Summary

Transcription

Summary

Summary
1.
A FEW WORDS FROM THE PRESIDENT OF
THE CNCP
BRAZIL BEGINS TO WIN THE BATTLE AGAINST PIRACY . ... 04
2.
3.
THE WAYS TO FACE UP TO AND
OVERCOME THE CHALLENGES.................. 08
THE CNCP’S OPERATIONS IN 2007
AND 2008
RENEWAL OF MANDATES AND
THE CALENDAR OF ACTIVITIES............................
4.
5.
INTRODUCTION
12
THE CNCP AND NEW STRATEGIC PLANNING
A NEW STRATEGIC VISION FOR THE CNCP . ....................................
26
THE ENFORCEMENT OF INTELLECTUAL
PROPERTY RIGHTS ........................................................ 40
5.1 Large-Scale Results (Brazil’s Federal Revenue Service) ....................................................... 44
5.2 Intelligence to Produce Results (Federal Police Department) .......................................... 52
5.3 Closing in on Crime on the Highways (Federal Highway Police Department) ....... 60
6.
STATE AND MUNICIPAL INITIATIVES.............. 68
6.1 In Rio, pioneering in enforcement of criminal activity (DRCPIM/RJ) .....71
6.2 The uniting of a city in search of solutions the Municipal Council against Piracy in Blumenau/SC ......................... 80
7.
8.
INTERNATIONAL RELATIONS
Dialogue and Partnership to Strengthen the
Sharing of information and Experiences . ............
86
INTER-MINISTERIAL GROUP ON INTELLECTUAL
PROPERTY (GIPI)
A Mechanism for Coordination and Achieving Results for Brazil .......
9.
92
EXPERIENCE FROM THE
PRIVATE SECTOR.................................... 102
9.1 Effective articulation in various fields (ABES) ......................... 105
9.2 A sector ready to overcome the challenges (ABPD) .......... 116
9.3 Protection of a right that must be sacred (ABPI) ................. 120
9.4 Leadership with representativeness (CNC)............................. 126
9.5 In the frontline against unfair competition (CNI) ................ 134
9.6 Guardian of rights and respect for rules (ETCO).................... 136
9.7 Protector of the audiovisual market (MPA) ............................ 141
10.
REPERCUSSION IN THE MEDIA
REPORTS ON WORK THAT IS OF
INTEREST to THE ENTIRE COUNTRY ...
11.
152
TRADEMARK BRAZIL .............. 180
1.
A FEW WORDS
FROM THE
PRESIDENT OF
THE CNCP
“Brazilian society has begun
to accept the idea that
piracy is illegal and that it
results in losses and a high
social cost to Brazil”
A few words from the
president of the cncp
6
Brazil begins to win the
battle against piracy
B
razil is no longer the same with regard to combating piracy. Since October
2004 the country has had an entity dedicated to dealing with the issue. It is the
National Council for Combating Piracy and Intellectual Property Crimes (CNCP),
an institution responsible for ensuring the application of unprecedented approaches
and methodologies to deal with the issue.
The CNCP’s initial strategic planning began in 2005. That work produced 99 specific
operations to combat piracy in Brazil. The planned initiatives were designed on three
fronts: law enforcement, education, and the economy. This working methodology
proved to be quite effective and even attracted the interest of several other countries
regarding Brazil’s experience.
The results have been clear and convincing. In the last three years, as the result of the
synergy between the various federal agencies combating piracy, the Brazilian Federal
Revenue Service, the Federal Police and the Federal Highway Police have broken all
records for seizures of counterfeit products, arrests, investigations and charges filed
against counterfeiters. Recognized internationally, Brazil’s work in combating piracy
has been identified by several countries as an example to be followed.
The great victory achieved, however, has been in the gradual change in society’s
perception of the harm done by the purchase and use of counterfeit products. Opinion
polls in 2005 showed that despite the illegal nature of piracy, the general public still
viewed it with tolerance, seeing it as a benefit and a cheaper alternative way to meet
their consumer needs.
Today, fortunately, this perception is changing. It is a fact that many Brazilians still
buy pirated products. However, the understanding is becoming more widespread that
piracy is an illegal act. Furthermore, the general public has also realized that piracy
camouflages large-scale social costs and damage. However, the justification for this
kind of consumption is still the fact that pirated products have lower prices than the
authentic products. This is a line of argumentation that must be demystified because of
the losses piracy causes the country.
The core idea is to increase the visibility of the issue. We plan to create publicity
campaigns, to provide information, to build knowledge, and to develop initiatives to
raise awareness, focused exclusively on consumers. The plan is to reach consumers
through merchandising at points of sale such as cinemas, shopping malls and stores. In
addition, we shall use the packaging of authentic products to communicate messages
raising awareness.
We want to do more. We seek to raise awareness among companies and industries. They
will be our allies in the task of showing Brazilian consumers the harmful effects throughout
the country whenever someone buys an illicit product. We will show that, aside from
being a criminal activity, piracy contributes to a drop in tax revenues, to the weakening of
legitimate economic activity and to unemployment. We will also emphasize that pirated
products are synonymous with low quality and lack guarantees.
Near the end of 2008, the CNCP prepared a new strategic plan. We were assisted by
the Balanced Scorecard (BSC) management tool, the methodology of which is widely
recognized and internationally valued. Through the BSC, the Council put together a
strategy map from which we will derive the necessary actions to be carried out and
methods that will need to be employed while operating in the new areas of activity
that have been launched in Brazil. These initiatives will serve to consolidate a national
movement to combat piracy and crimes against intellectual property.
Evidently, the challenges remain highly complex – there are those who have said,
with some reason, that piracy is the crime of the century. The CNCP has sought to be
well-prepared to carry out the tasks and duties for which it is responsible, equipping
itself properly to effectively deal with the problem.
With all its experience, Brazil has important contributions to offer the world. Perhaps
the greatest of all will be to succeed in getting the public and private sectors to work
together. Once fully consolidated, this union could become Brazil’s great innovation
in combating this kind of crime. This is certainly the path we are taking. However,
the struggle against piracy will only be successful if society becomes fully engaged.
It is in this hope that we continue our work.
Luiz Paulo Teles Ferreira Barreto
President of the CNCP
Executive Secretary of the Ministry of Justice
A few words from the
president of the cncp
The next step for the CNCP, therefore, will be to focus on consumers. More than ever,
we want to involve the public and civil society in the debate on the issue. To do so,
we also plan to involve in the discussion those who sell authentic products, a market
segment that suffers immense harm from the unfair competition of pirated products.
7
2.
INTRODUCTION
“The struggle against
piracy demands an
ongoing effort by
the government and
the general public in
seeking solutions that
contribute to resolving
the problem”
introduction
The ways to face up to and
overcome the challenges
10
T
his report describes Brazil’s current situation as regards combating piracy and
counterfeiting.
The content of this report reflects the widespread coordination of the forceful efforts
being made today in the country involving public and private entities, which began to be
built following the creation of the National Council on Combating Piracy and Intellectual
Property Crimes (CNCP).
In addition, bearing in mind the dynamic nature of piracy, this report presents new
directives and priorities for Brazil, emphasizing the challenge of implementing actions
designed to mitigate the demand for pirated and counterfeit products, which must be
added to the nation’s law enforcement efforts.
Chief amongst its main goals are:
• To consolidate the most important information on combating piracy in Brazil
in 2007 and 2008, complementing previously published CNCP reports covering
2005 and 2006.
• To publicize the directives for combating piracy in Brazil set out by the new Brazilian
National Plan for Combating Piracy, which presents the CNCP’s strategic goals for
the period 2009-2012.
• To cover reports produced by public sector entities from other spheres of
government, and other party political affiliations, in order to show that combating
piracy in Brazil is a national policy, not merely a local one, and that this struggle is
central to State and municipal policies, and that the Federal, State, and municipal
governments are increasingly well-aligned in seeking solutions to the problem.
• To create a platform for the reports produced by the organizations of civil society
who are members of the CNCP, thus demonstrating the united and growing effort
between the public and private sectors in combating piracy and counterfeiting.
• To introduce the Inter-Ministerial Group on Intellectual Property, the body
responsible for establishing government policy on intellectual property (in
accordance with the CNCP duties to promote the exercise and observance of
intellectual property rights) and to support of Brazil’s international negotiations.
Combating piracy and counterfeiting requires an ongoing effort by the government
and civil society to establish partnerships and seek solutions.
The challenges are constantly changing. The achievements presented in this
document illustrate the great progress that Brazil has made, and serve as a source of
inspiration for developing new initiatives and attaining even greater and longer-lasting
accomplishments.
André Luiz Alves Barcellos
Executive Secretary of the CNCP
introduction
• To demonstrate Brazil’s will to engage in international dialogue on the issue,
through information about the sharing of experiences with several countries and
the prospects for closer future relationships with other important trading partners.
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chapter 3
12
3.
The CNCP’s
ACCOMPLISHMENTS
in 2007 and 2008
chapter 3
13
Operations in the period
helped consolidate the
Council’s role as a catalyst
of action for the public
and private sectors
chapter 3
Renewal of mandates
and calendar
I
n 2007 and 2008 some important changes were made in the context of combating
piracy in Brazil .
2007 saw the renewal of the CNCP’s council members’ terms of office for two more years,
and was also the year the National Trade Confederation joined the council as a full member
in a strategy to involve consumers in tackling piracy.
2008 was dedicated to the preparation of the new National Plan for Combating Piracy,
the background to which will be presented in the next section of this document by the
consultant responsible for the structuring of the work.
Alongside these operations, in this period the CNCP dedicated its efforts to several activities
focused on one of its central objectives: being a catalyst of efforts, involving public and
private sector entities, to combat piracy in Brazil, guided by the National Plan for Combating
Piracy drawn up in 2005.
The actions below led the CNCP in this direction.
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chapter 3
Events in 2007
JANUARY
• Talk at the Interchange Program at the Department of Consumer Protection and
Defense (DPDC), attended by graduate students from the States of RN, RS, SP, AL, RJ, as
well as Italy and Argentina.
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• Participation in the Third Global Congress on Combating Counterfeiting and Piracy, at
the World Intellectual Property Organization (WIPO), in Geneva, Switzerland.
• Talk at the I Forum on Awareness amongst Educators on Combating Piracy – Amcham.
Talk - The Panorama for Piracy in Brazil, institutionally supported by the CNCP.
FEBRUARY
• Talk at the event held by the Brazilian Association of Software Companies (ABES) –
Road Show – Training course for law enforcement officers in Goiânia, Goiás.
Road Show – Training course for law enforcement officers in Brasília, Federal District.
MARCH
• Participation in a meeting at the Foreign Affairs Ministry (Itamaraty), with the IP Assistant
from the office of the United States Trade Representative (USTR), Victoria Espinel, at
the Itamaraty.
• Talk at the Pernambuco Seminar against Piracy, an event held by the Pernambuco State
Federation of Industries (FIEP).
• Talk to appeals court judges at the event held by the Association of Federal Judges in
Brazil (Ajufe) and the Brazilian Textile Industry Association (ABIT), on the theme: Control
Mechanisms in Foreign Trade: Learning about the Textile Sector and Textile Production.
• Participation in a meeting with Microsoft Corporation executives at AP LATAM Meeting,
attended by executives from Mexico, Central America, the Andean region and the
South Cone, as well as representatives from the United States, for a presentation about
the CNCP.
• Talk at the event held by the Brazilian Association of Software Companies (ABES) – Road
Show – Training course for law enforcement officers in Juiz de Fora, Minas Gerais.
• Talk at the training course for law enforcement officers held by the Office of the State
Public Attorneys Rio de Janeiro, at Acadepol, Civil Police, RJ.
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APRIL
Road Show – Training course for law enforcement officers in Manaus, Amazonas.
MAY
• Talk at the seminar on enforcement of intellectual property, organized by the US Patent
and Trademark Office (USPTO) and the US Embassy in Asuncion, Paraguay.
• Talk at the seminar against piracy in the Tri-Border region, held by the Brazilian Federal
Revenue Service Secretariat in Foz do Iguaçu, Paraná.
• Talk at the training program on brand counterfeiting for law enforcement officers, held
by the BPG in Guaíra, Paraná.
• Participation in the debate held at the Federal Senate on piracy in the audiovisual
industry, specifically in cinema, video, and music.
JUNE
• Talk at the seminar for Uniformed State Police and Federal Police, at the Uniformed
State Police (PM) Battalion in the city of Niterói, Rio de Janeiro, held by the Business
Software Alliance (BSA) and the Entertainment Software Association (ESA).
Road Show – Training course for law enforcement officers in Belém, Pará.
• Participation at the Enforcement of Intellectual Property Rights Program, at the
invitation of WIPO, in Alexandria, VG, USA, to present the work done by the CNCP.
• Talk at the event held by the Brazilian Association of Software Companies (ABES)
– Road Show – Training course for law enforcement officers in Florianópolis,
Santa Catarina.
• Participation in the meeting with the Tax Education Group in the Federal District (GEF/
DF) and Coordination of the National Tax Education Program (PNEF).
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• Participation in the meeting at Itamaraty with the delegation from the Chinese
government, presenting the work done by the CNCP.
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• Training course for Civil Police in the Federal District, the Federal Police and the Brazilian
Federal Revenue Service, on identifying pirated products, attended by different sectors
of civil society.
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• Participation in a meeting at Itamaraty with the representative from the USTR,
Cris Wilson.
• Participation in the 2nd Round Table at the São Paulo State Federation of Industry (Fiesp)
on intellectual property rights. The event was attended by members of the Brazilian and
US governments as well as representatives from the private sector engaged in initiatives
developed by Fiesp in the intellectual property area.
JULY
• Meeting with representatives from the European Union at CNCP, attended by
representatives of the Foreign Affairs Ministry (MRE - Itamaraty).
• Meeting with the Manager of the Euvaldo Lodi Institute (IEL/Nacional) to propose an
agreement between the CNCP and the Industry Social Service (Sesi).
Defense Program (DPDC), attended by graduate students.
• Talk on piracy at Microsoft Corporation, Seattle, with participation in producing an
internal training video.
• Participation in the breakfast to re-launch the Parliamentary Front for Combating
Piracy, in Brazil’s Chamber of Deputies (lower house of Congress).
• Talk at the Gramado Film Festival to the National Federation of Cinematographic
Exhibiters (Fenecc), on combating piracy in Brazil.
• Swearing-in of new Council Members and continuing former ones.
AUGUST
• Breakfast - Council of Americas.
• Trip to the US from August 6th to 10th to Seattle for IRP Awareness, to record an
institutional video for Microsoft in which the Executive Secretary André Barcellos
talked about the progress made against piracy in Brazil.
• Ordinary CNCP Meeting.
• Trip to Gramado (RS), at the invitation of the National Federation of Cinematographic
Exhibitors’ (FENEEC), where a talk was given to participants about the work done by
the CNCP.
• Meeting with the President of the Euvaldo Lodi Institute (IEL), attended by Councilor
Ricardo Caldas, on the educational campaign at the Global Action event, and talks in
the ambit of the CNI/IEL agreement.
• Swearing in of new CNCP Council Members, at the Tancredo Neves Auditorium, at
the Ministry of Justice.
• Meeting with the President of Ancine, Manoel Rangel, at which the president of the
CNCP was asked to look into pirating of the film Tropa de Elite, which was still being
finished.
SEPTEMBER
• Participation, at the invitation of Amcham, in the IPR Annual Seminar Intellectual
Property in the Public and Private Sector, in Buenos Aires, Argentina.
• Participation in the launch of the Blumenau without Piracy campaign, and the giving
of a talk.
OCTOBER
• Meeting with Brazilian Congressman Arnaldo Jardim, president of the Parliamentary
Front against Piracy.
Road Show – Training course for law enforcement officers in Uberlândia, Minas Gerais.
• Meeting with the Manager of the National Tax Education Program (PNEF), Claudemir
Frigo, about the establishment of a partnership between the PNEF and the CNCP.
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• Breakfast – Brazil’s Chamber of Deputies for the Re-launch of the Parliamentary
Front for Combating Piracy, where the new membership and new President,
Representative Arnaldo Jardim, were introduced. This was followed by an event
held by the National Confederation of Steelworkers, entitled Success and Jobs –
held at the auditorium at the Ministry of Employment.
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Road Show – Training course for law enforcement officers in Fortaleza, Ceará.
chapter 3
Road Show – Training course for law enforcement officers in Salvador, Bahia.
20
• Talk to the Regional Pharmacy Council (CRF) in the Federal District, at the launch of
the campaign What the Eyes Don’t See, the Health Feels.
Road Show – Training course for law enforcement officers in Recife, Pernambuco.
• Talk at the invitation of the Consumer Protection and Defense Program (DPDC), in
Goiânia, at the 4th National Consumer Defense System Congress, entitled:
Consumption, Violence, and Citizenship.
Show – Training Course for law enforcement officers in Rio de Janeiro, Rio de Janeiro.
• Participation in the meeting held by the World Intellectual Property Organization
(WIPO), in Geneva, Switzerland.
NOVEMBER
• Participation in the meeting held by the World Intellectual Property Organization
(WIPO), in Geneva, Switzerland.
Road Show – Training course for law enforcement officers in Guarulhos, São Paulo.
Show – Training course for law enforcement officers in Belo Horizonte, Minas Gerais.
Road Show – Training course for law enforcement officers in Goiânia, Goiás.
• Meeting at Amcham to present the results of the School Project, which the CNCP
supports institutionally.
Road Show – Training course for law enforcement officers in Porto Alegre, Rio Grande
do Sul.
DECEMBER
chapter 3
• Event to receive the award given by the National Forum on Piracy and Illegality (FNCP)
for work done by the CNCP in 2007.
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Events in 2008
JANUARY
• Meeting at Itamaraty with Cris Wilson, from the Office of the United States Trade
Representative (USTR), with presentations by various Federal government bodies as
preparation for the Special 301 report.
• Talk at the Global Congress Combating Counterfeiting & Piracy, held by the World
Customs Organization (WCO) and the World Intellectual property Organization (WIPO),
in Dubai, UAE.
• Consumer Protection and Defense Exchange Program (DPDC), attended by graduate
students.
FEBRUARY
• Participation as a speaker at the 2nd Annual Global Forum on Innovation, Creativity and
Intellectual Property held by the US Chambers and US India Business Council, in
Mumbai, India.
• Participation at an event held by the Brazilian Association of Software Companies
(ABES) – Road Show ABES – Training course for law enforcement officers in Vitória,
no Espírito Santo.
MARCH
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• Participation in an event held by the Association of Friends and Proprietors of Video
Rental Stores in the State of Espírito Santo (Assoviles) to get the Merit Honor for
outstanding contribution against piracy in 2007.
• Organization of the first workshop on strategic planning for the new National Plan for
Combating Piracy.
• Participation in a meeting with the Secretary for Economic Issues at the Japanese
Embassy to present the plan to put together an intellectual property protection group
made up of the Chamber of Commerce and by Japanese-Brazilian companies.
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APRIL
• Participation in the II Forum on Raising Awareness of Educators in Combating Piracy, an
event held by the American Chamber of Commerce in Brazil (Amcham), as part of the
School Project, supported institutionally by the CNCP, in São Paulo, São Paulo State.
• Talk to prosecutors from the Office of the State Public Attorneys in Espírito Santo on
combating piracy in Brazil.
MAY
• Participation in an event held by the Brazilian Association of Software Companies (ABES)
– Road Show ABES – Training course for law enforcement officers in Teresina, Piauí.
JUNE
• Participation in the event Innovation and Intellectual property: Tools for Economic
Growth, held by the Brazilian Ethical Competition Institute (ETCO), in Brasília, Federal
District, on June 18th.
• Organization of the second workshop on Strategic Planning for the new National Plan for
Combating Piracy.
JULY
• Signing of the Cooperation Agreement between the National Council for Combating
Piracy and the National Film Agency (Ancine).
Defense Program (DPDC), attended by graduate students.
• Meeting of the Intellectual Property Group for Latin America, held by the Japan
External Trade Organization (Jetro), a Japanese government group that protects
intellectual property.
AUGUST
• Training of Brazil Federal Revenue Service Customs Agents on how to combat piracy
and counterfeiting, in partnership with the São Paulo State Federation of Industry (Fiesp),
in Recife, Pernambuco, on August 13th. Institutional support provided to the project,
with training in Paranaguá, Paraná State, Vitória, Espírito Santo State, Foz do Iguaçu,
Paraná State; and Santos, São Paulo State.
• Participation, at the invitation of the Santa Catarina State government, in the course
Immaterial Property, given by representatives of the FBI, the US Federal Public
Prosecutors and US judges.
• Training of Federal Police specialists, held in partnership with the São Paulo State
Federation of Industry (Fiesp), in Brasília, Federal District (August 19th to 21st).
• Organization of the third workshop on Strategic Planning for the new National Plan
for Combating Piracy.
• Participation at the V Meeting of the Mixed Brazil-Germany Commission, in Cologne,
Germany.
• Talk at the event held by the Brazilian Federal Revenue Secretariat (SRF), at the event
Protection of Intellectual Property Rights, held in Brasília, Federal District.
• Holding of the event to publish the research done by the Akatu Institute for Microsoft
do Brasil, on consumer behavior regarding to pirated products.
SEPTEMBER
• Talk on Federal and State challenges at the seminar held by the National Forum on
Combating Piracy (FNCP) at the Tri-Border region, held in Foz do Iguaçu.
• Participation in the seminar Customs and Foreign Trade at the Customs Office in the port
of Rio de Janeiro, at the invitation of the Federal Revenue Secretariat (SRF), on Customs
and the Protection of Society.
• Talk at the 3rd Annual Meeting on Intellectual Property, Piracy and Counterfeiting, held by
Amcham Argentina, in Buenos Aires, on the work done by the CNCP.
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• Participation in the seminar held by the Ministry of Culture (MinC), in Rio de Janeiro:
Defense of Copyright: Collective Management and the Role of the State.
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• Meeting with Wayne B. Paugh, U.S. Coordinator for International Intellectual Property
Enforcement, a US government representative, to exchange information on intellectual
property protection in their respective countries.
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• Talk on the role of the CNCP in combating piracy, at the training course for law
enforcement officers in the city of Rio de Janeiro, at the invitation of the Regional Group
for Combating Piracy, at Firjan, in Acadepol, RJ.
• Meeting with representatives of the Sports Ministry and the Brazilian Olympic Committee
on a report into the activities of the CNCP to help support Brazil’s candidature for the
2016 Olympics.
OCTOBER
• Talk by the president of the CNCP at the round table held by the Court of Justice in Rio
de Janeiro and the Superior Court Judges’ School for the State of Rio de Janeiro (Emerj)
on Piracy: Reflections and Updates.
• Talk at the V Expoportos and the III Forum on International Trade Relations in the city of
Serra, in the State of Espírito Santo.
• Participation in the IV Session for the Work Group SECURE, held by the World Customs
Organization (WCO), in Brussels, Belgium.
• Event held by the Brazilian Association of Software Companies (ABES) – Road Show
ABES – Training course for law enforcement officers in Recife, Pernambuco.
• Event held by the Brazilian Association of Software Companies (ABES) – Road Show
ABES – Training course for law enforcement officers in Rio de Janeiro, Rio de Janeiro.
• Talk at the event held by Avaí Esporte Clube, in Florianópolis, Santa Catarina, on piracy
in the no sporting goods sector and its consequences for soccer teams.
NOVEMBER
• Talk at the II Course on Investigation Techniques into Cybernetics Crimes by specialists
from the Federal Police at ANP/DPF, in Brasília
• Participation in the International Seminar on Copyright, which is part of the National
Forum on Copyright, held by the Culture Ministry, in Fortaleza.
• Participation in the event National Strategy for Combating Corruption and Money
Laundering, held in the city of Salvador, Bahia State.
DECEMBER
• Celebration of National Combating Piracy Day, held by the CNCP at the Ministry of
Justice, with signing of the Technical Cooperation Agreement with the National Health
Surveillance Agency (Anvisa), as well as showing a sample of pirated products.
chapter 3
• Talk at the I Forum on Best Enforcement Practices to Crack Down on Trade in Counterfeit
Products, held by Ancine for senior police officers from police units specialized in piracy
from throughout Brazil.
• Organization of the fourth workshop on the Strategic Plan for the new National Plan for
Combating Piracy.
• Participation in Amcham São Paulo event honoring the National Council on
Combating Piracy, for its support for the Legal School Project: Combating Piracy is
Learned at School.
• Talk at the 5th National Education Seminar: Competitive Brazil, held by ETCO, in
Brasília.
• Participation in the International Copyright Seminar, which is part of the National Forum
on Copyright, held by the Culture Ministry, in Fortaleza.
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4.
THE CNCP AND
THE NEW
STRATEGIC PLAN
Considered to be one
of the most innovative
management methods
in the world, the
Balanced Scorecard has
contributed to enhancing
the Council’s work
chapter 4
A new strategic
vision for the CNCP
“The strategies – the only sustainable way for
organizations to create value – are changing, but
the strategy measuring tools have fallen behind.”
(Kaplan & Norton)
S
trategic planning is a management tool used successfully by public and private
sector organizations around the world. It adapts naturally to the distinct features of
every kind of organization, as it incorporates common concepts into an architecture
designed to create the conditions to make objectives viable and to adjust the strategic
direction to environments of change.
The methodology used in strategic planning for the National Council for Combating
Piracy and Intellectual Property Crimes was adapted to the specific conditions of the
organization.
Balanced Scorecard
The Balanced Scorecard (BSC) methodology was created by writers Kaplan & Norton. Initially
used by private institutions, it has been implemented with great success in public sector
organizations, as it is based on the premise that in order to achieve their mission and vision
for the future, organizations must clearly communicate their strategies to the stakeholders,
and continuously monitor their actions and projects aimed at achieving their strategic plans.
This monitoring is made possible through the use of performance measures and targets.
The greatest advantages presented by the BSC over other management methodologies
are the structuring of strategic objectives and their respective performance measures into
different perspectives or dimensions and creating relationships between these objectives in
the form of cause-and-effect chains.
This logic is explained by a tool called a strategy map in which each objective is connected
to others by cause-and-effect chains, to which are associated indicators that link the
results planned in the strategy to the means that will lead to this result, thereby forming
a strategic hypothesis.
29
It is important to apply certain principles in order
to successfully implement the Strategic Plan:
chapter 4
• Develop and guarantee the budget for actions
that are critical to good strategic performance.
• Establish policies and procedures that are
appropriate for the strategies.
• Establish processes that are continually
improved.
• Establish a system of rewards and incentives
model for personnel.
30
• Match the organizational structure to the
strategy.
There is no single way to implement and use the
BSC. In fact, organizations apply it in different
ways and for purposes that can vary from a simple
performance measurement system that includes
both financial and non-financial measurements
to being part of a strategy-focused management
system focused on aligning the organization to
effectively carry out the strategy. Organizations
that are successful in implementing the
strategy demonstrate a consistent standard in
achieving strategic focus and alignment. These
organizations have adopted the following
management principles in order to become
“strategy-focused organizations”:
a) Mobilize change through effective executive
leadership;
b) Translate strategy into operational terms;
c) Align the organization to the strategy;
d) Make strategy everyone’s everyday job; and
e) Convert strategy into a continuous process.
The five principles of the strategy-focused organization
Adapted by Peter M. Dostler for the CNCP
MOBILIZATION OF
THE LEADERSHIP
TRANSLATION
• Strategy map
• Performance measures
• Targets and projects
• Mobilization for change
• Vision and strategy
STRATEGY-focused
ORGANIZATION
CONTINUOUS
PROCESS
ALIGNMENT
• Synergy between the
councilors and the agencies
and trade organizations
represented
• Synergy between the
interests of the government
and private companies
EVERYONE’S TASK
• Strategic awareness
• Communication
• Strategic management
• Management of projects and
processes at the National
Council on Combating Piracy
and Intellectual Property Crimes
• Link between budgets
and strategy
• Information systems
The introduction of a new management
methodology is always a great challenge, both
for the organization that has chosen it and for
the consultants hired to transfer knowledge and
guide the process of organizational change.
In an organization such as the CNCP, a
governmental entity that includes private sector
representatives, this challenge is even greater.
Just as important as balancing the various
perspectives of the Strategy Map is balancing the
participation of each member of the Council:
people with different professional backgrounds,
representing quite distinct organizations.
It is not a typical organization, but rather a set of
organizations. Establishing a common agenda,
minimizing natural disagreements and focusing
on the common interest; all this has been
achieved thanks to the participatory approach
provided by the methodology developed by
Kaplan and Norton.
Overall, this training enabled the participants to learn
about the key concepts for implementing strategic
planning with the proposed BSC methodology. To
this end, the interviews carried out by the team, with
support from the consulting firm, were designed
to gather information to provide the basis for
creating the CNCP’s strategic planning through the
“performance dashboard” or Balanced Scorecard.
To carry out the structured interviews, the
development team was set up according to
a previously agreed agenda. The interview
methodology was as follows:
1. Reviewing documents of the National Council
for Combating Piracy.
2. Preparing a questionnaire based on the
reviewed and assessed information.
3. Scheduling interviews with the respective
CNCP members.
4. Dividing up the development team and
the consultants in order to carry out the
scheduled interviews.
5. Conducting the interviews with the CNCP
members.
It was the responsibility of the consulting firm
Gestão & Desenvolvimento Empresarial (GD)
to coordinate the design of the governance
structure to be built for the CNCP forum, involving
participation by the various social actors affected
by the harmful phenomenon that is piracy. This
was a great learning opportunity, which revealed
new and significant aspects of the implementation
of the Balanced Scorecard.
6. Compiling the interviews conducted.
The work of reviewing documents and conducting
structured interviews began with the training of
the development team composed of members
representing certain sectors of the CNCP and the
Ministry of Justice, who were also responsible,
along with the consulting firm GD, for interviewing
the top leaders of the CNCP.
In step with the needs identified throughout the
process of developing the strategy map, adjustments
were made during the process, prioritizing the
creation of the CNCP’s vision of the future and
the strategy map itself, in which the organization’s
strategic objectives are presented, organized by
perspective, connected by cause and effect links.
7.
Analysis of the compiled structured interviews.
A workshop was held to communicate the content
pertinent to the strategic planning process, with
an emphasis on consolidating and reaffirming
the institutional mission, the organizational vision
and the underlying values that will permeate the
organization’s work.
chapter 4
METHODOLOGY USED IN
REFORMULATING STRATEGIC PLANNING
31
chapter 4
The methodology adopted throughout the process
took into account the teamwork that had been
carried out, which resulted in the development of
32
knowledge by the various actors in the process.
This constituted a collective development process,
which validates the results presented.
Strategy Management Model*
MISSION
Why do we exist?
VALUES
What is important to us?
Strategic
References
for the CNCP
VISION
What do we want to be?
STRATEGY
Our work plan
STRATEGY MAP, PERFORMANCE MEASURES AND GOALS
Focus, Communication, and Alignment
Strategic Dashboard
Strategic Action
ALIGNMENT OF PROJECTS AND PROCESSES WITH THE STRATEGY
What must we improve?
ALIGNMENT AND COMMITMENT BY PEOPLE TO THE STRATEGY
What do I need to do?
FOCUS ON RESULTS
GOVERNANCE
Representativeness
and Leadership
INTERNAL
PROCESSES
Reference and Synergy
INSTITUTIONAL
RESULTS
Economic and
Social Development
of the country
* Strategy Management Model adapted by Peter M. Dostler for the CNCP
THE CNCP’s MISSION
consideration its traditions and philosophies.
The mission is the organization’s reason for
being. This is what determines the organization’s
business model, why it exists and in what kind of
activities it should concentrate on in the future.
The mission’s importance is related to the
fact that it is a guideline that gives rise to
several strategic objectives aimed at achieving
excellence.
The mission of the National Council for
Combating Piracy and Intellectual Property
Crimes is the way to translate its value system, in
terms of beliefs and areas of operation, taking into
The mission of the CNCP is derived from its
legal standing and clearly defines the path the
organization must follow: “To propose and
coordinate public and private sector actions to
THE CNCP’s VISION
The vision is the conceptualization of a future the
organization wishes to achieve. It must be clear
and permanently displayed for the community
to see. It must be clearly stated, engaging, easy
to memorize, compatible with the organization’s
values, tied to the needs of its clients, achievable. It
must challenge the prevailing rules and paradigms
of conventional wisdom and represent a forceful
advance towards excellence.
Taking all of this into account, the vision for
the National Council for Combating Piracy was
defined as: “Every Brazilian against piracy”.
THE CNCP’S VALUES
In order to achieve our mission, we stated our
values, which reflect the lasting character of the
CNCP and its associates, which are based on its
institutional plans.
organization’s actions are transformed into results
that maximize accomplishment of the mission.
Toward that end, a strategy map was prepared
– a tool that presents, in a logical and structured
manner, the organization’s strategy.
THE MAP’S PERSPECTIVES
The BSC translates the mission and strategy into
objectives and initiatives, organized into different
perspectives. They are “points of view” regarding the
management, which represent the key factors for a
broader vision of the organization. Each perspective
encompasses a set of strategic objectives that portrays
what the organization plans to achieve from the
perspective of creating value in different managerial
dimensions, as well as the main challenges to be faced
to achieve the vision and accomplish the institutional
mission. The perspectives, when viewed as a whole,
provide a complete vision of the organization’s
strategy and tell the story behind the strategy in a
manner that is clear and easy to understand.
The cause-and-effect links represent the causal
correlation that exists between the objectives listed
on the organization’s strategy map and demonstrate
how one objective has an impact on another.
The CNCP’s values are as follows:
•
•
•
•
•
•
Commitment
Partnership
Ethics
Strategic intelligence
Decision-making power
Inclusion
THE CNCP’s STRATEGY MAP
Implementation of the strategy requires that
organizational units and associates be aligned and
committed to the strategic organizational framework.
To guarantee this connection, the organization
must have available an effective communication
process that demonstrates the manner in which the
It was in this context that construction of the
CNCP’s strategy map proceeded. Theoretical
frameworks and lectures about successful case
studies served as the basis upon which the CNCP
members would make suggestions and complete
the construction of the CNCP’s first strategy map.
Holding debates in working groups and discussions
among the entire CNCP produced a consistent
and contextualized strategy map showing the
challenges that the CNCP will need to overcome
over the next few years.
The final product was validated by the group in a
plenary session. The map was then consolidated
with the strategic objectives of the National
Council for Combating Piracy.
chapter 4
prevent and combat piracy and crimes against
intellectual property.”
33
The CNCP’s strategy map
VISION
Every Brazilian against piracy.
Contribute to the
economic and social
development of
the country
Strengthen the
institutional image
Reduce piracy
in Brazil
Raise awareness
amongst consumers
of the harmful effects
of piracy
Enhance Brazilian
norms against piracy
and the defense of
intellectual property
Internal Processes
Reference in the combating of piracy
Governance
34
Institutional results
chapter 4
MISSION
To propose and coordinate public and private
action to prevent and combat piracy and crimes
against intellectual property.
