VZCZCXYZ0006
RR RUEHWEB

DE RUEHVI #1018/01 2221358
ZNR UUUUU ZZH
R 101358Z AUG 09
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC 3147
INFO RUCPDOC/USDOC WASHDC
RUEHALC/DEPT OF HOMELAND SECURITY CENTER WASHINGTON DC
RUEAORC/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC
RUEHPG/AMEMBASSY PRAGUE 1508
RUEHRL/AMEMBASSY BERLIN 1799
RUEHMO/AMEMBASSY MOSCOW 2270

UNCLAS VIENNA 001018 
 
SENSITIVE, SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EINT ETRD KIPR AU
SUBJECT: Film Piracy: Austrian Distributors Detail Enforcement 
Problems, German-Language Piracy Platform "KINO.TO" 
 
REF: Prague 113 
 
Sensitive but unclassified:  Protect accordingly. 
 
1.(U) SUMMARY:  Austrian film producers and distributors, in 
cooperation with the music industry, founded an anti piracy 
association (VAP) to fight illegal distribution of DVDs and CDs via 
pirated disks and Internet downloads.  VAP estimates yearly film 
piracy losses in Austria of $4.5 million.  The biggest problems are 
 
-- pirated disks produced in the Czech Republic and distributed by 
small traders (mainly Chinese and Vietnamese) in Vienna, and -- 
downloads from the Internet platform KINO.TO where most 
international films with German translations are stored (NOTE: 
"Kino" is German for "cinema"). 
A VAP lawyer told us Austria's anti-piracy laws are strong in 
principle, but implementation challenges and legal snafus undermine 
enforcement.  END SUMMARY. 
 
¶2. (U) Embassy representatives recently met with industry 
representatives including VAP (Verein fr Anti-Piraterie der Film- 
und Videobranche = Organization for Anti-Piracy in the Film and 
Video Industries) General Secretary Werner Mueller, VAP legal 
adviser Andreas Manak, and Walt Disney local managing director 
Ferdinand Morawetz.  In June 2009, VAP drew local attention by 
publicly destroying 30,000 pirated copies of movies in Vienna worth 
nearly $300,000.  VAP blame Chinese and Vietnamese "Mafioso" 
networks who distribute the disks, which are mainly sourced in the 
Czech Republic. 
 
¶3. (U) Although film profits in Austria have grown in recent years, 
losses remain significant particularly from Internet piracy, say 
interlocutors.  In Austria and elsewhere in the German speaking 
world, the "streaming video" website KINO.TO is the biggest problem 
as the origin downloads of films and television series with German 
dubbing.  Apparently the KINO.TO server is located in Russia;  the 
internet service provider (ISP) is unknown, and VAP assumes that the 
site's "masterminds" are in Germany.  Since the domain registration 
authority for Tonga refuses to provide data about the domain name 
holders, film right holders have no leverage against the site. 
 
¶4. (U) Morawetz argued the governments should press ISPs to be more 
cooperative in cases of alleged copyright infringement and to carry 
out aggressive campaigns against illegal downloads.  It was 
regrettable that illegal downloads are still viewed as a 
"peccadillo" rather than a true crime.  Morawetz portrayed the 
verdict against the "Pirate Bay" activists in Sweden as a model and 
praised new French anti-piracy legislation.  Morawetz noted though 
that Internet platforms can sometimes promote sales (if consumers 
like downloaded content, they often buy the DVD or go to a cinema. 
 
¶5. (U) With regard to pirated disks, VAP representatives said that 
the laboratories for optical disks sold in Austria are mostly 
located in the Czech Republic and operated there by Vietnamese 
immigrants.  The police often carry out raids at the Czech-Austrian 
border and in illegal warehouses in Vienna (even using sniffer dogs) 
but they are only able to catch "smalltime sellers" -- mostly 
Chinese.  Those caught tend to have strong "clan ties" and never 
cooperate with police to send their bosses (who ultimately profit) 
to jail.  Our interlocutors are aware that the Czech Republic is on 
the U.S. Special 301 Watch List  and say that nothing has improved 
there in recent years.  VAP representatives expressed frustration 
that Austrian authorities can do little to stop the inflow, since 
the Czech Republic belongs to the Schengen area and EU single 
market. 
 
¶6. (U) The enforcement of Austrian copyright law is in line with 
"satisfactory" EU directives in this field, but has problems in 
practice according to Manak.  Manak praised the Austrian system of 
"private prosecution" in copyright cases (criminal proceedings can 
be initiated by individuals or private organizations), he sees three 
serious problems in pursuing police investigations where prosecution 
is privately initiated: 
-- the police cannot investigate against unknown perpetrators (only 
named persons/organizations); 
-- it is practically impossible to execute search warrants in 
private cases, since defendants must be notified in advance (unlike 
in investigations initiated by prosecutors/police); 
-- in most private cases, police are not entitled to seize pirated 
copies in private houses, nor to clarify identities. 
In some private IPR enforcement cases, police have been accused of 
breaching the rights of defendants.  Manak opined that these 
problems could be addressed by introducing slight changes to the 
Austrian Code of Criminal Procedure -- or perhaps even through a 
different interpretation of current laws by the Ministry of the 
Interior. 
 
¶7. (SBU) COMMENT: Austria's anti-film-piracy representatives express 
appreciation that the USG is listening to the industry's concerns. 
VAP head Mueller recommended considering Austria for listing under 
Special 301 as leverage to convince the GoA to more actively engage 
against piracy.  While we will be watching the developments, we do 
see NOT/NOT see sufficient reason to list Austria in terms of 
audiovisual piracy losses (NOTE: the International Intellectual 
Property Alliance has not issued a recommendation to list Austria - 
END NOTE.)  We will press for stronger local enforcement and 
prosecution, but Austria remains a relatively small "recipient" 
market whereas physical disks are sourced primarily in the Czech 
Republic (DVDs, CDs) and websites are operated from Russia and 
elsewhere ("KINO.TO" streaming portal).  END COMMENT. 
 
HOH