2 October 2003

By Roxanne Khamsi

RIGA - The ordinary packaging of DVDs for rent in a downtown Riga video shop does not betray its curious contents. But one does not have to bring the latest blockbuster home to get a glimpse of the illegal material inside. A television in the shop boldly displays a recent movie that occasionally turns black and white and flashes a warning that the copy has been made only for screening purposes. Instructions provide a number to call and report the crime, but the store clerk at the register facing the monitor conveniently does not take notice.

The staggering availability of pirated DVDs, music, software and other copyrighted goods in the Baltics has stirred concern in the hearts of record companies and makers of computer goods as Estonia, Latvia and Lithuania prepare to fully integrate into the European Union market.

Nowadays consumers do not even have to travel to a seedy marketplace or call up an illicit deliveryman to procure unauthorized goods, according to Elita Maigrave, chairperson of the Latvian Music Producers Association.

"The worst situation is in Lithuania," she says. According to Maigrave, pirated versions of CDs pop up in the country's established music stores where shoppers unwittingly purchase the illegal music. "People are paying taxes on this [pirated music]," Maigrave adds.

A June 2003 report released by the International Federation of the Phonograph Industry found piracy rates to be highest in Lithuania at 85 percent, with losses to the music industry estimated at 12 million euros.

The study placed piracy levels in Latvia at 65 percent and in Estonia at 60 percent.

Despite the Baltics' increasing integration with the West, the situation has failed to budge. Last month the Latvian Music Producers' Association joined five other organizations in submitting a joint proposal to the prime minister calling for amendments to nine laws and seven Cabinet regulations that would improve the countrywide protection of intellectual property rights.

Romans Baumanis, the Baltics' representative to the Coalition for Intellectual Property Rights, one of the organizations involved in the offering of amendment proposals, explained that one such suggested change would shift the burden of proof in a copyright infringement case from the prosecutor to the defendant.

Although a person charged is usually assumed innocent until proven guilty, certain areas of law do not follow this rule, according to Baumanis, who added that trademark and copyright infringement warrants this treatment.

"There are countries such as Sweden, just across the sea, where this problem is judged as serious enough to make the exception," he says.

"There is a contradiction with legal norms that are specifically designed to protect the consumer," says Baumanis, who also works as vice president and managing director of The PBN Company in the Baltics. "Are you [the seller] responsible for the quality of goods, for paying taxes and for legally procuring goods?"

He said that Latvia's minister of justice had agreed to take the legislative amendment recommendations forward and hoped that a government working-group would further promote changes to the law.

Baumanis hopes that the changes, such as shifting the burden of proof, will make a radical difference in civilizing the sphere of intellectual property rights, which cover trademarks and copyrights.

"We're talking about real jail times," he adds.

Also, difficulties in prosecuting distributors of pirated material continue to plague copyright advocates. "It's expensive to get experts to prove that goods are pirated," says Maigrave, explaining that if law enforcement officials uncover a shipment of 3,000 unauthorized CDs they must provide expert evidence on each disk.

Customs will also play its part in the copyright battle. Maigrave hopes that there will be tighter control on the transport of pirated materials across borders into the Baltics so that a private person cannot bring in illegal CDs into any of the countries.

"Estonia is maybe a step ahead of us because they have stronger laws in this case," she says, adding that Latvia and Lithuania lack the corresponding customs laws.

Guntis Jekabsons, head of the division for copyright and neighboring rights in the Latvian Culture Ministry, says that the implementation of EU directives into national legislation would make an impact in such areas as protection of the resale rights of original works of art.

"Clarification of the definition of an original work of art is needed, as well as right to receive a royalty based on a sale price," he says.

Jekabson confirmed that Latvia had ratified two recent treaties from WIPO that covered the illegal electronic distribution of music. Lithuania also ratified the treaty, but Estonia has lagged behind, even though it is the Baltic country most known for its advanced computing.

"The copyright laws in all three Baltic countries have relatively poor protection of phonograms, works and other objects in the digital environment," says Rali Maripuu, regional expert for Eastern Europe for IFPI. She adds that Lithuania amended its copyright law in March 2003 and provided new rights and technical measures to works in the digital environment but that the law still needs further improvement.

"Estonia and Latvia are both in the middle of an amending process of their copyright laws. Estonia's law is the least advanced and at the moment does not sufficiently protect works, phonograms and other content in the digital environment. Latvia introduced [a] few relevant provisions back in 2000. However, both countries have to advance their laws further in order to provide effective protection of phonograms, works and other objects in the digital environment," Maripuu said.

Toomas Seppel, copyright specialist at the Estonian Ministry of Culture, explained that Estonia signed both WIPO treaties in December 1997 but did not ratify them. "We are planning to ratify WIPO treaties at the beginning of next year," says Seppel.

"Estonian law is quite tough now," he explains. "The maximum penalty is up to three years in prison, and the maximum fine is 250 million kroons (1.6 million euros). It is not so much about law than enforcement that influences the piracy situation."

Email Romans: romans.baumanis@pbnco.com

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