they 
want to work with GOB but has deep concerns regarding disc piracy. 
GoB officials did note their concerns regarding the perception of 
Brunei as a piracy haven.  RIM seemed pleased with their discussions 
with GOB and there has been some public support as well for IPR 
enforcement. End Summary. 
 
RIM APPRECIATES USG SUPPORT AND WANTS TO WORK WITH GOB 
--------------------------------------------- ---------- 
¶2. (U) RIM's CEO, NF Tan, acknowledged USG's support and assistance 
in advancing IPR issues in Brunei. Prior to presenting an overview 
of RIM and its activities to the audience, Mr. Tan stressed that 
RIM's purpose was to work with GoB and local vendors on a solution 
to benefit the music industry and Brunei.  He stated that his 
presentation was based on facts and figures as a result of RIM's 
survey and monitoring of the Brunei music market. Tan noted that RIM 
only covers the music market, not movies, games, or other 
commodities. 
 
RIM PRESENTS THE FACTS AS THEY SEE THEM 
--------------------------------------- 
¶3. (SBU) In his presentation, Mr. Tan noted that RIM's music 
industry copyright covers Malaysia and Brunei and that there are 48 
music CD outlets in Brunei, with a ratio of 1 shop for every 8000 
residents. He stated that music piracy stood at more than 99 percent 
in 2007, and more than 95 percent in 2009 (including pirated 
ringtones). He stated RIM believes there is a syndicate in Brunei 
that is exporting pirated CDs to neighboring Malaysian towns of 
Limbang and Miri (based on raids carried out in by RIM). Tan 
highlighted that RIM sent legal notices to all 46 pirated music 
shops in November 2008 and that 44 shops still carried pirated music 
CDs as per Feb 26, 2009 survey.  In addition, there are 6 pirated 
music vendors in country with one vendor dubbed the largest pirated 
supermarket in Asia. There are 5 outlets in Brunei contravening 
business law by operating without a business signboard. 
 
SOME SUCCESS 
------------ 
¶4. (U) RIM believes there has been some success following their 
legal notification and discussions with several vendors. One vendor 
with several outlets has stopped sales of music CDs, whereas another 
has vouched to stop selling music CDs when their existing stock has 
been sold out. Unless unfair competition of all pirated music CDs 
are wiped out, the two vendors will not stock (original) music CDs. 
 
QUESTION AND ANSWER SESSION GETS DETAILED 
------------------------------------------ 
¶5. (U) A number of questions were raised during a detailed question 
and answer session with RIM.  In regards to a question about music 
kiosks being allowed to legal copy songs, Mr. Tan indicated that RIM 
is currently in discussions with a prospective local distributor on 
digital music sales, i.e. paying for downloadable songs. This model 
would be more suitable for the current digital climate. A MFAT 
representative voiced their concern with Brunei's alleged exports of 
pirated CDs to Malaysia, in view of Brunei's current standing with 
United States Trade Representative's (USTR) Special 301 review. RIM 
suggested that Government to Government collaboration between the 
Brunei and Malaysia is necessary to tackle the disc piracy issue. 
RIM also pointed out the profits from pirate syndicates are used to 
fund illegal activities. 
 
COMMENT 
------- 
¶6. (SBU) At the end of the session, R. Ramalingan, RIM's General 
Manager, told Embassy Commercial Assistant that RIM had a very good 
meetings with the GoB agencies, and an agreeable solution has been 
reached. Without further details disclosed by RIM, post believes RIM 
has moved forward with GoB enforcement and legal agencies on the 
issue of rightholder's presence and support, a key obstacle 
identified in previous dialogues. In addition, post noted there has 
 
BANDAR SER 00000095  002 OF 002 
 
 
been public support for IPR enforcement in three consecutive issues 
of the opinion page in the local paper, Borneo Bulletin. The hope is 
that these recent positive steps are not simply a short term attempt 
to improve Brunei's standing in Special 301 process but rather part 
of a longer term effort by GoB to improve IPR enforcement. 
 
 
TODD