Intensify
educational and
institutional
marketing
campaigns
Structure internal
financial management,
human resource, and
communications
processes
Mobilize and articulate
governmental
agencies for inspection
and repression
of piracy
Develop innovative
solutions to prevent
the circulation
and trade of
illegal products
Promote adhesion
to action against
piracy and the
defense of
intellectual property
National and International Strategic Partnerships
Seek partnerships and
the support of the
private sector
Build relationships and
extend partnerships with
governmental agencies
Formulate and
create public
policies against
piracy
Structure information
search and exchange
mechanisms
Strengthen the
representativeness
and leadership of
the Council
DESCRIPTION OF THE OBJECTIVES
Through detailed discussions, the development team, supported by the consulting firm,
reached a consensus on the descriptions of the strategic objectives.
Validated by the CNCP members, the descriptions are important to understanding the scope
of each strategic objective and they facilitate the preparation of quantitative indicators.
The purpose of the performance measures is to test the organization’s progress towards its
strategic objectives. The principle is simple: without measurement, there is no control. And if
there is no control, there is no management. In other words, strategic performance measures
show the relationship between the strategic objectives and represent an ongoing validation
test of the strategy.
The great challenge to an organization implementing a measurement system lies in the
limited number of performance measures that can adequately communicate organizational
performance. Each performance measure was described in detail with attributes to guarantee
that it is understood and can be made operational.
chapter 4
PERFORMANCE MEASURES
35
STRATEGIC TARGETs
In order to ensure that the performance measure is managed and the objective is achieved,
targets are established that clearly indicate the intended performance level (a number) during
a specific period of time. In other words, the strategic targets cannot simply be an incremental
projection into the future of historical performance trends.
During the process of establishing targets, it is best to begin by identifying long-term targets,
followed by forecasting the numbers for the preceding years. What is important is to ensure a
balance and consistency between the set of targets established for the strategy map. That is to
say, challenging targets in the “institutional results” dimension would presuppose challenging
targets in the “internal processes” dimension, and so on and so forth.
The performance measurement dashboard is the main framework through which to monitor
the effectiveness of the implementation of the strategic initiatives.
While the map is essentially a mechanism for communication, insofar as it makes visible the
objectives established in formulating the strategy, the dashboard gathers and presents a larger
set of information, showing the essential metrics to monitor managerial actions: such as the
description and purpose of the objectives, indicators, testing formula, as well as strategic targets.
As with the strategy map, the performance measurement dashboard (i.e. the scorecard itself)
was prepared in a participatory manner and duly validated by the leaders.
STRATEGIC PROJECTS
The management of projects and processes is one of the critical activities in every dynamic
cycle that is characteristic of strategic management. In fact, the feasibility of making the
strategy operational depends on both projects and processes. The table that follows shows
the list of the National Council for Combating Piracy’s strategic projects.
chapter 4
Strategic Projects of the National Council for Combating Piracy
Project Name
Action and Results Expected
Cities Free of Piracy
Spread initiatives to combat piracy into municipalities by providing incentives
for local governments to create local mechanisms to prevent and crack down
on piracy.
Results expected: Engaging local governments in combating illegal trade, in
general, but especially at the municipal level.
Legal Open-Air
Vendors’ Markets
Negotiate with managers of the major open-air vendors’ markets and
municipal authorities to make such trade comply with the law and seek
alternatives to trade in illegal products.
Results expected: Reduction or elimination of trade in illegal products in open
air vendors’ markets.
36
Business sector
against piracy
Mobilize wholesale and retail companies and vendors against piracy, on a
national basis.
Results expected: Greater awareness of the harm caused by piracy.
Portal against Piracy
Develop an interactive communications portal, including educational and
promotional campaigns.
Results expected: Provide interactive communication channels with society,
introducing the national perspective on combating piracy.
Partnerships and
Cooperation with
Internet Service
Providers
Create mechanisms, working jointly with Internet service providers, to prevent
the distribution of pirated products.
Specialized State
Police Units
Negotiate with State governments to foster the creation of police units
specialized in cracking down on piracy, and/or improve those such units
that already exist.
Results expected: Reducing the availability of pirated products on the Internet.
Results expected: Intensification of actions undertaken by state
governments to crack down on piracy, providing for their ongoing
engagement in combating piracy.
Piracy removed from
schools; or Education
against piracy
Produce educational materials for children, teenagers, educators and university
students. Distribute educational content prepared or approved by the CNCP.
Mercosul Council for
Combating Piracy
(CMCP)
Propose and Support the creation of the CMCP, including public and private
sectors, for Mercosul.
Training of Law
Enforcement Agents
Conduct training for police officers and tax inspectors (federal, state, and
municipal) and for the Office of the Public Attorneys and the Judiciary. Avoid
the purchase of illegal products by government or public sector entities.
Results expected: Increased awareness of the harmful effects of piracy, in
order to reduce the consumption of pirated products.
Results expected: Establishing a collegial regional council for combating piracy.
Results expected: Improved law enforcement crackdowns by government
agents. No purchasing of illegal products by government entities.
National Award for
Combating Piracy
To present awards to public and private sector entities, by category, that have
done outstanding work in combating piracy.
Results expected: Intensification of actions combating piracy by public and
private sector entities.
Database
Develop a database based on intelligence, mapping street vendors’ markets,
operational results (seizures, convictions, and so on). Prepare mapping of entry
points into Brazil for illegal products.
Results expected: Gathering information to support the planning of strategies
to combat piracy.
Compile available information on the harmful effects of piracy and identify
the need to conduct new studies (profiles and behaviors of consumers,
consumer perceptions of piracy).
Results expected: Gather information that supports the planning of
strategies to combat piracy.
Administrative
Management
Structure and map internal processes and competencies within the CNCP.
Panel of Collaborators
Broaden and strengthen the panel of collaborators by identifying and
developing mechanisms to enhance the integration and operations by
collaborators.
Results expected: Strengthen the representative aspect of the CNCP.
chapter 4
X-Ray of Piracy
Results expected: Expansion and strengthening of the CNCP’s operations.
International
Partnerships for
Combating Piracy
Develop integrated mechanisms for combating piracy, prioritizing
international partnerships with China and Paraguay.
Legislative
Improvements
Improve legal mechanisms for combating piracy, prioritizing initiatives
in the following areas: a) Internet; b) inspecting and verifying destinations
of products seized; c) tax burden; d) preventing IPR abuses and
anticompetitive practices.
Results expected: Promoting synergy and carrying out integrated actions in
order to reduce the global trade in pirated products.
Results expected: Improvements in the legal and regulatory framework for
combating piracy.
Innovative Solutions in
Combating Piracy
Enhance and develop mechanisms to support the inspection, prevention
and cracking down on piracy (e.g.: a system for tracking prescription drugs,
SISCOMEX Trademarks, etc.)
Results expected: Greater effectiveness in combating piracy.
Piracy toll-free
number to receive
tips & allegations
Create a structure for the process of receiving, assessing and forwarding tips
and allegations, with a toll-free line to call.
Advertising Concept
Create a model for advertising material that allows all the affected sectors
and those interested in combating piracy to use the CNCP trademark in their
own communication channels.
Results expected: Create a viable and efficient system to collect and act upon
tips and allegations regarding piracy.
Results expected: Creation of a communications identity for the CNCP.
Advertising
Campaigns
Create and support campaigns to prevent and combat piracy.
Monograph
Competition
Establish a competition for monographs on the topic of piracy.
Integrate the Piracy
Issue into Other
Government Programs
Include the piracy issue in government programs such as the National Physical
Education Program for the Citizenry (PNEF) and the National Digital Inclusion
Program (PNID).
Results expected: Greater awareness of the harmful effects caused by piracy.
Results expected: Disseminating information about the piracy issue
throughout civil society.
Results expected: Disseminating information about the piracy issue
throughout civil society.
Economic Initiatives
Identify and replicate national and international practices that have been
successful in reducing the price difference between legal and illegal
products.
Results expected: Promoting market access for legal products.
37
chapter 4
CRITICAL PROCESSES
38
In order to achieve the strategic objectives and accomplish the mission, it is essential to carry
out strategic initiatives that include both projects and processes. Attaining organizational
efficiency is associated with the management of processes, which includes carrying out
routine actions performed daily within the organization.
Not all of the organization’s processes have a significant impact on achieving the strategic
objectives, nor do they necessarily have an effect on strategic management. According to
Kaplan and Norton, “The art of strategy consists of identifying and pursuing excellence in the
few critical processes that strengthen the creation of value for clients.”
Thus, it is essential to identify the critical processes that call for structural actions that will
provide support for achieving the strategic objectives.
Among these, two macro-processes in particular stand out: institutional two-way
communuication with the stakeholders (both the agencies represented on the CNCP and
other entities of civil society that are significant to accomplishing the mission), as well as those
processes linked to communications and institutional marketing initiatives.
These macro-processes are components of an institutional marketing plan that includes a
series of strategic initiatives that support, to a greater or lesser degree, the achievement of
nine of the fifteen strategic objectives presented in the map.
The planning calls for two action areas: offline communication and online actions. These two
action areas interact in a complementary relationship, with each strengthening the other. Once
a collaborative portal is created, the interactive component becomes significant as one of the
pillars of the proposed strategy, in which viral social networks play a significant role.
The greater institutional visibility of the CNCP is essential to achieve the leap in quality that
is planned through implementation of strategic management.
FINAL CONSIDERATIONS
The vision of the future laid out by the Council members represented on the CNCP is both
daring and ambitious. Mobilizing all Brazilians against piracy certainly will not be an easy
task. It is inspiring and almost serves as a declaration of principles that will guide and focus
the strategy formulated in the council’s jurisdiction.
Just as the partnership between federal, state and local executive branch agencies is vital to
achieving the strategic objectives, the synergy and alignment of actions among the executive,
judicial and legislative branches is also fundamental.
Equally important is the partnership between the entities of the three branches of government
and civil society, here represented by the various institutions that have representatives as
members of the CNCP and which maintain institutional links with it.
In sum, the key is to be united; united in actions taken, use of resources and strategic
intentions. That is, a truly collaborative realignment of society.
A great challenge can only be successfully overcome when there is a steadfastness of
purpose and absolute conviction regarding the chosen direction. The remarkable
progress achieved by the CNCP in 2007 and 2008 was only possible because behind the
management tools there is an executive leadership that is well aware of its responsibility
and absolutely committed to the need to expand the fight against piracy, introducing a
coordinated and collective effort by all those in society that are affected by it.
The Executive Secretariat of the CNCP was always ready to meet the challenges presented
by the implementation of strategic management, providing the president of the Council
with the essential support for the leap in quality that was demanded so many times, during
countless working meetings.
The leap in quality to be performed in 2009 is the direct result of the firm leadership
provided by Luiz Paulo Teles Ferreira Barreto.
Peter M. Dostler
Managing Partner
Gestão & Desenvolvimento Empresarial Ltda.
REFERENCES
CAMPOS, F ernando de Araújo & RIBEIRO, Orlando Campelo. Planejamento e gestão estratégica: conceitos e ferramentas
– Brasília: ENAP, 1999.
HAMEL, Gary. PRAHALAD, C.K. Competindo pelo futuro. Editora Campus. Rio de Janeiro:1995.
OLIVEIRA, Djalma Rebouças de. Planejamento estratégico: conceitos, metodologias e práticas. São Paulo : Atlas, 1991.
PORTER, Michael. Estratégia competitiva, técnicas para análise de indústrias e da concorrência. Rio de Janeiro : Campus,
1986.
DINSMORE, Paul Campbell. Gerência de projetos: Qualitymark, Rio de Janeiro, 2003.
KALLÁS, David; COUTHINHO, André Ribeiro (co-editors). Gestão da estratégia: experiências e lições brasileiras. Rio de
Janeiro: Elsevier, 2005.
KAPLAN, Robert S.; NORTON, David P. A estratégia em ação: balanced scorecard. Rio de Janeiro: Campus, 1997.
_________. Organização orientada para a estratégia. Rio de Janeiro; Campus, 2000.
_________. Mapas estratégicos. Rio de Janeiro; Elsevier, 2004.
LAMEGO, Frederico; DOSTLER, Peter M. G.; Planejamento e Gestão Estratégica: aplicação para organizações públicas e
sem fins lucrativos. Brasília, Artigo de Estudo, 2007.
chapter 4
Companies and business organizations, operating together with the CNCP and aligned in
the same strategy, have an extremely significant role to play in accomplishing the mission
established within the framework of the debates undertaken by the CNCP.
39
5.
The enforcement
of intellectual
property rights
Advances achieved in
the last few years by
the government’s law
enforcement and inspection
agencies demonstrate the
importance of joint efforts
to reduce the rates of
intellectual property crimes
in Brazil
Chapter 5
T
he Brazilian legal system includes all of the commitments undertaken by Brazil
when it signed the WTO Agreement on Trade-Related Aspects of Intellectual
Property Rights (TRIPs). These commitments are mainly reflected in the Industrial
Property Law (no. 9279 of 1996), the Software Law (no. 9609 of 1998) and the Law on
Copyrights and Related Rights (no. 9610 of 1998).
In order to uphold the rights provided for in these laws, Brazil relies on effective actions by
several institutions, operating at the federal, state and municipal levels.
With regard to the federal government, the integrated effort undertaken in the last few
years by Brazil’s Federal Revenue Service (RFB), the Federal Police and the Federal Highway
Police have been decisive in achieving significant results since the National Council on
Combating Piracy (CNCP) was created.
Below follow reports submitted by the representatives of these institutions at the CNCP.
43
Chapter 5
5.1
44
Large-Scale Results
Operations by the Brazilian Federal Revenue Service
“Brazil’s Federal Revenue Secretariat is a specific and unique entity subordinate to
the Brazilian Ministry of Finance, which carries out duties that are essential in order
for the government to achieve its objectives. It is responsible for the administration
of all taxes under federal jurisdiction, including social security programs and
those levied on foreign trade, collecting a significant share of the country’s “social
contribution” taxes. It also assists the federal government in formulating Brazilian
tax policy, while working to prevent and combat tax evasion, smuggling, improper
customs clearances, piracy, commercial fraud, drug trafficking and trafficking in
endangered species, and other crimes related to international trade.”
1. MISSION, VALUES, AND VISION FOR THE FUTURE
1.1. Mission
• To administer tax and customs controls with fiscal justice and respect for
each citizen, for the benefit of society.
1.2. Values
• Respect for each citizen
• Integrity
• Loyalty to the institution
• Operating within the Law
• Professionalism
1.3. Vision for the Future
To be an institution that excels in tax and customs administration, serving
as a model, both nationally and internationally.
2. CUSTOMS SURVEILLANCE AND LAW ENFORCEMENT COMBATING SMUGGLING, IMPROPER CUSTOMS
CLEARANCES, PIRACY AND COUNTERFEITING
2.1. Customs surveillance
• Primary operating areas - ports, airports, and border crossings
• Areas legally demarcated as customs surveillance areas
2.3. Brazilian borders
• Argentina - 1,263 km
• Colombia - 3,126 km
• Paraguay - 1,339 km
• Uruguay - 1,003 km
• Total land borders - 15,735 km
• Atlantic Ocean - 7,367 km
2.4. Smuggling, improper customs clearances, piracy and counterfeiting
• Types of Operations:
oo Intense movement of people at the borders with countries to the southwest of
Brazil, notably with Paraguay.
oo Operation of business enterprises, with a high degree of organization (organized
crime).
• Destination of illegal goods:
oo Supplying black market and grey market activities, such as street markets and
low-cost shopping malls.
oo Supplying regular commercial networks, competing unfairly with legal products.
2.5. Strategies of the Brazilian Federal Revenue Service (RFB) to combat smuggling,
improper customs clearances, piracy, and counterfeiting
• Customs controls before, during and after customs clearance.
• Overt and publicized interventions to crack down on illegal products in foreign trade.
• Use of non-intrusive inspection technologies and remote surveillance.
• Customs integration with the Mercosul countries.
• International cooperation.
• Institutional cooperation – integrated combat.
• Professional training of government personnel.
• Remodeling and reorganization of law enforcement activities:
oo Ongoing specialized professional activities.
oo Constant presence of revenue service personnel.
oo Autonomy in planning and taking action.
oo Focus on results.
oo Acquisition of special equipment:
• Two specially-adapted helicopters.
• 13 launches for river and maritime customs surveillance.
• Motor-homes and mobile offices.
Chapter 5
2.2. Customs enforcement
• Combating crime throughout the Brazilian customs territory
45
Chapter 5
3. RESULTS OF SEIZURES BY BRAZIL’S
FEDERAL REVENUE SERVICE IN 2007
Brazil’s Federal Revenue Service conducted 2,269
enforcement operations in 2007, 72% more than the
year before. This generated 76,000 cases of seizures,
that occurred, involving goods worth R$ 1.057
billion, 22% more than the value of goods seized in
2006. In addition, 6,881 formal tax-related legal cases
imposing penalties were forwarded to the Office
of the Federal Public Prosecutors. The chart below
illustrates the main goods seized in 2007:
Goods Seized in 2007
Main items
Recorded media - 0.72%
Beverages - 0.98%
46
Non-recorded media - 1.64%
Watches - 1.90%
Toys - 1.90%
IT - 5.48%
Shoes - 6.22%
Sunglasses - 6.94%
Vehicles - 7.15%
Cigarettes - 7.34%
Electronics - 7.41%
Slot machines - 7.53%
Others - 44.79%
In 2007, synchronized national operations were
carried out in which previously analyzed segments
were targeted in law enforcement actions
throughout the country to halt the sending of
illegal goods via the mail (Operation Express Lion
II), via land transportation of cargo (Operation
Knowledge), via air freight (Operation Air Cargo)
as well as the sale of watches being sold in luxury
stores and jewelers without payment of taxes
(Operation Strong Wrist). Operations were also
carried out on highways involving Brazilian Federal
Revenue Service units from several states, such
as operations Pentagon and Armored Border.
These latter two involved participation by other
organizations, such as the Federal Police, the
Federal Highway Police, the Uniformed State
Police, the Army and the Office of the Federal
Public Attorneys, and these contributed to the
number of vehicles (motorbikes, automobiles,
buses and trucks) seized in 2007 while transporting
clandestine goods, which reached 8,467 units. The
Brazilian Federal Revenue Service also stepped up
its operations in electronic gaming houses, with
26,430 slot machines being seized, an increase of
1,344%, and an intensification in combating piracy
and counterfeiting, with an increase of 252% in
seizures of recorded media (CDs and DVDs), shoes,
watches, and sunglasses. 28.16% of the seized
goods are listed in items likely to involve piracy and
counterfeiting, as shown in the following chart:
Seizures Carried Out in 2007
QUANTITY
MEASUREMENT
UNIT
VALUE (R$)
bottle
6,607,119.83
1,399,469
4,818
Beverage
Alcoholic
kg
80,235.22
26,469
liter
200,332.63
306,254
unit
2,991,831.90
620
1,508
Other
Toys
Shoes
liter
2,156.84
unit
452,395.06
5,756,377
unit
11,812,366.57
717,745
kg
8,171,856.12
1,638
kg
26,340.06
Others
268,927
1,134
460
98,973,682
3,289
Watches
5,315.56
12,690
kg
unit
kg
pack
kg
103,049.71
59,035,959.24
5.62%
6,348,920.41
0.60%
77,205,231.75
7.34%
5,334,736.46
0.51%
7,527,946.00
0.72%
17,249,909.19
1.64%
72,908,740.71
6.94%
20,013,643.05
1.90%
295,953,047.99
28.16%
1,239.25
2,662,457.66
1,762.93
16,168,109
unit
14,585,688.60
kg
3,612,065.30
8,110,508
unit
69,296,675.41
2,222,118
unit
19,764,742.97
kg
1.90%
7,423,657.04
pack
6,181
19,984,222.69
47
751,527.29
81
17,060
0.04%
77,098.47
4,577,893.61
Total for main items likely to be pirated and counterfeited
TOTAL GOODS SEIZED
kg
77,202,172.31
liter
191,808
Sunglasses
pack
464,218.91
3,059.44
unit
242
Non-recorded
kg
0.94%
6,639.70
6,342,280.71
13
4,182,785
Recorded
kg
unit
59,009,619.18
407,642
2,414
Recordable
media
(CD, DVD)
unit
9,879,519.58
8,922.43
2,628
533,056
Medication
kg
% of
goods seized
744.58
93,270
Sports
Cigarettes and similar
bottle
PARTIAL
TOTAL (R$)
Chapter 5
DESCRIPTION
248,900.08
1,051,141,004.78
100.00%
Chapter 5
The People’s Republic of China was the main country of origin for good seized in 2007,
followed by the United States, India and Paraguay. Seizures of goods made in Brazil
involved the vehicles transporting improperly cleared and smuggled merchandise and slot
machines. The chart below lists the main countries of origin of seized products.
Goods seized in 2007
Main origins
Japan - 0.69%
Taiwan - 0.67%
48
Republic of Korea - 0.67%
Mexico - 0.73%
Germany - 0.77%
France - 0.77%
Italy - 0.97%
Paraguay - 1.91%
India - 2.06%
US - 3.28%
Brazil - 4.17%
China - 25.41%
Other countries (including
unknown origin) - 57.90%
2007 was a record year for seized merchandise, with goods worth a total of R$ 713,584,000
being seized, an increase of 34.12% over the year before.
4. RESULTS OF SEIZURES BY BRAZIL’S FEDERAL REVENUE SERVICE IN 2008
Brazil’s Federal Revenue Service carried out 2,070 enforcement operations in 2008, down
8.77% from the year before. This generated 72,523 cases of seizures of merchandise,
involving goods worth a total of R$ 1,043,064,322.68. Two factors influenced the result: the
greater complexity of the operations launched and a labor strike by federal government civil
servants during the first half of the year.
Main items
Recorded media - 0.50%
Non-recorded media - 0.54%
Chapter 5
The following chart illustrates the main types of merchandise seized in 2008:
Beverages - 0.70%
Toys - 1.90%
Watches - 1.93%
Sunglasses - 3.58%
IT - 4.57%
Electronics - 5.03%
Shoes - 6.22%
Cigarettes - 6.35%
Slot machines - 6.76%
Vehicles - 8.18%
Others - 47.47%
In 2008, national synchronized operations were carried out to halt the sending of illegal
merchandise via the mail (Operation Express Lion III), via land transportation of cargo
(Operation Knowledge II), via the improper entry of merchandise through the borders in the
south and southwest of Brazil (Operation Borders), the improper sale of watches in luxury
stores and jewelers without payment of taxes (Operation Strong Wrist II), low-cost shopping
malls and a clandestine warehouse in São Paulo (Anúbis), low-cost shopping malls in Manaus,
Recife, Salvador, Piracicaba and Foz do Iguaçu (Operation Stalls) and low-cost shopping malls
and stores in Fortaleza (Operation Legal Invoice).
Operations were also carried out on highways involving units of the RFB from several
states, such as an operation in the Foz do Iguaçu region (Operation Armored Border),
meaning that the number of vehicles (motorbikes, automobiles, buses, and trucks) seized
in 2008 transporting clandestine merchandise totaled 4,021 units. The RFB seized 22,084
slot machines. Fully 26% of the goods seized are listed as items likely to involve piracy and
counterfeiting, as shown in the following chart:
49
Seizures Carried Out in 2008
DESCRIPTION
QUANTITY
Chapter 5
427,521
Beverages
Alcoholic
Toys
50
Ballpoint pens and pencils
Sports
Cigarettes and similar
Medication
Recordable
media
(CD, DVD)
Non-recorded
Sunglasses
Perfumes
Watches
2,712,973.12
kg
814,658
unit
4,072,946.52
2,784,028
unit
11,706,175.48
2,290,508
13,121
18,029,509
kg
unit
kg
8,117,776.98
15,858,996.99
169,411.09
unit
3,565,166.92
22,378
kg
3,175,519.66
167
kg
3,401.30
264,136
399
unit
kg
19,065,741.35
11,865.08
112,107,983
pack
66,170,719.65
411,539
unit
3,066,559.94
20
liter
1,118,785
1,274.45
kg
1,735,128.74
unit
5,062,844.98
3,410
kg
119,415.30
134,739
kg
3,974,963.21
8,232,268
unit
1,668,092.89
4,648,568
unit
37,322.338.58
70
kg
2,065.85
299,990
unit
7,682,507.69
2,224,275
unit
19,138,785.03
30,934
kg
982,047.42
kg
9,197,699.00
10,562,443
unit
46,257,855.11
30,169
unit
537,841.52
m
282,651.62
138,920
Total for main items likely to be pirated and counterfeited
TOTAL GOODS SEIZED
135.7
148,794.04
596,571
Clothing
bottle
liter
19,615
Recorded
VALUE (R$)
18,864
945,645
Bags and accessories
Shoes
76
MEASUREMENT
UNIT
TOTAL (R$)
% OF GOODS
SEIZED
6,934,849.38
0.66%
19,823,952.46
1.90%
16,028,408.08
1.54%
6,740,686.58
0.65%
19,069,142.65
1.83%
66,182,584.73
6.35%
4,802,963.13
0.46%
5.182.260,28
0,50%
5,643,056.10
0.54%
37,322,338.58
3.58%
7,684,573.54
0.74%
20,120,832.45
1.93%
55,455,554.11
5.32%
270,991,202.07
25.98%
1,043,064,322.68
100.00%
Chapter 5
The People’s Republic of China was the main country of origin for merchandise seized in
2008, followed by the US, Paraguay and Italy. The seizures of goods made in Brazil involve
the vehicles that transported improperly cleared and/or smuggled goods and slot machines.
The chart below shows a list of the main countries of origin for products seized.
Main origins
51
Afghanistan - 1.15%
Italy - 1.85%
Paraguay - 1.90%
US - 4.02%
Brazil - 13.24%
China - 20.85%
Other countries (including
unknown) - 56.99%
In 2008 a record amount of merchandise was seized, worth a total of R$ 830,054,245.15, an
increase of 16.32% over the year before.
Osmar Expedito Madeira Junior
Coordinator of the Enforcement and Surveillance Bureau
Brazilian Federal Revenue Service (RFB)
CNCP Council Member representing the RFB
Jorge Luiz Alves Caetano
Alternate Coordinator-General for Research and Investigation
Alternate CNCP Council Member representing the RFB
Chapter 5
5.2
Intelligence to
Produce Results
The Work Done by the Federal Police
52
A
n agency established in the Constitution, the Federal Police
Department (DPF) is part of the Brazilian public safety system,
operating in collaboration with the other public safety agencies: The
Federal Highway Police, the Federal Railroad Police, the Plainclothes Police
Detectives, the Uniformed State Police and the Fire Department.
The duties of the Federal Police Department are established in the Federal
Constitution. Article 144 defines its duties as follows:
“Article 144. Public safety, a duty of government, a right and responsibility of
all, is exercised to safeguard the public order and the safety of persons and
property, by means of the following agencies:
§ 1 The Federal Police, established by law as a permanent entity, organized and
maintained by the national government, with a career structure, is responsible for:
I - Investigating criminal offenses against the political and the social order
or that are to the detriment of goods, services and interests of the national
government or of its autonomous entities and public sector companies, as
well as other offenses with interstate or international effects and requiring
uniform enforcement actions, as established under law;
II - Preventing and cracking down on the illicit trafficking of narcotics and
similar drugs, as well as smuggling and improper customs clearance,
notwithstanding actions by agencies under the Finance Ministry and other
public sector entities in their respective areas of authority and jurisdiction;
III - Performing the duties of the maritime, airport and border police;
IV - Performing, to the exclusion of other, the functions of the judicial police of
the national government.”
The distribution of authority and jurisdictions among Brazil’s several public safety
organizations stems from the system of checks and balances, which avoids the
Respect for the Constitution is the guiding principal
for each of these government agencies. Respect
for constitutional requirement and standards is,
therefore, the basic principle that guides the work
performed by the Federal Police.
HUMAN RESOURCES AND ORGANIZATION
The DPF operates throughout the country. It
has a “Local Unit” in each Brazilian State and has
various units in the major cities. To achieve its
mission, it currently has a force of 12,000 federal
police officers.
The map below shows how the Federal Police is
organized throughout Brazil, and illustrates how
it operates in the border areas, which is a major
challenge, given the vast size of the country.
Chapter 5
concentration of power in just one agency of the
Republic. This decentralization of responsibilities and
prerogatives respects democratic values, as well as
ensuring independence so that each agency can
perform activities in its respective area of authority and
jurisdiction, while also allowing for reciprocal oversight.
53
Pacaraima
Oiapoque
Surucucu
São Gabriel
da Cachoeira
RR
Bonﬁm
Óbidos
(Base Candiru)
AP
Boa Vista
Macapá
Melo Franco
Fernando
de Noronha
São Luís
Parintins
Tefé
Santarém
Manaus
Tabatinga
Base Anzol
AM
Belém
Altamira
Borba
AC
Rio Branco
Redenção
Porto Velho
RO
Epitaciolândia
Vilhena
Salgueiro
RN
PB
PE
Caruaru
Paulo Afonso
AL
Juazeiro
Palmas
Cuiabá
Mossoró
Juazeiro
Teresina do Norte
SE
MT
Guajará-Mirim
Mucuripe
CE
PI
Araguaína
TO
Sinop
Ji-Paraná
Imperatriz
Caxias
Marabá
Lábrea
Fortaleza
MA
PA
Eirunepé
Cruzeiro do Sul
Parnaíba
Sobral
Barra do
Garças
GO
Cáceres
Rondonópolis
BA
Vitória da
Conquista
Brasília
Jataí
Goiânia
Natal
Patos
Campina Grande
Cabedelo
João Pessoa
Itaíba
Recife
Ipojuca
Maceió
Aracaju
Salvador
DF
Anápolis
Montes Claros
MG
Gov. Valadares
Belo
Horizonte ES
Ilhéus
Porto Seguro
Uberlândia
Uberaba
São Mateus
Vitória
Ribeirão Araraquara
Cachoeiro do Itapemirim
Campo Grande
Preto
Piracicaba
Campos dos Goytacazes
Dourados
Varginha
Araçatuba
Bauru
Macaé
Três Lagoas
Volta Redonda RJ
Niterói
Pres. Prudente
Ponta Porã
SP Cruzeiro
Nova Iguaçu
Londrina
Naviraí
Marília
Rio de Janeiro
Maringá
Sorocaba
Aer. Int. do Rio de Janeiro e DEPOM
Guaíra
PR Curitiba
Cascavel
Campinas
Petrópolis
Foz do Iguaçu e DEPON
Guarapuava
Itaguaí
Dionísio Cerqueira
Angra dos Reis
Chapecó
Paranaguá
São Sebastião
SC
Porto Mauá
São
José
dos Campos
Joinville
Porto Xavier
Aer. Int. de Guarulhos
Lages
Itajaí
São Paulo
Santo Ângelo
Aer. Int. de Congonhas
São Borja
Florianópolis
Santos
Uruguaiana
Fed. Police Dept. HQ
Criciúma
Barra do Quaraí
RS
Units 95
Santa Maria
Special Units 15
Caxias do Sul
Livramento
Local Units 27
Porto Alegre
Passo Fundo
Bagé
Temporary posts 16
Rio Grande
Jaguarão
Permanent post 1
Sta. Cruz do Sul
Pelotas
Chuí
Corumbá
MS
Jales
São José do Rio Preto
Chapter 5
The Federal Police centralizes and coordinates
its operations throughout the country from its
headquarters in the Federal District of Brasília (DF).
Enforcement actions against smuggling, improper
customs clearance and piracy, for example, are the
responsibility of the General Coordination Office
of the Finance Ministry Police (CGPFAZ), which
reports to the Office of the Executive Director
(DIREX), which in turn reports directly to the Office
of the Director General.
Office of the Executive Director (DIREX)
DIREX Board
das 101.5
Assistant
DAS 102.2
54
Institutional
Defense
Coordination
General
CGDI
DAS 101.4
Treasury
Police
Coordination
General
CGPFAZ
DAS 101.4
Immigration
Police
Coordination
General
CGPI
DAS 101.4
Private
Security
Control
Coordination
General
CGCSP
DAS 101.4
Coordination
of Special
Border
Operations
COESF
DAS 101.3
Coordination
of Tactical
Operations
Command
COT
DAS 101.3
Coordination
of CAOP
Operational
Aviation
DAS 101.3
Administrative Support
Service - SAD
DAS 101.1
Within the units
(DCOP), whose personnel will report directly to
the CGPFAZ. The creation of this new Division
is intended to improve the work of the DPF in
this enforcement area, as well as centralizing
and standardizing institutional relationships with
other government agencies.
Managing the activities of the Federal Police is
the responsibility of its headquarters units, which
ensure that human resources training and material
available are adequate for operational needs, while
seeking to achieve effective results. Actual law
enforcement actions are the responsibility of the
decentralized DPF units.
COMBATING CRIMINALITY
Based on this balance of responsibilities
and duties, the Federal Police is considering
the creation of an exclusive unit to combat
smuggling, improper customs clearances and
piracy. It is the Smuggling, Improper Customs
Clearance and Piracy Enforcement Division
In the last few years, the Federal Police has
intensified its fight against organized crime.
Through intelligence operations, it has dismantled
a significant number of criminal gangs,
organizations that exploit weaknesses in the
system, especially in the civil service bureaucracy.
With a series of positive results achieved, this modus operandi has resulted from the very
essence of police work, which is to combat crime at its source and not merely deal with
its effects.
To this end, the Federal Police has been working in partnership with several different
government agencies, exchanging intelligence and conducting wider-ranging operations with
the goal of eradicating criminal organizations.
In the area of intellectual property protection, the police operations have been no different.
The Federal Police actively takes part, for example, in the National Council for Combating
Piracy and Intellectual Property Crimes (CNCP), contributing to the preparation, development,
and implementation of projects.
SMUGGLING, IMPROPER CUSTOMS CLEARANCE AND PIRACY
Combating the production, distribution and sale of pirated products calls for intense work
by the Federal Police. The importance of this issue for Brazil is illustrated by the known link
between piracy and smuggling, given that much of the merchandise originates overseas.
This has led the DPF to dedicate special attention to confronting this problem, combating the
criminal gangs that bring these products into Brazil to be sold.
Another priority has been seeking to learn more about the extent of the problem in
day-to-day Brazilian life. In 2008, the General Coordination Office of the Finance Ministry
Police (CGPFAZ) carried out several studies of geographical locations, based on information
stored in the Federal Police databases. This undertaking by the DPF has resulted in an increase
in the number of police investigations, as can be seen in the following chart:
Investigations Initiated
YEAR
NUMBER OF INVESTIGATIONS INITIATED REGARDING SMUGGLING,
IMPROPER CUSTOMS CLEARANCE AND PIRACY
2005
6,186
2006
6,930
2007
8,698
2008
10,864
National surveys have revealed that the southeast region of Brazil has the highest concentration
of smuggling cases. Out of the six States with the highest number of investigations into crimes
Chapter 5
The DPF has, for example, carried out specific operations to stop crimes against the national
government, to minimize the damage they cause. One of the mechanisms used is to survey
the accumulation of illicit assets for future recovery.
55
of this nature, two are in the southeast region (Minas Gerais and São Paulo), three are in the
south (Paraná, Rio Grande do Sul and Santa Catarina) and one is on the center-west (Mato
Grosso do Sul), as can be seen in the following table.
