WRITTEN QUESTION E-2383/02 by Charles Tannock (PPE-DE) to the Commission. CD piracy.
Date: 2002-08-02
Institutions: European Parliament, Provisional data
Subjects: Central and Eastern European countries, EU relations, Ukraine, accession to the European Union, audiovisual industry, audiovisual piracy, illicit trade, intellectual property, music

C 242 E/20

Official Journal of the European Union

EN

9.10.2003

Although the Parliament has no formal role in the formulation of trade policy under the existing treaties,
it is in accordance with the Framework Agreement of 5 July 2000 regularly briefed on trade policy issues
and consulted on key questions. Certain trade matters may also be related to agreements requiring the
assent of the Parliament under Article 300, paragraph 3, subparagraph 2.

The Committee of the Regions is not involved in the decision making process with regard to the common
trade policy and has so far not devoted any own initiative reports to trade policy. However,
the
Commission is ready to inform the Committee of the Regions about specific trade issues, in particular as
the Doha Development Agenda moves ahead.

(2003/C 242 E/027)

WRITTEN QUESTION E-2383/02

by Charles Tannock (PPE-DE) to the Commission

(2 August 2002)

Subject: CD piracy

Does the Commission have any information on reports that there has been a substantial increase in the
production and sale of counterfeit CDs and music cassette tapes in Ukraine and, if so, can the Commission
indicate what action is being taken either by the Commission or by the Ukrainian authorities to address
the problem?

Does the Commission have any reports of similar activities in any of the applicant Countries, and, if so,
which country has the greatest level of illegal activity in this area?

Answer given by Mr Patten on behalf of the Commission

(23 September 2002)

The Commission can confirm that the production of pirated CDs and other intellectual property rights
(IPR)-related goods in Ukraine has increased significantly over recent years. Piracy and a lack of adequate
protection of intellectual property rights in Ukraine have become a real concern for the Community and
its enterprises, notably as regards CDs, DVDs, CD-ROMs and books, as well as infringements of
geographical
indications. Ukraine has recently considerably improved her copyright legislation. Never-
theless, enforcement of IPR remains a point of serious concern. The recording industry reported a piracy
rate in Ukraine of 99 % resulting in estimated losses of USD 210 million per year. This has not only an
effect on the Ukrainian market, but also on neighbouring countries to which more than 30 million pirated
CDs are exported annually.

The Commission has repeatedly expressed serious concerns about the rampant piracy and counterfeiting in
Ukraine and, in general, about the lack of adequate enforcement of IPR legislation which leads to major
losses both for European and local right-holders. This issue has been raised at regular meetings of the
Community-Ukraine Cooperation Committee and its Sub-Committees, and also by means of
letters
addressed to the Ukrainian Government and Rada.

Both the Commission and the Ukrainian authorities are well aware of
this issue, and under the
Community-Ukraine Partnership and Cooperation Agreement (PCA), which entered into force in 1998,
Ukraine committed itself to adopt a level of protection similar to that in the Community by 2003, and to
accede to a number of international conventions on IPR (Article 50 and Annex III of the PCA).

In the past year, the Ukrainian government has made some substantial legislative efforts in the IPR field,
which have been welcomed by the Community as significant steps in complying with PCA obligations and
in combating piracy and counterfeiting (i.e. amendments to the law on copyright as well as the adoption
of the new Criminal Code, which strengthens penalties for IPR infringements, and accession to a number

9.10.2003

EN

Official Journal of the European Union

C 242 E/21

of important international conventions in this area such as the Rome Convention, the World Intellectual
Property Organisation (WIPO) Copyright Treaty and the WIPO Performances and Phonograms Treaty).

But along with further legislative improvements Ukraine must urgently ensure the implementation and
enforcement of the adopted legislation. This includes notably the creation of appropriate infrastructure to
including registration mechanisms, where applicable, and a
ensure effective IP rights management,
strengthening of the administrative capacity and enforcement measures,
in
particular in the area of copyright.

including border controls,

The Commission is assisting the Ukrainian authorities in these efforts by offering technical assistance under
the TACIS programme. A further project of support to the relevant institution building is currently being
prepared.

The Commission has also been working closely with the customs administrations of the Member States
and rightholders,
in particular the international Federation of Phonographic Industries to address this
serious problem. Close co-operation and technical workshops have increased the seizures made under the
Community customs legislation dramatically. In 2001 customs in the Member States stopped more than
40 million pirated CDs and DVDs, a 349 % increase over the figure for 2000 and a 15,300 % increase over
the figure for 1999. Criminals handling such goods change transport routes and methods to disguise the
origin of these goods and hence precise figures by countries of origin are not available. However, there are
indications that production may be shifting from Ukraine to other countries. The previous situation
whereby many of these items originated in the Ukraine appears to be changing as production moves to
other countries.

As regards similar problems in the applicant countries, the Commission is monitoring efforts to combat
piracy and counterfeiting in the framework of the accession negotiations. Whereas the enforcement record
in the candidate countries, in particular in the Baltic States, has been a matter of concern in recent years,
the effectiveness of the judicial and administrative bodies involved in enforcement is increasing in order to
meet the requirements in the field of protection of intellectual property rights. In October 2002, the
Commission will again report on the measures adopted throughout the last year in its Progress Reports on
each candidate country.

The Commission has also actively involved the enforcement authorities of the candidate countries in the
Customs 2002 seminars which bring together rightholders and enforcement authorities to improve risk
management and controls in this area.

(2003/C 242 E/028)

WRITTEN QUESTION E-2436/02

by Christopher Heaton-Harris (PPE-DE) to the Commission

(26 August 2002)

Subject: Alleged mismanagement of funds entrusted to the European Communities

Marta Andreasen was Budget Execution Director and Accounting Officer at the European Commission,
a very senior post. In accordance with the relevant legislation, she had full responsibility for the ‘funds
entrusted to the European Communities’. Any allegation made by her of mismanagement, is, therefore,
extremely serious.

Does the Commission have an accounting system that supports the accounts presented each year by the
Commission?

Does the Commission have a secure, coherent and exhaustive computer system on which financial
transactions are processed?

Is there compliance with basic and minimum accepted international and governmental accounting
standards?