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Viewing cable 09MANAGUA939, NICARAGUA: GON AGENCIES SEEK BETTER COOPERATION ON IPR

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Reference ID Created Released Classification Origin
09MANAGUA939 2009-09-28 20:18 2011-06-23 08:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Managua
VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0939/01 2712018
ZNR UUUUU ZZH
R 282018Z SEP 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 4596
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
UNCLAS MANAGUA 000939 
 
STATE FOR WHA/CEN, EB/TPP/IPE 
JUSTICE FOR OPDAT ROBERT LIPMAN 
STATE PLEASE ALSO PASS TO USTR FOR ANDREA MALITO 
TREASURY FOR SARA GRAY 
USDOC FOR 4332/ITA/MAC/WH/MSIEGELMAN 
USDOC PLEASE PASS TO USPTO FOR HOLLIS ROBINSON 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD KIPR USTR NU
SUBJECT: NICARAGUA: GON AGENCIES SEEK BETTER COOPERATION ON IPR 
ENFORCEMENT 
 
REFS: A) MANAGUA 227, B) 08 MANAGUA 1051 
 
SUMMARY 
------- 

1. (SBU) Government of Nicaraguan (GON) officials have told us they 
are focused on improving interagency cooperation to increase 
intellectual property rights (IPR) enforcement efforts against 
copyright and trademark infringement, but working with judges remain 
a challenge.  Nicaraguan National Police officers also stated that 
budget cuts and other investigatory priorities make it difficult to 
conduct more raids.  GON officials are concerned that Nicaragua's 
economic slowdown this year has led to an increase in the sale of 
pirated goods.  The GON has conducted eight raids so far in 2009, 
but the government has yet to convict, fine, or imprison any IPR 
offender this year.  GON officials also continue to seek more 
assistance from industry on IPR enforcement.  Although intellectual 
property protection remains a low priority, we are encouraging the 
private sector to provide more assistance to the GON's IPR 
enforcement efforts. 
 
IMPROVING INTERAGENCY COOPERATION 
--------------------------------- 

2. (SBU) GON officials are working to improve interagency 
cooperation on IPR enforcement.  Dr. Leyla Prado, Head of the IPR 
Unit for the Prosecutor General's Office, said that her office and 
the Ministry of Trade, Industry and Development (MIFIC) are 
organizing regular meetings with the police and customs 
administration to coordinate enforcement efforts.  She explained 
that while interagency cooperation on IPR enforcement has improved 
in the last few years, there was agreement among agencies that they 
could do a better job against copyright and trademark infringement. 
 
 
3. (SBU) Prado told us that working with judges to prosecute IPR 
offenders, however, is a challenge.  She said that several judges do 
not understand IPR and misinterpret the law to the detriment of 
enforcement efforts.  She complained that trials against IPR 
offenders are slow and create a backlog for her unit and other GON 
agencies.  In a separate meeting, Teodoro Bustamante, Deputy 
Director of the Nicaraguan National Police's Economic Crimes 
Investigation Unit, added that because court proceedings are so 
slow, police warehouses are full of pirated goods obtained through 
raids.  The police cannot destroy this material because the law 
requires that it be held as evidence in court against IPR offenders. 
 He stated that it is difficult for the police to conduct new raids 
without additional storage.  Bustamante suggested that judges should 
attend more interagency meetings to help them understand their role 
in IPR protection so they do not inhibit law enforcement efforts. 
 
LACK OF PERSONNEL FOR IPR ENFORCEMENT 
------------------------------------- 

4. (SBU) Bustamante acknowledged that the police have difficulties 
maintaining staff to conduct raids.  He explained that budget cuts 
and an increase in other crimes, such as currency counterfeiting, 
fraud, and theft, have limited his unit's activities against IPR 
infringement.  Despite these issues, he expressed confidence that 
his unit will conduct more raids and arrests.  Both Prado and 
Bustamante noted that Nicaragua's economic slowdown in 2009 has led 
to an increase in the sale of pirated goods. 
 
ENFORCEMENT RESULTS 
------------------- 

5. (SBU) As of July 2009, the GON had conducted eight raids.  The 
police seized a total of 4,237 backpacks in which the trademark 
rights had been violated.  The police also seized 6,464 blank CDs. 
The monetary value of the seized goods is approximately $232,406. 
[Note: The police calculate that the monetary value of blank CDs is 
five cordobas or 25 U.S. cents.]  The Prosecutor General's Office 
indicted nine IPR offenders as of the end of July.  All of the cases 
await court action.  Prado added that there have been no arrests, 
convictions, or fines against any IPR offender this year. 
 
INDUSTRY COOPERATION 
-------------------- 

6. (SBU) Bustamante stated that the police are cooperating with 
industry to combat piracy and other IPR crimes in some areas, such 
as identifying vendors of pirated goods and offering training to 
officers, but he asserted that the private sector could do more to 
help.  He explained that while industry organizations like Nicautor 
-- an association that advocates IPR enforcement and protection for 
authors and composers -- provides training to police officers, the 
police want more assistance on detecting trademark and copyright 
infringement.  In addition, the police need better equipment, such 
as computers and scanners, digital cameras, and digital product code 
scanners, to enhance their capabilities. 
 
COMMENT 
------- 

7. (SBU) Although IPR enforcement remains a low priority for the 
GON, we are encouraging the private sector and industry associations 
to provide more assistance to the government's IPR enforcement 
efforts.  Any assistance that the private sector can provide to the 
GON -- whether it is training, equipment, or public recognition of 
the GON's efforts to protect IPR -- will serve as positive 
reinforcement and underscore the importance of their work in this 
area. 
 
CALLAHAN