Chapter 5
Distribution by State
56
STATE
2005
2006
2007
2008
Paraná
1,251
1,482
2,924
4,786
São Paulo
2,191
1,799
2,271
2,769
Rio Grande
do Sul
491
606
1,091
835
Minas Gerais
621
839
704
597
Mato Grosso
do Sul
344
283
353
568
Santa Catarina
225
326
373
400
Such state-by-state information has been of great importance in the planning of operations
by CGPFAZ.
The intense work undertaken by the Federal Police in combating pirated products has resulted
in the development and implementation of several different enforcement operations. The chart
that follows contains the names of the operations, the regions covered, and the products that
led to these initiatives.
Main Operations Carried Out
OPERATION NAME
REGION
TARGET
Boas Vindas III (Welcome III)
Roraima
Counterfeit drugs
Placebo II
Minas Gerais
Counterfeit drugs
Fronteira Sul (Southern Border)
Paraná
Pirated products
Miami
Paraná
Pirated products
E-Commerce II
Several States
Pirated products on the internet
Play Back
Santa Catarina
Pirated products
Mercador I (Merchant I)
São Paulo
Pirated products
Trânsito Livre (Free Passage)
Southern region
Smuggled cigarettes
Fronteira Oeste (Western Border)
Paraná
Smuggled goods
Rei Arthur (King Arthur)
Rio Grande do Sul
Smuggled goods
For purposes of illustration, we present below some photographs taken during Operation
E-Commerce II, carried out simultaneously in several Brazilian States in 2008. They show
products seized during the police operations. The purpose of the operation was to dismantle
organizations that were selling a range of pirated products, primarily electronic media, over
the Internet.
Chapter 5
The products in the photographs were ready to be shipped to the criminals’ clients through
the postal service.
57
It is worth mentioning another important operation carried out by the Federal Police in 2008,
in partnership with Interpol. It was Operation Jupiter IV, focused on combating piracy. The
main results are described below:
Federal Police Accomplishments
INVESTIGATIONS INITIATED
July to September 2008 (total)
GOODS SEIZED
2,316
ARRESTS MADE
144
OPERATIONS LAUNCHED
40
TYPE
Total Value
Cigarettes
R$ 9,086,200.00
Trucks/Busses
R$ 2,000,000.00
Automobiles
R$ 825,000.00
Electronics
R$ 500,000.00
CDs/DVDs
R$ 400,000.00
Tires
R$ 377,600.00
Pesticides
R$ 50,000.00
Total
R$ 13,239,000.00
Chapter 5
OUTLOOK
58
using this information, and cross-referencing it with
data from other law enforcement agencies, the Federal
Police will be better able to quickly and dynamically
map the smuggling routes that exist in Brazil.
In order to improve the surveying of data used
for strategic planning, such as mapping of
smuggling routes, improper customs clearances
and piracy, the CGPFAZ is working on preparing
an intelligence database.
The result of this work will be essential to effectively
combat criminal organizations.
The map below illustrates an outline of the future
system:
This system will receive input from all the Federal
Police units involved in combating these crimes. By
Actions accomplished on first half of 2008
Guyana
Venezuela
Surinam
Colombia
Roraima
French
Guiana
Amapá
Amazonas
Pará
Maranhão
Ceará
Paraíba
Piauí
Acre
Rio Grande
do Norte
Pernambuco
Alagoas
Tocantins
Rondônia
Bahia
Mato Grosso
Peru
Sergipe
Goiás
Bolivia
DF
Minas Gerais
Mato Grosso
do Sul
Paraguay
Espírito Santo
Campina Grande
São Paulo
Rio de Janeiro
Chile
Paraná
São Paulo
Asunción
Santa Catarina
Argentina
Rio Grande do Sul
Uruguay
Route
Origin
Seizure location
Destination
FINAL CONSIDERATIONS
The DPF plans to move forward and encourage the creation of new partnerships with
institutions connected to the council. The ultimate goal is to make progress in the effort to
eradicate a criminal activity that causes great damage to Brazil.
William Marcel Murad
Senior Federal Police Officer assigned to the General
Coordination Office of the Finance Ministry Police
CNCP Council Member representing the Federal Police Department (DPF)
Josemauro Pinto Nunes
Senior Federal Police Officer assigned to the General
Coordination Office of the Finance Ministry Police – DPF
Alternate CNCP Council Member representing the Federal Police Department (DPF)
Chapter 5
The results achieved so far by the Federal Police in combating piracy have been very positive.
The same can be said for the participation by the agency in the discussions held by the CNCP.
59
Chapter 5
5.3
60
Closing in on
Crimes on the
Highways
The Accomplishments of
the Federal Highway Police
E
stablished in 1928 as the agency responsible for patrolling the federal
highways throughout Brazil, the Federal Highway Police (PRF), whose
original authority was primarily related to traffic control, had its
duties expanded with its inclusion in the chapter on Public Safety in the 1988
Constitution. Since then it has played a direct role on combating criminality
within its purvue (federal roads and highways), which culminated in 2003
with the creation of its Combating Crime Division (DCC).
The agency’s public safety work is based on three main pillars: inspection,
policing, and assistance. Given the current law enforcement situation and
the requests by various Federal government agencies, the Federal Highway
Police has operated in an integrated manner in activities that go beyond
the limits of its own authority, providing support in response to a wide
variety of requests being made to it, putting together taskforces, councils,
committees, working groups and signing joint agreements.
The major features of the PRF are its pervasive presence and its social standing.
The PRF is distributed throughout the country, at 576 fixed locations, namely:
one central agency (DPRF); 26 offices of the state regional superintendents
(SRPRF); 151 federal highway police unit stations (subordinate to the SRPRFs);
and 398 posts (subordinate to the PRF unit stations). Added to the PRF posts
are their respective patrols and, taken together, they cover around 68,000
kilometers of major Federal roads and highways. The agency currently has
close to 9,600 police officers, although its maximum authorized personnel
limit was recently increased to 13,098 police officers.
Although it has a uniform, the Federal Highway Police is not a military
institution. Strategic advantages that make the most of its operations
include:
• Horizontal Hierarchy: Although its organizational chart is based on the traditional model –
that is, vertical, in practice management of the agency has a more modern approach, in which
the three hierarchical levels (superior, intermediate, and junior) are involved concomitantly
with the three levels of decision making (strategic, tactical, and operational), which enables
the goals to be achieved;
• Streamlined Hierarchical Levels: The chain of command at the Federal Highway Police is
very short, amounting to just three levels, namely: the office of the Director General, at the
federal level; the superintendents, at the state level; and the unit station chiefs, at the local
level, bringing the “floor” and the “ceiling” closer together in the organizational management
structure, making it a fast and flexible agency, which contributes to achieving its many and
varied missions;
• Standardized Operations: The Federal Highway Police has a standard of operations to
achieve its goals. The agency has five training centers, in the states of Rio de Janeiro, São
Paulo, Rio Grande do Sul, Mato Grosso do Sul, and Ceará, with a capacity to train or
graduate 600 police officers at a time;
• Capacity to Mobilize: It has a good capacity to mobilize effectively to operate in many different
parts of the country, due to its “light” operational structure. Furthermore, the agency has
standby teams at the special operations centers at all of the regional (i.e. state)
superintendencies, which can be mobilized quickly to serve anywhere in Brazil;
• Legal Authority to Operate and Patrol Anywhere in the Country (within its purvue): being a
federal agency, the highway police can operate on the roads and highways within its purvue,
using officers from any state, regardless of the original number of assigned police officers,
without being questioned about the legality of its actions;
• Member of the SISBIN: Decree no. 4.376/02 of 2002 recognized the Federal Highway Police
Department as a member institution of the Brazilian Intelligence System (SISBIN). This legal
instrument allowed the agency to structure its intelligence area, which sharply and significantly
improved its operational results;
• Positive Image of the Agency, Due to its Mission: By rescuing traffic accident victims, helping
families in difficulty on highways where they felt vulnerable, preventing imminent accidents,
educating citizens about traffic, the police officers frequently interact with society, fulfilling
their mission to “protect lives”. Such duties promote a positive image for the PRF, as these
relationships creates ties that identify the agency as an institution that fulfills such needs.
Thus, the agency’s actions against criminal activity also benefit from this image, thus gaining
credibility in and support from communities.
We would also highlight the PRF’s quite distinct logistical operations, which have a diversified
structure in order to fulfill its various missions, as follows:
• Air Operations – It has 11 helicopters and one airplane, which are used to support highway
patrols in actions combating criminal activity and also in monitoring traffic, as well as in air
Chapter 5
• Operation throughout Brazil: The agency operates in every state and the Federal District of
Brasília, patrolling over 68,000 kilometers of major roads and highways, covering 3,502
municipal jurisdictions, with a presence along the main traffic corridors in the country;
61
Chapter 5
• medical rescues, operating with the support of the Emergency Air Mobile Service (SAMU),
under a joint agreement.
62
• Communications and Information Systems – The agency’s units have telecommunications
systems that make it possible to transmit information via radio between inspection
stations and patrol vehicles, with coverage of almost the entire country. They also have
access to various computer systems operating in a network that provides speed and a
high quality of service. Examples include: BR-Brasil, a planned system to manage all the
information generated by the agency’s activities (currently operating only in its traffic
accident mode); SISTEMA ALERTA (“Warning System”), which manages information
regarding vehicle thefts throughout Brazil, and the systems Renavam, Infoseg, Renach and
Serpro, among others.
• Online Operational Reports – The PRF, through its Operational Information Centers (CIOPs),
established in the offices of all the state Superintendents, produce documents in real time
on every event and phenomenon of interest to the agency, with all the data compiled
electronically by the Operational Information Center (Nuinfo), in Brasília. Thus, every
incident in progress can be accessed, including the number of arrests, accidents, victims, or
any indicator of interest to those who access the system.
• Specific Inspection Equipment (breathalyzers, radars, cones, signs, etc.) and special vehicles
(for animals, traffic accident victim rescues, tow trucks and mobile posts), as well as the
vehicles patrolling the highways.
• Dog Training– To combat drug trafficking, the Federal Highway Police has sniffer dogs and
kennels in strategic regions where the demand for such services is greatest.
• Civil Disturbance Intervention Groups – Police officers trained and equipped specifically
to operate in demonstrations and blockades, to ensure order and the flow of traffic.
The increase in the number of seizures by the agency in the last few years is due to various
factors, among which we can highlight:
• Hiring of 3,000 additional highway police officers through the 2004 competitive selection
process;
• Creating the Combating Crime Division under the Office for General Coordination of
Operations (CGO);
• Transforming the Intelligence Advisory Office into an Intelligence Coordination Office (COINT),
with Intelligence Centers established within the office of each of the SRPRFs;
• Continuing capacity building of PRF officers;
• Integrating with other enforcement agencies;
• Engaging in correctional activity;
• Restructuring of the Special Operations Centers (NOEs) in the regions.
The PRF’s authority is defined in the Citizen’s Constitution, Article 144, by Law no. 9503/97
of 1997 (Brazilian Traffic Code), by Decree no. 1655, of October 3, 1995, and by its internal
regulations, approved by Ministerial Directive no. 1375, of August 2, 2007. Until the publication
of Law no. 8028, of April 12, 1990, which included the agency within the structure of the
Ministry of Justice, the PRF was subordinate to the former National Department of Highways,
now called the DNIT.
Due to the fact that highways are the main form of transportation for goods and passengers,
the PRF has specialized in countless law enforcement and crime prevention activities, often
adapted to the characteristics of each region. For example, in the border regions emphasis
is put on combating smuggling, improper customs clearances and drug trafficking, using
advanced policing techniques.
In the north, the agency’s work against crime involves mainly safeguarding the environment,
inspecting the transportation of illegal natural resources, and rescuing workers from slave-like
(forced labor) conditions.
In the northeast, in addition to the trafficking of human beings and slave labor, the federal
highway police work on enforcement activities against marijuana farming and the sexual
exploitation of children and adolescents. In all regions there is intense enforcement work
against robbery of passengers traveling between states, and the robbery, theft of and damage
to vehicles.
Pursuing this dedication to crime-fighting, the former traffic police are no longer restricted
to just federal roads and highways. Recently a series of joint operations with other agencies,
such as the Brazilian environmental agency (IBAMA), the Brazilian Federal Revenue Service,
the Federal Police, the Offices of the Federal Public Attorneys, the Ministry of Labor and
Employment, among others, have underscored the agency’s new function as national
government’s police patrol force.
The Combating Crime Division (DCC), based in Brasília, and the Special Operations Centers
(NOE), one in each state’s regional office, are responsible for the coordination and execution of
such operations. The table that follows shows the results in recent years:
Chapter 5
Nowadays the array of activities being carried out by the Federal Highway Police on combating
criminality is increasingly being widened. The agency has carried out operations of interest
to the Federal government that include, for example, the problem of sexual exploitation of
children and adolescents, trafficking of human beings, working in slave-like (forced labor)
conditions, environmental crimes, piracy, activities in indigenous people’s protected areas, the
expropriation and restoration of rural areas, etc. In addition, the agency has also been requested
by the Judicial System and the Office of the Federal Public Attorneys to carry out enforcement
actions against various crimes, including some involving the serving of warrants, writs, etc.
63
2008 Results
Action
2003
2004
2005
2006
2007
2008
1
88
52,553
66,603
114,495
157,674
503,27
973,04
2,210,44
3,105,40
4,241,89
3,584,91
Crack (kg)
0,00
0,00
46,30
182,20
295,45
511,05
Marijuana (tons)
33,04
36,26
232,70
46,63
43,92
72,56
Chapter 5
Hashish (units)
Cocaine (kg)
Marijuana plants (units)
64
0
0
0
263,459
252,300
1,749,767
CDs/DVDs (units)
568,614
451,429
2,055,231
7,526,548
5,812,365
7,267,284
Cigarettes (packs)
872,780
773,149
1,371,999
2,752,599
3,370,815
1,718,310
0
0
93,399
181,402
264,185
128,295
Software/IT (units)
37,712
48,304
93,399
129,163
122,904
85,585
Electronics (units)
71,532
57,165
160,718
273,335
334,149
228,571
Medications (units)
0
0
120,212
310,320
322,601
496,663
Liquors/Beverages (liters)
26,984
12,711
32,843
168,618
169,398
100,715
Ammunition (units)
80,387
80,335
94,576
117,204
90,317
66,216
1,591
967
1,128
1,476
1,534
1,469
0
0
7,424
21,731
26,467
16,367
Wood (m )
0
0
508,016
295,083
99,167
78,389
Wild animals (units)
0
0
7,910
14,051
11,124
9,789
Released Workers (people)
0
0
309
662
533
906
Vehicles Recovered (units)
3,295
3,289
3,368
3,591
3,644
3,451
Minor Offenders (people)
0
0
432
929
1,237
1,411
Arrested (people)
0
3
14,463
19,440
23,716
26,579
Cargo Recovered
(occurrences)
215
148
336
132
138
114
Fuel (liters)
Firearms/Weapons (units)
Charcoal (m )
3
3
However, the agency’s work is not limited on
combating crime. The PRF is the only police
agency that has the exclusive duty of enforcing
the Brazilian Traffic Code (Law 9.503/97 of 1997).
Traffic inspection by the Federal Highway Police
is modern and humane. Using a new inspection
system – called the Electronic Register – police
have access to an online database of information
updated in real time on any individual, offences
committed and driver and vehicle records.
In addition, the agency has modern speed radars,
breathalyzers and other equipment. The main
goal of this entire effort is to prevent accidents,
saving thousands of lives every year. Recently,
through Law 11.705/2008, the PRF was also
made responsible for inspecting commercial
establishments with access roads to Federal rural
routes in order to prevent the sale of alcoholic
beverages, in order to reduce traffic accidents
caused by drunk drivers.
The Federal Highway Police also has, in some
states, an agreement with SAMU and provides
some vehicles and aircraft to rescue accident
victims. Police officers trained in assisting with
The goal is to optimize the prevention and combat against criminal activities, to progressively
increase both human resources and equipment levels, to invest in new technologies to
improve services to those who use roads and highways (above all in reducing accidents) and
to continuously train police officers, continually raising the professional standards of the PRF’s
ranks of citizens who perform policing functions.
Hélio Cardoso Derenne
Director General of the Federal Highway Police Department (DPRF)
CNCP Council Member representing the DPRF
José Altair Gomes Benites
General Coordinator of Operations, Federal Highway Police Department (DPRF)
Alternate CNCP Council Member representing the DPRF
Operational Results (Piracy):
Arrests
26,579
27,500
25,000
23,716
22,500
19,440
20,000
17,500
15,000
12,500
10,000
Units
7,500
5,000
2,500
0
14,463
Chapter 5
accidents and emergencies work with doctors and nurses. In other states the PRF has a similar
agreement with the fire department and provides such assistance as a joint service. For the
future, the PRF seeks to expand its integration with institutions in other sectors.
65
Electronics
334,149
350,000
300,000
273,335
250,000
228,571
200,000
Units
Chapter 5
160,718
150,000
100,000
57,165
50,000
0
66
Software/IT
140,000
129,163
122,904
120,000
93,399
100,000
85,585
80,000
60,000
48,304
Units
40,000
20,000
0
Firearms/Weapons
1,750
1,476
1,500
1,250
1,000
750
500
Units
250
0
1,128
1,534
1,469
Liquors/Beverages
168,618
175,000
169,398
150,000
125,000
100,000
100,715
Chapter 5
75,000
Units
50,000
32,843
25,000
12,711
0
67
Cigarettes
3,370,815
3,500,000
3,000,000
2,752,599
2,500,000
2,000,000
1,371,99
Units
1,500,000
1,718,310
1,000,000
773,149
500,000
0
Note: The slight drop in the number of seizures in 2008, relative to 2007, was due to the increase in joint enforcement actions with the
Brazilian Federal Revenue Service, in which the vehicles carrying smuggled or improperly cleared goods are sealed and sent directly to
the Revenue Service, which prevents PRF officers from counting and registering the respective seizures.
6.
State and
municipal
Initiatives
Combating piracy in Brazil has become
much more of a National, rather than
Federal government, policy. In the
three State levels - Federal, State and
municipal – legislative initiatives, the
creation of councils, the establishment
of police departments specialized
in intellectual property, the putting
together of taskforces, and so on, have
been noted. These are some of the
many anti-piracy efforts that have
proliferated throughout the country.
This section reports on two experiences
in this regard, one in the State sphere,
and the other municipal.
Pioneering in the
enforcement of
crime in Rio
Immaterial Property Crime
Department (DRCPIM)
P
iracy is undoubtedly a public security issue and has been
considered the crime of the century by Interpol, with a clear
connection to other criminal activity such as organized crime,
tax evasion, money laundering, corruption, and extortion.
Identified by specialists as a social and cultural problem, piracy is seen
as one of the main obstacles facing the Brazilian economy. The sales
of counterfeit products have become a form of subsistence for many
Brazilians, but the profits from this illegal trade go to the few, and the
losses are suffered by the whole country.
In the State of Rio de Janeiro the setting up of the Immaterial Property
Crime Department by Decree n°. 33.535, of 07/07/03, was a pioneering
initiative in this area in Brazil and a landmark in public policy in this field,
resulting from the recognition of the need to streamline judicial policy in
combating piracy.
The exponential growth at that time in the supply of counterfeit
products, the opportunist expansion of the street markets, and the
pressure brought to bear by the sectors harmed, indicated the demand
for the creation of a specialized unit. This specialized department has the
power to investigate and repress counterfeiting, distribution and trade
in goods produced or reproduced in violation of copyright, as well as to
investigate crimes described in laws 9279/96 (Industrial Property Law)
and 9609/98 (Computer Program Intellectual Property Protection Law).
Chapter 6
6.1
71
Organizational Chart
for the DRCPIM
Police Chief
Chapter 6
Assistant Police
Chief
Administrative
Sector (SA)
Criminal Register
Office (SEC)
Police
Investigations
and Operations
Sector (SIOP)
Police
Intelligence
Sector (SIP)
Expertise
Sector (SP)
72
-Department
-General
Protocol
-Administrative/
Operational
Support
-HR
Management
Center
-Schedule
-Police Inquiries
-Seizure and
holding
of funds
-Payment/
paycheck
-Vacations/leave
-Benefits
-Administrative
prosecutors
-Legal notices
-Preliminary
investigation
-Routine
operations in
partnership
with interested
associations
and sector
representatives
-Planning and
execution of
intelligence
operations
-Information
and police
intelligence
-Space for
resident ICCE
experts that:
-Updating of
databanks and
research
• help in prior
analysis of
material and
pass onto
investigation of
goods seized
-Statistical
control and
mapping
-Surveillance
of locales
and
accompaniment
of target
• accompany
police
investigations
-Telephone
interception
-Telematic
interception
In its current structure, the DRCPIM includes
two police chiefs, the Head and the assistant,
who are responsible for the investigations. The
45 agents posted there are divided into the
following sectors:
Administration Sector (SA) – Responsible for the
receipt and protocol of petitions; for the Hotline,
with tip-offs passed on by MOV-RIO & SSP/RJ;
and for matters originating at other precincts, as
well as for the administrative support of the unit
and the management of its human resources.
Investigation and Police Operations Sector (SIOP)
– Comprising agents working on the preliminary
investigations and the teams that carry out
investigations throughout the State area, often
accompanied by representatives of interested
sectors, making seizures and identifying those
responsible for the display and trade of counterfeit
products. Criminal Register Office (SEC ) –
Due to the diverse administrative activities
involved in the operation of this department, only
one third of all the agents can work on external
investigations and operations, which have eleven
marked and unmarked vehicles, which is clearly
too few given the size of Rio de Janeiro State.
In 2007 1,529 investigations were carried out,
rising to 1,629 in 2008. The volume of counterfeit
articles seized is frightening and illustrates the
massive amount and diversity of counterfeit
products available, both stabilized and irregular,
as can be seen in the charts below. In the period
indicated, the fall in products seized reflects the
fall in criminal activity, its leaders having been
forced back by the enforcement action carried
out by the DRCPIM.
Despite its small size, since its creation –
especially since 2007 – the DRCPIM has been
making almost-daily seizures of counterfeit
articles traded in popular street markets and
commercial establishments throughout the
State. Being a specialized intelligence unit, of
Total units seized by the DRCPIM
57,843
60,000
52,508
Apparel and
Accessories
40,000
32,339
30,599
Footwear
20,000
10,996
13,921
Toys and
Party Articles
0
2007
2008
Chapter 6
a small size given the problem to be faced, we
concentrate increasingly on investigations to
identify and neutralize those who are making
large profits from this criminal activity, and not
just on those elements in the sale points. One
effect of this approach has been the growing
number of arrests of the owners and managers
of pirate product producers since 2007, with the
subsequent seizure of all the equipment, such
as recorders, control boards and printers.
Processes police inquiries, seizures, and receipts:
Police Intelligence Section (SIP), responsible for
the telephone interceptions authorized by the
Courts, as well as the monitoring of locations
and people and companies under investigation
and the cross-checking of information obtained
in the databanks available.
73
Chapter 6
Games and Software
Music and Films
380,000
2,400,000
375,711
370,000
2,300,000
360,000
2,200,000
350,000
2,386,990
2,100,000
344,107
340,000
74
330,000
2,007,906
2,000,000
2007
2008
In addition, some enforcement operations were
widely covered in the local and national media,
such as Operation Crocodile, at the beginning
of 2007 in the street market in the municipality
of Campos, preceded by investigations in the
locale. Practically all the DRCPIM police officers
were involved in the operation, alongside agents
from the then APDIF, now called the APCM. This
resulted in the largest seizure of recorded media
in the country: over half a million counterfeit
copies of music and video on CD and DVD.
During the operation, 14 laboratories were shut
down, seizing computers, originals, and material
used in the production of pirate copies.
1,900,000
2007
2008
Operation “Bico Seco” was run in 2007 and resulted
in the arrests of people who were involved in the
production, handling and distribution of inferior
quality alcoholic beverages which were sold as
superior quality, counterfeiting the excise tax
seals. The commercial establishments selling
such beverages, often in wealthy neighborhoods,
frequented by the higher levels of Rio society,
were also identified and investigated, looking
into the involvement of their representatives
in the purchase and subsequent sale to end
consumers. At the end of the investigations,
seven people were indicted and imprisoned
and diverse material was seized in the States
Another police investigation in 2007 by the
specialized department, which was covered
extensively by the national media, resulted in
the seizure of 30,000 pirate DVDs of the Brazilian
film “Elite Squad” (Tropa de Elite) and in the
identification of people involved in the illegal
reproduction of the film, who were then working
for the company Drei Marc, which had access to it
during the subtitling process in post-production.
This episode grabbed attention because it was
the first case of a Brazilian film being pirated
before it was premiered in theaters in the country,
with an unfinished version of the film directed
by José Padilha (who made the documentary
Ônibus 174) being sold on pirate DVD throughout
Rio de Janeiro over two months before the film’s
commercial release, set for November 2007.
The beginning of 2008 saw the arrest of the person
responsible for the first pirate copy of the film Meu
Nome não é Johnny, directed by Mauro Lima,
after a six-day investigation in which operations
were carried out in various street markets in
the State and in which police officers infiltrated
trading points. Once identified and indicted for
breach of copyright and for promoting this crime,
the trader from the São João de Meriti street
market admitted that he had copied the film at a
theater in a mall in the Baixada Fluminense region
on 01/12/08, and that he had recorded himself at
the end in order to encourage piracy.
ENFORCEMENT
carried out by the department
has reduced criminal activity
In 2008 Operation Guarani was carried out,
the scope of which in the beginning was the
identification of those responsible for the
production and supply of counterfeit goods
in the main street markets and commercial
establishments in the State of Rio de Janeiro. As
the intelligence prepared by SIP indicated that
many of the counterfeit products in the State
came from Ciudad del Este, that was where the
agents went, armed with all the technological
equipment available, on four occasions, also
carrying out surveillance in the neighboring Foz
do Iguaçu.
At the end of the investigations, which began in
2007, the structure of the criminal organization
responsible for the acquisition, transport and
selling of the counterfeit products from Paraguay
was exposed, identifying everyone from the
supplier in Ciudad del Este to those responsible
for transport and selling in various commercial
establishments and street markets in the State of
Rio de Janeiro. In addition, it was also discovered
that as well as the individual smugglers who
regularly travel to Paraguay by bus to fetch orders
for their clients in Rio, transport companies are
now hired to travel the complete distance in
Chapter 6
of Paraná, São Paulo and Rio de Janeiro on
warrants issued by the Courts upon request by
the police.
75
Chapter 6
return for a percentage of the goods transported, with the order being placed by telephone
or MSN (Microsoft Messenger) direct to the Paraguayan establishment. Twelve people were
arrested in the operation, along with a lot of material, counterfeit and smuggled products
at 28 residential and commercial addresses in the States of Paraná (in the city of Foz do
Iguaçu), São Paulo and Rio de Janeiro.
76
In 2008 Operation Crime.com was carried out, an investigation into the illegal trade in
computer programs and games for PCs, Playstation II and X-Box 360 on DVD and CD via
the internet and using nicknames on websites such as Mercado Livre (www.mercadolivre.
com.br), Toda Oferta (www.todaoferta.com.br) and Que Barato (www.quebarato.com.br/
classificados/need-fos-speed-pro-street). This was an example of virtual piracy, which is
the selling of software on DVD and CD, in breach of copyright. The virtual aspect is the
internet, which is the channel used for the commercial transaction.
The losses caused by this criminal activity are frightening, directly impacting not only the
owner of the copyright, the producer and distributor, but also the end consumers, seeing as
they acquire a product in a form that certainly has no way to provide the technical conditions
required for consumption, as well as the tax authorities, which have no knowledge of the
counterfeiters’ activities. Without doubt, this activity results in tax evasion.
The counterfeiters of computer programs and games profit from their illicit activities and, of
course, do not declare this. The activity has created a true black-market industry, as - despite
the small amount of money involved in the sales points in this illicit market, in the economy
overall the figures are huge.
At the end of this investigation, following a warrant to examine bank accounts and
telephone records of those under investigation, those involved in the criminal activity
were arrested and a large volume of counterfeit material was seized, which would have
been sold over the internet.
These operations are perfect raw material for headline writers and were carried out above
all thanks to the quiet work of the Intelligence Section. However, it must be remembered
that there is work done behind the scenes which is not covered by the media, but which is
equally important in repressing piracy.
One example of this comes from 2007, from a communications channel with the Rio de Janeiro
City Hall. Often, city halls license trade or the use of public space (in the case of street traders)
to small operators with no concern for the product to be sold. This is now being reversed.
Hence, upon the seizure of counterfeit goods or goods in breach of copyright on sale in
public in which the seller is identified by the Rio de Janeiro City Hall, which is what has
happened in the large street markets in the city, the Coordinator of Urban Control is asked to
withdraw the license. When counterfeit articles are seized from commercial establishments,
the Coordinator of Licensing and Inspection is asked to withdraw the authorization granted.
The constant intensification of the department’s
work has resulted in a considerable increase in
the volume of seizures and the number of arrests,
statistically reducing the trade in counterfeit
products in critical areas, such as the street
markets in Uruguaiana, Campos dos Goytacazes
and countless other places.
Despite these improving statistics since the
setting up of the DRCPIM, almost completely the
result of the tireless dedication and commitment
of the police officers involved, its physical and
technological structures have not kept up with
its huge growth. Today it faces real obstacles to
its effectiveness, chief amongst them a lack of
space, given the large volume of material seized
every day, a lack of specialists and agents.
The partnerships with
public agencies, associations and
representatives of the sectors have
been moving the activities of the
DRCPIM forward.
In July 2003 specialized department began
work in the São Cristóvão neighborhood, in a
provisional space shared with other specialized
units, and in August of the same year it was set
up in a criminal sector in its own offices, linked
to the Carlos Éboli Criminal Institute (ICCE).
Only two criminal experts work there (one
of them also working in another specialized
d e pa r t m e n t a t th e s a m e a d d re s s ) b e i n g
responsible for examining seized articles from
around the State of Rio de Janeiro, as well
as examinations in external investigations,
accompanying teams on their street operations.
They also produce official reports and give
training talks.
Unfortunately, when the department was
conceived the vast quantity of material seized
(piling up in the narrow office corridors) and its
latter submission for expert examination was
not anticipated, which has been made worse by
a lack of human resources. Recently, the APCM
paid for the construction of a 50 m² warehouse
to store the seized goods, in the vehicle car park,
which is now full of counterfeit articles.
Chapter 6
The DRCPIM, likewise, seeks to work in partnership
with the associations and other representatives
of the sectors interested, as well as the related
public agencies, to build relationships with all
those involved in the enforcement action. It also
constantly encourages society to participate,
through messages passed on by agents during the
police operations, and fostering tip-offs directly to
the department or through the proper channels,
such as the hotline.
77
Chapter 6
Given the urgent need to establish a new model against piracy in Rio de Janeiro, the
department was set up without a budgetary increase from the State, with few resources and
a very limited installation, having at that time only 15 agents. Most equipment and furnishings
used by the DRCPIM are donated by interested companies and sector representatives.
78
The unit has grown and matured with the success achieved and the progressive intensification
of its work against counterfeiting, currently having three times the number of police officers
compared to when it was set up, which is still far from a reasonable figure considering
the work to be done and that the agents have to cover all the unit’s sectors and operate
throughout the State. To date, the criminal sector does not have its own computers, and is
using the equipment seized to produce countless official reports. It is not alone in this.
Of equal importance to such operational issues that impact its structure, there are also
logistical difficulties which also compromise the effective combating of piracy, as follows:
• A lack of support from the municipal government, with insufficient administrative staffing,
which should be society’s first line of defense, with public space still being licensed to
traders in pirate products.
• A lack of Court involvement, with few guilty verdicts against intellectual and immaterial
property crimes.
• A sense of impunity, which results in the crime not being taken seriously, with Rio de
Janeiro being the third-ranked State in Brazil in terms of reoffending.
• Tolerance by the community in regard to piracy, there initially having been resistance by
society to debating the issue.
• A lack of clear information amongst the general public about the damage caused
by piracy.
• Few educational initiatives on sustainable consumption.
These difficulties require improvement of the other pillars in the fight against piracy,
namely: education, which informs society of the risks inherent in pirate products, it being
essential for the consolidation of a consistent policy against piracy; economic, making
original products more competitive; and institutional, which seeks to debate Brazilian
legislation on piracy.
Public security policy against piracy has been achieving results in recent times, and deserves
close examination, but the struggle is hard and must gather together public agencies involved
in repression and legislation, private initiative, and the community. It must be remembered
that everyone loses out to piracy.
The administrative guidelines that have been implemented at the DRCPIM have been
achieving very positive results in recent years, attracting the attention of national and
international agencies dedicated to combating intellectual property violations, and the unit
department has grabbed the attention
of national and international agencies
involved in the struggle against
intellectual property violations.
Chapter 6
The work done By The
79
has been included on some visit schedules. This
is a tremendous achievement, considering the
conditions the work is done in.
Believing that change will only come from
collective involvement, we have planned to
maintain and improve the relationship channels
with the various spheres of government and to
establish public-private partnerships to optimize
the efforts made by all the sectors involved,
seeking a solution to the problems herein.
In development terms, the plan is to include the
specialized unit in the Legal Department Program
(PDL). Without equal in the conventional model,
it is the best that has been seen in public security
and represents a real revolution in policing
structure, involving everything from the sharing
of physical space to various administrative
routines.
The Legal Department Program, praised in the
United Nations 2001 report and ISO 9000 certified,
aims to boost the productivity and quality of police
services through the use of technology, permanent
training of agents and the restructuring of working
processes, representing a leap in quality. The
difficulty lies in the project implementation costs,
which involve the adaptation of the physical space
and the acquisition of state-of-the-art equipment.
Andrea Nunes da Costa Menezes
Angelo Ribeiro de Almeida
Valéria de Aragão Sadio
Civil Police Chiefs - Rio de Janeiro
Chapter 6
6.2
A city united in the
search for solutions
The Blumenau Municipal
Council on Combating Piracy
80
T
his is a report on the activities carried out by the city of Blumenau
as a whole since 2005 to enhance the combat of piracy. It presents
several initiatives carried out by entities of the organized society, as
well as municipal, State and Federal governmental bodies that are members
of the Municipal Council on Combating Piracy (CMCP).
THE WORK DONE BY ORGANIZED SOCIETY
Preliminary discussions
Blumenau’s concern over the trade in counterfeit products has become
evident in recent years, with the various discussions of the issue held by
organized society entities, associations and public bodies in the municipality
on the losses caused by piracy.
The issue, however, began to take shape in June 2007, encouraged by a
former Federal Police chief in the region. During talks with the Blumenau
Business Association (ACIB) in 2007, the creation of a municipal movement
was suggested, to rid Blumenau of piracy.
The proposal raised awareness amongst trade associations, which decided to
get together in search of solutions to counterfeit trade in the city. Amongst
the efforts made by the group was the training of professionals and educators
in June 2007 to recognize pirate products.
