VZCZCXYZ0002
RR RUEHWEB

DE RUEHNC #0283/01 1200443
ZNR UUUUU ZZH
R 300443Z APR 09 ZDK
FM AMEMBASSY NICOSIA
TO RUEHC/SECSTATE WASHDC 9811
INFO RUEHBS/USEU BRUSSELS
RUEHTH/AMEMBASSY ATHENS 0008
RUEHAK/AMEMBASSY ANKARA 5454
RUEHLO/AMEMBASSY LONDON 1407
RUEHSF/AMEMBASSY SOFIA 0647

UNCLAS NICOSIA 000283 
 
SENSITIVE 
 
SIPDIS 
 
DEPT FOR EUR/SE AND EEB/TPP/IPE (JURBAN) 
 
DEPT PLS PASS TO USTR, USPTO AND LOC 
 
E.O. 12958: N/A 
TAGS: KIPR CY
SUBJECT: CYPRUS: IPR WORKSHOP ON APRIL 9 BRINGS TOGETHER GOVERNMENT 
AND PRIVATE SECTORS AGAINST PIRACY 
 
REF: NICOSIA 154 
 
(U) This cable is sensitive but unclassified.  Please protect 
accordingly. 
 
¶1.  (U) Summary:  On April 9, more than 50 GOC officials and Cypriot 
business representatives discussed ways to improve local enforcement 
of intellectual property rights (IPR) at an all-day workshop 
organized by the Economic/Commercial section and the Cyprus American 
Business Association.  International speakers included a U.S. 
Department of Justice speaker from Sofia, Bulgaria, and private 
sector representatives from the film, music, and satellite TV 
business from Brussels, London, and Athens, respectively.  Local 
speakers represented the Police and Ministry of Commerce as well as 
the software, merchandise and entertainment sectors.  The workshop 
resulted in specific recommendations on improving IPR legislation, 
as well as making the best use of existing laws.  It also generated 
increased cooperation among Cypriot IPR enforcement authorities 
(Police, Customs, and the Ministry of Commerce) and investigated 
ways the private sector could do more to help itself.  Septel will 
discuss a separate workshop on IPR held on April 10 in the area 
administered by Turkish Cypriots.  Both workshops were funded partly 
by the FY09 Business Facilitation Incentive Fund (BFIF) Program. 
End summary. 
 
Workshop Promotes Stronger IPR Enforcement 
------------------------------------------ 
 
¶2.  (U) On April 9, the Economic/Commercial section and the Cyprus 
American Business Association organized a one-day workshop on IPR 
issues in the Government-controlled area of Cyprus.  The workshop 
attracted over 50 participants from the Police, Customs, Ministry of 
Commerce, Parliament, and private sector.  The workshop offered a 
forum for constructive dialog between government authorities and 
industry representatives and helped identify practical ways to 
improve IPR enforcement.  (A full review of Cyprus' IPR practices is 
provided in Post's recent Special 301 submission, per reftel.)  The 
workshop also generated some positive publicity and highlighted the 
fact that piracy hurts Cypriot companies and the Cypriot consumer as 
much as anyone else.  The Embassy organized similar workshops three 
times previously, last in March 2007. 
 
¶3. (U) During the introductory portion of the workshop, the U.S. 
Ambassador, the President of the Cyprus Chamber of Commerce and 
Industry, and Cyprus's Official Receiver and Registrar all delivered 
brief opening remarks highlighting the benefits of strong IPR 
enforcement.  This was followed by substantive presentations from 
several speakers.  Matthew Lamberti, Intellectual Property Law 
Enforcement Coordinator for Eastern Europe for the United States 
Department of Justice (based in Sofia, Bulgaria) provided the 
keynote address.  Other speakers included representatives from the 
Motion Picture Association (MPA), the International Federation of 
the Phonographic Industry (IFPI), a Greek satellite TV provider, the 
Cyprus Police, the Ministry of Commerce's Consumer Protection 
Service (CPS), and Microsoft.  Participants engaged in a lively and 
constructive discussion afterwards, facilitated by a round-table 
seating arrangement. 
 
¶4. (SBU) Participants reported that despite significant progress on 
IPR enforcement in Cyprus -- including introduction of EU-compatible 
legislation, an excellent track record from Customs, and increased 
Police raids -- problems remained.  The level of piracy of CD, DVDs, 
and software, while declining, remained significant.  Furthermore, 
Cyprus seems to be struggling with a rising wave of internet piracy, 
fuelled by increasing numbers of Cypriots obtaining access to 
broadband services. 
 
