Verkhovna Rada approves anti-piracy bill (01/20/02)

Verkhovna Rada approves anti-piracy bill

by Maryna Makhnonos
Special to The Ukrainian Weekly

KYIV - The Verkhovna Rada on January 17 in short order approved a draft bill and its final version aimed at the regulation of the compact disc production industry and prevention of piracy in the field - satisfying one of the requirements established to avoid U.S. trade sanctions.

After passing the draft in its first reading, later in the day the lawmakers returned to the issue and passed an amended bill that now goes to the president for his signature. The bill was passed six days before sanctions were to go into effect.

U.S. authorities have long threatened sanctions if Ukraine's government failed to act to stop CD piracy, which costs the international recording industry an estimated $250 million to $300 million a year, according to experts' estimates. A December 12, 2001, deadline was delayed after bilateral talks, but the office of the U.S. Trade Representative had ordered on December 20 that trade sanctions were to take effect on January 23. The sanctions were expected to restrict all steel and other metal exports to the United States, which the Ukrainian government fears would cost Ukraine some $470 million annually.

The Verkhovna Rada had repeatedly failed to approve legislation that would satisfy U.S. demands.

The draft bill passed on January 17 was one of six versions previously presented to the Parliament. It allows prosecutors to enter CD production plants with a warrant that is based on specific allegations.

The bill was one of two documents reviewed by the Parliament that day. Another proposal was presented by the government; it reflected more radical U.S. demands, but was rejected by lawmakers. The government version would have allowed prosecutors to enter production premises at any time and examine any document and equipment, with or without a warrant.

The draft bill was approved by a vote of 238-5, with four abstentions; it received only 12 votes more than necessary to pass. Of the 397 deputies present, 150 ignored the vote.

Later that day, national deputies voted 233-6, with one abstention to approve the bill in its final reading. A total of 160 legislators present at the session declined to vote. The final version of the anti-piracy measure contained some amendments that took into account Ukrainian government proposals.

The bill now must be signed into law by President Leonid Kuchma, and its implementation should begin 60 days after presidential action.

Leftist lawmakers, who were the main opponents of the legislation, had argued that it would hinder the development of Ukraine's domestic high-technology production. Socialist Party Chairman Oleksander Moroz said last week that the United States would impose sanctions regardless of the Rada's actions in order to protect the U.S. metals market.

The head of a business association that favors the protection of intellectual property, Ihor Eihenvald, said on January 17 that no law will succeed in solving Ukraine's piracy problems as the companies that are outside the field would remain in the shadows.

"Those who produce this illegally are not touched by this law at all," Mr. Eihenvald said. He added that legal CD producers in Ukraine that are suspected of piracy are in fact interested in the additional controls. "Nobody had ever opposed a civilized control," Mr. Eihenvald underscored upon learning of the draft bill's approval.

Speaking after the passage of the bill's final version, pro-government lawmaker Petro Poroshenko said, "Obviously, the government's draft bill would have been better, but it's a kind of compromise that allows us to move the trade sanctions talks from standstill."

"I think the government and metallurgy producers should be satisfied," added Mr. Poroshenko, according to Fakty news on the ICTV channel.

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