Piracy-Free Blumenau Campaign
The movement by the business class against counterfeit trade evolved, gained
partners and, finally, resulted in the launch of the Piracy-Free Blumenau
Campaign, on September 20th 2007.
free of piracy. Initially the campaign focused on
the sale of CDs, DVDs, sunglasses, clothing and
software.
Campaign coordinators:
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Film and Music Antipiracy Association (APCM)
Brazilian Association of Software Companies (ABES)
Blumenau Business Association (ACIB)
Blumenau Store Managers’ Chamber (CDL)
Blumenau Higher Education Institute (IBES)
Meirelles Intellectual Property Institute (IMEPPI)
Blumenau and Region Proprietors’ Association
Uniformed Police Detectives
Plainclothes Police Detectives
Federal Highway Police
Blumenau City Hall
Blumenau Consumer Advice and Protection Program (Procon)
Brazilian Tax Office
State Treasury Department
Blumenau and Regional State Development Department
Blumenau Accounting Services Union (Sescon)
Blumenau Fabric Union (Sintex)
Blumenau Retail Union (Sindilojas)
Blumenau Regional University (Furb)
The Commitment Declaration
During the launch of Piracy-Free Blumenau, the
agencies involved in the campaign presented
a Commitment Declaration to the mayor, João
Paulo Kleinübing, suggesting the creation of
the Municipal Council on Combating Piracy in
Blumenau.
The work done by the Piracy-Free Blumenau
Campaign was recognized by various representatives
of the private sector affected by piracy.
Municipal Council on Combating Piracy
The main achievement of the campaign was the
creation of the Municipal Council on Combating
Piracy (CMCP), on September 12th 2007. The
proposal was that the Council would move the
actions initiated and developed by the campaign
forward.
With the guaranteed support of the mayor of
Blumenau the proposal to create the Municipal
Council on Combating Piracy was forwarded by
the mayor on October 2nd 2007 and established
by Complementary Law no. 666, on December
12th 2007. Ordinance no. 11.718, of February 12th
2008, named the members of the CMCP.
The first meeting of the Municipal Council on
Combating Piracy was in February 2008. In April
2008, it was divided into five special commissions,
and from then on began its activities, focused on
Chapter 6
With the engagement of 19 trade associations,
public bodies and NGOs, the campaign worked
to make Blumenau the first city in the country
81
Chapter 6
educational and enforcement actions as regards counterfeiting. On June 3rd 2008 its internal
rules were approved by decree.
82
Stages in the Creation of the Council
DateEvent
10/02/2007
Forwarding of the proposal on the creation of
the Municipal Council on Combating Piracy
12/12/2007
Creation of the Municipal Council on Combating Piracy
(Complementary law no. 666)
02/12/2008
Nomination of the members of the Council (Ordinance no. 11.718)
02/19/2008
First meeting of the CMCP
03/19/2008
Approval of the Council’s Internal Rules
04/23/2008
Creation of the Special Commissions
06/03/2008
Approval of the CMCP’s Internal Rules by Decree no. 8.697
The Blumenau Municipal Council on Combating Piracy (CMCP) is a standing, consultative
body linked to the Municipal Department of Economic Development (SEDEC). It holds
quarterly ordinary meetings and extraordinary meetings when called, in which 20 members
take part, who are organized into five special commissions: educational, institutional and
communications, enforcement, economic, and legislative.
The Educational Commission runs educational campaigns against piracy. Coordinated by a
representative of the Municipal Treasury Department, its function is to clarify the damaging
effects of counterfeiting and to raise awareness amongst the general public.
The Institutional and Communications Commission establishes permanent dialogue with
institutions and agencies that can contribute to combating counterfeit trade and promote
the work of the CMCP.
The Council has an Enforcement Commission made up of representatives from the
Plainclothes Police Detectives and Uniformed State Police, the Federal Highway Police,
Brazilian Federal Revenue Service, State and Municipal Treasury Departments. It is responsible
for planning operations that prevent and combat crimes against intellectual property.
The Economic Commission is responsible for getting the economic and financial resources
with which to fulfill the Council’s mission, from public and private agencies.
Finally, the Legislative Commission proposes alterations to current legislation.
Council Commissions
Institutional and Communications Commission
ACIB, CDL, INMETRO, SDR, Sedec, Sescon, Sindilojas and Sintex
Educational Commission
Abes, APCM, Furb, Ibes, IMEPPI, INMETRO, RFB and Sefaz
Legislative Commission
Furb, Ibes, RFB, Procon, Sedec, Sefaz and Sintex
Repression Commission
PM, PC, PRF, RFB, SEF/SC and Sefaz
Economic Commission
Special Commission Rapporteurs
Members:
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Film and Music Antipiracy Association (APCM)
Brazilian Association of Software Companies (ABES)
Blumenau Business Association (ACIB)
Blumenau Store Managers’ Chamber (CDL)
Santa Catarina State Metrology Institute (INMETRO/SC)
Blumenau Higher Education Institute (IBES)
Meirelles Intellectual Property Institute (IMEPPI)
Uniformed State Police
Blumenau Plainclothes Police Detectives (PM)
Blumenau Federal Highway Police (PRF)
Blumenau Consumer Advice and Protection Program (Procon)
Regional Development Department (SDR)
Santa Catarina State Treasury Department (SEF/SC)
Municipal Economic Development Department (Sedec)
Municipal Treasury Department (Sefaz)
Blumenau Accounting Services Union (Sescon)
Blumenau Fabric Union (Sintex)
Blumenau Retail Union (Sindilojas)
Blumenau Regional University (Furb)
Action
Institutional
- Polling of trade associations and their members on the possibility of acquiring legal computer
programs (operating system, text editor, spreadsheet, and others) to replace the use of
pirated versions in their working environments.
- Sending letters to trade associations in commerce advising their members not to sell pirate
products.
Chapter 6
SPECIAL COMMISSIONSMEMBERS
83
- Sending of communications to higher education institutions and the public library in the
municipality warning them about the unauthorized reproduction of books under Law nº
9.610/98.
Chapter 6
- Presentation of the overall situation regarding piracy in Brazil and the work done by the CMCP for
the members of the Blumenau IT Center (Blusoft).
Economic
- Sending of the municipal public budget forecast to the Bill of Law on Budgetary Guidelines (LDO),
with approval of the Municipal Council, to implement the CMCP’s work.
Educational and awareness
84
- Antipiracy training for police officers, public agents and authorities, dealing with legal matters, the
technical identification of software, music and films (CDs and DVDs).
- Discussion of piracy in a class as part of the course Promoters of Fiscal Education, given to 60
teachers in the municipality under the Municipal Fiscal Education Program (PMEF) in Blumenau,
on October 8th 2008. State and municipal authorities supplied by the CMCP talked about piracy’s
harmful impact on society. In the first phase, teachers from four pilot programs in schools in the
municipal system were trained, who in turn passed on their knowledge too their educational
units. They were: the Leoberto Leal Primary School (Primary Education and Youth and Adult
Education), the Lauro Muller Primary School (Primary Education), the Olga Rutzen Primary School
(Primary Education and Youth and Adult Education), and the Zulma Souza da Silva Primary School
(Primary Education). In the second phase, work was done to produce panels on piracy in the
schools above, participated in by teachers and students.
- Development of the project Virtual Handbook on Combating Piracy, in September 2008, by the
Blumenau Higher Education Institute (IBES), which is designed to gather, provide and store
information on what piracy is, what pirated products are, the crimes associated with it and the
consequences of copyright violation for the general public and the State.
- Talk given to students on the law course at the Leonardo da Vinci University (Uniasselvi), on
December 3rd 2008, National Piracy Combat Day.
Repressive
- Provision of two hotline numbers for the general public in Blumenau to report the sale of pirate
products: 151 (Procon) and 181 (Civil Police). Various joint operations between public agencies
involved in repression were carried out, culminating in a large number of seizures in the city.
Recognition
Blumenau’s initiative in creating the first Municipal Council on Combating Piracy in Brazil grabbed the
attention of national and international authorities and awakened interest in its work by the municipality.
In October 2008 Blumenau was visited by the Consul for intellectual property rights from the United
States, who came to see what the CMCP had been doing. He put himself at the disposal of Blumenau
and Santa Catarina, mainly in the area of awareness regarding the harm done by piracy to society. He
considered the work to be very positive and said he plans to intensify the partnerships between the
Consulate General of the United States of America, in Rio de Janeiro, where it is based, and the city
and State.
Bearing in mind the objectives of the Municipal Council on Combating Piracy, which aims to raise
awareness amongst the general public about not buying pirate products and to report illegal trade and
the violation of copyright to the authorities, in 2009 the Council plans to intensify educational work in
the academic sphere, clarifying the matter to students regarding the harm done by piracy, as follows:
Chapter 6
Outlook for 2009
• Theft of ideas and inventions
• Misleading consumers
• Disrespect for the consumer defense code
• Impact on health
• Unfair competition
• Tax evasion
• Damage to the economy
• Inhibition of new investment
• Loss of jobs and strengthening of organized crime
José Eduardo Bahls de Almeida
President of the Blumenau Municipal Council on Combating Piracy /SC
Edson Kestering
Executive Secretary of the Blumenau Municipal Council on Combating Piracy /SC
“The success of our work is due to the
effective participation of organized society,
through its representatives on the Council.
Combating piracy is a hard task and depends
on the engagement of everyone.”
José Eduardo Bahls de Almeida - President of the CMCP
85
7.
International
relations
C
ombating of counterfeiting and piracy, two scourges that do harm to both
developed and developing countries, cannot succeed without an increasingly
closer collaboration with our main trading partners.
The years 2007 and 2008 saw an intensification of dialogue with important trading
partners, increasing the sharing of strategic information and experiences in order
to combat counterfeiting and piracy. Over the last two years, it is noteworthy that a
mechanism for consultation with the United States has been consolidated and dialogues
have been established with the European Community and Japan. During 2009 and 2010,
Brazil will do its utmost to build closer relationships with other developing countries,
especially China and Paraguay.
THE UNITED STATES
During 2007 and 2008, Brazil conducted a productive dialogue with the United States
on the issue of combating piracy, with bilateral meetings being held on the protection of
intellectual property.
In 2007 Brazil was reclassified within the Special 301 category, under US Trade Law,
which is an annual review process regarding intellectual property protection. According
to the Office of the US Trade Representative, the reclassification reflected a “significant
improvement” in Brazil’s protection of copyrights. Since 2002, Brazil had been included
on the priority watch list, a category of countries with a higher degree of deficiencies in
the protection of intellectual property, according to the US government’s interpretation.
chapter 7
Dialogue and partnerships
to strengthen the sharing of
information and experiences
89
chapter 7
90
Brazil’s reclassification WITHIN
the US “Special 301” list
Press Release no. 205 of May 1, 2007
In a telephone conversation with Brazilian Minister
of Foreign Relations Celso Amorim on April 30 the US
Trade Representative, Susan Schwab, informed him
of the US government’s decision to reclassify Brazil
to the “watch list” of the “Special 301” section of US
trade law.
Since 2002 Brazil had been included on the “priority
watch list”, a category for countries representing the
highest degree of deficiencies in protecting intellectual
property rights, according to the US government’s
interpretation. According to the Office of the US Trade
Representative this change reflects a “significant
improvement” of copyright protection in Brazil.
The Brazilian government considers the
reclassification to the “watch list” to be favorable. It
believes, however, that the keeping Brazil on any
“Special 301” list is not consistent with the standards
of intellectual property protection established in
Brazil’s national legislation, which is fully compatible
with the commitments assumed by Brazil in
multilateral forums, such as the World Intellectual
Property Organization (WIPO) and the Word Trade
Organization (WTO).
THE EUROPEAN UNION
Negotiations with the European Union to establish
consultative mechanisms were seriously harmed by
the European stance taken in the publication entitled
Strategy for the Enforcement of Intellectual Property
Rights in Third Countries, published in 2006. In this
document Brazil was placed on list 3, consisting
of countries with high rates of production, transit
or consumption of pirated or counterfeit goods.
Nevertheless, Brazil remained open to dialogue and
on November 13, 2008 it welcomed a European
delegation for a meeting to share experiences
concerning intellectual property topics.
Regarding issues involving the application of
intellectual property rights, the European delegation
attended presentations by the National Council on
Combating Piracy, Brazil’s Federal Revenue Service,
the Federal Highway Police and the Federal Police.
The Brazilian delegation took the opportunity to
indicate the government’s concern over repeated
violations of copyrights held by Brazilian artists in
EU countries.
JAPAN
In 2008 Brazil and Japan decided to join forces to
step up the fight against piracy and counterfeiting.
Meetings were organized between the National
Council on Combating Piracy, the Japanese
Embassy, and representatives of interested
Japanese companies. It is worth noting that the
following meetings were held in July of that year:
an extraordinary meeting of the CNCP Council
Members in Brasília and, in São Paulo, a joint
meeting with representatives of the CNCP, the
Japanese Chamber of Commerce and Industry,
and the Japanese Embassy.
CHINA
Brazil included the creation of a cooperation
mechanism for combating piracy among its
medium-term priorities for its bilateral relations
with China. Aside from assisting in cracking down
on crimes against intellectual property, creating
such a mechanism should increase the sharing
of information on other issues, such as patent
registration.
PARAGUAY
The Memorandum of Understanding signed
between Brazil and Paraguay on the creation
of a bilateral intelligence group to combat
counterfeiting, piracy, and the smuggling of
pirated products and contraband, is proceeding
through the Brazilian Congress as a matter of
urgency. The regulatory statute provides for
the creation of a law enforcement cooperation
mechanism, involving the Federal Police, the
Federal Highway Police, Brazil’s Federal Revenue
Service, the Brazilian Intelligence Agency, the
Ministry of Justice, the Ministry of Foreign
Relations and their Paraguayan counterparts.
Carlos Márcio Bicalho Cozendey
Director of the Economic Department of
the Ministry of Foreign Relations (MRE)
CNCP Council Member representing the MRE
Kenneth Félix H. da Nóbrega
Head of the Intellectual Property Division of
the Ministry of Foreign Relations (MRE)
Alternate CNCP Council Member
representing the MRE
chapter 7
On January 15 2008 Brazil was visited by a US
representative for the purpose of performing a
review outside of the cycle conducted by the US
government under this mechanism.
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Chapter 8
92
8.
Inter-ministerial
Intellectual
Property Group
(GIPI)
Chapter 8
93
In a situation with
increasingly complex
governmental decisions,
the GIPI has taken on
a decisive role in
interactions with the
sector and in relationships
with other countries.
Chapter 8
A Mechanism for Coordination
and Achieving Results for Brazil
T
he last few years of the 20th Century constituted a watershed in trade relations
between countries, bearing in mind the results of the Uruguay Round of Multilateral
Trade Negotiations of the General Agreement of Trade and Tariffs (GATT), approved
domestically in Brazil by Legislative Decree no. 30, of December 15, 1994, and promulgated
by Decree no. 1,355 of December 30, 1994.
In this context, Annex 1C to the World Trade Organization’s Constitutive Agreement,
concluded in Marrakesh on April 15, 1994, and in force since January 1, 1995, in stipulating
the provisions for the Agreement on Trade-Related Aspects of Intellectual Property Rights –
the TRIPS Agreement – established a new economic situation with regard to the protection
of intellectual property rights. That is, it defined a set of minimum requirements, which
if not met could lead to challenges within the Dispute Settlement Body at the WTO, and
possible trade sanctions.
The end of that century, incidentally, held special significance for those who deal with
intellectual property, given that the transition period allowed for developing countries
ended, and the WTO demanded compliance with minimum requirements stipulated in the
TRIPS Agreement.
It is in this global situation, without forgetting other important international agreements,
such as the Paris Convention for the Protection of Industrial Property, or the Berne
Convention for the Protection of Literary and Artistic Works, still in force, since the 19th
Century, that Brazil has been complying with its international obligations, thanks in large
part to the Inter-Ministerial Intellectual Property Group (GIPI).
The GIPI seeks to act in the fields of intellectual property through its thematic subgroups, covering industrial property, copyright and related rights (including the protection
of computer programs), crops (or obtaining vegetables or vegetable varieties), the
topography of integrated circuits, non-released information (or confidential information),
the enforcement of intellectual property rights, unfair competition, and the relationship of
intellectual property to access to genetic resources and traditional knowledge. The role of
GIPI covers everything from the definition of government policy on intellectual property to
supporting international negotiations involving the issue directly or indirectly.
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Chapter 8
96
Multilateral trade negotiations are increasingly
complex, thus requiring preparation and stronglyformulated government positions. To achieve the
best results possible for the country, in this context,
it is not enough to have individual knowledge; a
well-defined team mission and technical cohesion
are also needed, given the tough decisions that
need to be made.
In the field of intellectual property, the tasks have
been numerous, to the extent that the GIPI has had
to prioritize and define responsibilities, taskforce
subgroups and deadlines, so the government can carry
out public policy on intellectual property effectively.
Background Summary
The origins of the Inter-Ministerial Intellectual
Property Group go back to the middle of the 1980s,
when it became necessary to coordinate Brazilian
government positions to negotiate on intellectual
property at the Uruguay Round of the GATT. At that
time, the group’s operation was quite informal.
Through Inter-Ministerial Directive n o. 346, in
July 1990, a commission was set up to prepare
the government’s Bill of Law to alter the former
Industrial Property Code, Law n o. 5,772, of
December 21, 1971. Several ministries, such as
Health, Economy, and Foreign Relations, had
already taken part in this commission, formed of
various sub-commissions. The preparation and
submission of the Bill of Law to Congress, in 1991,
which created Law no. 9,279, of May 14, 1996, was
the outcome of this commission’s work.
With the continued need for coordination of the
government’s policy position to take part in the
Uruguay Round of GATT, the inter-ministerial
coordination meetings continued and in 1995
the GIPI had its operation consolidated at the III
Meeting of the Foreign Trade Chamber (CAMEX).
Since its creation, the GIPI has achieved important
results in successfully balancing Brazil’s international
obligations vis-à-vis its national interests, such
as, for example, by enhancing national legislation
through international norms, such as:
GIPI Accomplishments
in the area of intellectual property
encompass government policies
and international negotiations
• Law no. 9,279, of May 14, 1996, which “regulates rights and obligations regarding industrial property”
(the Industrial Property Law) (altered by Law no. 10,196, of February 14th 2001, which “alters and adds
provisions to Law no. 9,279, of May 14, 1996, which regulates rights and obligations regarding industrial
property, and takes other measures”).
• Decree no. 2,553, of April 16, 1998, which “regulates articles. 75 and 88 to 93 of Law no. 9,279, of May 14,
1996, which regulates rights and obligations regarding industrial property”.
• Law no. 9,456, of April 25, 1997, which “institutes the Law on the Protection of Crops and takes
other measures” (Crops Law).
Chapter 8
• Decree no. 3,201, of October 6, 1999, which “governs the concession, by official letter, of a mandatory
license in cases of a national emergency and a public interest dealt with in article 71 of Law no.
9,279, of May 14, 1996” (as amended by Decree no. 4,830, of September 4, 2003, which “altered the
wording of articles 1, 2, 5, 9 and 10 of Decree n o. 3,201, of October 6, 1999, which governs the
concession, by official letter, of a mandatory license in cases of a national emergency and a public
interest dealt with in article 71 of Law no. 9,279, of May 14, 1996”).
• Decree no. 2,366, of November 5, 1997, which “regulates Law no. 9,456, of April 25, 1997, which
institutes the Protection of Crops, governs the National Crop Protection Service (SNPC) and takes
other measures”.
• Law no. 9,609, of February 19, 1998, which “governs the protection of intellectual property in computer
programs and their trade in the country, and takes other measures” (Computer Program Law).
• Decree no. 2,556, of April 20, 1998, which “regulates the registration stipulated in article 3 of Law no.
9,609, of February 19, 1998, which governs the protection of intellectual property in computer
programs and their trade in the country, and takes other measures”.
• Law no. 9,610, of February 19, 1998, which “alters, updates, and consolidates the legislation on
copyrights and takes other measures”. (Copyright Law).
• Decree no. 2,894, of December 22, 1998, which “regulates the issuance and provision of the
identification seal or sign for phonograms and audiovisual works, as provided for in article 113 of
Law no. 9,610, of February 19, 1998, which alters, updates, and consolidates the legislation on
copyrights and takes other measures” (revoked by Decree no. 4,533, of December 19, 2002, which
“regulates article 113 of Law no. 9,610, of February 19, 1998, as regards phonograms, and takes other
measures”).
• Decree no. 4,062, of December 21, 2001, which “defines the expressions ‘white rum’, ‘Brazil’ and
‘white rum from Brazil’ as geographical indications, and takes other measures”.
• Law no. 10,603, of December 17, 2002, which “governs the protection of non-released information
submitted for approval for trading of products, and takes other measures” (Non-Released
Information Law).
• Law no. 10,695, of July 1, 2003, which “alters and adds a paragraph to article 184 and alters the
wording of article 186 of Decree Law no. 2,848, of December 7, 1940 – Criminal Code, altered by
Laws 6,895, of December 17, 1980, and 8,635, of March 16, 1993, revokes article 185 of Decree Law
no. 2,848, of 1940, and adds provisions to Decree Law no. 3,689, of October 3, 1941 – Code of
Criminal Procedure”.
• Chapter III of Law no. 11,484, of May 31, 2007, which “governs the incentives for digital TV equipment
and semiconductor companies and on intellectual property protection for integrated circuit
topographies, instituting the Semiconductor Industry Technology Development Support Program
(PADIS) and the Digital TV Equipment Industry Technology Development Support Program
(PATVD); alters Law no. 8,666, of June 21, 1993; and revokes article 26 of Law no. 11,196, of November
21, 2005”.
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Chapter 8
The institutional changes related to the
transformation of the former Ministry of Industry,
Trade, and Tourism into the current Ministry of
Development, Industry and Foreign Trade, especially
with the attribution of the role of President of
CAMEX to the head of the new Ministry, required
a Decree to change the GIPI’s position with regard
to this new situation. The GIPI is currently located
within the structure of the Foreign Trade Chamber
(CAMEX), which is an agency of the Government
Council, which in turn is an advisory body that
reports directly to the President of the Republic.
CAMEX includes as members several ministers and
has the prerogative of formulating and coordinating
Brazil’s foreign trade policy.
Thus, on August 22, 2001, a Decree of August 21,
2001, was published, which “creates, within the
framework of CAMEX – the Foreign Trade Chamber
– the Inter-Ministerial Intellectual Property Group,
determines its composition and operation, and takes
other measures”. This Decree has been updated
twice through an un-numbered Decree of April 11,
2005, and un-numbered Decree of July 28, 2008.
98
The work of the group
is based on the balance between the interests
of owners and users of intellectual goods and
the safeguarding of national interests
Structure
Since the publication of the Decree of August
21, 2001, the GIPI has been presided over by the
President of CAMEX and the Executive Secretary
of the Group has been the Secretary for Industrial
Technology of the Ministry of Development,
Industry and Foreign Trade.
Regarding its composition, besides the ministries
stipulated in article 2 of the Decree of August 21,
2001, the GIPI can count on important support
from other ministries and other agencies,
depending to the issue.
The Decree provides that the establishment of
thematic working sub-groups, to cover the fields
of intellectual property or related topics – i.e.
industrial property, copyright and related rights
(including the protection of computer programs),
property, copyright and associated rights (including
the protection of computer programs), crops (or
obtaining vegetables or vegetable varieties), the
topography of integrated circuits, non-released
information (or confidential information), the
enforcement of intellectual property rights, unfair
competition, and the relationship of intellectual
property to access to genetic resources and
traditional knowledge.
Regarding the enforcement of intellectual property
rights and the relationship of intellectual property
to access to genetic resources and traditional
knowledge, the creation of the National Council
for Combating Piracy and Intellectual Property
Crimes (CNCP) by Decree no. 5,244, of October 14,
2004, and of the Management Council on Genetic
Assets (CGEN) by Provisional Measure no. 2,186-16,
of August 23, 2001, led to a differentiated operation
for the GIPI in terms of its coordinated activities,
within the framework of the government, and
complemented whenever necessary.
The entire work of the GIPI is based on the balance between the interests of owners and users
of intellectual goods and the safeguarding of national interests. Toward that end, it must closely
follow the evolution of domestic and international law, work to enhance the legal and regulatory
framework, when necessary, and provide support for the incorporation into Brazilian law of
bilateral and multilateral agreements, as well as regional integration agreements, on intellectual
property rights, without neglecting the proper promotion of the exercise and enforcement of
intellectual property rights and the diffusion of the culture of intellectual property.
Chapter 8
Lines of Action
The GIPI has thus operated along six main lines of action, as follows:
• Enhancing and adjusting Brazil’s national intellectual property legislation. The GIPI has
been the main executive branch agent in the process of enhancing Brazil’s national
intellectual property legislation, providing the country with a modern legal framework that
takes technological progress into account and seeks to create opportunities for Brazilian
intellectual creations in fields not previously covered by national legislation, preserving and
defending, nevertheless, the necessary balance between the interests of intellectual property
owners and users.
• Closely following the evolution of International Law on intellectual property. Brazilian
national legislation reflects the need to align international obligations and national public policy
interests. Toward that end, the GIPI has sought to maintain an awareness of the evolution of
international legislation, to gather the appropriate documentation and information to provide
backing for the proposition of possible improvements to legislation or its application.
• Supporting the incorporation into Brazilian law of international agreements to which
Brazil is a party, or plans to be, as regards the agenda for intellectual property
negotiations. The GIPI directly and permanently supports the negotiations in multilateral
forums involving intellectual property rights. Toward that end, it has served as a basis for the
Brazilian position in the negotiations to create the Free Trade Area of the Americas (FTAA)
and the Mercosul–European Union Association. It currently continues to support the work in
forums such as the Commission on Intellectual Property in the Working Sub-Group no. 7
“Industry” in Mercosul, the World Intellectual Property Organization (WIPO) and the TRIPS
Council at the World Trade Organization (WTO).
• Promoting the exercise and enforcement of intellectual property rights. One of the
GIPI’s concerns, along with enhancing and adjusting national legislation, is the issue of
enforcing intellectual property legislation, to create the conditions to better combat
counterfeiting, piracy and its consequences, such as tax evasion. In GIPI’s consideration of
the issue of enforcement, the term has been understood in its broadest sense: social
compliance with the full range of intellectual property legislation, involving both the rights
conferred on owners and the limitations and exceptions present and necessary in any
legislation. In this context, the National Council for Combating Piracy and Intellectual
Property Crimes (CNCP), a specific entity linked to the Ministry of Justice, due to the
significance of the issue, also handles this subject matter.
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Chapter 8
• Diffusion of the culture of intellectual property. A complex issue of growing importance,
intellectual property increasingly requires training in both business and academia, and a
greater awareness in society overall regarding the significance of economic and other
aspects of intellectual property rights. Thus, initiatives by government agencies have
contributed to the work done by the GIPI which is doing its utmost to disseminate the
culture of intellectual property.
• Institutional strengthening of the GIPI and of the registration agencies and adjudicators
on intellectual property rights. The economic importance of intellectual property
demands continuous improvement of the government structure and greater capacity
building for the GIPI, through teams at the ministries that comprise it, as well as the
adjudicating agencies on intellectual property rights.
100
Márcio Heidi Suguieda
General Coordinator of the Executive Secretariat of the
Inter-Ministerial Intellectual Property Group (GIPI)
CNCP Council Member representing the MDIC,
the Ministry of Development, Industry, and Foreign Trade
Sancia Regina M. Ferrari
Alternate General Coordinator of the Executive Secretariat of the
Inter-Ministerial Intellectual Property Group (GIPI)
Alternate CNCP Council Member representing the MDIC,
the Ministry of Development, Industry, and Foreign Trade
Legal Basis
DECREE OF AUGUST 21, 2001
Creates, within the framework of CAMEX – Foreign Trade Chamber- the InterMinisterial Intellectual Property Group, determines its composition and operation,
and takes other measures.
THE PRESIDENT OF THE REPUBLIC, exercising the prerogatives conferred upon him
by article 84, Items IV and VI, of the Constitution,
HEREBY DECREES:
Article. 1 The Inter-Ministerial Intellectual Property Group (GIPI) is hereby created within
the framework of the Foreign Trade Chamber (CAMEX), with the duty of proposing
government action to conciliate domestic and foreign policies with a view towards
foreign trade in goods and services related to intellectual property and, especially to:
Article 2 The GIPI will be presided over by the President of CAMEX and made up of
representatives from the following agencies in the Federal Public Administration:
I - Ministry of Agriculture and Supply
II - Ministry of Science and Technology
III - Ministry of Culture
IV - Ministry of Development, Industry, and Foreign Trade
V - Ministry of Justice
VI – Ministry of Foreign Relations
VII - Ministry of Health
[2]
VIII – Office of the Minister and Chief of Staff to the President of the Republic
[3]
IX - Ministry of the Environment
[4]
X – Ministry of Finance
[5]
XI – Secretariat for Strategic Issues, Office of the President of the Republic
§ 1 The National Industrial Property Institute (INPI) shall be heard from whenever the
subject matter falls within its sphere of jurisdiction.
§ 2 Representatives of other agencies of the Public Administration and experts may be
invited to take part in GIPI meetings.
Article 3 The GIPI shall deliberate in plenary meetings, with the option to establish
thematic subgroups when and as necessary.
Article 4 The GIPI Executive Secretary shall be the Secretary for Industrial Technology
of the Ministry of Development, Industry, and Foreign Trade, which shall designate the
Executive Secretary.
Article 5 The formulation and implementation, on the part of agencies of the Public
Administration, of international legal norms or commitments regarding intellectual
property shall be assessed in advance by the GIPI, which shall declare its conclusions in
a meeting of CAMEX.
Article 6 This Decree shall take effect on the date of its publication.
Chapter 8
I – Provide supporting information for the definition of guidelines for policy on
intellectual property;
II – Propose the planning of coordinated action by the agencies responsible for the
implementation of this policy;
III – Report in advance on intellectual property norms and legislation and related issues;
IV – Indicate the technical parameters for bilateral and multilateral negotiations on
intellectual property subject matter;
V – Provide supporting information on intellectual property subject matter for the
formulation and implementation of other government policies;
VI – Promote inter-ministerial coordination of issues to be dealt with by the GIPI;
VII – Conduct consultations with the private sector on intellectual property matters;
VIII – Prepare and report on subject matter related to intellectual property.
[1]
Brasilia, August 21, 2001
180th Year of Independence and 113th Year of the Republic.
(Published in the Official Gazette (DOU), no. 161-E, on August 22, 2001. Alterations published in the Official
Gazette no. 69, on April 12, 2005, and in the Official Gazette no. 144, on July 29, 2008.)
The main section of article 2 was altered by Decree on April 11, 2005.
Item VIII of article 2 was added by Decree on April 11, 2005.
[3]
Item IX of article 2 was added by Decree on April 11, 2005.
[4]
Item X of article 2 was added by Decree on July 28, 2008.
[5]
Item XI of article 2 was added by Decree on July 28, 2008.
[1]
[2]
101
9.
Private
Sector
Experiences
Organizations from civil
society offer examples of
structured and effective
defense of their segment’s
interests and rights
Effective articulation
in diverse fields
chapter 9
9.1
The work done by the Brazilian
Association of Software Companies (ABES)
105
S
ince its foundation on September 9th 1986, the Brazilian Association
of Software Companies (ABES) has focused on representing
software producers, distributors and resellers and service providers,
supplying governmental authorities and other agencies with studies,
suggestions and claims of interest to the Brazilian software market and
improving Brazil’s information technology (IT) legislation and legal
protection of software. With members in every State, the more than 800
companies represent approximately 85% of the Brazilian market.
The software industry is an induction agent for the IT sector and in recent
years it has been growing at more than Brazil’s GDP rate.
The survey, “The Brazilian Software Market – Outlook and Trends, 2008”,
released by ABES, showed that Brazil’s software and services market
moved up a place globally, to 12th. The survey was carried out by the
International Data Corporation (IDC) amongst software suppliers,
developers and exports.
In 2007 the segment turned over about US$ 11.12 billion, up 22.3% year
on year. Of this, US$4.19 billion was in software, accounting for 1.6% of
the global market, and US$ 6.93 billion was in services. The survey says
almost 50% of demand comes from the financial and industrial sectors,
followed by services, commerce, government, agribusiness, and others,
a trend that has been repeated in recent years. Studies have indicated
average annual growth of over 10% by 2010.
This market is fed by 7,937 companies dedicated to the development,
production and distribution of software and the provision of services. Of
those in development of software production, 94% are classified as micro
or small businesses.
software developed in Brazil could account for
over 40% of the domestic market.
The charts below illustrate the data above:
chapter 9
Another important piece of data is about Brazil’s
development of software. In 2007 alone this area
accounted for 33.6% of the market, confirming the
growth trend identified since 2004, when it was
27%. According to the study, by the end of 2010
Main Brazilian Software Market indicators - 2007 (U$ billion)
Standard
106
Software
U$ 324 million - 24.3%
Customized
Developed in Brazil
U$ 995 million - 70.6%
U$ 1.408 billion - 33.6%
Exports
Total Software
U$ 4.19 billion - 37.7%
Market Total
U$ 71 million - 5.1%
Developed abroad
Software and
Services
U$ 2.779 billion - 66.40%
U$ 11.12 billion
Services
National
Total Services
U$ 6.689 - 96.5%
U$ 6.669 billion
Exports
62.3%
U$ 242 million - 3.5%
Source: ABES. Brazilian software market: Outlook and trends 2008. São Paulo, 2008, p. 05.
Market Indicators and Evolution
Total
U$ 11.12
Total Market:
2006/2007
+22.3%
U$ 6.93
Services:
2006/2007
+18.8%
Software:
2006/2007
2005
U$ 4.19
U$ 3.26
+19.8%
U$ 2.72
U$ 2.36
U$ 3.62
U$ 4.69
U$ 5.83
Total
U$ 7.41
Total
U$ 5.98
2004
Total
U$ 9.09
Variation
2006
Services
2007
Source: ABES. Brazilian Software Market: outlook and trends 2008. São Paulo, 2008, p. 05.
Software
The Brazilian Software and
Services Market 2007
chapter 9
Software
• Total market of US$ 4.19 billion
• Accounts for 1.6% of global market
• 33.6% served by software developed in Brazil
• Exports of US$ 71 million in licenses
• 6,154 dedicated companies
Services
107
• Accounts for 1.4% of global market
• Exports of US$ 242 million
• 1,782 dedicated companies
Overall IT indicators
• Accounts for 1.6% of global market and 43.4% of the Latin American market
• PC sales of 8.9 million
• Installed base of 27.1 million PCs
• 42 million internet users
Source: ABES. Brazilian software market: Outlook and trends 2008. São Paulo, 2008. São Paulo,
2008, p. 07.
PIRACY IN THE SOFTWARE SECTOR
Pirate copies have always been a serious problem
for the software industry, for governments and
society. It has been calculated that for every
legitimate copy in use in the world, at least one
more is produced illegally, costing the software
industry and public coffers billions of dollars a year
and thousands of jobs.
The IDC studies have shown also that software
piracy harms a country’s economic growth and
prosperity, contributing to organized crime and
stunting the growth of markets, job creation, and
tax collection.
