WRITTEN QUESTION E-1364/97 by Joaquín Sisó Cruellas (PPE) to the Commission (21 April 1997)

Subject: Pirate compact discs from Bulgaria

The International Federation of the Phonographic Industry (IFPI), which represents more than 1 100 producers and distributors of discs in around 70 countries, has called on the European Commission to urge the Bulgarian Government to take action against five pirate compact disc producers in Bulgaria. In view of Commissioner Hans van der Broek's visit to Bulgaria, IFPI claims to have evidence that Bulgaria is flooding the international market with pirate copies, despite the undertaking it gave, on joining the World Trade Organization (WTO), to put a stop to this activity.

According to IFPI, Bulgaria is the world's second largest exporter, after China, of pirate discs, in that it produces a total of 15 million pirate compact discs per year (one eighth of the illegal copies on the worldwide black market), which cost European industry approximately US$ 100 million every year. IFPI claims that the tightening of the anti-piracy measures announced by the Bulgarian authorities have not had a significant impact and that an agency was opened in Bulgaria recently to tackle this problem.

Can the Commission say whether during his visit to Sofia Commissioner Hans van der Broek suggested to the Bulgarian authorities that they should take firm action to put an end to the 'invasion' of international markets by pirate compact discs from Bulgaria?

If he did, what reply was he given and what steps will be taken to prevent a further worsening of the situation affecting the European phonographic industry?

Answer given by Sir Leon Brittan on behalf of the Commission (3 June 1997)

The situation concerning the protection and enforcement of intellectual property rights (IPR) in Bulgaria has been the subject of attention by the Commission over the past two years. Interventions have been made on various levels during bilateral meetings with the Bulgarian authorities, focusing on the high level of piracy, Bulgaria's obligations stemming from Article 67 of the Europe Agreement which obliges Bulgaria to improve protection of IPR and to ensure a level of protection similar to that existing in the Community until the end 1997, as well as the more recent obligation under the World trade organisation (WTO) which requires Bulgaria to implement the Agreement on trade related aspects of intellectual property rights (TRIPs) from day one of membership (1 December 1996).

During his recent visit to Bulgaria, the member of the Commission in charge of external relations with the countries of Central and Eastern Europe took the opportunity to urge the respective ministers to take tougher measures to protect intellectual property rights, singling out compact disc (CD) piracy and its costs to the recording industry in Europe. In addition, the government was urged to address this matter in the interest of establishing proper market access conditions and in view of its commitments under the TRIPs agreement and the risk of actions under the WTO dispute settlement system.

In the light of the above, the Bulgarian authorities showed willingness to find solutions to this problem. The caretaker government established a co-ordination council for protection of copyright and neighbouring rights which indicated Bulgaria's intention to control and enforce IPR more effectively.

The introduction of an identification code on CDs (SID), which has been agreed by the Bulgarian CD manufacturers and the International federation of phonographic industries (IFPI) will, if properly applied, provide irrefutable evidence about the manufacturing source and will enable the enforcement of the protection of European right holders.

In April 1997, the Bulgarian government adopted a decree on the control of the use of subject matter of copyright and neighbouring rights, which entitles the authorities to check the legality of each manufacturing order and obliges the administration to execute a mandatory consultation with the international copyright organisations or their Bulgarian branches. In order to complete the instruments to boost enforcement, amendment to the statutory framework has been assigned priority by the new National Assembly after the general election on 19 April.

As regards more specific actions on the enforcement side, a number of steps have been taken by the Bulgarian authorities. Interventions by the judicial organs have resulted in the confiscation of 200 000 CDs within Bulgaria, leading to numerous court investigations. The Community is supporting Bulgaria's efforts in the field of IPR through Phare.

The Commission will continue to monitor the respect of Bulgaria's obligations under the (WTO) TRIPS Agreement and the Europe Agreement.