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CDI Russia Weekly #215 Contents   Printer-Friendly Version

#5
gazeta.ru
July 18, 2002
Ex-PM clears way for Russia's entry to WTO
By Vasily Prikhodko

The president of the Russian Chamber of Commerce and Industry Yevgeniy Primakov has suggested the government finance the introduction of copyright protection mechanisms – technological measures aimed at detecting and intercepting counterfeit software, designed to put an end to rampant computer piracy in Russia and to expedite Russia’s accession to the World Trade Organization.

Primakov has addressed Prime Minister Mikhail Kasyanov with an official letter in which he sets out his plan of action for combating computer piracy. Primakov emphasized that the Russian budget incurs considerable losses due to unchecked piracy.

The Chamber of Trade and Industry chief cites the results of a survey prepared by Business Software Alliance (a watchdog group representing the world’s leading software manufacturers, including Microsoft, Apple Computer, Adobe, Macromedia), according to which the share of pirate software in the total volume of sales amounted to 87 per cent (totaling $120 million) in 2001.

The situation could be changed radically only through the introduction of copyright protection mechanisms, believes former Prime Minister Primakov.

It is hard to imagine, however, that Primakov, a specialist in Arab affairs and a personal friend of Saddam Hussein, suddenly decided to defend the interests of foreign software producers. And, indeed, it transpires that the matter concerns, first and foremost, domestic organizations.

Primakov is campaigning for the installation of hardware that can detect pirated discs in the offices of controlling authorities (such as the Interior Ministry and the State Customs Committee). The author of the letter suggests that companies trading in CDs and DVDs may also be obliged to use the hardware.

In his letter the Chamber's president informs the head of the government that the scientific and production enterprise Rubin has already developed such a device, though implementation of the project would require not only financial backing for further development but also amendments to current legislation.

But, it appears, that by writing his letter, Primakov was not pursuing the goal of protecting domestic producers either.

In his opinion, if the government endorses the programme and allocates funds for its implementation, the Chamber of Commerce could assume the task of certifying companies both in Russia and abroad that wish to sell their products in Russia. The Chamber insists on the introduction of licencing for companies that produce and sell CDs, DVDs and other optical data carriers.

Similar ideas are brewing not only in piratical Russia. Several months ago US senator Ernest Holling presented the US Congress with a draft bill obliging producers to furnish each electronic device that can be used for copying CDs and DVDs with a ''copyright chip'', and the proposed ‘mechanism’ received the approval of Disney and News Corp. However, data protection specialists have serious doubts concerning these mechanisms.

Nevertheless, Primakov has chosen the timing to address Mikhail Kasyanov carefully. Given Russia’s intention to join the WTO, his proposal will most likely be considered in the near future, and will quite likely be approved, because the problem of piracy is one of the key hurdles Russia must overcome on its way to the WTO.

 

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