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Viewing cable 06PARIS1137, FRANCE: SPECIAL 301 REVIEW YEAR 2006
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
06PARIS1137 | 2006-02-24 10:57 | 2011-08-24 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Paris |
This record is a partial extract of the original cable. The full text of the original cable is not available.
241057Z Feb 06
UNCLAS SECTION 01 OF 03 PARIS 001137
SIPDIS
SENSITIVE
STATE FOR EB/TPP/IPE( CLACROSSE, JOELLEN URBAN)
DEPT PLS PASS USTR FOR JENNIFER CHOE-GROVES, JIM SANFORD
COMMERCE PLEASE PASS USPTO
E.O. 12958: N/A
TAGS: KIPR ETRD ECON FR
SUBJECT: FRANCE: SPECIAL 301 REVIEW YEAR 2006
NOT FOR INTERNET DISTRIBUTION
Summary
-------
¶1. (SBU) In 2005, the French government stepped up its
efforts to combat counterfeiting and piracy. In particular,
2005 was marked by an increase in joint activities with
French companies and cooperation between the government and
the private sector. The GOF has also worked closely with
the private sector on a series of regular public information
campaigns. The GOF is also currently working on a new
version of its digital copyright draft bill to lessen
original restrictions on CD and DVD copying and stem the
ensuing political upheaval. The revised draft bill should
be before Parliament on March 7-10. End Summary.
Government Actions
------------------
¶2. (SBU) The French government estimates that
counterfeiting and piracy drain 6 billion euros annually
from France's economic growth and costs 30,000 lost jobs.
Recognizing that it will take a serious and long-term effort
to stop the problem, the French Government has continued to
implement its eleven-point plan against counterfeiting,
launched by then-Economy and Finance Minister Nicolas
Sarkozy in 2004. France is particularly exposed to imports
of counterfeit products (especially luxury goods) as 17
percent of all counterfeit goods end up here. Highlighted
measures of France's efforts include:
-- Customs and Seizures: The elaboration of a national plan
with the GOF's customs administration, focusing on yearly
objectives for the interception and seizure of goods. The
objective for 2005 was to seize 4 million counterfeit
articles, a ten percent increase over 2004. Almost 72
percent of all seized goods come from Asia, mostly China,
but also India for pharmaceutical drugs, and Pakistan for
textiles. Counterfeited goods from Turkey and Italy are on
the way down. However, France has become a producer of
counterfeit goods, representing 6 percent of all seized
items. Some 44 percent of all seized goods are destined for
the French market, and another 26 percent for Africa (a
figure constantly on the rise). Textiles represent 16
percent of all seized goods, compared with 25 percent in
¶2003. The other significant category is "luxury goods,"
which represents another 8 percent.
-- Public Awareness: The organization of regular public
education campaigns to increase awareness of the full social
and economic costs of counterfeiting and piracy as well as
the safety and health risks incurred. The Industry Ministry
has earmarked 5 million euros in 2005 for such campaign, a
ten-fold increase over a year ago. The campaign was
organized by the National Anti-Counterfeiting Commission,
together with the French Patent Office (INPI), French
Customs and the Competition and Consumer Affairs and Frauds
Office of the Ministry of Economy, Finance and Industry
(DGCCRF-Direction Generale de la Concurrence, de la
Consommation et de la Repression des Fraudes).
-- Prosecution: To discourage possible IP rights infringers,
France has increased fines and prison terms. IP rights
infringers may now be sentenced to three years of
imprisonment and be subject to fines of up to 300,000 euros
(instead of 150,000 euros). In trademark infringement
cases, imprisonment may now go up to four years and fines up
to 400,000 euros. If the counterfeiting is the act of an
organised group, the sentences may be even higher.
Furthermore, the Ministry of Justice recently sent out
guidelines to magistrates and public prosecutors to guide
them in evaluating damages to be awarded to companies.
-- Network of Experts: A inter-agency network of experts in
all the ministries concerned has been set up to assist
companies in enforcing their rights in the counterfeiting
countries. The GOF has also maintained its 4 IP advisors co-
located in French Embassies overseas such as China, Russia,
Thailand etc.
-- Customs Training: France will shortly implement the
European eMAGE project, an Internet-based service, providing
easy and real-time multilingual access to databases of
trademarks and industrial designs designed to help customs
authorities looking for counterfeit goods. French Patent
Office INPI heads the consortium developing the eMAGE
program.
-- Expanded Authority: As part on the implementation of an
April 29, 2004 Directive on the enforcement of Intellectual
Property Rights and a EU Council regulation 1383/2003
extending the scope of IP rights holders, the GOF will
extend to counterfeiting the powers two offices of the
French Economy, Finance and Industry Ministry: Tracfin, in
charge of fighting fraudulent financial circuits, and
DGCCRF, which handles competition, consumer and fraud cases.
