VZCZCXYZ0001
RR RUEHWEB

DE RUEHNC #0288/01 1201201
ZNR UUUUU ZZH
R 301201Z APR 09
FM AMEMBASSY NICOSIA
TO RUEHC/SECSTATE WASHDC 9816
INFO RUEHBS/USEU BRUSSELS
RUEHTH/AMEMBASSY ATHENS 0010
RUEHAK/AMEMBASSY ANKARA 5456
RUEHLO/AMEMBASSY LONDON 1409
RUEHSF/AMEMBASSY SOFIA 0649

UNCLAS NICOSIA 000288 
 
SENSITIVE 
 
SIPDIS 
 
DEPT FOR EUR/SE, EB/IPC, AND EEB/TPP/IPE (JURBAN) 
 
DEPT PLS PASS TO USTR, USPTO AND LOC 
 
E.O. 12958: N/A 
TAGS: KIPR CY
SUBJECT: CYPRUS: APRIL 10 SEMINAR STRIVES TO FIGHT IPR PIRACY IN 
AREA ADMINISTERED BY TURKISH CYPRIOTS 
 
REF: NICOSIA 154 
 
(U) This cable is sensitive but unclassified.  Please protect 
accordingly. 
 
¶1.  (SBU) Summary:  On April 10, more than 70 Turkish Cypriot 
professionals from various sectors attended a seminar on how to 
improve IPR legislation and enforcement in the area administered by 
Turkish Cypriots.  The seminar was co-sponsored by the Embassy and 
the Turkish Cypriot Chamber of Commerce, which hosted the event. 
The seminar generated a considerable amount of public awareness on 
the need for stronger IPR protection.  International speakers 
included a U.S. Department of Justice official and private sector 
representatives from the film, pharmaceuticals, and risk management 
sectors from Brussels, Istanbul, and London, respectively.  Local 
speakers represented the software and cinema sectors.  (Note: the 
U.S. does not recognize the self-proclaimed "Turkish Republic of 
Northern Cyprus."  To reflect this, any references to official 
"TRNC" bodies are placed in quotation marks. End note.)  End 
summary. 
 
Background 
---------- 
 
¶2.  (SBU) Currently, Turkish Cypriot legislation on IPR is very weak 
and antiquated (dating to the UK Colonial era) and even this 
legislation is rarely enforced.  Piracy is well-established and 
accepted in the area administered by Turkish Cypriots.  Pirated CDs 
and DVDs, as well as counterfeit merchandise, are the norm.  (A full 
review of Cyprus' IPR practices is provided in Post's recent Special 
301 submission, per reftel.) 
 
¶3.  (SBU) Against this backdrop, the Embassy organized on April 10 a 
seminar at the Turkish Cypriot Chamber of Commerce on strengthening 
IPR protection with an emphasis on countering the idea that this 
activity does no harm to Turkish Cypriot society.  The seminar was 
held in conjunction with an IPR workshop organized by the Embassy in 
the government-controlled area of Cyprus on April 9 (see Septel). 
Both workshops were funded partly by the FY09 Business Facilitation 
Incentive Fund (BFIF) Program.  The Embassy had organized similar 
workshops north and south of the "Green Line" separating the two 
sides several times in the past, last in March 2007. 
 
¶4.  (SBU) The aim of the seminar was to create greater awareness in 
Turkish Cypriot society of the need for modern IPR legislation and 
associated enforcement and to influence local decision makers 
towards this end.  We believe the seminar achieved these goals. 
 
Seminar Outline 
--------------- 
 
¶5.  (U) At the opening of the seminar, the Ambassador delivered 
brief remarks, along with the Vice-President of the Turkish Cypriot 
Chamber of Commerce. (Note: It is significant that the premier 
business organization in north Cyprus demonstrated support for new 
legislation, rather than supporting its members who are involved 
with retailing pirated or counterfeit goods. End Note.) 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 explaining the damage 
IPR violations do to an economy's economic growth and the link such 
activity has to organized crime.  Other speakers included 
representatives from the Motion Picture Association (MPA) in 
Brussels, who spoke about internet piracy, and from the 
pharmaceuticals sector in Istanbul who discussed the danger to 
consumers of counterfeit drugs.  Local speakers represented the 
software and cinema sectors, both of which are in dire economic 
straits because of unrestrained piracy. 
 
¶6.  (SBU) Participants engaged in a lively and constructive 
discussion afterwards. It offered a forum for stakeholders whose 
rights are being directly violated to express their views to a 
diverse audience comprised partly of "government" employees.  It 
also gave an opportunity for debate for some NGOs that argued, given 
the "enforced isolation" of north Cyprus, that Turkish Cypriots "had 
the right" to violate others' IPR. 
 
¶7.  (U) The seminar attracted over 70 professionals mainly from the 
private sector, particularly attorneys and NGO representatives, but 
also several officials from the Turkish Cypriot administration, 
including the "Undersecretary" from the "Ministry of Finance," and 
officials from the "Department of Customs," the "Trade Department," 
 
 
and the "State Investment Agency." 
 