¶5.  (SBU) The police spearhead IPR enforcement efforts on the 
island.  A 2006 amendment to Cyprus' main anti-piracy legislation 
(Law 59 of 1976) helped Cyprus harmonize fully with EU directives 
2001/84/EC and 2004/48/EC.  The current law provides deterrent 
penalties of up to four years in prison and/or a fine of up to USD 
77,000. 
 
¶6. (SBU) Under Cypriot legislation, the burden of proof lies with 
the legitimate rights owner to prove their ownership of each art 
work fixed on a particular CD or DVD.  Similarly, Cypriot law does 
not allow the sampling of evidence.  In cases involving the seizure 
of hundreds or thousands of pirated items (particularly, CDs and 
DVDs), the authorities' task of establishing authenticity remains 
very arduous as every single track must be checked and documented. 
 
 
¶7.  (SBU) In July 2006, the House Legal Affairs Committee rejected 
Police-initiated amendments that would have reversed the burden of 
proof and allowed sampling of evidence in IPR cases (i.e., 
defendants would be required to demonstrate that their goods were 
legitimate rather than the Police having to show they were 
counterfeit).  Workshop participants recognized that reversal of the 
burden of proof remained politically sensitive.  At the moderator's 
suggestion, they concurred that it made more sense to pursue a 
reversal of the burden of proof only in commeria caes eg. 
invovig more than 0 nits.  Saplngmay be eaie to push 
trough the leisature;th 204 EU CoprihtDirectvecontains 
povsions allwig his, althug E membe sats are notobigd 
toadpt it. 
¶8. (BU) In reen months, egetably, heMP has cut unin to 
1 outries in E urope ncudng Cyprus Geee, andTukey.  In 
Cprs,this deciio has resute i abolihig he positin f a 
ocl xpert assstngthe poic with examinngevdence nd 
estifyngbeore the cur.  Stakeholdrsare curretl considerng 
ays offiling this vod o restreth prosecutngablity oflocal authoritis. 
 
PratialAchievemets 
------------------- 
 
. (SBU Ohe outcoesfrm he worshp include 
- Achievedclser coopeatonbetwee te inistry of Cmmrces 
CS nd thePoic on IP cse.  Specifcaly the CS il try toasis the plie n processngth backlg f onfiscte pracy 
itmsby using hereent Unai Cmmercil raties law wic 
benfis rom anauomtic reversal of the burden of proof. 
 
-- Examined the possibility of allowing Cypriot authorities to use 
more creatively confiscated proceeds from piracy.  IFPI already 
provided sample legislation to Cypriot authorities immediately after 
the workshop. 
 
-- Focused on the growing problem of internet piracy, as more 
Cypriots get broadband internet access.  Internet piracy will 
clearly attract more attention globally over the next few years. 
Inviting Internet Service providers and credit card company 
representatives to future IPR workshops will be helpful in this 
regard. 
 
-- Challenged the wisdom as well as the legality of the rather 
common practice of newspapers and magazines in Cyprus (and Greece) 
giving away free copies of recent (less than two years old) 
audiovisual works. 
 
-- Raised public consciousness of IPR enforcement issues both among 
the workshop participants and the wider society through media 
coverage of the event. 
 
-- Re-examined the problem of piracy/counterfeiting across the Green 
Line, separating (but since 2003, allowing travel and limited trade 
between) the two parts of Cyprus.  Consideration was given to an 
awareness campaign for tourists/expats and making a few 
confiscations of illicit goods from persons traveling from the north 
to the south of the island. 
 
¶10.  (SBU) Additionally, on the margins of the event: 
 
-- The U.S. Department of Justice speaker provided information on 
the biggest pirate websites in Cyprus to the head of anti-piracy 
operations at the Cyprus Police, including a site which is one of 
the 200 most popular sites in the world. 
 
-- The MPA provided the leading Cypriot cinema chain owner with 
anti-piracy trailers to start showing at theaters before films. 
 
¶11.  (SBU) Comment:  By broad consensus of those present, this was a 
very successful event. It brought together people and organizations 
with similar interests from within Cyprus and in the region who 
rarely meet to exchange information. The most significant outcome 
was the decision of a Cypriot MP to introduce new legislation for 
sampling optical discs.  Post will follow up on the various 
suggestions and ideas that came out of this workshop and will report 
accordingly.  End Comment. 
 
URBANCIC