The losses caused by piracy are much more
significant for the country’s economy. In Brazil, the
software piracy index, considered to be alarming,
has fallen in the last decade, from 90% in 1989, to
60% in 2006. That year the fall in piracy in Brazil
was the biggest in the world, whilst at the same
time losses to piracy were the biggest in Latin
America, estimated at US$ 1.148 billion.
The latest survey published, the 5th Annual
Global Software Piracy Study, revealed that 59%
of software installed in 2007 in PCs in Brazil was
obtained illegally. However, it must be stressed
that even with a 1% fall in the piracy index, losses
caused by it rose to U$ 1.617 billion – or rather,
chapter 9
108
40.8%, illustrating that the software market has
grown significantly year on year, as has the need
to boost a single campaign in the various sectors
resulting in public and private policies engaging
industry, the government and society as a whole –
which is always piracy’s biggest victim.
This significant reduction in software piracy
in Brazil and globally is essentially the result
of successful efforts stemming from private
initiative through action coordinated by the
sector’s representative agencies, along with the
public sector.
The table below shows the piracy indices and
financial losses in Latin America:
Latin America
2007
2006
2005
2004
2003
2007 ($M)
2006 ($M)
2005 ($M)
2004 ($M)
2003 ($M)
Argentina
74%
75%
77%
75%
71%
$ 370
$ 303
$ 182
$ 108
$ 99
Bolivia
82%
82%
83%
80%
78%
$ 19
$ 15
$ 10
$9
$ 11
Brazil
59%
60%
64%
64%
61%
$ 1,617
$ 1,148
$ 766
$ 659
$ 519
Chile
66%
68%
66%
64%
63%
$ 187
$ 163
$ 109
$ 87
$ 68
Colombia
58%
59%
57%
55%
53%
$ 127
$ 111
$ 90
$ 81
$ 61
Costa Rica
61%
64%
66%
67%
68%
$ 22
$ 27
$ 19
$ 16
$ 17
Dominican Republic
79%
79%
77%
77%
76%
$ 39
$ 19
$8
$4
$5
Ecuador
66%
67%
69%
70%
68%
$ 33
$ 30
$ 17
$ 13
$ 11
El Salvador
81%
82%
81%
80%
79%
$ 28
$ 18
$8
$5
$4
Guatemala
80%
81%
81%
78%
77%
$ 41
$ 26
$ 14
$ 10
$9
Honduras
74%
75%
75%
75%
73%
$8
$7
$4
$3
$3
Mexico
61%
63%
65%
65%
63%
$ 836
$ 748
$ 525
$ 407
$ 369
Nicaragua
80%
80%
80%
80%
79%
$4
$4
$2
$1
$1
Panama
74%
74%
71%
70%
69%
$ 22
$ 18
$8
$4
$4
Paraguay
82%
82%
83%
83%
83%
$ 13
$ 10
$ 10
$ 11
$9
Peru
71%
71%
73%
73%
68%
$ 75
$ 59
$ 40
$ 39
$ 31
Uruguay
69%
70%
70%
71%
67%
$ 23
$ 16
$9
$ 12
$ 10
Venezuela
74%
74%
74%
74%
74%
$ 464
$ 307
$ 173
$ 71
$ 55
Others in
Latin America
74%
74%
74%
74%
74%
$ 195
$ 96
$ 32
$6
$7
Latin America Total
65%
66%
68%
66%
63%
$ 4,123
$ 3,125
$ 2,026
$ 1,546
$ 1,263
Source: BSA. Fifth Annual BSA and IDC Global Software Piracy Study. Washington, 2008, p. 10.
SPECIFIC CAUSES OF PIRACY
IN THE SOFTWARE SECTOR
The proliferation of piracy in the software sector
has benefitted the technological development
of optical media. Specifically, CD-ROM recorders
were the tools that piracy made most use of to
scale illegal copying of software worldwide.
Effectively, the demand for software grew
exponentially with the impressive expansion of PC
sales, including for domestic use, establishing a
large market to be exploited. Piracy contaminated
this channel through hardware integrators, some
of whom assemble computers using components
of a dubious origin and supplying pirate software
as a sales point: as a gift or financial advantage.
Pirate software use in computers
in Brazil has fallen from 90% to
60% in two decades
Besides harming consumers, this kind of piracy
also causes other serious damage to the economy:
it creates unfair competition with the legitimate
integrators and manufacturers that pay for the
licenses on software in the machines sold.
The expansion of the internet, besides boosting
the demand for software, was used enormously by
piracy, either as a sales channel (on specific sites or
in auctions), or directly through illegal downloads
(increasingly used as high-speed connections
become more widely available).
In Brazil, this scenario is added to by the great
number of street hawkers, who take the pirate
software to the general public and hamper action
by the authorities. Furthermore, in countries such as
Brazil, whose social and economic differences are
latent, piracy has become attractive both in terms
of consumption because of the low price of pirate
products compared with originals, and in terms of
the proliferation of a black market, deluding some
into thinking of it as a financial opportunity.
ANTIPIRACY INITIATIVES
Initiatives against software piracy in Brazil began
in 1989 through a partnership between the ABES
and the Business Software Alliance (BSA). Since
then, these agencies have joined forces to educate
and raise awareness amongst consumers about
the correct use of software and its management,
under current legislation.
In addition, in 2002 the ABES entered an
agreement with the Entertainment Software
Association (ESA), the leading global organization
focused on legal protection of games for use
in consoles, portable devices, PCs and on the
internet, to operate in Brazil in defense of this
segment.
The ABES, in partnership with other associations,
operates on three pillars highlighted by the
National Council on Combating Piracy:
--REPRESSIVE – Measures that aim to withdraw
pirate products from the market, or prevent
their entry. In this regard, the ABES offers
logistical support and all the material necessary
for the police authorities to carr y out
operations.
--EDUCATIONAL - Awareness and education in
the correct use of software and the harm done
by piracy, through newspaper, radio and TV
advertising, a newsletter, manuals and
p a m ph l e t s , t ra i n i n g o f p u bl i c a g e n t s ,
participation in fairs, congresses and seminars,
talks, in schools and universities.
--ECONOMIC – Improvement of legislation
(presenting bills of law and proposed
amendments) and the reduction of the tax
burden, as high taxation in the sector was
based on a frustrated attempt to protect the
domestic market.
chapter 9
SOFTWARE USE
109
chapter 9
Informative campaigns
110
In recent years agencies have run various
campaigns to raise awareness, to educate and
inform users about the correct use of software,
of the technical risks inherent in pirate copies, the
pecuniary risks companies are subject to, and –
mainly – to explain that pirate products feed and
finance organized crime. These campaigns have
always sought the engagement and adherence of
society as a whole.
The ABES has been outstanding in the last three
years in running another three differentiated
campaigns, namely:
1. The launch of the advertising campaign “Don’t
be a fool. Demand original software”, run on
the SBT and Rede Globo TV networks.
2. Training for pubic agents in partnership with
the National Council on Combating Piracy and
Intellectual Property Crimes (CNCP) – an
agency linked to the Ministry of Justice – and
with the Film and Music Antipiracy Association
(APCM).
3. Merchandising in the soap opera Páginas da
Vida, on the Rede Globo TV network, in which
one of the plot’s main characters is directly
affected by illegal software.
In addition to the campaigns, seminars and
talks have constantly been given on the issue,
at universities, associations, and governmental
agencies, to inform and educate users about the
legal use of software.
The Price Factor
One of the possible causes of piracy is price,
which is why an economic pillar is of the
utmost importance for consumers. Some recent
initiatives by the Federal government, such as
the successful Federal Government Program,
“A computer for everyone”, instituted by Law
n o. 11.196, exempted PCs sold in retail for less
than R$1,500 from federal taxes (PIS/PASEP and
COFINS), so saving 9.25% on the final price. The
reaction on the market was immediate.
In the same way, companies in the sector have
been mobilizing to offer products at more
accessible prices, such as offering an antivirus
program that can be signed up to on a monthly
basis via the internet, doing away with a cash
purchase of the product. Another example is
software for students, manufacturers of which
offer up to 90% off the product.
As hard as the sector tries, it can never compete
with the illegal market and so our efforts must
concentrate on education, as we believe that
only with society’s support will it be possible
to reverse this situation. Unfortunately, what
we have observed in Brazil is that piracy is still
socially acceptable. This is why combating it is a
hard task, requiring time. We have big challenges
ahead of us, but without doubt we must
celebrate the results we have already achieved.
Results achieved
In order to protect and stimulate the market,
the ABES has carried out countless operations.
Combating piracy has been intensified and
educational initiatives widened. In the last
two years alone, 1,482 operations have been
carried out throughout the country, resulting in
the seizure of 3,853,546 CDs containing pirate
software.
In addition, 603 websites have been shut down
which were selling pirate software, and 41,000
advertisements selling illegal products taken
down. Moreover, from 2007 to 2008 agencies
registered over 28,200 contacts reporting
the sale of pirate software and requesting
information about its use.
As regards education, considered now to be
the main pillar of operations, the ABES has
The charts below summarize the antipiracy
operations carried out in recent years.
Operations in the Consumer Segment (up to December 2008)
Law Enforcement Action
SP
RJ
Street hawkers
18
27
Stores
2
0
Others
Total
Month
Accumulated
Year
0
45
2,370
23
25
384
Laboratories
0
0
0
0
18
Ports and Borders
0
0
7
7
70
Total
20
27
30
77
2,849
Accumulated
Year
Material Seized
SP
RJ
Others
Total
Month
Applications
19
180
0
199
35,493
PC Games
Video games (CD)
2
60
5,629
5,691
204,828
2,167
3,620
27,875
33,662
847,334
Video games (Cartridge)
0
0
1,020
1,020
13,970
Others
0
0
80,000
80,000
143,460
Not separated
Total
Internet Monitoring
Websites
Advertisements on auction websites:
“Mercado livre” and “Toda oferta”
Advertisements removed
Total
0
0
0
0
407,943
2,188
3,860
114,524
120,572
1,648,616
Detected
Removed
Detected Year
Removed Year
21
20
446
375
1,389
1,389
16,082
16,082
263
263
2,934
2,934
1,673
1,672
19,462
19,361
chapter 9
this edition. The ABES also agreed a partnership
with the Film and Music Antipiracy Association
(APCM) to redouble inspection in the CenterWest, South, and Northeast regions of Brazil, and,
to complement this, the association continued
Antipiracy Training, an initiative carried out with
the support of the Ministry of Justice, through
the National Council on Combating Piracy
(CNCP), which went to 34 cities, training about
3,300 agents and 1,300 university students and
businesspeople.
been outstanding in various operations in this
segment. In March 2007 it launched a project
to raise awareness in companies about the
risk of using illegal software, promoting legal
usage in the installed software base. In July
of the same year the ABES joined up with the
School Project (led by the American Chamber
of Commerce - Amcham) to alert educators
about the problems of piracy and to develop a
plan of awareness-raising activities for parents
and students. In 2008 the program visited
Campinas, Goiânia, Porto Alegre and São Paulo,
reaching 62 schools. Amcham says that over
12,000 students and 302 teachers took part in
111
Results Accumulated in the Campaign
Year
N . of Actions
chapter 9
112
1999
2000
2001
2002
2003
2004
2005
2006
2007
44
134
274
253
528
654
655
576
673
CDs seized
22,838
212,304
353,587
355,156
1,315,182
1,260,174
1,717,337
872,849
2,254,658
Accumulated
22,838
235,142
588,729
943,885
2,259,067
3,529,241
5,236,578
6,109,427
8,364,085
18
17
133
86
495
428
625
310
488
o
Stores investigated
Laboratories closed
7
7
1
2
9
18
19
9
13
Arrests
0
0
0
0
2
18
57
34
46
Advertisements
removed
N/A
N/A
N/A
N/A
N/A
15,474
16,529
28,841
29,456
Sites removed
N/A
N/A
N/A
N/A
N/A
258
540
264
239
Activities in the Corporate Segment (December 2008)
Hotline
Received
Confirmed
Received Year
Confirmed Year
Toll free
line calls
239
69
4.763
722
e-mail
293
4.029
Others
Total
Notifications
Total
Court
cases
Total
532
69
8.792
722
Sent
Accepted
Sent Year
Accepted Year
456
3.328
Begun
Ended
Begun Year
24
Ended Year
128
Results Accumulated in the Campaign
Year
2000
2001
2002
2003
2004
2005
2006
2007
Calls to the hotline
23,624
30,938
39,844
34,273
7,731
6,020
10,976
3,712
Tip-offs
1,337
1,761
3,025
1,423
1,235
1,122
989
557
e-mails
N/A
N/A
N/A
4,348
11,599
14,142
12,834
18,378
Tip-offs
N/A
N/A
N/A
1,212
652
403
1,767
500
User Notifications
117
1,244
1,334
1,400
2,063
3,004
2,773
2,479
Court cases
30
58
85
89
105
99
66
72
Year
1988
1989
1990
1991
1992
1993
1994
Index
91%
88%
88%
86%
85%
83%
77%
Year
1995
1996
1997
1998
1999
2000
2001
Index
74%
68%
62%
61%
58%
58%
56%
Year
2002
2003
2004
2005
2006
2007
Index
55%
61%
64%
64%
60%
59%
chapter 9
Evolution of the Piracy Index in Brazil (%)
113
IMPORTANCE OF THE CNCP
The extremely positive results shown above were
made possible by the indispensable contribution
of various agencies on the National Council on
Combating Piracy and Intellectual Property Crimes
(CNCP), chief amongst which are the Brazilian
Federal Revenue Service, Federal Police, and the
Federal Highway Police.
Illustrative of the recent operations carried out
by these three bodies are the opening of new
customs installations in Foz do Iguaçu, the ending
of what used to be regular convoys of busloads of
smugglers on the highways in the north of Paraná,
and the Operation I-Commerce 2, carried out
by the Federal Police on July 1st 2008, in which
200 Federal police officers executed 49 search
and seizure warrants in the States of São Paulo,
Minas Gerais, Paraná, Santa Catarina, Rio Grande
do Sul, Bahia, Pará, Piauí, Rondônia and the Federal
District, resulting from police investigations
based on representations made by associations
defending copyright to the CNPC, an operation
that resulted in the arrest of seven people.
As an agency comprising representatives of
private initiative and various ministries and other
Federal Executive bodies, the CNCP has allowed
permanent and direct dialogue between the
bodies most directly interested in combating
piracy in Brazil, allowing the improvement of the
work done, through the execution of new projects
and the enhancement of projects that have been
carried out in this regard.
In the last year, planning meetings, using
t h e i n t e r n a t i o n a l l y re n o w n e d B a l a n c e d
Scorecard (BSC) methodology, have resulted
in 23 innovative projects (which will produce
hundreds of operations) to be executed in the
next five years.
As a result of the CNCP’s operations, several States
have created specialized departments to combat
piracy, have carried out various search and seizure
operations through the State Military Police, and
countless municipalities have set up taskforces
with the same purpose and have even changed
legislation ruling on action by Municipal Guards, in
order to allow them to engage in the mission.
It is, furthermore, beyond doubt that the concern
held by public agents for the issue has been
forcefully supported by the media, which has
generously covered action against piracy, and
has also allowed the issue to be widely debated
locally and nationally in the leading means of
communication.
There follow the data on domestic media coverage
of software piracy in 2008.
Results of media exposure
Emilio Munaro
Coordinator of the Antipiracy
Work Group at the Brazilian Association
of Software Companies (ABES)
ABES Councilor
chapter 9
In 2008 246 articles were published, all of them
positive, carried in high-profile publications. 246
article suggestions were made.
114
Manoel Antonio dos Santos
Legal Director of the Brazilian Association
of Software Companies (ABES)
Deputy ABES Councilor
Amongst the many achievements in combating
piracy in 2008, it is worth bringing to light the
victory in the case against Stand Center mall,
begun by the ABES, Barsa Planeta Internacional
and other members, which resulted in Brazil’s
largest ever civil Court finding against the plaintiff,
which could exceed R$ 7 billion.
Work done in the 1st Half of 2008 (by State)
Interview for Ponto
Crítico, Rede Record
TV channel,
considered to be
the best material
10%
7%
5%
9%
Media impact:
28% Radio
27% Newspapers
26% Internet
19% TV
4%
There were approximately two hours
exposure in electronic media in the
first half of 2008
15%
Coverage in the State
of Paraná registered
49 articles
35%
15%
In São Paulo the highlights
were the reports on SPTV
and Bom dia SP
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Work done in the 2nd Half of 2008 (by State)
10%
6%
115
10%
10%
Media impact:
28% Internet
25% Newspapers
25% Radio
21% TV
18%
In RS, PR, and SP
alone 57 reports
were published
There were approximately two
hours exposure on TV and radio
in the second half of 2008
Source: O Estado de São Paulo, Caderno 11, 07 Ago. 2008.
18%
19%
9%
The highlight was in
RJ with the report
on Bom Dia RJ
A sector ready to
overcome the challenges
chapter 9
9.2
116
The work done by the Brazilian
Association of Disc Producers (ABPD)
T
he Brazilian phonographic industry reached its apogee in the
second half of the 1990s, driven mainly by economic stability and
the switch in predominant physical format, from vinyl records and
magnetic tapes to Compact Discs, or CDs, as they are popularly known,
which were introduced into Brazil at the beginning of that decade.
Besides making remixes, re-mastering, or simply the re-recording of
analogue into digital format possible, CDs were well received by music
consumers and the rapid supply of increasingly cheaper CD players meant
that as of 1997 CDs were the only physical format for sound recording sold
in Brazil.
In 1997 the Brazilian recorded-music market was thriving. New and
established artists frequently achieved sales of over a million units, which
had been rare before CDs. That year, according to statistics collated and
complied by the Brazilian Association of Disc Producers (ABPD), Brazil’s
retail and wholesale markets sold over one hundred million music CDs,
turning over R$1.1 billion, making Brazil the sixth largest music market in
revenue worldwide. And with over 80% of sales being of Brazilian music,
it was a rare example of a consumer music market comprising its own
national music.
Artists, writers, backing musicians, arrangers, editors, labels, studios,
graphic designers, optical media manufacturers, wholesale distributors,
Piracy
During the time of vinyl records, music piracy
existed almost exclusively in the form of lowquality cassettes, reproducing albums by various
artists and sold at low prices, mainly in the
interior of the country and outlying regions of
large urban centers. It was common to find on
trips around Brazil, mainly in gas stations, stands
selling pirated copies without any restrictions,
except for the few-and-far-between police
operations based on formal complaints filed by
the industry. With the gradual decline in interest
for cassettes, this illegal market slipped away as
CDs became popular.
The first cases of music piracy involving CDs
sprung up in 1993, with counterfeit CDs made in
Southeast Asia smuggled directly into Brazil, or
via Paraguay. As blank optical media and homerecording equipment (mainly installed in PCs)
became cheaper and more abundant on the formal
and informal markets, the axis and format of music
piracy shifted from so-called “industrial piracy”, in
which counterfeiting was hard to detect, to “CDR
piracy”, which was completely unconcerned with
producing CDs similar to the originals. On the
contrary, pirated discs became simple CDR copies,
sold in packaging of an extremely low quality on
the black market all over the country.
Incidentally, Brazil’s socio-economic situation
and the lack of observance of existing rules
regarding illegal street trading, allied to a
certain degree of tolerance and permissiveness
on the part of the public authorities, aided the
expansion of CD piracy in Brazil and from 2004,
as DVDs (film or music) became more popular,
so did the piracy of music and film.
If the growing phenomenon of CD and DVD
piracy were not bad enough, the global
phonographic industry has since 1998, when
Napster came about, been facing the problem
of illegal file sharing over the internet, a form of
online piracy with an almost incalculable impact
on the music business, even bigger than that
caused by so-called traditional piracy. Napster,
the first peer-to-peer software – or P2P, as it is
more commonly known – was shut down in
the USA by legal order in 2000, due to the fact
that it participated directly in its central servers
in the content search process (for music, in the
main). As the expression peer-to-peer suggests,
both the illegal availability of protected content
(uploading) and unauthorized reproduction
(downloading) are executed by individual users
of that software.
Napster was followed by the second and
third generations of P2P software, without
intermediation in search by any central servers,
which made the combating for copyright
violations via P2P networks very complex. The
recent global increase in the use and ownership
of computers, broadband connections and Third
Generation cellular telephony has aggravated
the problem.
The following chart illustrates the impact the
physical piracy of CDs and DVDs has had,
combined with the sharing of files on P2P
networks, in the last ten years on the Brazilian
recorded music market:
chapter 9
music retailers, department stores, supermarkets,
and so on all benefited from those times of
prosperity that established Brazil as one of the
world’s top music markets. Brazilian pop music
(known as MPB) grew, the “BRock” generation
remained strong and was renewed, and music
genres previously considered almost regional
from a commercial standpoint, gained in
popularity throughout the country, as was the
case for music produced in Bahia, “axé music”,
and “forró”, for example.
117
Turnover (R$ million)
1,200
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1,022
1,000
905
793
800
861
662
690
660
566
600
592
442
400
118
298
312
2007
2008
200
0
1997
1998
1999
2000
2001
2002
The CNCP
In June 2003 Brazil’s House of Representatives
opened a Parliamentary Investigation Committee
(CPI) into Piracy, following a series of public
hearings in which the sectors most seriously
affected had the opportunity to alert the
House about the gravity of the problem for the
companies and the country. The CPI, in its final
report, recommended the Executive create a State
agency to represent the government bodies with
the authority to deal with piracy in its varied forms,
and the most seriously affected sectors. Special
mention must be made of the untiring work done
by various House Representatives on the CPI into
Piracy, including its president, Representative
Luiz Antônio de Medeiros, and Representatives
Júlio Lopes, Júlio Semeghini, Vanessa Grazziotin,
Leonardo Picciani and Josias Quintal.
In November 2004 the ABPD was pleased to be
invited to join the National Council on Combating
Piracy (CNCP), representing the music sector,
a position we have occupied since then with
enthusiasm and dedication. The CNCP was created
2003
2004
2005
2006
by Presidential decree, under the coordination of
the Ministry of Justice, presided over by its executive
secretary, Dr. Luiz Paulo Telles Ferreira Barreto.
The council began its work in January 2005 and
in March that year a wide-ranging action plan was
drawn up, approved and put into practice. The plan
is not only an enforcement action, but also of an
educational, economic and institutional nature.
The first five years of CNCP activity led to a clear
improvement in the articulation between the
State agencies responsible for halting piracy, with
special mention going to the Federal Police, the
Tax Office, and the Federal Highway Police. There
was a real breaking of the paradigm and culture
in Federal public administration, as organized
crime’s involvement in the trade of pirated
products and the serious harm done by the
practice to industries involved and the country
became patent.
The example set by the Federal government
and the repercussions of the first big operations
against smuggling, distribution and trade in
In this same period, the phonographic industry
sought to adapt to the new reality of its market,
reducing investment, infrastructure and operating
costs, which made it viable to produce music for
consumers at more accessible prices.
2008 was dedicated to the CNCP’s new Strategic
Planning, with the running of workshops and
seminars, with no let-up in activity against piracy.
On the contrary, in recent years Brazil has seen
an increased level of anti-piracy activity, allied
to continuous training of public agents and
awareness-raising and education amongst the
general public about the harm caused by piracy.
Especially with regard to the music sector, in
2009 we began, under the coordination of the
Ministry of Culture, a cooperation program with
internet access providers to find mechanisms
that will reduce current levels of music and film
piracy via P2P networks, and the promotion
of the legitimate market for this content. It is
a pioneering and innovative project that puts
Brazil on a level-footing with the leading global
markets where illegal file-sharing is being
discussed by governments and private sectors,
and also where new legislation regarding the
matter is being discussed. This project is part
of the CNCP’s new Strategic Plan and is vital to
the future of the music industry in Brazil, which
is ever-more dependent on legitimate digital
distribution of its content.
chapter 9
pirated products led to several States also
structuring themselves internally to deal with
piracy by creating specialized police departments,
taskforces, centers, and so on. Chief amongst
these were São Paulo and Rio de Janeiro,
which – before the CPI into Piracy – already
had specialized antipiracy police departments.
The private sector represented on the CNCP,
either together or individually, ran countless
educational campaigns aimed at the general
public and seminars for public agents within the
particularities of piracy for each sector, always in
partnership with the CNCP and/or administrative
authorities from the various public spheres
(Federal, State and municipal).
Turning point
The phonographic market in Brazil still faces
serious problems caused by music piracy, which
remains the main challenge faced by the sector.
The creation of the CNCP, however, was a turning
point in our country. The work done by it so far
has led to greater understanding of the pirate
market, of its ramifications and peculiarities, as
well as the setting of targets and the establishment
of public policy to face this challenge.
The ABPD has been proud to participate in the
work done by the CNCP and hopes that it may
continue to make a contribution to the work
done by the council in the years to come.
Paulo Rosa
President of the Brazilian Association
of Disc Producers (ABPD)
Councilor
Eduardo Rajo
Director of Finance and New Projects at the
Brazilian Association of Disc Producers (ABPD)
Deputy Councilor
119
Protection of a right
that must be sacred
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9.3
The Work of the Brazilian Intellectual
Property Association (ABPI)
120
T
he Brazilian Intellectual Property Association (ABPI) has had the
satisfaction and honor of participating in the National Council on
Combating Piracy and Intellectual Property Crimes (CNCP) since
it was created in October 2004, after the end of the work done by the
Parliamentary Investigative Committee on Piracy.
Even before becoming one of the representative private agencies at the
CNCP, the ABPI always worked to make a contribution to all governmental
spheres to protect intellectual property. In fact, its informal, but real and
operational, partnership with the National Industrial Property Institute
(INPI) has produced worthwhile dialogue since the 1970s. Some other
partnerships are more formal. On May 20th 2004, for example, a Protocol of
Intensions was agreed defining mutual cooperation between the Ministry
of Culture, the ABPI and other agencies to implement studies and research
into copyright and associated rights, as well as to promote the protection
of copyright through seminars and courses on a national stage.
The private agencies represented on the CNCP each have very distinct
characteristics, purposes, and working practices, which provide the
diversity and richness of standpoints and possibilities for contribution
which are so necessary to combating one of the most complex of crimes.
The ABPI, organized in 1963 as the Brazilian Group of the International
Association for the Protection of Intellectual Property (AIPPI), is a notfor-profit association which studies and promotes intellectual property
in all of its aspects, mainly industrial property, copyright, the analysis of
competition involved in intellectual property, in licensing contracts and in
the transference of technology. One of its most important functions is the
promotion of the culture and use of intellectual property and the struggle
to improve legislation, doctrine and jurisprudence in this area of law.
The struggle to improve legislation and the
intellectual property doctrine in Brazil is run
democratically through discussions held in
the various Study Commissions, which all
the members can attend without the need to
register in advance or to pay for, and in which
discussion is encouraged by everyone. In this
way, the recommendations issued by the ABPI
Study Commissions represent the results of
wide-ranging discussions in which every point of
view has the opportunity to be heard and taken
into consideration. The Study Commissions are
coordinated by two members of the ABPI: one in
São Paulo and the other in Rio de Janeiro, cities in
which most of the members are concentrated, so
that the meetings can be held simultaneously in
these two points, so allowing greater participation
by interested parties.
A m o n g s t th e a t t r i b u t i o n s o f th e S t u d y
Commissions1 there is a need to respond to the
questions formulated annually by the AIPPI. The
AIPPI sends at least four questions a year to the
various international groups that represent the
AIPPI (and which exist in most countries) so
that these groups can answer them based on
their local legislation and make the suggestions
considered to be pertinent to their enhancement.
This wealth of information is consolidated by
1
the AIPPI, representing an extraordinarily rich
archive of comparative legislation, generating
resolutions that represent the synthesis of this
work internationally.
Besides the ABPI’s Study Commissions, specific
Work Groups are also periodically created to
study aspects of existing legislation, bills of law
in Congress, jurisprudence, and initiatives such
as the listing of common names of Brazilian flora
which must not be used as trademarks, both in
Brazil and internationally, to identify products
made from them.
chapter 9
Hence the ABPI has held conferences, congresses,
seminars, symposiums and debates, and has
published work on the matter, such as the ABPI
magazine, which is bi-monthly, with articles
of a doctrinaire nature, and which has become
a national reference in intellectual property.
Besides the magazine, the ABPI publishes a
monthly newsletter, e-mailed fortnightly, and
daily clippings of articles published in all the
country’s newspapers about combating piracy
and the protection of intellectual property.
121
The culture of intellectual property in Brazil is
promoted by the ABPI through congresses and
seminars, the traditional National Intellectual
Property Seminar having held 28 editions,
always followed by complete and informative
documentation. Other events, such as regional
seminars, discussion forums and round tables,
are also held periodically to take the discussion
on intellectual property to the various regions of
Brazil.
This activity is possible through the work of a
group of volunteers and a small number of hired
staff. The association’s administration is the
responsibility of an Executive Committee of ten
members, and a Director Council of 35 members,
and former presidents of the association, all of
them unpaid volunteers.
As happened with the CNCP, during 2008, and
bearing in mind in that year the ABPI turned 45
years old, the need to renew the association, its
modus operandi, its services to members, and its
internal governance became evident.
Hence it took the initiative to carry out a
wide-ranging process of strategic planning.
he ABPI currently has twelve Study Commissions: on Trademarks; Patents; Transference of Technology and Franchises; Repression
T
of Crime; Biotechnology; Industrial Designs; International Intellectual Property Law; Sports Law; Software, IT and the Internet;
Copyright and Personality Law; Competition Law, and Geographica Indications.
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122
Modernization of the association was absolutely
necessary to make its management more
transparent, to better serve the needs of its
members, and to attract more and varied
members, so broadening the diversity of points
of view represented in the discussions in its Study
Commissions.
In particular, the ABPI’s main concern is to
attract members who are (i) companies that
own intellectual property, so that these interests
are represented and find an active voice and
a communications channel; (ii) part of the
academic community which, after approval of the
Innovation Law, have become more interested in
the legal aspects of technological research and
development protection; (iii) part of the Judiciary,
who are ultimately responsible for upholding
intellectual property rights in practice.
From May to August 2008 a group of members
of the Director Council dedicated a lot of time,
reflection and creativity to, through painstaking
strategic planning, rethinking the ABPI as a whole,
from its internal structure to its future activities
and services for the community. As a result of this
effort, the mission, vision, values, and targets of
the ABPI were defined.
The mission of the ABPI was defined in the following
terms:
To be a permanent and plural organization
involved in intellectual property studies and
development in Brazil, promoting its culture
and use by the most varied sectors, maintaining
agreements and collaborating with similar
associations, making a difference in the most
relevant activities developed in Brazil and abroad.
In line with best strategic planning practices,
a vision was arrived at of what the ABPI must
become within a few years:
The ABPI must by 2015 be a structured and
professional, financially self-sufficient institution,
present throughout the country and in all the
discussion forums on intellectual property, with
a broad-based membership, to which will be
provided a complete range of services.
Hence, the following values are considered to be
essential in the work done by the ABPI:
•
•
•
•
•
•
•
Independence
Impartiality
Innovation
Transparency
Equity
Utility
Effectiveness
Some of the main strategic objectives for the
association were prioritized, such as:
• Providing more services to members, generating
more revenue to finance its mission.
• Developing a professional, internal and
autonomous administrative structure to manage
services.
• M a i n t a i n i n g p e r m a n e n t d i a l o g u e w i t h
government to develop laws and regulations
incorporating enhancements in the IP field.
• Promoting discussion and providing support to
formulate Brazilian intellectual property policy,
both external and internal.
• Proactively accompanying the development of
technological innovation and its repercussion
on intellectual property.
• A d o p t i n g b e s t p r a c t i c e s i n e x t e r n a l
communications in order that the ABPI be
recognized as an impartial, transparent and
innovative institution.
• Attracting sectors to be members, showing them
the advantages that the discussion of intellectual
property may offer them, through the technical
rigor that has always guided the work done by
the ABPI.
Some of the targets have been achieved already, such
as the restructuring of its internal administration.
• To make the provision of services to members
the key target for the work done by the ABPI.
Likewise, cooperation agreements have been
entered into with international agencies such as
the Asociación Interamericana de la Propiedad
Intelectual (ASIPI), ItechLaw, and intellectual
property protection and anti-piracy programs,
such as Legal School at Amcham. The ABPI has
maintained cordial relations with its Brazilian
counterparts, the Brazilian Association of
Industrial Property Agents (ABAPI) and the São
Paulo Intellectual Property Association (ASPI). It
has also maintained relevant contact with its Latin
American counterparts, such as the Asociación
Argentina de los Agentes de Propiedad Industrial
(AAAPI), and others.
• To make the management of the ABPI
professional, in particular the events / projects,
member training, publishing and website, public
relations and administrative and financial control
sectors.
Mainly, however, the ABPI has had the satisfaction
of maintaining its active participation with the
CNCP, of contributing to its strategic planning
process, and prioritizing projects combating piracy
for the next four years.
• To periodically assess members’ demands and
respond rapidly to them.
• To seek new revenue streams, without burdening
members, to make the ABPI’s expansion plans
viable.
Bearing in mind the nature of the work done by
the ABPI, this association has the vocation to
contribute to the work done by the CNCP, mainly
in the preparation and improvement of intellectual
property and piracy legislation, in making public
the harm done by counterfeiting and crimes
against intellectual property, and in making some
of the priority projects identified in the CNCP’s
strategic planning process happen.
• To operate so that the ABPI is seen by members
as an investment and not an expense.
In this regard, the ABPI considers certain legislative
measures to be necessary and relevant, such as:
• Developing a relationship with Brazilian and
international agencies involved in all the aspects
of intellectual property.
• Promoting the regional representation and
operation of the ABPI, to boost services provided
and to take the culture of intellectual property to
all the regions of the country.
Hence, some internal targets were set:
• To increase the annual volume of events and
services provided to members.
chapter 9
• Assuring that the various sectors interested in
intellectual property have a voice in debates and
discussion at the association.
123
chapter 9
1. Reform of the administrative procedure in retention of products by the Tax
Office. There is a clear and urgent need to completely reform customs regulations
specifically as regard seizures of counterfeit products or those that violate
intellectual property laws.
124
2. Increasing the minimum penalty to two years in prison and maintaining the
maximum at four years. The increase for industrial property crimes is to make it
the same as for crimes against copyright which, like industrial property crimes, are
a kind of intellectual property crime.
3. Investigations by one expert and based on samples. The requirement for two
experts is a caprice of procedural law and does not need to be maintained. There
is a clear trend in new legislative proposals to dispense with two experts. The
same applies to the requirement for an investigation of all examples of illegal
goods. Even if there is a diversity of products, it would be extremely bureaucratic
and painstaking for an investigation to analyze each one of the objects seized,
especially when they follow the same standards.
4. D estruction of products after conclusive reports on the crime. The judge
confirms the intellectual property crime by way of expert report (excluding some
hypotheses of unfair competition which leave no trace). Hence, once the crime has
been confirmed, there is no more reason to keep the counterfeit products. If the
authorities require samples of the counterfeit products to be used in an eventual
contest of the legality of the measure, or even as a base for future compensation
claims, there is no reason preventing the destruction of all the remaining products
immediately after approval of the expert report confirming the crime.
