Government proposes to companies price reduction pact


Source: Diário de S. Paulo, 17/10/2004

Brasília - In an attempt to combat piracy crimes, the Government is going to propose to entrepreneurs a kind of price reduction pact for CDs, DVDs, books, and other products that are easier to smuggle and counterfeit. The idea is to launch a line of popular products that would compete with illegal products. The Government considers that the distance between the prices of pirated and smuggled products and those produced domestically or imported through legal channels is the major cause of the increase in piracy in the country.

In 15 days, the matter will begin to be discussed by the National Council to Combat Piracy and Crimes Against Intellectual Property, which was created Friday by decree of President Luiz Inácio Lula da Silva. ? If everyone gives up part of the profit, the distance between the prices of criminal products and the legal ones will be much smaller ,? said the executive secretary of the Ministry of Justice, Luiz Paulo Barreto. He also announced that he will discuss with the Council the realization of the national campaign "Brasil Legal", to be aired in November, before the end of the year parties.

Still in relation to lower product prices? CDs, DVDs and books ?, Barreto said that the intention is to discuss with the representatives of the various sectors affected by piracy the points that make manufacturing costs more expensive. The idea is to try a way to negotiate with the Government or other sectors to reduce costs. ? If the problem is imposed, we will see where it can be changed; if it is inputs, will we see how to bring prices down ?, Barreto guaranteed.


He also said that the Government also intends to combat the oligopolized sectors that contribute to the increase in product prices. And he cited as an example distributors of books, records and others:? These are public utility services. Let's see all the areas. If we understand that there is a mafia behind the distribution, will we act ?.

Barreto informed that on November 19, the ministers of justice of Mercosur should sign an agreement that provides for cooperation between the countries of the bloc? Brazil, Uruguay, Paraguay and Argentina? in the area of ​​combating piracy crimes. The agreement even foresees that the Brazilian Federal Police can participate as an observer of police operations in neighboring countries.

Brazil and China are also expected to sign a cooperation agreement in this regard in November. The terms of the treaty will be closed when Chinese President Hu Jintao visits Brazil.

According to the presidential decree, the new Council will have representatives from the ministries of Justice, Labor, Foreign Affairs, Tourism, Industry and Commerce and the Civil Cabinet.

Through the private initiative, the Brazilian Association of Record Producers (ABPD), the Brazilian Association of Software Companies (ABS), the Brazilian Association for the Protection of Intellectual Property (Adepi), the Brazilian Association of Reprographic Rights (ABDR), the Instituto Ético, and the Brazilian Association of Intellectual Property (ABPI), which brings together 700 entities, including in the area of ​​cable TVs.