¶8.  (SBU) Highlights of the discussion follow: 
 
-- Moderator and leading Turkish Cypriot IPR lawyer Akan Gurkan 
noted that much EU aid, now and in the future, would depend partly 
on IPR law enforcement. 
 
-- The owner of a leading local cinema chain noted that the existing 
broadcasting law was not functioning properly, and complained about 
illegal competition from local TV channels transmitting pirated 
films.  Local TV stations do not pay royalties or licensing fees 
even to local artists.  Hundreds of DVD clubs sell and rent all the 
latest movie releases before they are shown in local theatres, 
printing copies to order.  Internet piracy is also sentative of the music bu3point 
that local artists` come together to claim@.  He stressed that tryinQy would not work. A TurkiQined 
bitterly that he e!hs work. 
 
-- A British r called attention to the@ with piracy.  Economies Qion in respecting other pQrty are 
doomed to medio#`t piracy is often 
assoc`ounts of money involved) @cluding terrorism - citinQ 
 
-- One participant repoQ impossible to find 
non-tware on the market.  He a`ufacturers produced pirat 
while other counterfeit Qd from abroad, 
mainly fQesentative of a Turkish c! company (which is being 
sued for piracy itself) reported that his company had acquired the 
rights to transmit to the north only to learn that its signal was 
being re-transmitted illegally through cables laid out from one 
user's home.  A judge who was asked to rule on this practice said 
that it was legal and that there was nothing he could do about it. 
 
 
-- A leading Greek Cypriot lawyer who attended the seminar noted 
that the UN Annan Plan for the reunification of Cyprus (which was 
accepted by the Turkish Cypriots but rejected by Greek Cypriots in 
April 2004) contained an excellent model for modern IPR legislation, 
which the Turkish Cypriot administration could adopt as a step 
towards harmonizing its laws with the EU, if it had the political 
will. 
 
Achievements 
------------ 
 
¶9.  (SBU) The seminar: 
 
-- Raised, once again, the issue of blatant IPR violations in the 
area administered by Turkish Cypriots and highlighted the need for 
change. 
 
-- Helped get Turkish IPR NGOs more involved in the Turkish Cypriot 
community, lobbying for positive changes. 
 
-- Facilitated cooperation on IPR issues between leading Turkish 
Cypriot and Greek Cypriot IPR lawyers. 
 
-- "Government officials" discussed the fact that, without better 
IPR protection, the majority of computer science graduates from 
Turkish Cypriot universities would inevitably have to emigrate to 
earn a living. There is growing awareness among economists and some 
businessmen in the north that future economic growth will depend on 
becoming a more knowledge-based economy. 
 
Other Outcomes 
-------------- 
 
¶10.  (SBU) Piracy/counterfeiting across the Green Line remains a 
serious problem.  Since 2003, restrictions on trade across the Green 
Line were eased to encourage legitimate trade between the two parts 
of Cyprus.  However, this also opened the door to a growing flow of 
pirated goods from north to south.  During the margins of the event, 
 
the U.S. Department of Justice speaker took the opportunity to walk 
around in the northern part of Nicosia to get a feel for the piracy 
situation first hand.  He noticed that much of the 
counterfeiting/piracy in the north focused on the tourist areas 
(e.g. just north of the Ledra Palace crossing in the old part of 
Nicosia, as well as in Kyrenia).  This led to a suggestion -- 
already put forward to decision makers -- of an awareness campaign 
for tourists/expats targeting these areas. 
 
¶11.  (SBU) One of the speakers, Ahmet Asena, Secretary General of 
the Turkish Phonographic Industry Society (Mu-Yap -- the Turkish 
IFPI affiliate), noted privately that his organization has started 
paying more attention to the situation in north Cyprus largely as a 
result of our previous seminar there in 2007.  Asena and some of the 
other speakers also took advantage of their visit to lobby key 
members of the Turkish Cypriot administration for stronger IPR 
protection. 
 
Comment: 
-------- 
 
¶12.  (SBU) Turkish Cypriots routinely blame the outside world for 
their economic isolation, but all too often fail to acknowledge that 
it is sometimes their own actions or omissions that contribute to 
this isolation - IPR violations being a case in point (as was noted 
by several speakers.)  The Embassy has no illusions that the blatant 
IPR violations taking place north of the "Green Line" will vanish 
overnight as a result of this seminar.  However, we believe that 
Turkish Cypriots are slowly getting the message that, sooner or 
later, in order to build a sounder foundation for their economy; 
they will need to respect international IPR.  Once the Cyprus 
problem is resolved, Turkish Cypriots will be required to abide by 
the same standards as the rest of the EU.  This cannot happen 
overnight.  But more Turkish Cypriots are beginning to understand 
that they need to act now to prepare for that day. 
 
¶13.  (SBU) The strong turnout - twice as many participants as in 
2007 - is a sign that IPR awareness is gradually taking root in the 
north.  However, considerable challenges still remain: principally, 
the Turkish Cypriot administration seems to lack the political will 
to get behind this problem.  Piracy is tacitly tolerated by the 
authorities, and there is political reluctance to "rock the boat." 
As one politician told us "there are several hundred retailers of 
illegal optical disks and other pirated goods. And they all vote." 
 
URBANCIC