5. Definitive regulation of the timeframe for the filing of suit by the owner of the
copyright violated. The redefinition of this timeframe is essential to prevent any
divergence that may prevent the hearing of a complaint or harm the holder of the
industrial copyright. In addition, it would be important to define or maintain the
timeframe of 30 days from approval of the expert report or, alternatively, its increase
to 60 days (as suggested in a preliminary bill in the Senate). Complementing this
point, it would have to be decided if the general timeframe in article 38 of the
Penal Process Code would be used in detriment to a specific timeframe.
6. Warehousing of seized products. In the remote hypothesis of rejection of the rule
on advance destruction of counterfeit products (soon after the conclusive report
on the crime), the issue of warehousing the goods seized must be ruled on. Such
a concern lies in the fact that the copyright owners, besides being harmed by the
crime itself and being required to finance a broad anti-piracy program in Brazil,
must not be left with the burden of warehousing. It being extremely imprudent to
leave the goods with the producer, there needs to be an alternative that can transfer
the financial burden to the counterfeiter, maintaining the possibility of periodical
investigation of the products to prevent loss, withdrawal or deterioration.
8. Corporate Penal Responsibility. In the most profound proposals, it is also
necessary to make a small modification to the Constitution to extend corporate
penal responsibility beyond the universe possible today (environmental crimes).
Such a change could mean a revolution in the way piracy is combated, with
penalties compatible with the companies. Both the Office of the Attorney General
and the courts could get more effective answers in cases involving guilty verdicts,
without being unable to incriminate the individuals responsible for the crime.
Although the legislative modifications listed
above are very important, all efforts must at the
moment focus on approval of Bill of Law no. 333/99
(PLC 11/2001), which will certainly contribute to
strengthening the instruments available in the
combating of piracy.
The ABPI believes in its partnership with the
CNCP so that both can, along with all the other
representative agencies of intellectual property
owners, move forward to gradually get the
alterations listed above approved, as well as the
other alterations considered to be necessary in the
long run.
The union of efforts by companies, the
intensification of dialogue between the public and
private sectors, the greater investment in training
and equipping of enforcement authorities, the
exchange of information with other countries, the
implementation of an educational program and,
finally, the participation of society are some of the
main elements in reducing piracy in Brazil and
preventing new cases, the threat of international
sanctions and the flight of foreign investment.
Juliana L. B. Viegas
President of the Brazilian Intellectual Property
Association (ABPI)
CNCP Councilor
José Henrique Vasi Werner
Lawyer – Intellectual Property Agent Dannemann Siemsen Advogados
Deputy ABPI Councilor
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7. A gathering of all the intellectual property laws into an Intellectual Property
Code. If there are dozens of bills of law on alterations to copyright law, trademarks
and patents, it would be ideal to take the opportunity to gather them all together in
a code, including the entire civil part. This is because many lawyers and authorities
are still not aware of the differences between the various intellectual property laws
and - worse still - confuse the particularities of each law, causing immense and
irreversible procedural confusion capable of causing irreparable harm to copyright
owners. Some confuse trademark with patent, and apply trademark legislation in
copyright cases.
125
Leadership with
representativeness
chapter 9
9.4
126
The work done by the National
Confederation of Commerce,
Goods, Services and Tourism
• Mission: to provide companies in the tertiary sector with the best conditions
to get results and develop society.
• Vision: to lead the business community in goods, services and tourism with
recognized influence in the development of the country.
• Attributions: to represent, nationally, the rights and interests of Brazilian
commerce; to organize and discipline the Confederative System of
Union Representation in Commerce (Sicommerce ); to elect or designate
representatives of commerce at the national legal agencies; to conciliate
divergences and conflicts between member federations; to enter into
conventions or collective labor contracts and to provide assistance in
collective agreements in the locations where there are no unions and/or
representative federations in the economic category; to administrate the
Social Service for Commerce (Sesc) and National Commercial Education
Service (Senac).
• Ideals: the defense of property, free initiative, the market economy,
and the democratic legal State; the defense of the principles of liberty to
exercise trade; fairness in competition and ethics in professional activity;
the preservation and consolidation of national unity with the harmonious
development of commerce in every region of the country; the conquest
and prestige of values related to trust in institutions, especially currency
and credit; a Brazil open to international commerce and integrated into the
global economy; the harmony and solidarity of economic categories, and
services and tourism throughout Brazil, guiding,
coordinating, and defending all the areas of
commerce.
HISTORIC SCOPE
Thinking of it as a large pyramid, in its base
it brings together large, medium and small
companies and micro-companies from the
segments of commerce. This is around five
million companies, directly employing close
to 25 million Brazilians. These companies are
organized into unions from the sector, totaling
about 870 throughout the country, structured
and occupying an important space in the more
than 5,000 municipalities in Brazil.
Created and founded on September 4th 1945,
and recognized by Decree-Law no. 20.068/1945,
on November 30th of that year, when the Second
World War and “Estado Novo” ended, the National
Confederation of Commerce (CNC) was created
as a higher-level union, representing the cream
of Brazilian commerce, focusing on social and
economic policy for Brazil.
As of May 2008, to more clearly delimit its scope
of representation, the Ministry of Labor authorized
the modification of its name, becoming
recognized then as National Confederation of
Commerce, Goods, Services and Tourism.
Its aims since its creation (and in place today) have
focused not only on mechanisms that guarantee a
democratic society, but which also legitimize the
representativeness of the working and business
classes. Only through a pact between employers
and employees can an environment of social
peace be achieved as a result of the meeting
between two productive forces.
In the middle of this pyramid are (with over 900
unions) the 34 State and National federations,
as said before – there being 27 regional and 7
National.
Finally, at the top of the pyramid of economic
powers, which creates around 40% if Brazil’s
Gross Domestic Product (GDP), is the National
Confederation of Commerce, Goods, Services
and Tourism.
This is broadly speaking the profile of the
CNC. For 6o years it has not only represented
a significant part of the Brazilian economy at
the Executive, Legislative and Judiciary, on
institutional, legal, and economic levels, but it
has also been administrating one of the world’s
largest social development programs: the CNC/
Sesc/Senac System, benefitting about 20 million
Brazilians a year.
Hence, one year after its creation, the CNC
established its own social development system,
putting together the Social Service for Commerce
(Sesc) and, soon after, the National Commercial
Education Service (Senac): systems that value
workers in commerce and their families, leading
to social development for over 20 million
Brazilians a year, with benefits in education, food,
health, culture, sport and leisure.
REPRESENTING COMMERCE
AT NATIONAL AGENCIES
Since then, now made up of 34 federations (27
State and 7 National), which bring together 925
unions throughout Brazil, the CNC – as a union
body – has represented the rights and interests
of almost 5 million entrepreneurs in goods,
Through its legal and statutory structure, as
related above, the CNC elects and/or designates
representatives of commerce at public, private
and international agencies, when called to do
so. This is done through debate to formulate
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full understanding with professional categories,
with a view to social peace.
127
chapter 9
guidelines on economic, administrative, social and
environmental policy, amongst others.
128
Hence, amongst various other agencies, it has
been represented at the National Council on
Combating Piracy and Intellectual Property Crimes
(CNCP) since 2007, when it was nominated by
Ordinance no. 1.218, of July 6th of that year, by the
Ministry of Justice, to collaborate on combating
illegal commerce in general.
As, in its understanding, combating illegal
commerce does not only depend on the State
(which is often not equipped to exercise its policing
power), the CNC understands interaction between
private agencies, the State, and society against this
practice to be essential, and has proposed it to the
CNCP. Only in this way will Brazil regain credibility
on the global stage.
As a representative of Brazilian commerce at the
CNCP, the CNC attends ordinary and extraordinary
meetings of the council’s, public fairs and
hearings held by the National Congress (House of
Representatives and Senate), presents studies and
reports on bills of law, as follows:
• Soon after being nominated, the CNC decided to present its Board with information
about the respective swearing in, and some information on the CNCP.
• It also presented its Board with a study on piracy, by way of small reports.
• In October 2007 it prepared a favorable study on Bill of Law no. 0333/1991.
• Although it did not take part in the public hearing held on October 31st 2007, in
Brasilia, on the Draft Bill of Law against Piracy, having researched it, it informed
the Board.
• It attended the public hearing on July 9th 2008, at plenary no. 12, on Annex II, at the
House of Representatives, when it talked about the research done by its Federation
of Commerce in Rio de Janeiro, distributing a copy at the end to the politicians and
others in attendance.
• It formalized the information on how piracy is seen by the Superior Court of Justice
(STJ) and presented it to the Board.
• It took part in the International Congress on Combating Piracy, held in Rio de Janeiro
in 2007.
• It also attended the celebration of National Anti-Piracy Day, in Brasília, on December
3rd 2008, when various new projects were launched for 2009, amongst them
the Legal Fair, through which it is planned to transform zones selling imported
products (such as Saara and Feira do Paraguai, for example) into shopping malls,
• It informed its Board about studies at the CNCP on the creation of Project Offices.
• Another event – which the CNC regrettably did not take part in, but which it was
aware of – was the Parliamentary Front against Piracy (which is supported by the
National Forum against Piracy and Illegality – FNCP) which was held in August 2008.
The CNC knows this front plans to mobilize politicians to work for issues linked to
the development of policies and actions against piracy and tax evasion, and it will
do all it can to contribute and collaborate, if and when called upon.
• Legal School (whose main aim is to take issues to schools such as ethics, values,
collective thinking and the impact that piracy has on society) is also known to
the CNC, which knows it is a project in which students in certain State schools
will listen to educational talks on intellectual property and the problems caused
by piracy. Although this project involves only the government (more specifically,
the State education departments), this confederation is also open to collaboration
if necessary.
• We also know that the Ministry of Justice is encouraging the creation of specialized
piracy combat departments, and that the creation of these departments is part
of the National Plan to Combat Piracy, drawn up by the CNCP, at the Ministry
of Justice. Incidentally, it should be noted that the States of Rio Grande do Sul,
São Paulo, Rio de Janeiro and Pernambuco, and the Federal District already have
services repressing the trade in pirate products – ranging from medicines and
clothes to CDs, DVDs and watches. According to the executive secretary of the
CNCP, André Barcellos, the police officers who will work in these specialized
departments are already being trained to work in the prevention and repression
of trade in counterfeit products. The courses are open to public agents that in one
way or another can contribute to this fight against piracy. André Barcellos says
the creation of these specialized departments will make the combating of piracy
more efficient.
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selling legal products. That same day, the CNCP, which centralizes government
action in this area, announced its plan to open, also in 2009, the first Specialized
Piracy Departments, beginning in the States of São Paulo, Rio de Janeiro and Paraná,
epicenters of the problem in Brazil. Another front established at that meeting was
the launch of the Piracy-Free City - a project that plans to involve the City Halls
all over Brazil in combating this crime. The council also talked about the creation
of a seal to be supplied to the municipalities that got most involved. The CNCP
also proposed entering into agreements with internet service providers, as a way
for them to contribute in the war against piracy. Similarly, another project focused
on combating smuggling and counterfeiting in commerce, with awareness-raising
advertising proposals for traders and consumers, aside from the concern over the
counterfeiting of medicines . The CNC is alert to everything, and is collaborating to
work that falls within its remit.
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• Alongside everything mentioned above, special mention must be made of the
research done by the CNC annually through the Federation of Commerce in Rio
de Janeiro, which was taken to the public hearing on July 9th 2008, as previously
stated. Also with regard to research, and as proof that the CNC has been monitoring
everything on piracy, it must also be noted that the National Forum against Piracy
and Illegality in 2006 carried out a survey in which 91.3% of people interviewed had
acquired a pirate product that year. Furthermore: a) only 13% of those people knew
that pirates evade taxes – resulting in a higher tax burden for those who pay; and
b) 95.7% of those interviewed believed that if there were a reduction in the price of
original products they would stop acquiring pirate products.
130
Given what has here been stated, there remains
no doubt that the fight against piracy will go on
for some time yet. Nevertheless, the CNC will not
shy from combating this crime, this kind of fraud.
Regarding the price of products sold legally
compared with lower-priced pirate products, it
must be remembered that the issue is not about
prices themselves, but the urgent need to educate
the general public and to make the connections
that exist between piracy and organized crime
evident. To win this war, then, it is necessary to
make people aware not only of the crime that this
practice results in, but also of the cost of these
pirate products mainly in terms of health, as even
medicines can be found on this “open market”.
We know that some private sectors, along with
customs and police officers, are already working
in tandem and sharing information – which is an
advance in the fight against piracy overall.
We are also aware that the United States has been
making use of various strategies, one being civil,
which seeks to prosecute people involved in the
violation of intellectual property. Another is from
the private sector – which is working with private
investigators and companies to try to find pirate
product factories and distribution centers. And the
private sector in turn shares its information with
Interpol about countries where pirate products
are made or distributed. They also run marketing
campaigns to educate the general public, making
it clear that piracy is not a victimless crime.
The truth of the matter is – and there is no
avoiding this - piracy, in being an illegal activity,
affects jobs and income. And Brazil in particular
has always suffered piracy (which here must be
understood in a wide-ranging sense, including
smuggling, improper customs clearance and
under-invoicing), especially when its doors were
closed to imports, when it was common to find
Scotch whisky and Cuban cigar suppliers, and
when a trip abroad meant an opportunity to get
goods which were inaccessible on our market.
With the opening up of the economy and the
entrance of imports, the initial perception was that
illegal trade would suffer. We were wrong. Since
1990 illegal and unfair practices have increased.
The list of products smuggled, improperly cleared
through customs, counterfeited and underinvoiced has increased significantly. Electronics,
The disproportional tax burden has also resulted in a range of deviations, strengthening a
highly organized and general criminal structure – distributing computer boards, fabrics,
machinery and prescription drugs. What mattered was the deal. To face this, the Brazilian
State, businesspeople and civil society began a process to join forces and seek more effective
action. In 2003 the Parliamentary Investigative Commission into Piracy and the CNCP, in
2004, achieved clear progress. As a result, 2005 was a record year in product seizure.
Alongside repression, another initiative that became necessary was tax-based. A
Provisional Measure, known as the Goodwill Provisional Measure, was issued by the Federal
government following continued pressure from civil society and finally approved by the
Legislative. Amongst other provisions, PCs received tax exemption totaling 9.25%. The
market reaction was immediate, with 40% sales growth in legal products, and a 10% to 15%
fall in consumer prices. The “grey market” (made up of pirate products), estimated at 80%
in 2005, fell for the first time, to 61%. As a result, companies increased their investment and
launched new products.
This certifiable progress must be permanent, to strengthen corrections in the tax system,
continuing the exchange of intelligence and the articulation of repression, to squeeze
out the illegal market. This work, on these two flanks, must be accompanied, however, by
constant consumer awareness campaigns. Everything, therefore, as said before, depends on
education of the general public. It all depends on awareness.
Important parallel measures must be implemented in clear defense of commerce and
the essential improvement of control mechanisms, including: the installation of scanners
for containers in all ports and airports – which can be executed through service tender;
access to the Common Mercosul Nomenclature (NCM), protecting fiscal confidentiality; the
evaluation of compliance with norms by imported products; the improving of monitoring
of basic production process; the development of the Customs Value and Statistics
Nomenclature (NVE), which sets basic product prices, preventing under-invoicing; and
the encouragement of inspection of products that do not comply with technical and
certification norms.
Although we cannot forget the fact that we have made a lot of progress against piracy,
neither must we forget that it is our responsibility to protect the structure of a competitive
and fair market, defending jobs, investments, technology and development. After all, we are
all victims of piracy. Hence, alongside with the government, projects and other actions must
be thought of to guide objective, permanent and continued work throughout the country.
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toys and beverages have been joined by products and services such as software, CDs, DVDs,
light bulbs, paint production chemicals, fuel and gas, computer products (boards, optical
readers), medical instruments, prescription drugs, cosmetics, car parts, exercise equipment,
clandestine cable TV connections, and so on. This has established unfair and predatory
competition with legal products and services, affecting their competitiveness and inhibiting
the creation of jobs, the generation of income and investments.
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The commerce sector
132
comprises five million
companies and 25 million
jobs throughout Brazil
Given all of this, it can be seen that wiping out
piracy is practically impossible. However, it is
possible to reduce it, through the real combined
effort of society, the civil and military police and
the courts, punishing those who disrespect the
law. A serious study by the authorities, therefore,
is required to rigorously combat this criminal
practice.
As regards piracy on the internet, we do not
yet have specific penal legislation to combat it.
Nothing, however, prevents the authorities from
adapting current legislation.
Microsoft created World Antipiracy Awareness Day,
with simultaneous action, educational initiatives
and seizures in 49 countries to combat the sales
of pirate and counterfeit software. The programs
presented include awareness campaigns about
intellectual property, alliances with partners,
educational forums and regional training focused
on compliance with the law – as well as legal
action against software counterfeiters.
It is, then, a sophisticated and global commercial
practice that damages not only consumers and
companies, but the whole economy. For this
reason in particular Microsoft committed to
working with third parties around the world to
take the lead against this illegal segment.
Continuing on the argument, over a third of
computers worldwide are either not licensed or
contain pirate or counterfeit software. The losses
caused to legal companies are immense. In 2007,
according to surveys, the global economic loss
was around US$ 50 billion. As technological
advances have created greater opportunities
for criminal groups to produce and distribute
counterfeit products, it is clear that piracy and
counterfeiting represent a real and growing threat
to intellectual property and innovation.
For the record the European Commission, the
executive body of the European Union, has
presented a strategy to combat piracy and
counterfeiting globally, including Brazil on its
list of main targets. According to the European
Union’s Trade Commissioner, Pascal Lamy, “The
strategy stipulates various stages of the fight
against counterfeiting but, ultimately, if we do
not get results from it we shall file suits at the
WTO against the countries in question”. The main
objects of piracy in Brazil, according to Lamy, are
music (CD and DVD) and software. According to
a survey ordered by the European Commission,
pirate products in those areas account for half
the sales in these sectors in Brazil.
We could go on talking about piracy in Brazil and
the world endlessly. In conclusion, however, allow
us to end adducing that piracy in Brazil takes in
cultural issues, which require the State and all of
us to make greater use of preventive measures,
such as educational campaigns, to make the
general public more aware.
According to the CNCP, Brazil’s Tax Office has increased seizures of counterfeit products,
preventing the sale of products worth almost US$ 300 million. The figure, however, is small
compared with the US$ 30 billion the government fails to collect every year in tax because
of piracy, according to a survey done by the Administration Foundation Institute. But our
government admits that whilst there is a difference in price between counterfeit and original
products, the room for criminal groups to operate will be safe, regrettably.
Natan Schiper
First Secretary of the Federation of Commerce in Rio de Janeiro
Councilor of the National Confederation of Commerce
Dagmar Maria de Sant’Anna
Lawyer at the National Confederation of Commerce
Deputy Councilor at the National Confederation of Commerce
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Moreover, according to surveys, out of every four counterfeit products sold in Brazil, three
are made in Asia, mainly China. The Ministry of Justice believes the CNCP could develop
a strategy to begin dialogue with the Asian countries from where counterfeit products
enter Brazil.
133
In the front line against
unfair competition
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9.5
The Work done by the National
Confederation of Industry (CNI)
134
T
he National Confederation of Industry (CNI) represents, promotes,
and leads the defense of the industrial sector’s interests, focusing
on productivity, technological innovation and the integration of
the global economy.
With regard to combating piracy, the National Confederation of Industry
has pinpointed the negative impact piracy has on competition amongst
companies, on the disorganization of some sectors, on the expansion of
illicit business, the large economic values involved and the fact that such
practice is spreading into new sectors, so underscoring the need to mobilize
efforts against it.
See below the work done in 2008:
•
In order to identify opportunities for alignment and convergence of the
private sector’s work against piracy, in May the CNI held a workshop to
identify projects and strategic action proposed by the production sector.
The meeting was also designed to promote alignment between the
CNCP’s Strategic Planning and the opportunities identified by the private
sector. Fourteen associations, agencies, and industry federations focused
on tackling piracy took part in the event.
•
Following on from the first meeting, in August the CNI held its second
workshop, designed to: first, list the main issues guiding the fight against
piracy; and, second, to identify action in the production sector to
combat piracy in the Federal, State, and municipal spheres. Action to be
developed by the public sector was also identified, such as the training
of agents, and by the private sector, such as the running of educational
campaigns for children and youths. These proposals were forwarded to
the CNCP to be included in its Strategic Planning. Twenty-seven
•
Besides these initiatives to mobilize and align the private sector, the CNI System took
part directly in action focused on the dissemination of ideas and values. The educational
magazine SESINHO was produced, on the theme “combating piracy”, which integrated
Global Action activities – developed by SESI and the Globo television network – with a
print run of one million, distributed throughout Brazil.
•
The CNI also supported the preparation of the leaflet entitled Adu and Ana – Facing
up to Piracy and Smuggling, by the National Forum Against Piracy and Illegality
(FNCP). The leaflet had a print run of 1.9 million copies and was designed as a support
tool for educators in action clarifying piracy for seven to twelve-year-olds. For 2009,
the CNI plans to run mobilization and promotion campaigns on the theme in
partnership with the Federations of Industry and to continue supporting and
developing educational drives.
•
Also in 2008 the CNI and the Brazilian Section of the Brazil-USA Business Council ran a
joint effort with the US authorities to demonstrate the progress Brazil has made in the
area of intellectual property. The aim was to contribute to preventing the country being
down-graded to the list of countries considered by the USA as offering inadequate
protection to intellectual property. In keeping it on the Watch List, along with Italy,
Canada, Mexico, Colombia, Bolivia, Hungary and others, the USA recognized that Brazil’s
intellectual protection policy is developing.
•
In September the CNI held meetings with representatives from the State Department and
the Office of the United States Trade Representative on intellectual property.
•
After sending material for annual review for Section 182 of 1974’s Foreign Trade Law,
known as Special 301, the private sector hopes that in 2009 the US government will be
able to recognize the progress made in 2008 regarding the protection of intellectual
property, educational drives, and the repression of crime.
Ricardo Figueiredo Caldas
First Vice-President of the Federation of Industry in the Federal District
Councilor - National Confederation of Industry (CNI)
Marco Antônio Reis Guarita
Director of Institutional Relations at the National Confederation of Industry
Deputy Councilor - National Confederation of Industry (CNI)
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agencies, associations, and federations of industry that develop anti-piracy action took
part in the event.
135
A guardian of rights and
respect for the rules
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9.6
The Work done by the Brazilian Institute
for Ethical Competition (ETCO)
136
E
conomic development on a market economy demands good rules
which must be respected. A good business environment, in which
individual and social rights are stable, known, and applied, constitutes
the institutional base on which wealth can be created and fairly distributed in
a modern economy.
Environments where rules are flouted, in which a significant share of
commercial activity is done without fiscal and labor documentation, with
significant tax evasion, illegality, smuggling, piracy and other deviations cause
economic harm and create social problems.
This is because this poor business environment harms and scares away
ethical and serious investors and producers, who are the ones concerned
about increasing productivity, and attracts and favors speculators who are
specialized in finding mechanisms that avoid legal and ethical obligations.
The creation of a good business environment in a democracy is a task facing
both the public sector which, besides drawing up laws has a monopoly over
the police and inspection, and the general public and private sector agencies,
which have a moral obligation to, in addition to respecting laws and rules
legitimately issued by the authorities, collaborate actively for these norms to
be obeyed by all citizens.
In this respect, we have to say that the National Council on Combating Piracy
and Intellectual Property Crimes (CNCP) was set up at the right time, creating
an institutionalized forum of partnership and collaboration between the public
and private sectors. Bringing together various areas of the public administration
most involved in combating commercial crimes, with the productive sectors
most affected by these crimes, the Council has encouraged, coordinated,
and made viable a significant number of activities to improve our business
environment and it has been successful in most of its operations.
ETCO’s line of operation is based on three pillars. The first one is studies carried out by
academics, specialists or educational and research institutions to discover the dynamic
of the factors that encourage crime and conduct deviations. Discovering and publicly
discussing what leads to or induces this behavior is the first step in drawing up public policy
or promoting private activity to eradicate or at least reduce this conduct.
The second pillar is to use the studies to raise awareness. That is, to educate the general public
or specific groups about the social and economic harm caused by conduct deviations. To put
it positively, to show the great advantages and benefits of ethical conduct as regards current
norms and best competition practices. We believe that there are many in Brazil who do not
adequately understand the consequences and ramifications of these conduct deviations,
which are often even seen with a certain degree of leniency or disguised benevolence.
The third pillar is to propose and support public sector or private agency initiatives that aim
both to aid and simplify compliance with legal requirements, and to improve or even institute
new mechanisms and methodologies that prevent and, if necessary, punish disrespect for
the established norms. In this regard, ETCO has actively participated in efforts to improve
inspection and control tools for various administrative agencies, to speed up search and
seizure procedures for illegally-traded goods and to encourage the rapid punishment of
those responsible. Many of these initiatives are sponsored by the CNCP.
Amongst the various initiatives taken by the Brazilian Institute for Ethical Competition (ETCO),
we can highlight:
STUDIES AND RESEARCH
1.The study of conduct deviations and the analysis of the cultural aspect of this transgression of
law and ethics is an issue that ETCO has maintained since 2007, when it formed a partnership
with the Fernando Henrique Cardoso Institute (iFHC) to hold the seminar, “The Culture of
Transgression in Brazil”, in which the renowned Brazilian intellectuals Bolívar Lamounier (a
political scientist), Joaquim Falcão (lawyer), José Murilo de Carvalho (historian) and Roberto
DaMatta (anthropologist) presented and debated studies on the issue. Based on the texts
and discussions presented, the book, “Culture of Transgressions: Lessons from History”, was
published to national acclaim. The first edition of 3,000 copies soon sold out and a second
edition was shipped to bookstores at the beginning of the second half of the year. An essential
issue in combating conduct deviations, this issue will remain on the institute’s agenda.
2.The study, estimate, and publication of an index on Brazil’s underground economy
done by the Brazilian Economic Institute (IBRE) and the Getúlio Vargas Foundation
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The Brazilian Institute for Ethical Competition (ETCO) is a civil society organization of public
interest, founded in April 2003 by companies and business agencies concerned about
the social and economic consequences of imbalances in competition caused by ethical
deviations in competitive conduct, such as tax evasion, illegality, piracy, improper customs
clearance, and so on.
137
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138
(FGV). This study was the theme of an international seminar in March 2008, in Rio de
Janeiro, attended by specialists Vito Tanzi, formerly of the World Bank, and the Austrian
economist, Professor Friedrich Schneider, author of a deep study on the issue. In April, the
FGV/ETCO underground economy index was launched, which every half-year measures
the development of illegal commerce in the country. The index was updated for the first
time in November. As a way to contribute still further to the discussion of this theme,
a book will soon be published with the methodology developed by IBRE/FGV and with
articles written by international specialists.
3.The defense of intellectual property and its impact on the development of the country also
deserves special attention as regards ETCO’s work in 2008, when a workshop was held
in Brasilia on the theme. The event brought together important leaders who discussed
the benefits that the issue of intellectual property offers the economy. This issue will also
be the focus of a publication to be launched in partnership with the publisher Campus
Elsevier in the first half of 2009.
ETCO’s ATTRIBUTIONS
include the development of
awareness-raising action, studies,
and surveys and control initiatives
AWARENESS-RAISING ACTION
1.One of the most visible awareness-raising actions developed by ETCO is the sponsorship
of the Ethics in Business Bulletin, broadcast nationally from Monday to Friday on the
morning news radio channel CBN, reaching about 130,00 people a day. The aim is to report
news on combating illegal trade and the negative impact caused by unfair competition on
society. In addition, through radio spots, ETCO seeks to underline the importance of ethical
conduct and compliance with legal requirements.
2.ETCO magazine – published every four months by the institute to promote studies,
research and theses defended by ETCO, to support and contribute to the debate on
ethical competition. Focused on opinion formers, it is distributed to thousands of
readers, including members of the Executive, Judiciary, Legislative and Office of the
3.Organization and permanent updating of the website www.etco.org.br, with studies and
news on the institute’s work and themes related to its objectives. In 2008 we increased
page views to 180,000.
4.In education, ETCO sponsors the ‘Legal School Project – Combating Piracy is Learned in
School’, at the American Chamber of Commerce, which directs its efforts towards training
teachers in public and private schools about the importance of intellectual property,
stressing the harm done by piracy and valuing ethical conduct to turn these teachers
into important agents in promoting these concepts amongst children and teenagers in
primary education.
CONTROL AND INSPECTION MECHANISMS
1.Permanent support of ENCAT, an agency linked to Confaz, responsible for the
establishment of the Electronic Invoice (NFe), to spread its use throughout Brazil. To
contribute to the operation of the system nationally, ETCO has entered an agreement
with the Treasury in Rio Grande do Sul to create SEFAZ Virtual, which supports treasury
departments in twelve States in the authorization of Electronic Invoices. Since the use
of this system became mandatory, over 96,000 invoices have been issued.
2.ETCO has signed a technical cooperation protocol with the National Health Surveillance
Agency (ANVISA) to develop and establish the Drug Tracking and Authentication System
in Brazil, which combats illegal practices in the pharmaceutical sector. As a form of
collaboration, ETCO proposed the running of a pilot project to test the entire model to
be adopted in Brazil.
This has made clear the great alignment of objectives between the National Council on
Combating Piracy and Intellectual Property Crimes (CNCP) and the Brazilian Institute for
Ethical Competition (ETCO). This was the main reason for the enthusiastic support that
ETCO gave the constitution in October 2004 of the CNCP, and since its founding to
participating as a member of this council.
In the brief history of the CNCP and of ETCO much has been achieved in the fight
against piracy and other crimes. In first place is the fact that it has managed to get the
problem onto the agenda of serious national problems and made combating it one of
the country’s main objectives. The awareness of the general public and governmental
authorities about the gravity of the problem was the first step that led to the structuring
and establishment of a large number of operations against illegal trade, resulting
in a significant increase in the to number and volume of goods seized by the Federal
authorities. The work done by the CNCP has been of vital importance in the success
of these operations and public recognition of the importance of combating piracy and
crimes against intellectual property.
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Attorney General, teachers, researchers, the professional classes, businesspeople and
various other leaders.
139
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140
However, the work of the CNCP does not end with the repression of illegal trade. Although
collaboration is always desirable, an exclusive institutionalized partnership between
governmental agencies and private bodies would not be necessary just for this purpose.
This partnership presupposes a greater range of activities in which it is possible to make
efficient use of the potential and specificities of all the partners, whether from the public
or private sector.
This is what all the members of the council have been looking to achieve. We can note
important progress in this challenge for common public-private work. Through productive
monthly meetings, it has been possible to articulate initiatives, which were previously
disperse, under common guidelines, and to so prevent waste through duplicated action.
The close collaboration and exchange of information amongst the councilors has also been
important, providing essential elements both for the improved formulation and the more
efficient execution of initiatives by the diverse agencies involved.
We are now beginning a new challenge: the formulation and implementation of a series
of activities that, it must be stressed, are the fruit of a common effort, as they were defined
collectively in the process of strategic planning by the council. This is a pioneering
experience, which aims to break down the old taboos and preconceptions and make effective
collaboration possible between governmental agencies and entities from civil society, united
in a common interest, namely combating piracy and intellectual property crimes.
This new phase for the CNCP will require the councilors to innovate again, as it is always
difficult to follow unknown paths. The new, the unusual or non-traditional is a little
frightening, and fear paralyzes. We must get ready to face these new challenges with care
and moderation, but also resoluteness and determination. Even recognizing the risks and
difficulties we face, we are sure that the capacity and public spiritedness of all the councilors
will lead to success.
André Franco Montoro Filho
Executive President of the Brazilian Institute for Ethical Competition (ETCO)
Councilor of the Brazilian Institute for Ethical Competition
Patrícia Blanco
Executive Director of ETCO
Deputy Councilor of the Brazilian Institute for Ethical Competition
9.7
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Protector of the audiovisual market
The Work done by the
Motion Picture Association
T
he Motion Picture Association (MPA) protects and defends
the interests of its members – the six largest cinematographic
studios in the United States in the sectors of audiovisual content
distribution, cinema, home entertainment, pay-television, open television,
and new technologies. Founded in the 1930s, the MPA has been in Brazil
since the 1950s. Its main priority now is the combating of piracy on the
audiovisual market.
141
Such a concern is more than justified. Brazil is the 9th largest
cinematographic market in the world, with great potential for growth. This
becomes evident when it is observed, for example, that the 2,300 movie
theaters in Brazil account for just over half all those in Mexico.
Another revealing fact regarding the enormous room for development for
the sector is that movie theaters exist in only 8% of Brazilian municipalities.
The chart below shows the number of films launched on DVD and in
movie theaters from 2004-2007.
Release of Film on DVD (from 2004 to 2007)
3000
2190
(+22%)
2500
2000
1803
(+23.4%)
1765
(-19.4%)
Theater
1461
1500
1000
500
0
Source: ANCINE
Domestic video
(rental + sell thru)
301
288
(-4%)
332
(+15%)
2004
2005
2006
326
(-1.8%)
2007
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The subscription TV market also has growth
potential, as its penetration is still below that
registered in countries such as Argentina and
Chile.
The open TV sector in Brazil is one of the most
developed in the world, with a history of large
local productions, such as documentaries, soapoperas and short films.
Cinematographic Market Data in Latin America
Country
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Uruguay
Venezuela
Theatrical (Cinema)
142
Average price
3.07
4.08
4.52
3.52
3.51
2.39
3.26
3.85
Number of tickets sold (million)
33.71
89.31
11.45
20.65
175.07
16.31
2.44
23.81
Number of screens
1,017
2,355
290
459
4,068
274
97
380
Number of rental stores
3,500
9,000
140
139
3,500
46
200
48
Average price per rental
1.91
2.04
2.30
3.53
2.41
2.24
1.76
4.40
Home entertainment (DVDs)
Homes with DVD players
Penetration of DVDs players
5.00
20.00
2.20
2.00
13.70
3.00
0.70
3.92
49.50%
53.33%
56.41%
20.20%
68.50%
81.08%
77.78%
80.00%
10.10
37.50
3.90
9.90
20.00
3.70
0.90
4.90
Open TV and Closed TV
Homes with TVs
Homes with pay-TV
6.13
5.30
1.30
2.58
6.44
0.88
0.50
1.69
60.69%
14.13%
33.33%
26.06%
32.20%
23.78%
55.56%
34.49%
Number of internet users (million)
16.00
42.60
7.00
10.00
23.70
6.10
1.10
5.70
Homes with broadband
2.10
7.70
1.00
1.20
3.90
0.732
0.135
0.858
Penetration of pay-TV
Digital Infrastructure
Piracy
Losses to the sector (million US$)
100
198
26
111
1,114
32
17
81
Percentage of market
55%
59%
59%
89%
62%
82%
88%
82%
The DVD sector (home entertainment), however, is
the most important source of revenue for films.