The GOF will further introduce professional training for all
law enforcement and government officials dealing with
counterfeiting.
Public-Private partnership
--------------------------
¶3. (SBU) Last November, France hosted the Second Global
Congress on Combating Counterfeiting and Piracy, convened by
Interpol and the World Customs Organization (WCO), whose
Secretary General, Michel Danet, is a former senior French
SIPDIS
customs official. The Congress approved the initiative by
the Paris-based International Chamber of Commerce (ICC) to
launch the Business Action to Stop Counterfeiting and Piracy
(BASCAP) in order to increase public and political awareness
of the economic and social harm associated with
counterfeiting and piracy. In a separate meeting, BASCAP
participants, including CEOs from around the world
representing the food and drink, pharmaceutical, textile,
home products, finance, television, software and music
sectors, agreed on an action plan. The purpose of the plan
is to establish counterfeiting and piracy indices, and
compile case studies and statistics -- the first global,
cross-sector study -- of the counterfeiting and piracy
problem.
¶4. (SBU) Such business initiatives are not uncommon in
France, where the public sector has developed a close
working relationship with government officials. The Union
of French Manufacturers ("Union des Fabricants" or
"UNIFAB"), the most important private anti-counterfeiting
organization in France, spearheaded France's push for
stiffer IP laws and greater awareness of the problem of
counterfeiting and of its ramifications with organized
crime. Working hand-in-hand with the government's National
Anti-Counterfeiting Committee, UNIFAB signed a partnership
charter in July 2005 with several towns in the South of
France (including Marseilles, Cannes, and Nice) to intensify
the struggle against the upsurge of counterfeit goods in the
region, which largely come through Italy. Earlier, UNIFAB
had organized the 9th French edition of the Global Day
against Counterfeiting.
¶5. (SBU) UNIFAB is also pushing for another controversial
bill currently before Parliament, the Digital Copyright
bill, also known as the Copyright and Related Rights bill or
DADVSI ("Droits d'Auteur et Droits Voisins).
Combating Piracy on the Internet
--------------------------------
¶6. (SBU) The French Government is reworking its digital
copyright protection bill designed to comply with a 2001 EU
Directive on digital piracy. The GOF faced a political
crisis in December 2005 in trying to gain passage of this
bill, when lawmakers rebelled by endorsing amendments to
legalize the online sharing of music and movies instead of
punishing it. Under the original proposals, those caught
pirating copy-protected material would have faced USD
360,000 in fines and up to three years in jail.
¶7. (SBU) The amendments voted would legalize file-sharing
by anyone paying a monthly royalties duty estimated at USD
8.50. The vote by members of France's lower house dealt a
setback to Culture Minister Renaud Donnedieu de Vabres, who
had introduced the draft legislation and who disavowed the
legislature's actions. Music labels and movie
distributors, including the French music composers' and
publishers' organization SACEM, have suggested the
amendments would break international laws on intellectual
property. French consumer groups, on the other hand,
claimed the plan would create a "new area of freedom
allowing Internet users access to cultural diversity and
fair payment for creators."
¶9. (SBU) As a result, the GOF under Prime Minister
Dominique ordered the withdrawal of the bill to be amended
to reinforce the right of consumers to make private copies
of music and film disks. It would also make a distinction
between people illegally downloading for profit and the
estimated eight million individuals in France who
occasionally add to their music and movie collections via
Internet peer-to-peer sites.
¶10. (SBU) The new draft bill has not been made public.
According to the French press, however, changes include a
phased penalty system for small-time downloaders, starting
with a warning e-mail, then a formal letter and finally
fines ranging from 300 euros to 1,500 euros. Commercial
downloaders would face up to three years in prison and a
fine of up to 300,000 euros.
¶11. (SBU) Private users who have bought music or movies,
whether on CD or DVD or online would have the right to make
a small number of copies according to the French press.
Currently, many disks, especially movie DVDs, have digital
blocks to prevent copying, and those would have to be
changed if the French bill becomes law. The previous French
government bill would have made it illegal to hack those
blocks, as is the case in the United States under that
country's Digital Millennium Copyright Act. Under the
proposed new bill, a consumer who broke such protection
would not be prosecuted. And someone who copies a friend's
disk would face only a 150-euro fine. However, those trying
to make money off such activities or publish hacker how-tos
to get around the blocks would face a year in prison and
fines of up to 100,000 euros.
¶12. (SBU) The government is allegedly looking at ensuring
that all music sold on Apple's iPod site be playable on MP3
players other than Apple's best-selling iPods, which is not
currently the case. The French press has hinted that Apple's
Music Store in France would also have to be changed under
the new amendments.
¶13. (SBU) The debate in Parliament on the digital copyright
bill will resume in all likelihood between March 7 and 10.
The bill requires a one-time reading
by each house to become law, under the emergency procedure
invoked by the government.
Stapleton