In Brazil it is said that there are over 8,000 video
rental stores and 2,000 retail stores. On average,
about 40% of revenue for a film is generated by
DVD sales to these markets. The resources are vital
to increased production of Brazilian films which,
following the creation of the National Cinema
Agency (Ancine) and the fiscal incentives such as
Article 3 of the Audiovisual Law, have significant
potential for growth.
Below we have data on sales to the DVD market in
the last two years. The graph shows a small fall in
sales, Maynly because of piracy.
Home Entertainment (Brazil 2008 units)
30,000,000
2008
10,000,000
Source: UBV
0
Rental
Sell Thru
Total
Film production is a risky activity involving massive investment. According to MPA data, it
is estimated that in the United States the average cost of producing and marketing a film is
US$ 100 million. Four out of ten films produced never make the investment back, even after
exploring the four windows of distribution that exist - cinema, DVD, pay-TV and open-TV.
Besides these challenges, the industry is faced by the threat of digital piracy, which affects not
only the big international launches, but most Brazilian films.
Below we have a ranking of the biggest box-office films in Brazil ever.
Brazilian films seen by over one million people (1970-2007) by audience
Ranking
1st
2
nd
3rd
Title
Dona Flor e seus dois maridos
Release date
Audience
Nov/76
10,735,524
A dama do lotação
Apr/78
6,509,134
O Trapalhão nas minas do Rei Salomão
Aug/77
5,786,226
5,401,325
4th
Lúcio Flavio, passageiro da agonia
Nov/77
5th
Os dois filhos de Francisco
Aug/05
5,319,677
6th
Os saltimbancos Trapalhões
Dec/81
5,218,478
7th
Os Trapalhões na guerra dos planetas
Dec/78
5,089,970
8th
Os Trapalhões na Serra Pelada
Dec/82
5,043,350
9th
O Cinderelo Trapalhão
Jun/79
5,028,893
10th
O Casamento dos Trapalhões
Dec/88
4,779,027
11th
Coisas eróticas
Jul/82
4,631,914
12
Carandiru
Apr/03
4,693,853
13th
Os vagabundos Trapalhões
Jun/82
4,631,914
14
th
O Trapalhão no Planalto dos Macacos
Dec/76
4,565,267
15th
Simbad, o marujo Trapalhão
Jun/76
4,406,200
16th
O rei e os Trapalhões
Jan/80
4,240,757
17
Os três mosqueteiros Trapalhões
Jun/80
4,221,062
O incrível monstro Trapalhão
Jan/81
4,212,244
Lua de Cristal
Jun/90
4,178,165
A princesa Xuxa e os Trapalhões
Jun/89
4,018,764
th
th
18th
19
th
20th
Source: Ancine
chapter 9
2007
20,000,000
143
Since the return of national cinema, the ten biggest box-office films are in the table below:
chapter 9
Top 10 – Films after the return (1995)
Ranking
1
st
2nd
Release date
Audience
Os dois filhos de Francisco
Aug/05
5,319,677
Carandiru
Apr/03
4,693,853
3rd
Se eu fosse você
Jan/06
3,644,956
4th
Cidade de Deus
Aug/02
3,307,746
5
Lisbela e o prisioneiro
Aug/03
3,169,860
Cazuza - O tempo não para
Jun/04
3,082,522
7th
Olga
Aug/04
3,076,297
8th
Os normais
Oct/03
2,977,641
9
Xuxa e os duendes
Dec/01
2,621,793
Tropa de elite
Oct/07
2,417,193
th
6th
144
Title
th
10
th
Source: Ancine
Piracy in the audiovisual sector
Piracy is not a recent phenomenon, nor is it
exclusive to the audiovisual sector or to Brazil.
Piracy, counterfeiting, or simply intellectual property
theft (technically known as counterfeiting) is a
global crime that, according to Interpol data, turns
over more than international drug trafficking (US$
500 billion a year) and takes in CDs and DVDs to
batteries, prescription drugs and airplane parts,
amongst others.
The groups working in counterfeiting often use
part of the resources obtained from this crime
with less offensive potential to perpetrate more
serious crimes, such as drug trafficking, arms and
ammunition smuggling, corruption, tax evasion and
the illegal transfer of money out of the country.
Less than five years ago audiovisual piracy was
restricted to small stores or video rental stores in
the interior of the country, which made their own
counterfeit VHS copies to fool the consumer who,
most often, did not know he was renting a pirate tape.
Today, the same technology that benefits consumers
and is used by the legally established industry to
produce its product is also used by counterfeiters to
even more rapidly and effectively do what they do,
as they do not need to comply with rules, contracts,
legal obligations, and so on.
A film that has its premiere in the United States
or Europe (normally before Brazil) is a victim of
camcording (recorded inside the cinema). This copy,
even though in most cases of very poor quality, is
put on the internet and immediately made available
to anyone who has a computer and a broadband
connection.
Add to this a computer with a tower of five DVD
recorders (today practically all PCs have a DVD
recorder) and we have a laboratory of about 30,000
DVDs a month. This process above all hampers the
work of the associations and authorities involved in
combating piracy, as for each small factory closed,
new laboratories spring up in their place.
The distribution process has also changed greatly.
Following the popularization of DVD equipment
at the beginning of the 2000s, and the growth of
competition from internet piracy of music. In
addition, DVD profits are higher.
The chart below shows the kinds of tip-offs about
piracy received by the APCM and MPA in 2008.
chapter 9
the home entertainment (DVD) market in Brazil,
street hawkers who used to sell counterfeit music
CDs changed from one day to another to films on
DVDs. This occurred also as a consequence of the
fact that these illegal sellers were also suffering
Types of Tip-off
laboratory - 4%
illegal street markets - 11.61%
street hawkers - 30.13%
commercial establishments - 25.30%
rental - 27.96%
car - 0.61%
internet café - 0.39%
This presents another great challenge for the
cinematographic industry – the distribution of
content via the internet. Currently, even with some
legitimate original film rentals, sales and downloads,
there is unfair competition from sites, communities,
and launch groups distributing films even before
their release on the cinema market in Brazil. Some
sites specialize in subtitling, dubbing and making
covers for films to be distributed illegally by the
internet or even sold on DVD on auction sites.
Work done by the MPA
The members of the MPA, as well as the Brazilian
Video Union (UBV) and the Intellectual Property
Defense Association (Adepi), have played a very
active role in combating piracy in Brazil. Since the
beginning of the 1980s, when the VHS market
developed in Brazil, companies in the sector have
adopted an energetic attitude in combating the
crime. This meant not just inspecting rental stores
with pirate products, but also including on the old
VHS tapes educational and explanatory messages
about piracy.
In 2007, having seen the new challenges digital
piracy would present, both on DVDs and through
the internet, the MPA changed its strategy and got
together with the phonographic industry, creating
the Film and Music Antipiracy Association (APCM).
It was the first merger between the two sectors in
the world to combat piracy.
The successful model has been exported to other
countries in the region, such as Mexico, and aims
145
not just to join forces and resources from the two sectors, but also to swap experiences
and opportunities, as piracy of films and music have a lot of similarities in production and
distribution terms.
chapter 9
Ibope carried out a study at the request of the Angardi Institute and the US Chamber of
Commerce, in September 2008, into the consumption of pirate products by citizens aged over
16 in São Paulo, Rio de Janeiro and Belo Horizonte. It revealed an increase in awareness by
the general pubic in Brazil about the consumption of pirate products. From 2007 to 2008 the
number of people who said they would never buy pirate products rose from 22% to 33%. This
growth can be credited to the important work done by the authorities, with the action and
initiatives run by the MPA and APCM in recent years.
146
Consumption of Pirate Products
SP + RJ + BH
SãO pAULO
Rio de janeiro
Belo horizonte
brazil
12
12
15
11
10
16
13
15
13
13
15
15
15
12
27
28
27
25
23
23
29
31
33
28
35
30
31
25
35
33
23
37
35
20
32
33
27
35
23
26
31
29
25
27
34
26
31
40
25
20
26
24
27
29
22
33
2006
2007
2008
2006
2007
2008
2007
2008
1
2006
2007
Always
2008
2006
2007
Sometimes
2008
Rarely
Never
Don’t know / Did not answer
In addition, in partnership with the UBV and the Audiovisual and Cinema Forum (FAC), the
MPA has taken part in various educational campaigns, including antipiracy trailers on DVDs
and in move theaters all over the country.
The MPA has also worked on other initiatives, such as Project Legal School, led by the US
Chamber of Commerce (Amcham), which made it possible to get the message about
intellectual property protection to about 12,000 students in the public and private networks.
Results achieved by the MPA
In the last two years, despite the large losses caused by piracy, many victories have been
won thanks to the joining of forces by the MPA and its partners. During this period, about
40 training sessions were run, most of them in partnership with the Brazilian Association of
Software Companies (ABES), and others with the São Paulo State Federation of Industry (Fiesp).
In order to transmit information and seek support for action against piracy, these initiatives
reached about 3,000 public agents.
Operational Results by regions in 2008
Seizures
2007
2008
Growth
Pirate CDs (music)
5,706,830
4,089,079
-28.35%
Blank CDs
11,299,501
8,444,800
-25.26%
Pirate DVDs (shows)
2,804,562
2,040,673
-27.24%
Pirate DVDs (films)
4,793,093
8,808,936
83.78%
Blank DVDs
7,084,843
17,769,474
150.81%
Total seized
31,688,829
41,152,962
29.87%
Antipiracy Operations
2007
2008
Growth
Street hawkers
1,606
2,635
64.07%
134
195
45.52%
Warehouses
70
126
80.00%
Video rental stores
149
110
-26.17%
Laboratories
Internet cafés
Commercial establishments
Total operations
Source: APCM
31
97
212.90%
389
428
10.03%
2,379
3,591
50.95%
chapter 9
Other highlights have been the over 3,700 police operations in 2008 throughout the country,
culminating with the seizure of 41 million units of product used by the illegal market. The
number of guilty verdicts, in turn, has risen exponentially, also showing that the Judiciary
has understood the importance of the issue for the country’s development.
147
chapter 9
Antipiracy Operations 2008
Street hawkers & illegal street markets - 73.38%
Commercial establishments - 11.92%
Internet café - 2.70%
Video rental stores - 3.06%
Warehouses - 3.51%
148
Laboratories - 5.43%
Operational Results in 2008
CenterWest
North
Pirate CDs (music)
196,013
89,277
Blank CDs
105,760
5,525
Seizures
Northeast
South
Southeast
Total
357,401
579,904
2,866,484
4,089,079
216,834
6,328,355
1,788,326
8,444,800
Pirate DVDs (shows)
64,719
27,603
123,856
214,139
1,610,356
2,040,673
Pirate DVDs (films)
349,347
132,789
818,193
1,172,928
6,335,679
8,808,936
Blank DVDs
220,994
90,150
178,885
13,009,485
4,269,960
17,769,474
Total seized
936,833
345,344
1,695,169
21,304,811
16,870,805
41,152,962
Antipiracy Operations
CenterWest
North
Northeast
South
Southeast
Total
Street hawkers
72
35
242
441
1,845
2,635
Laboratories
11
4
36
16
128
195
Warehouses
2
0
18
6
100
126
Video rental stores
0
1
18
5
86
110
Internet cafés
0
0
2
0
95
97
Commercial establishments
6
0
32
50
340
428
Total operations
91
40
348
518
2,594
3,591
Source: APCM
Blank DVDs - 43.18%
Pirate DVDs (films) - 21.41%
chapter 9
Seizures in 2008
Pirate DVDs (shows) - 4.96%
Blank CDs - 20.52%
Pirate CDs (music) - 9.94%
Another great challenge in the short term is the internet. In this area, identification and
removal of websites, blogs and communities with illegal content has grown in the same
proportion as the growth of this market.
We know that only by using effective educational measures will we be able to slow this
growth so that a viable formal market can bloom in this dynamic and accessible digital
environment.
Links removed from the internet
The tables that follow show not just the greater efficiency of the action, but also the growth
of the challenge in combating piracy on the internet.
149
chapter 9
Antipiracy Action on the Internet
Notifications
issued
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Out
Nov
Dec
2008
312
520
675
494
230
284
297
257
405
434
389
404
2007
3,218
3,184
49
65
25
103
96
213
244
258
206
55
2006
123
45
2
54
450
1,124
1,292
718
1,300
1,400
1,286
3,008
Webpages/URLs
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Out
Nov
Dec
2008
30
49
56
8,798
1,764
11,417
10,599
8,751
3,668
6,113
6,142
5,116
2007
194
1,199
39
322
161
111
16
15
344
17
197
29
2006
123
45
2
1
83
898
455
109
261
38
251
150
150
Launches
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Out
Nov
Dec
2008
6,464
2,429
8,806
5,305
5,122
4,317
6,118
4,192
5,386
3,265
5,858
4,640
2007
6
9
23
34
140
501
653
1,823
1,271
7,847
856
1,584
2006
-
-
-
-
-
-
56
50
58
49
12
14
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Out
Nov
2008
Auction Sites
70
151
-
130
77
112
-
-
-
11
23
21
2007
76
79
75
-
578
84
53
139
193
137
198
70
2006
113
534
1,102
718
548
660
317
610
397
112
890
250
Links in
cyberlockers
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Out
Nov
Dec
2008
16,544
5,130
4,563
38,632
2,126
8,362
7,113
24,911
20,230
40,283
44,083
34,703
2007
3,018
1,906
2,841
2,175
1,320
1,648
3,275
8,727
12,094
10,732
7,162
4,004
2006
-
-
-
53
367
226
781
559
981
1,313
1,023
2,844
Links in P2P
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Out
Nov
Dec
2008
4,632
1,956
4,243
3,756
2,996
2,128
2,857
1,584
2,868
1,806
2,874
2,258
2007
-
-
-
-
-
692
660
2,346
3,954
8,359
2,182
2,295
2006
-
-
-
-
-
-
-
-
-
-
-
-
Links Removed
Links Removed
2007
2008
Growth
Webpages/URLs
2,644
62,503
2264%
Launches
14,747
61,902
320%
Cyberlocker links
58,905
246,680
319%
P2P
20,488
33,958
66%
Total
96,784
405,043
319%
For years piracy was seen as a problem exclusive to
the private sector, with no effects on society. The
main intellectual property industries hired lawyers
and set up associations to try to halt this crime and
minimize the losses caused by piracy. We can say
that much has changed in this field in Brazil in the
last 15 years. Brazil has a modern legislation, which
includes the protection of copyright owners, with
penalties established for those who do not comply
in the civil and penal spheres.
It is evident that technology has changed some
paradigms and the way society sees intellectual
property. It is not difficult to show a youth that
robbing a store is a crime, but the task is much
more complex when we have to show him that
there is also a violation of copyright when he
downloads a film, song or piece of software.
This is why some considerations are of extreme
importance The first one is that the Brazilian State
has for some years – and more incisively since the
creation of the National Council on Combating
Piracy in 2004 – been convinced that the fight
against piracy must be developed with the private
sector and society.
The CNCP model, comprising various agencies
from the State that directly or indirectly operate
in the prevention or repression or piracy, besides
the representatives of various segments in the
sector, is a pioneering initiative which has been
shown to be extremely positive. The results over
these years have been concrete, not just in the
articulation of agencies of repression, but also
in encouraging the exchange of information,
training between the public and private sector,
and the development of educational initiatives in
the medium and long term.
With the CNCP, the private sector found for the
first time a permanent source of interlocution.
This has allowed the segment to present
information, concerns and suggestions to face
piracy in Brazil in a creative manner. The problem
is not easy and the solution requires initiatives
on fronts such as repression, prevention, and
education, as well as the implementation of
economic and commercial measures.
2008 focused on planning. The CNCP developed
a strategic and professional plan that has allowed
the public and private sector to identify, discuss,
and reflect on the priorities for each and every
one in this fight. Hence the fundamental base
was created on which to promote preventive,
educational, and enforcement action, and to
gain access to the market that will permeate the
actions of the council in the next few years. And all
of this independent of political or governmental
changes, as the combating of piracy has become
a State policy.
It is with great pride and satisfaction that the MPA
takes part in the CNCP. The agency recognizes
that there is still much to be done and that in the
next few years this struggle will face success and
setbacks . But we are sure that the permanent
commitment by everyone involved has made us a
solid group, able to carry out a task that used to look
impossible but which, based on the strategic plan,
has everything required to achieve great results and
to place Brazil at the vanguard in combating piracy
and protecting intellectual property.
Márcio Cunha Guimarães Gonçalves
Regional Antipiracy Director at the
Motion Picture Association (MPA)
MPA Councilor
Antonio Borges Filho
Executive Directory of the Film
and Music Antipiracy Association
Deputy MPA Councilor
chapter 9
The Experience of the CNCP
151
CHAPTER 10
152
10.
MEDIA
REPERCUSSION
CHAPTER 10
153
Initiatives and operations
carried out by State agencies
and partners are highlighted
in the national press and
bear witness to the
development of Brazil’s
struggle against piracy
CHAPTER 10
Reports on work of
interest to the whole country
Outstanding news
from 2007
January
O Globo Online - 01/22/2007
Government increases price limit on PCs exempt from tax to R$ 4,000
Rio de Janeiro/RJ – Treasury Minister, Guido Mantega, announced the extension of the
exemption threshold within the Social Integration Program (PIS) and the Contribution to
Social Security Financing (Cofins) for computers. The threshold used to be R$ 2,500 for
computers and R$ 3,000 for laptops. Now, computers which cost up to R$ 4,000 will be
included in the benefit.
These tax exemptions have meant so far, in practice, that prices are an average of 10%
cheaper for the consumer.
According to Mr. Mantega, the exemption is being extended as it may double domestic
production of these products. Mr. Mantega adds that the extension of the threshold is
important to fight piracy.
March
Diário do Nordeste - 03/01/2007
“King of piracy” is arrested in the Northeast.
Around 10,000 pirate CDs and DVDs have been seized by the Civil Police during an
operation carried out at Beco da Poeira.
Fortaleza/CE - The man considered by the police as one of the biggest distributors of pirate
CDs and DVDs, established in the center region of Fortaleza, was arrested yesterday morning,
exactly where he operates. João Batista de Souza, 46, was caught red-handed by civil police
155
CHAPTER 10
officers from the Counterfeit and Defrauding Police Department (DDF), at the exact moment
when he was distributing his counterfeit material to some of the stand at Beco da Poeira.
156
With him, the police has seized 2,900 ‘pirate’ CDs and DVDs. Later, another large amount was
seized in other stands, adding to approximately 10,000 units of this kind of counterfeit product,
which result in incalculable losses to the video and music industries. “Since 2001, João Batista
has been arrested for the same kind of crime: CDs and DVDs counterfeit. He already faces five
charges, three of them here at “Defrauding”. Two have been filed by means of an administrative
letter, when the material was seized but he escaped from the police. This time, he was caught
red-handed for copyright violation, which stipulates imprisonment from two to four years”,
pointed out the police chief Andrade Júnior, head of the DDF.
The director of the Specialized Police Department (DPE), Jairo Façanha Pequeno, followed all
the work and is already in contact with the 2nd Executive Regional Office (SER-II), in charge
of the area where Beco da Poeira is located, so that stands’ permits for those people who
had been waiting for or selling the counterfeit CDs and DVDs are cancelled. “We are working
together with the Municipality to eradicate once and for all the ‘piracy’ problem. In spite of it
being a way of life for people who make a living on the black market, it severely harms the
formal industry, which employs people and pays taxes”, said the chief.
Association
Andrade Júnior added that the DDF also has support from the Music Rights Protection
Association, which provides tip-offs and follows potential manufacturing and distribution
locations of this kind of illegal material. “So far, at Beco da Poeira alone, 23 stands have been
identified by the police as involved in this kind of illicit activity. But the investigation will
continue”, stressed the chief of ‘Defrauding ’.
June
Agência Brasil - 06/27/2007 - 10:27 a.m.
Public agents learn about the difference between original and pirate products
Brasília - Experts from the Civil Police from the Federal District, from the Federal Police,
technicians from the Treasury Department and from the Brazilian Tax Office and other public
agents are taking today (27) a training course at The National Council on Combating Piracy and
Intellectual Property Crimes , from the Ministry of Justice.
The objective is to train the public agents on recognizing the differences between counterfeit
and original products for the main pirated goods in the country. Representatives from brands
such as Nike, Louis Vuitton, Bic, Chanel, Oakley and Souza Cruz, as well as representatives from
the software, music and cinema sectors are participating.
According to data from the Ministry of Justice press relations, piracy accounts for the loss of 2
million formal jobs and R$ 30 billion a year.
CHAPTER 10
The training course finishes at 6 p.m. in the Tancredo Neves auditorium at the Ministry of
Justice headquarters.
August
Agência Brasil - 08/21/2007 - 5:12 p.m.
Tarso says that success in combating piracy
depends on changing Brazilians ’ habits
157
Gláucia Gomes, reporter from Agência Brazil
Brasília - The Minister of Justice, Tarso Genro, said today (21) that without deep cultural
change in the habits of Brazilians, combating piracy will be not be successful. By swearing
in the new members of The National Council on Combating Piracy and Intellectual Property
Crimes and Intellectual Property Crimes (CNCP), from the Ministry, for the two-year period of
2007-2008, the minister pointed out that the role of the council is to outline major policies,
prepare and encourage actions that the State should carry out, and above all promote a cultural
change in our country.
“Crimes of this nature [piracy], which are pointed out and are effectively petty crimes, such
as buying a pirated product, in fact create a culture for bigger crimes, and create a culture of
irrelevance for our legal system”, he said.
The president of the Council, Luiz Paulo Teles Barreto, said that the strategies applied have been
the ones to fight the organized crime networks which run piracy from importation to distribution
in the country. However, he noted that the network is only part of the “supply” of pirate products,
and that “demand” is another key point in combating piracy.
“We have to raise awareness and educate the consumers by showing them that piracy harms
the economy, public security and the consumers themselves. We have found, for example, pirate
drugs, auto-parts and even parts for planes. This shows that piracy has no shame and jeopardizes
consumers’ life, health and physical well-being”, he warned.
According to data from Interpol, piracy has become the most profitable crime in the world, and
has a turnover of around US$ 520 billion a year, more than drug trafficking, which has a turnover
of around US$ 360 billion a year.
According to data from the Ministry of Justice, in 2006 alone more than R$ 870 million in
counterfeit products was seized nationwide.
September
O Barriga Verde - 09/19/2007
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Blumenau: 1st Brazilian city without piracy
158
Next Thursday, on September 20th, the roll out of the “Piracy-Free Blumenau” campaign
will be announced in Santa Catarina, which is being organized and developed by the Film
and Music Antipiracy Association (APCM), together with the Mayor’s office and Public
Security State Office, as well as other sectors and organizations which are also involved in
the project.
The event, which will be held at 5 p.m. at the Carlos Gomes Theater and will be attended by a
number of local authorities, will begin with a lecture by the Executive Secretary of the CNCP,
at the Ministry of Justice, André Luiz Alves Barcellos. On the same occasion the base to
create the Municipal Council against Piracy in Blumenau will also be launched. The presence
of the Executive Secretary of the National Council on Combating Piracy and Intellectual
Property Crimes – CNCP – in the event reflects how important and serious the Campaign is
for the Government. In addition, the Mayor, João Paulo Kleinubing, the Public Security State
Secretary, Ronaldo José Benedett, and the Federal Higher Court Judge from the 4th region,
Dr. Álvaro Eduardo Junqueira will attend the event.
The Piracy-Free City pilot project was developed by the APCM – Cinema and Music Antipiracy
Association in the beginning of the year, to have a model city for the others in Brazil to
follow. To implement the project it was necessary to find a city where it was possible to
have the support from the Mayor’s Office and from the local business sector. Blumenau was
chosen for having the characteristics and priorities necessary to carry out the project.
Thus, in later May, APCM has its first meeting in Blumenau, joined by: representatives from the
Mayor’s Office, the civil police, the military police, the state treasury, federal highway patrol,
and business leadership. Later, with the participation of the municipal and state education
offices, other meetings were held and two work groups were created: one for repression
and one for education. These two workgroups have developed a plan to be announced on
the 20th during the event, which will be followed during the execution of the project for
an undetermined period, to turn Blumenau into an example for the other cities in Brazil
regarding the fight against piracy.
October
Tribuna Catarinense - 10/06/2007
Illegal street markets: “We have ended piracy”
By Victor Grein Neto
Balneário Camboriú/SC - Many people, not knowing the facts, walk by the illegal street
markets of 1520 Street (the number is 111), in the surroundings of Santa Inês Church, and
“We have established ourselves here by force of a law approved by the City Council, with
a Certificate of Occupancy, and the Fire Brigade, Health and Environment Department’s
authorization”, says Moscon. “The measures were taken to avoid conflicts with the established
shops in the city and with the mayor, at the time, Leonel Pavan”.
Projects – The illegal street market, which is a tourist attraction at Balneário Camboriu, has
a total of 280 stands which sell perfumes, creams, clothes, toys, CDs, DVDs, electronics,
beverages, glasses, linen, shoes, etc. Moscon claims that according to the stipulation from
the Department of Public Prosecution, “We have ended piracy, especially of CDs and DVDs.
Customers can come here to buy them and all they will get is the originals, according to
the law”. The merchants are also settling their companies. “Some have the paperwork being
processed, but soon all the stands will be formal companies”, says the president.
In addition to the stands, the center provides customers with ATMs, a drugstore, a bookshop,
an ice cream parlor, and toilets. Above the new shops, there is a party and meeting room.
According to Moscon, “We have a series of new projects, to improve and make the place
more beautiful. For example: a multi-level parking lot, which we already have the plans for.
“Leveraging the construction work, we would expand the shops, which currently 2 m x 2.20m,
to 5 m x 5 m”. Moscon says that “for the next summer season, our customers and tourists will
notice various improvements and more attractions”.
Valor Online - 10/23/2007
STJ rules on software piracy by a company
The Superior Court of Justice (STJ) ruled on, for the first time, a case of software piracy
in Brazil where the parties involved were only companies, there is not one individual
involved. Unanimously, the Third Group has not acknowledged the appeal proposed by
both companies against the ruling by the Court of Justice from Rio Grande do Sul (TJRS)
in favor of Microsoft Corporation. The court established the payment of indemnity of R$
12,000 for the use of unauthorized copies of computer software. Also for the first time,
the STJ has acknowledged as an aggravation the availability of the software through the
companies’ network.
Lawyer Renato Opice Blum, from the office Opice Blum Advogados, states that the
decision does not consolidate the jurisprudence on the matter, as the calculation of the
indemnities may vary according to the interpretation of each court. According to him,
the Judiciary usually follows two lines to stipulate the amounts for the indemnities.
CHAPTER 10
wonder: “This should be turned into a square”. It happens is that the piece of land does not
belong to the Mayor’s Office, it belongs to the small merchants, who bought it in 1997. Luiz
Carlos Moscon, the president of the Permanent Small Merchants Commercial Market from
Balneário Camboriu, says that “until then we were living anywhere, like gypsies, on municipal
land, or by the beach, or on Avenida da Lagoa and even in Sibara”. The land belonged to four
owners and it covers 5,274 square meters.
159
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The first considers the application of the so-called ‘punitive damages’ on the defendant,
plus the result of the multiplication of the number of illegal copies found, by the
commercial value of the respective licenses, according to Law n o. 9.910, of 1998. The
second line defends the application of a single multiplication of the value of the licenses
by the number of unauthorized copies found. The Court from Minas Gerais, for example,
used to follow the second line, states Opice Blum. In addition, as stated, the settlement
of the value for ‘punitive damages’ is at the discretion of the magistrate. According to the
lawyer, the party can also file a complaint against the offender, who may be imprisoned
for up to two years. According to the Annual World Study on Software Piracy, carried out
by the Business Software Alliance (BSA), the rate of pirate software installed in personal
computers in Brazil in 2006 went down by 4 percent compared to 2005.
160
November
Agência Brasil - 11/06/2007 - 07:21 p.m.
Campaign for legal software should visit
22 Brazilian cities by the end of the year
Alana Gandra, reporter from Agência Brazil
Rio de Janeiro/RJ - The Campaign for the Legalization of Software in Companies has
reached Rio de Janeiro, following the Antipiracy Training Program.
The action is promoted by the Brazilian Association of Software Companies (Abes), together
with the international entity Business Software Alliance (BSA) and the National Council on
Combating Piracy and Intellectual Property Crimes (CNCP), from the Ministry of Justice.
According to the CEO at Abes, Anselmo Gentile, the idea is to take the program to 22 Brazilian
cities by the end of the year, training more than 3,500 agents against piracy. In 2006, the
campaign went to 16 cities, where 1,240 agents were trained.
This year the action has been developed in four cities: Uberaba (MG), Fortaleza (CE), Salvador
(BA) and Recife (PE). After Rio, it will go to Guarulhos and São José dos Campos turn, both
cities in the State of São Paulo, on the 13th and 14th.
In Rio, the program was held on October 30th, when more than 110 agents from the Federal
Police and Highway Patrol and the Brazilian Tax Office, the Department of Public Prosecution,
and criminal institutes, among other institutions were trained.
According to Gentile, the technical training aims to give the public agents contact with
irregular copies and learn to identify a pirated product.
In Rio, a direct mail will be sent with information on the approximately 5,000 companies
which are software users, with information on what software is, what copyright is and how
it works.
The executive agrees that eradicating the illegal trade in software will be difficult. But he
reckons that the efforts of the government and the sector’s entities are showing some
results.
“In 2005, the rate of piracy calculated for Brazil was 64%. In 2006, it went down to 60%.
That is, 60% of the software being used is illegal. They are illegal copies”.
At the end of the 1980s, he added, this rate was over 95%. “Throughput the last 15 to 20
years, the market and also the government have benefited from this”, says Gentile.
According to Gentile, the explanation for the use of pirate software in Brazil and in the
world is its lower price. “There is even free software, which has no cost at all”. For him, the
question is connected to a lack of education.
“It does not make sense for a sound company, which pays for its taxes, to save a few
pennies on buying a R$ 10 CD on the streets. It can be legal by buying the original
software, paying for the taxes just as it does for its activities. Education is key”.
Abes is a software association that has 770 member companies that account for 85% of
this market in the country.
Só Notícias - MT 11/27/2007
Tons of pirated CDs and DVDss are seized in Mato Grosso
Taking the manufacturers of pirate CDs and DVDs who operate in Mato Grosso off the
market. This is the main purpose of “Operation Dub”, triggered this Tuesday morning by
Civil Police Metropolitan Board from Mato Grosso, which has 11 temporary arrest warrants
(for five days extendable for other five days) and nine search and seizure warrants.
The operation has been coordinated by the metropolitan director Mr. Jales Batista da Silva
and has the cooperation of eight other police chiefs and 28 investigators. Eight people
have already been sent to the Integrated Citizenship and Security Center (CISC) at Verdão,
and five of them have been caught red handed for improper customs clearance.
The investigators have also seized more than a ton of pirate CDs and DVDs which were
being made by gangs in the neighborhoods of Pedregal, Alvorada, Coxipó and Várzea
Grande. Seven computers and a number of printers have also been seized.
This piracy was investigated by the police for around 90 days. According to the director, the
police received information on the suspected counterfeiters which led them to the
reproduction centers.
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He pointed out the Software and Copyright Laws stipulate the levying of fines on
companies which breach these rights. “In case of illegal use, the fine may be up to 3,000
times the value of the software found”.
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“Piracy is a crime that impacts the economy and the development of the State”, pointed out
the metropolitan director. “This is a further operation triggered by tip-offs and it proves that the
general public is a strong ally of the police”.
The court orders have been issued by the Judge from the 4th Criminal Circuit Court Rondon
Bassil Dower Filho, from the District of Cuiabá.
Comuniweb - 11/27/2007
GDF creates an anti-piracy taskforce
The mission of the force is, according to governor Arruda, to identify and seize the “big
bosses of the mafia that operates in the Federal District”
162
Governor José Roberto Arruda has decided to be hard on, once and for all, the piracy of
counterfeit and smuggled products in the Federal District. Today, in an event at the Palácio
do Buriti, he signed a decree creating a task force to identify and arrest the “big bosses of the
mafia that operates in the Federal District”, as identified by the governor, alongside the Security
Secretary, Cândido Freire, who will coordinate the actions of the group.
“This is a new situation and we all know that it has reached unsustainable levels. There are
dozens of video rental stores going bankrupt, in addition to the spread of other products in the
hands of people who clearly belong to criminal organizations. We do not want to show the
general public that we can seize pirated products. We have the greater aim to put the big fish,
those who are the leaders of this illegal activity,” said Arruda.
The group will be made up of the Government, Social and Labor Development, Economic
Development, Treasury, and Education Departments, as well as the Communications and
Inspection agencies and Civil and Military Police The Department of Public Prosecution will
also be a partner in the inspection actions.
December
G1 - 12/05/2007
Authorities dismantle piracy network in Latin America
The largest operation in Latin America’s history comprised twelve countries.
96,000 products have been seized; piracy in the region is amongst the highest in the world.
Information from Agência EFE
Authorities in Brazil and 11 other countries carried out the largest operation against computing
piracy in Latin America’s history, dismantling dozens of the software counterfeiting networks,
Microsoft reported.
In addition to Brazil, the operations were held in Argentina, Chile, Colombia, El Salvador,
The gangs used to distribute pirated copies through the internet and counterfeit some of the
most popular products from Microsoft, such as Windows Vista and Windows XP, Windows Server
and Office 2007 and Office 2003 applications.
It was the first coordinated action against piracy by police and legal authorities from Latin
American. 96,000 copies of the products have been seized, which corresponds to US$ 10.8
million in legal software prices.
The Antipiracy director at Microsoft Latin America, Juan Hardoy, told EFE that the operation
dismantled “70 criminal operations which copied and distributed Microsoft products” and
included the identification of a number of pirate factories.
Global problem
Hardoy highlighted the “importance of international cooperation, as piracy is a global problem
that also demands a global remedy”.
“That’s why we have coordinated for the first time in Latin America, our investigators with the
police and legal authorities to carry out the actions almost simultaneously”, he said.
Latin America is one of the regions in the world with the highest rate of piracy, according to a
worldwide study disclosed in May by Business Software Alliance (BSA) and the consultancy firm IDC.
Data show that in 2006 the percentage in Latin America was around 66%, compared to a 35%
worldwide average.
Hardoy has estimated annual losses created by software piracy in Latin America at US$ 3
billion. Nevertheless, the region reduced piracy by 2% between 2005 and 2006 – the largest
drop in the world.
The BSA’s Legal Affairs director in Latin America, Montserrat Durán, told Efe that “If piracy in the
region were to be reduced by 10%, 44,000 new jobs would be created and the Government
would collect US$ 1.2 billion more in taxes ”.
Folha Online - 12/07/2007
Brazilian Federal Revenue Service carries out operation
to stop contraband in 9 States and the Federal District
The Brazilian Federal Revenue Service has been carrying out Operation Pentagon in nine
States and the Federal District since Tuesday (4), in order to stop contraband, improper
customs clearance and piracy of imported and domestic products.
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Guatemala, Mexico, Panama, Paraguay, Peru, Dominican Republic and Uruguay, after six
months of investigations, sources from the company told Agência EFE.
163
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The action involves roadblocks and inspecting warehouses and goods distribution centers,
especially on the borders.
164
Operation Pentagon is being carried out in 22 strategic points and has the support of agents
from the Federal Police , federal and state highway patrol, civil and military police from the
States of Tocantins, Mato Grosso, Mato Grosso do Sul, Goiás, Minas Gerais, São Paulo, Paraná,
Santa Catarina and Rio Grande do Sul, as well as the Federal District.
São Paulo
In the State of São Paulo, the action is being carried out in Araçatuba (530 km northwest of São
Paulo), President Prudente (565 km west of São Paulo) and Marília (444KM northwest of SP),
on alternate dates.
On Tuesday, the federal highway officers inspected vehicles on BR-425, in Araçatuba.
Twenty-one vehicles were stopped and two were seized for transporting goods illegally.
According to the Brazilian Federal Revenue Service in São Paulo, the value of the products
seized is around R$ 150,000.
The Brazilian Tax Office headquarters in Brasília stated that the operation has no date scheduled
to be completed. The proposal is that it will be carried out in the long term. The agency’s
headquarters also said that is does not have the partial results on the actions held.
Mayor’s Office closes Law’s shopping center on Rua 25 de Março
São Paulo Mayor’s Office closed and bricked up a shopping center on 25 de Março, in the
center of the city, which belongs to the Chinese businessman, naturalized Brazilian, Law Kin
Chong. In addition to the suspicion of marketing of counterfeit products and contraband
products, the place was not fit to be working in safely. The shopping center is on Rua Barão
de Duprat, 181, downtown.
The operation, which included the Civil Police and Brazilian Tax Office, also closed three other
stores with suspected pirated and smuggled products.
According to Contru (the Property Use Control Department), the shopping center had, among
other irregularities, obstructed hydrants, exposed wiring, and flammable material stored
underground, where the parking lot was.
The raid will also carry out another inspection this afternoon at Shopping Ceter Pari, which was
closed in November due to an absence of work permits, among other irregularities.
When blocking the building last month, which takes an area of 29,000 square meters of an
old cookie factory, goods without proof of origin were also seized. After closing the shopping
Yesterday (17) the Federal Department of Public Prosecutions accused the Chinese businessman
of improper customs clearance - importing or exporting prohibited goods or goods without
due taxes paid.
Outstanding news
in 2008
February
G1 - 02/20/2008 – On 02/19 at 6:51 p.m.
Police identify man responsible for pirated copies of ‘Meu nome não é Johnny’
He is salesperson in a popular market the Baixada region
He recorded the film in a movie theater in a shopping center
After six days of investigation the police have identified the man responsible for the pirated
copies of the film ‘’Meu Nome Não é Johnny’’, currently showing at the movies. S. V. R.
presented himself at the headquarters of the Department of Repression of Crimes against
Immaterial Property (DRCPIM) on Monday afternoon (18).
According to the Department, in the pirate DVD, after the credits, the author of the illegal
copy is shown with money, hiding his face and defending piracy.
The police found the suspect after operations in various popular markets across the state, by
infiltrating the agents within the traders.
Investigation
On Monday, the police identified the man responsible for the pirated copy as one of
the traders in the popular market of São João de Meriti, in Baixada Fluminense. In
the afternoon on the same day, the man presented himself at DRCPIM headquarters,
according to the police, knowing that he had been identified by the agents from the
department.
He reported to the chief of DRCPIM, Angelo Ribeiro, that he had made the copy in one
of the movie theaters in a shopping center in Baixada, on January 12th, and that he had
taped it with the phrase defending piracy “as an act of immaturity”.
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center, Law was arrested by the Federal Police under suspicion of contraband and improper
customs clearance.
165
The chief charged the man for the crimes of breach of copyright and for defending the
practice of such crime.
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G1 - 02/20/2008
166
Court issues the first sentence for illegal sale
of music through the Internet in Brazil
The accused party sold the Beatles’ pirate CDs on demand via the internet.
Penalty is of one year and eight months imprisonment; defendant may appeal on bail.
A systems analyst from São Paulo was sentenced by the Court to one year and eight months
imprisonment for the illegal sale of pirate CDs through the internet. The sentence, announced
on February 13th, is the first in the country involving the trading of unauthorized music
on-line, according to the Film and Music Antipiracy Association (APCM).
As the sentence was in the first instance, the defendant, aged 31, may appeal the decision
which also stipulated a further 16 days of imprisonment, with the possibility of becoming a
fine – on bail.
“As it the first sentencing, without a doubt the fact has an important educational impact”,
claimed Ygor Valério, director of the internet antipiracy department at APCM.
“Frequently, those who use the internet for illicit purposes think that they are unreachable.
The suit shows, however, that it is not a medium with no regulation and the Brazilian police is
equipped to investigate electronic crimes”, he added.
Scheme
According to information from APCM, the defendant advertised the compilation of the
Beatles’ albums through a website in the internet. The songs in MP3 were recorded into CDs
and sent by mail to buyers across Brazil , after proof of payment by means a deposit in the
defendant’s bank account. The court could prove at least 140 purchase operations carried
out like that.
The suit, which was held at the 18th Criminal Circuit Court in São Paulo, was started in 2003,
when the illegal sales were verified. After notification from APCM, the 4th Police Precinct
specialized in Electronic Crimes gathered evidence and carried out an seize and search
operation in the computers used by Willian. After examination, the illegal use was verified.
The sentence is based on article 184 of the Penal Code, which rules on violations against
copyright. As the Court considered the crime as continuous, that is, carried out repeatedly
throughout time, the fundamental sentence was extended by two thirds.
Trend
Expert on Electronic Law, Renato Opice Blum, says that until two years ago, this kind of legal
action was incipient. According to him, what has changed this scenario is the “fact that the
losses caused by illegal online sales are becoming significant”.
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According to Valério, due to the small reach of broadband in Brazil, the use of the internet as
a medium to sell pirate CDs is still more widespread than illegal downloading of songs. “But
there is a trend towards an inversion with time”, he points out.
According to the APCM, there are around 70 similar cases being investigated by the entity
and the police.
Among films
As for films, Brazilian Court had already issued its first sentence in July 2006 for illegal sale via
the internet, through ordering and shipment of pirate DVDs. Back then, the defendant – who
hosted a website from Santos, in the State of São Paulo (SP), was sentenced to two years and
ten days’ imprisonment.
March
Correio Braziliense - 03/17/2008
Federal District Government boosts antipiracy action
The Federal District has started a project to become a reference in the combating of piracy in
Brazil. Since November last year, when governor José Roberto Arruda (DEM) singed a decree
authorizing the creation of a task force in the capital of the country, many agencies have been
mobilized in order to reduce the crime.
The main goals of the actions are to stop the sales of adulterated or counterfeited products, which
cause massive losses to the public coffers, and arrest the big counterfeiters. Last year alone, more
than half a million CDs, DVDs and VCDs were taken off the market in the Federal District.
The combating on piracy involves 12 agencies from the Federal District government, among
them Treasury and Justice Departments, Civil and Military Police, the Inspection Agency and
the Consumer Advice and Protection Program. The group, however, is headed by the Public
Security Department.
“Brasília will be a model for the country. We are going to strengthen a structure able to fight
piracy in retail and wholesale. Mega-operations will be carried out, as well as a number of smaller
actions to stop these products in Brasília”, said the secretary of the Federal District Security,
General Cândido Vargas de Freire.
167
Campo Grande News - 03/24/2008
Inmetro wants to stop toys from being sold at the illegal street market
CHAPTER 10
By Sandra Luz
Inmetro (the National Metrology, Standardization And Industrial Quality Institute) may work on
the the prohibition of toy sales at the Popular Commercial Center, the illegal street market in
Campo Grande. The objective, according to the agency’s technical director, Sérgio Maia, is to
avoid problems with pirated toys that may endanger children’s health. The prohibition would
be a TAC (Instrument of Conduct Conformity), similar to the agreement entered into last year
to stop the trading of pirate CDs and DVDs in the location.
168
Mr. Maia explains that in order to obtain the TAC, Mayor’s Office from Campo Grande, the MPE
(State Department of Public Prosecution) and, of course, the traders had to get involved. “It is a
different routine, with a different corporate entity from the shops”, he explained .
Besides seizure, which harms the salespeople, there is no alternative to control the sales of toys
in the illegal street markets other than prohibition. The products come from other countries
through Paraguay and, frequently, they do not have security stamps. For the products that enter
the country legally the Inmetro stamp is a requirement.
As for legal trading, it is common for manufacturers to have to adapt in order to assure children’s safety.
This week, Inmetro is visiting shops and supermarkets searching for the toys Magtastik, Magnetix Jr.
and MagnaMan, made by the Canadian company Mega Brands and traded in Brazil by Gulliver. The
toys have magnets which may get loosened and be swallowed or breathed in by children.
April
Gazeta Online - 04/02/2008
Fight against piracy to be discussed in the MPES
attended by American prosecutors and the STJ minister
The Department of Public Prosecution from the State of Espírito Santo (MPES) will host next
Thursday and Friday, on April 10th and 11th, the Debate Forum – Overview of the fight against
Piracy. The event will bring to Espírito Santo the prosecutor from the United States Justice
Department, Jason Gull, and also the American prosecutor Karine Moreno-Taxman and the
minister from the Superior Court of Justice, Gilson Gibson Dipp.
Piracy, in the current scenario, is considered to be financing organized crime, drug trafficking
and gun running .
Lectures
On Thursday, the 10th, the event will start at 9:15 a.m. with an opening ceremony held by the
attorney general, Catarina Cecin Gazele. The first lecture of the day will address the work of
The second lecture on the negative impact of technological development is scheduled to start
at 10:30 a.m. The discussion will be led by the director of Intellectual Property Development at
Microsoft Brazil, Emílio Munaro. Afterwards, the debates will be opened.
In the afternoon, the president of the National Forum against Piracy and Illegality, Alexandre
Cruz, will talk about the repercussions of piracy for Brazilian industry. At 3:00 p.m., the CEO
of the Antipiracy Association, Antônio Borges Filho, will address piracy and the entertainment
industry. The last lecture of the first day starts at 4:00 p.m. and is about repression and tax.
The task is the responsibility of the Fiscal Auditor from the Brazilian Tax Office, Cláudio José
Gomes Malo.
American prosecutors
The second day of the forum will have two lectures in the morning, and three in the afternoon,
following the same schedule as the day before. In the morning, the American federal
prosecutors, Karine Moreno-Texman and Jason Gull will talk about the examples of using a
taskforce in the investigation of international organized crime and money laundry.
In the afternoon, lawyer José Henrique Vasi Werner will give a lecture on the practical aspects
of piracy. As for the attorney from Rio de Janeiro, Lilian Moreiro Pinho, she will talk about
repression from the legal point of view .
To close the Debate Forum, the Minister from the Superior Court of Justice, Gilson Gibson Dipp
will talk about piracy, transnational organized crime and money laundry.
Target audience
The debate is specially targeted towards members and advisors from the Department of
Public Prosecution of Espírito Santo, as well as representatives from the Justice Department
and the Public Security Department, police authorities, the Brazilian Tax Office, Customs, and
representatives from video rental stores, record labels, pharmaceutical laboratories, beverage
manufacturers and civil society.
Jornal Correio da Ilha - 04/09/2008
Joinville to have a Municipal Council on Combating Piracy
Representatives from the Treasury State Department, Traders’ Council (CDL) from
Blumenau, the Regional Development Department (SDR), the Civil and Military Police,
the Mayor’s Office from Joinville, and the Video Rental Center from Joinville gathered on
Wednesday (9) in Joinville, to discuss the creation of the Municipal Council on Combating
Piracy in Joinville, in order to monitor and discuss actions com against the sales of
counterfeit products in the region.
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the National Council on Combating Piracy and Intellectual Property Crimes and will be hosted
by the executive secretary of the Council, Ana Lucia Moraes Gomes.
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The objective is to create a council in Joinville following the existing model from Blumenau.
To give examples, the members of the CDL from Blumenau presented the projects and actions
that are being carried out in the city in the Itajaí Valley, to reduce the sales of pirated products.
The Municipal Council on Combating Piracy in Blumenau was established in the second half
of last year and has brought improvements to the sector.
In the coming weeks, a new meeting should be held so that the leadership from Joinvile may
discuss the actions based on the model from Blumenau and then get the project to create the
Council approved by the City Council.
170
May
Agência Câmara - 05/27/2008
CCJ approves agreement with Paraguay to fight piracy
Report by Luiz Claudio Pinheiro, Edição Noéli Nobre
The Constitution, Justice and Citizenship Commission (CCJ) approved on the 13th, the Bill of
Law 496/08, which ratifies the memorandum of intent between Brazil and Paraguay to set up a
bilateral intelligence group to fight piracy and contraband in both countries.
The rapporteur on the commission, Representative Beto Albuquerque (PSB-RS), presented
the opinion on the proposal’s approval. The wording was prepared by the Mercosur
Joint Parliamentary Commission (currently the Brazilian Representation of the Mercosur
Parliament).
Signed in Asunción, in June 2005, the memorandum stipulated the exchange of information
and operations between Brazil and Paraguay in order to stop, investigate and repress
counterfeit, piracy and contraband felonies. The bilateral group will have an annual meeting
to assess the execution of such activities. In Brazil, the agencies in charge responsible for
enforcing the memorandum are, among others , the Federal Police , the Brazilian Tax Office
and the Brazilian Intelligence Agency (Abin).
Submission
The project was submitted as a matter of urgency and is also being reviewed by the
commissions on External Affairs and National Defense, Public Security and Combating
Organized Crime. The wording will be voted on in plenary.
O Globo - 05/30/2008
Interpol arrests international piracy gang operating
in Brazil and in other countries in South America
Paris - On Friday Interpol arrested, 185 members of an international counterfeiting network
operating in Brazil and in other countries in South America, seizing pirated goods worth more
than US$ 115 million.
CHAPTER 10
With information from Agência EFE
“Operation Jupiter – carried out in October and November 2007 – focused on the circulation
of fake and pirated goods from Southeast Asia and which entered through the ports in Iquique
(Chile) and Montevideo (Uruguay)”, reported the press release from the organization.
According to Interpol, “from these ports, the network distribution channels went through
Bolivia, Paraguay and Peru into Brazil and the rest of South America”.
The operation also enabled the recovery of fake medicines which could be fatal, and electronics
that did not meet minimum quality requirements. In addition, 973 kilos of marijuana, 2.35 kilos
of crack, weapons and ammunition ware seized by employees from customs in Argentina,
Brazil , Chile, Paraguay and Uruguay.
Interpol general secretary, Ronald Noble, stated that in the organization, headquartered in
Lyon, France, everybody is ‘delighted with the support from the custom authorities and the
companies impacted the counterfeiting and piracy in South America ’.
The operation, triggered on Friday, was the third one targeting organized groups involved in
counterfeiting and piracy in the region.
The National police chief from Uruguay, Sydnay Ribeiro, claimed that the operation enabled
the better acknowledgement of such events in the country.
Operation Jupiter is part of a number of regional initiatives organized by Interpol, with support
from the American Chamber of Commerce, against international organized networks involved
in counterfeiting and piracy.
June
Agência Câmara - 06/02/2008
Commission hears members of the council against piracy
On Tuesday the Special Commission on Combating Piracy holds its first public hearing to
stop this kind of crime. Representatives will hear the president and secretary of the National
171
CHAPTER 10
Council on Combating Piracy and Intellectual Property Crimes, Luiz Paulo Teles Ferreira Barreto
and André Luiz Alves Barcellos, respectively. The debate was proposed by the commission’s
rapporteur, Representative Maria do Rosário (PT-RS).
The council, created in November 2004, proposes educational and repressive actions against
piracy. The body is made up by representatives of the public and private sectors.
The commission was set up in May and and is presided over by Representative Pedro Chaves
(PMDB-GO).
The meeting is scheduled for 2:30 a.m. in plenary 3. Soon after it, the commission will hold an
extraordinary meeting to vote for the requests of new hearings.
172
July
DFP/DCS - 07/01/2008
Operation I -Commerce 2 fights piracy on the Internet
For Federal Police Social Communications / Superintendence in São Paulo
São Paulo/SP - The Federal Police carried out today, July 1st, “Operation I-COMMERCE 2” in 9
states and in the Federal District, fighting the illegal trading of audiovisual items and computer
software on the INTERNET.
In total, 200 federal police officers enforced 49 search and seize court orders in the States of
São Paulo, Minas Gerais, Paraná, Santa Catarina, Rio Grande do Sul, Bahia, Pará, Piauí, Rondônia
and the Federal District, as a result of police investigations based on the petitions submitted by
copyright protection associations to the National Council on Combating Piracy and Intellectual
Property Crimes and Intellectual Property Crimes (CNPC), an agency established within the
Ministry of Justice – MJ.
The investigations showed that the suspects were trading, through the internet, counterfeit
intellectual products, of domestic and international origin, specifically: SOFTWARE, GAMES,
MUSIC, FILMS AND TV SERIES. The name of the operation refers to the electronic commerce
(e-commerce) practiced through the internet, hence the denomination I-Commerce (IllegalCommerce).
The searches may result in arrests, as the nature of the crime is permanent. The investigated
parties will be accused of breaching of copyright as stipulated in the Penal Code, as well as
crime stipulated in the protection of software copyright law, with a maximum sentence, for
both cases, of 4 years of imprisonment.
A press conference will be held at 4:00 p.m. at the Federal Police Superintendence in São Paulo
- Rua Hugo D’Antola, 95 - Lapa de Baixo.
O Globo - 07/09/2008
Ancine enters into partnership with the Ministry
of Justice to intensify combating piracy
Rio de Janeiro/RJ - Ancine and the Ministry of Justice have signed a partnership to intensify
combating piracy in the Brazilian audiovisual sector. The ceremony, on Tuesday, was attended
by representatives of the sectors of the audiovisual market, including distributors, movie theater
companies, video rental stores, and producers, as well as member from the Ministry of Justice.
Among the subjects addressed in the ceremony, it was a unanimous opinion that combating
piracy and the repression of counterfeiters should not be restricted. The need to invest in the
economy, by producing more affordable products, and greater awareness and engagement of
society, especially by means of advertising campaigns, was also discussed.
Ancine’s director, Sérgio Sá Leitão, said that the Agency will make available a budget to set up
an information and awareness campaign against piracy, with other entities.
CBN and O Globo Online - 07/25/2008
Police dismantles gang that used to make US$500,000 a month from piracy
Police dismantles gang that used to make US$ 500,000 a month from piracy of electronics
Rio de Janeiro/RJ - Civil police officers from the Intellectual Property Repression Department
(DRCPIM) dismantled on Friday a gang that used to make half a million dollars a month from
the contraband of fake electronics, bought in Paraguay and distributed in Rio de Janeiro, São
Paulo and Paraná. Eleven people have been arrested and 20 seize and search court orders
have been enforced in this mega-operation in three states.
Five people have been arrested in Rio de Janeiro, one of them in Jardim Botânico, in the South
of the city. Two people from the gang are fugitives. One is in Foz do Iguaçu, in Paraná, and the
other in Rio. According to the police chief Angelo Ribeiro, the investigation took eight months
to get to the gang, which will be charged with five crimes: improper customs clearance (when
contraband involved products that have the authorization to be traded in the country), piracy,
racketeering, breach of the brand and patent law, and misrepresentation.
After the action today in the illegal street market on Rua Uruguaiana, in the center of Rio,
police officers went to a warehouse on Avenida Lobo Júnior, in Penha, on the North side of
the city, where thousands of pirated or smuggled electronics goods were found.
In a building in Jardim Botânico, the police arrested Flávio Haddad, 38, when he was leaving
home for work, at 5:00 a.m. He is seen as responsible for smuggling electronics without invoices
from Paraguay. According to the police, in the house disassembled products imported from Miami
and China were also found. They would have been assembled here and in the points of sale. The
gang printed packaging from other brands to pack them and even included the bar codes.
CHAPTER 10
By André Miranda
173
CHAPTER 10
The products were sold in shops in the illegal street markets in Rio. The police officers searched
six stalls, and one belonged to the gang. All the material on display was seized. It took the police
8 months of investigations to unravel the contraband scheme. Throughout this time, the bosses
and other members of the gang were followed and filmed. According to the police, the material
came from Paraguay and went through Paraná and São Paulo, before getting to Rio.
In a house in Taquara, on the West side of the city, where the man accused of being the leader,
Cristian Elorza, lives, the police found a great deal of electronic material. Cristian, the owner of one
the largest shops of the illegal street market, was arrested when he was coming home from work.
174
August
O Globo Online - 08/01/2008
Brazilian record labels say they have turned
the corner and celebrate the musical mobile phone
By Jamari França
Rio de Janeiro/RJ - Brazilian record labels are back to hiring and developing careers, and
they say they have already adapted to the new reality that drove them to diversify their
products beyond the physical CD. The launches of domestic artists by means of a Brazilian
Guitar Hero are already in the planning stages and business through the internet has increased.
Some partnerships with telephone carriers have had good results; the companies have been
streamlined and say that they are interested in new talent. The presidents of Universal Music,
EMI Music, Deckdisc, Sony BMG and Warner Music have spoken to Globo Online about their
strategies to adapt to a new era under a new guideline: diversify.
The president at universal, José Eboli, is backing mobile phones.
-- Practicality and portability make the difference and a major example is Japan, where more
than 70% of digital sales come from this medium, he said.
Alexandre Schiavo, from Sony BMG, celebrates the selling of more than 500,000 Jota Quest
handsets, which have the content from the “MTV Live” album, two remixes, a video clip and
wall paper with band from Minas Gerais.
-- Tie-in sales are interesting for the consumers, who can have their favorite band on
the mobile for no additional price. The partnership between record labels and
manufacturers open a new window of opportunity that may expand to other companies.
In the United States, for example, it is possible now to buy music through iTunes on the
Coca-Cola website.
João Augusto, from Deckdisc considers the mobile phone in Brazil a “sales agent stronger than
the internet” and also celebrates the selling of 200,000 copies of Pitty’s CD “Desconcerto ao
vivo” on a mobile.
Marcelo Castelo Branco, from Universal, says that the mobile, due to its multiple functions,
meets the consumer’s requirement of being portable and “being increasingly fast”.
-- “It seems contradictory to invest in expensive productions to later compress them into tiny
devices, with limited audio capacity. But that is how the consumer relates to music at a time
when they are sovereign in making choices. This diversity of possibilities is exciting and
brings new opportunities,” he says.
The survival of the CD
The physical CD will not die so soon, say the directors of record labels. Speaking of it is
“premature and inconsequent”, for Castelo Branco, and “a little exaggerated”, for Sérgio Affonso,
president at Warner, who foresees an extended shelf life of at least five years in Brazil.
-- What is killing the CD is not the digital medium, it is piracy. The latter is the major cause.
And the worst thing is to see that people have legitimized digital piracy – says Affonso.
Eboli states that overseas the CD still accounts for 75% of the market and the drop has become
smaller in developed countries. Schiavo says that there will always be consumers who want to
have the cold physical product and he believes that formats can live together. João Augusto
agrees and notes that the CD is “seriously harmed by the lack of local sales, but not due to
migration to other media”. Castelo Branco warns that it is necessary to consider the economical
variables specific to every country:
-- “I think that the desire to be modern is nothing but demagogy. Whatever is valuable
always has a price. Being free of charge makes access easier, but makes content ordinary.
The physical product can live together with the virtual one, being subject to the artists,
the audience and to the right of the consumer to choose whatever format that they
deem convenient. The propriety idea will coexist with the will to save a file. Artists and
bands who have an older target audience should not give up on this kind of format”, says
Castelo Branco.
CHAPTER 10
-- “I say without doubt that the iPhone and iPod are missed here, because of the quality of the
platform that they have for digital sales. They are perfect. In the very near future, all we need
will be at our hands in one single small device” he stated.
175
Gazeta Mercantil - 08/07/2008
CHAPTER 10
Piracy: StandCenter will have to pay for R$ 7 billion
176
São Paulo/SP – The Court in São Paulo has sentenced the owners of Stand Center, one of
the most popular electronics shopping centers in São Paulo – to shut down for selling pirate
products – and 16 shop shop owners have been found guilty of software piracy. The fine is
reckoned to be one of the highest recorded so far in the country and the estimates go over
R$ 7 billion. The suit was filed by the Brazilian Association of Software Companies (ABES). The
decision can be appealed.
According to ABES legal director, Manoel dos Santos, as explained on its website, the seize
and search action was carried out at Stand Center at the end of 2004. Around 71,000 items of
computer software were seized, among applications and games. Complying with the norms
stipulated by the law, within 30 days, Abes filed a suit requesting indemnity and a daily fine.
If the shopkeepers continue to trade illegal products, added Santos, regardless of the indemnity
established for the duplication of these unauthorized copies, shops that remain open are
subject to a R$ 2,000 fine on a daily basis.
The indemnity is equivalent to 3,000 times the market value of the seized titles. It is R$ 500
million for each of the shopkeepers.
Study calls for changes to the campaigns against piracy
By Elvira Lobato, from Folha de S.Paulo, in Brasília
A study carried out by Akatu Institute and commissioned by Microsoft shows the need to
change the campaigns against counterfeit products in Brazil, starting with the use of the word
piracy. The new approach will appeal to ethics and attack the “Brazilian way out” and the
“culture of permissiveness”.
In the study, Akatu researchers found that the advertisements against piracy broadcast today
tend to have “no meaning” because they make “the consumer responsible” and give the idea
that society is “passing on the responsibility”.
The diagnosis then shows that Brazilian consumers buy pirate products even though they
know the activity is linked to organized crime and does not pay taxes. Consumers’ suspicion
regarding the destination of the taxes, the selling of pirate products in broad daylight and a
feeling that the purchase helps the street vendor, are also aspects that people who buy fake
items have in mind.
As the attack itself on piracy has not had any results, the government and businessmen should
adopt campaigns focused on ethics and inequality. One of the ways to make the general public
aware of the use of pirate products is to relate petty crimes to larger ones.
November
Agência Brasil - 11/06/2008 – 6:15 p.m.
Government and the pharmaceutical industry to combat medicine piracy
Brasília - Representatives of the government and the pharmaceutical sector from Brazil,
decided today (6) to be stricter on the combat against medicine counterfeiting. After a
meeting whit the National Council on Combating Piracy and Intellectual Property Crimes
(CNCP), in the Ministry of Justice, seven measures were announced to stop the selling of
pirate medicine in Brazil.
Among the measures is the intensification of repression by the Federal Police and the Federal
Highway Police, especially on Brazil’s borders; the implantation of a medicine tracking system;
the creation of a database between the government and private initiative; and a general public
awareness campaign to warn on the risks of consuming this kind of medicine and the care
that must be taken before purchasing.
“Medicine counterfeiting is one of the most perverse forms of piracy and happens worldwide.
When purchasing a medicine, the consumer does not know that it is a fake, they are being
misled, unlike what happens with pirate CDs or films”, pointed out the president at CNCP, Luiz
Paulo Barreto.
According to the World Health Organization (WHO), the loss from medicine counterfeiting
worldwide in 2007 reached US$ 32 billion, around R$ 64 billion. In Brazil, the eighth largest
medicine market in the world, with annual sales of US$ 10 billion (R$ 20 billion ), it is estimated
that 30% of medicine trading is illegal, which includes piracy and tax evasion.
The President of the National Health Surveillance Agency (Anvisa), Dirceu Raposo, has advised
consumers to buy medicines only at authorized drugstores and note the protection mechanisms
against piracy. According to him, the packaging has to be sealed and when the seal is broken
it cannot be glued again. In addition, there is also the “scratch area”, which is a kind of metallic
stamp that when scratched with metal, shows the information on the product’s manufacturer.
“There are mechanisms used today in the domestic market to protect the consumer”, said
Raposo, warning on the risks of consuming counterfeit medicine. “First, the medicine does
not have the correct active ingredient. So it will fail and may lead to death. In addition, it is a
heinous crime practiced by the counterfeiter”, he said.
According to Anvisa, the medicine of higher added value, that is, the most expensive ones are
the criminals’ favorite target. According to him, medicine for cancer treatment and erectile
dysfunction, for example, are the main targets for the counterfeiters.
The president of CNCP stated that trackability may stop medicine piracy. The idea, according
to him, is that the system will be rolled out as an experiment next year. In 2010, he added, all
the medicines traded in the country should be in the system.
CHAPTER 10
Ivan Richard, reporter from Agência Brasil
177
CHAPTER 10
“Trackability is a system that will mark the medicine from manufacturing, by means of bar
code, a unique number or a holographic stamp”, he explained. The system, he added, will
enable access to the lot and the production unit at any time, from manufacturing to trading.
This allows the consumer to guarantee that a product is genuine, original, said Barreto.
December
Agência Brasil 12/03/2008 – 8:18 p.m.
Ministry of Justice announces new measure on combating piracy
Ana Luiza Zenker, reporter from Agência Brazil
178
Brasília - Specialized departments on combating piracy, encouragement of municipal
operations, awareness activities in the trade and schools. These are some of the actions
announced today (3) – Nation Piracy Combat Day – by the National Council on Combating
Piracy and Intellectual Property Crimes (CNCP), in the launch of a new phase of the national
strategy to fight the production and trading of counterfeit products.
According to the president of CNCP, Luiz Paulo Barreto, in 2009 20 new actions will be
implemented for repression of trading and production, and consumer awareness to reduce
demand. “It is also important to show the consumer that piracy is an organized crime activity,
that poses risks to their health, and physical well-being and results in losses for Brazil, whether it
is employment or taxes ”, he claimed.
One of the projects announced today is the “Piracy-Free city”, which aims “to encourage
municipalities to take measures to stop the selling of pirate products in their territories”,
explained Barreto.
Another project highlighted by the president of the Council is the implementation of
specialized departments on combating counterfeit products, such as the ones which already
exist in São Paulo. “We are going to try to better train the officers so that they can face piracy,
by understanding that is an organized crime operation and that this same network runs drug,
weapon, and ammunition trafficking, and it must be fought hard”.
Although he has not confirmed the budget for the projects, Luiz Paulo Barreto has guaranteed
that the Ministry of Justice has enough resources, even if the CNCP budget is small, around
R$ 300,000. “We have the Public Security National Fund that supports States in public security
policies; piracy is a public security factor and as such it has be helped”.
According to him, the resources may come from the fund, together with the budget from the
MJ and the National Citizenship Security Program (Pronasci).
In 2007, R$ 1 billion worth of goods were seized. In the first half of this year, this amount reached
R$ 519 million. According to the Federal Highway Police, up to November this year, 1,600 people
have been arrested for smuggling and improper customs clearance.
As for the hotline at the National Forum Against piracy and Illegality (0800 7713627), since July
this year, more than 1,300 calls and 192 tip-offs have been made. Of these, 30% have been in
the State of São Paulo, followed by Bahia (15%) and Rio de Janeiro (14%).
CHAPTER 10
According to data from the University of Campinas and the National Union of Fiscal Auditors at
the Brazilian Tax Office (Unafisco), presented by Barreto, piracy results in a loss of R$ 30 billion in
taxes a year in Brazil, and two million jobs are lost.
179
11.
Trademark
Brazil
Chapter 11
The “Brasil Original” Symbol
H
ow many times have we heard others mention the originality of the Brazilian
people? Based on this characteristic, we will raise awareness among Brazilians
about conscientious and responsible purchase practices. “ Brasil Original ”
is a genuine and unique Brazil, built through the work of millions of citizens who fulfill
their obligations and respect the law. A country that rejects illegal trade, piracy and their
disastrous consequences. A Brazil that is proud of its honesty and makes a point of being
genuine. To illustrate this true Brazil, The National Council for Combating Piracy presents
the trademark it will stamp all over the country in a great movement against piracy.
The “ Brasil Original ” trademark includes an icon that automatically registers product
purchases: the bar code. Tied to the concept of a genuinely original country, the trademark
is designed to inspire reflection about the advantages of opting for an authentic product,
made and sold legally. Benefits such as a guarantee period and technical assistance must
be considered when making a purchase, as well as the rights provided for by law in the
Consumer Protection Code.
Thus, whenever the “Brasil Original” icon appears in a shop window, on packaging or
in a publication, we will be reinforcing the importance of purchasing a genuine quality
product, which creates jobs and does not finance criminal activity. “Brasil Original” is an
attitude that all genuine Brazilians should “buy in” to.
183
Members of the National Council
on Combating Piracy
REPRESENTATIVES OF THE GOVERNMENT
REPRESENTATIVES OF CIVIL SOCIETY
Justice Ministry
Brazilian Association of Software Companies
(ABES)
Office holder: Luiz Paulo Teles Ferreira Barreto
Deputy: André Luiz Alves Barcellos
Foreign Affairs Ministry
Office holder: Carlos Márcio Bicalho Cosendey
Deputy: Kenneth Félix Haczinski da Nóbrega
Treasury Ministry
Office holder: Francisco Carlos Matos Felix
Deputy: Antônio José Algebaile
Culture Ministry
Office holder: Emilio Munaro
Deputy: Manoel Antonio dos Santos
Brazilian Disc Producers Association (ABPD)
Office holder: Paulo Rosa Junior
Deputy: José Eduardo Garcia Rajo
Brazilian Ethical Competition Institute (ETCO)
Office holder: André Franco Montoro Filho
Deputy: Patrícia Martignoni Blanco Belmonte
Office holder: Marcos Alves de Souza
Deputy: Angeline Monteiro Prata
Brazilian Intellectual Property Association
(ABPI)
Employment Ministry
Office holder: Juliana L. B. Viegas
Deputy: José Henrique Vasi Werner
Office holder: Rafael Freitas de Oliveira
Deputy: Teresinha Beltrata Toledo Nickerson
Motion Picture Association of America (MPA)
Development, Trade and Industry Ministry
Office holder: Márcio Cunha Guimarães Gonçalves
Deputy: Antônio Borges Filho
Office holder: Márcio Heidi Suguieda
Deputy: Sância Regina Magalhães Ferrari
National Confederation of Industry (CNI)
Science and Technology Ministry
Office holder: Ricardo Figueiredo Caldas
Deputy: Marco Antônio Reis Guarita
Office holder: Augusto Cesar Gadelha Vieira
Deputy: Marylin Peixoto da Silva Nogueira
National Trade Confederation (CNC)
Federal Police Department
Office holder: Natan Schiper
Deputy: Dagmar Maria de Sant’Anna
Office holder: William Marcel Murad
Deputy: Josemauro Pinto Nunes
Federal Highway Police Department
Office holder: Helio Cardoso Derenne
Deputy: José Altair Gomes Benites
Brazilian Tax Inspectorate
Office holder: Osmar Expedito Madeira Júnior
Deputy: Jorge Luiz Alves Caetano
Federal Senate
Office holder: Rogério de Melo Gonçalves
Deputy: Valtércio Magalhães Nogueira Filho
House of Representatives
Office holder: Silvio Sousa da Silva
National Public Security Department
Office holder: Regis André Silveira Limana
Deputy: Márcio Almeida Marques

Summary

Transcription

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