June 28, 2010

It’s good to know that Russian President Dmitry Medvedev appreciates good music and classic formats, as illustrated by his recent vinyl purchases at D.C.’s very own Som Records.  Even better, it’s also good to know that he wants to bring Russia into the discipline of global trading institutions like the World Trade Organization (WTO).  No doubt, that’s a good thing.  We strongly endorse Russia’s further political and economic integration with the rest of the world. Such integration is a powerful force for developing a common vision for a shared future in a world marked by ever-increasing levels of inter-dependence. However, it is extremely important to ensure that Russia is prepared to abide by its obligations before allowing Russia to enter the WTO. 

In particular, as frequently noted by the Office of the United States Trade Representative (USTR) and by many in Congress, it is essential that Russia demonstrate compliance with the November 2006 intellectual property rights agreement it reached with the United States—an agreement that has been frequently called Russia’s roadmap to WTO accession with respect to its intellectual obligations.  As Reuters recently reported, the importance of these issues cannot be overstated. 

Russia has made important strides towards meeting its obligations, but much work remains to be done. In particular, under the terms of the November 2006 agreement, Russia agreed to:

•    take enforcement actions against the operation of Russia-based websites used for the global exchange of illegal movies, music and other copyrighted works; 

•    investigate and prosecute companies that illegally distribute copyright works on the Internet; and

•    work to enact legislation by June 1, 2007, to stop collecting societies from acting without right holder consent.

While one of the world’s most notorious websites, allofmp3.com, is now shuttered, Russia has thus far not taken effective action against the many copycat unlicensed pay-per-download sites that have sprung up to take its place, nor has Russia prosecuted the rogue societies that act in conspiracy with these sites—granting licenses that they do not have the authority to issue. The U.S. government should continue to demand satisfaction on this issue before acceding to Russia’s desire to join the WTO.

In similar fashion, Russia has yet to complete a process guaranteeing American rightholders the ability to administer their rights in Russia as they deem fit. The Russian government decided to accredit only a single society for each category of rightholders. The society chosen for accreditation on behalf of performers and producers was not the society that represented the majority of rightholders, and performers and producers have been working hard to try to reach suitable arrangements. This process is not yet completed, and the Russian state has an obligation to stay engaged to ensure that the society that they approved operates in a fair and transparent manner.

We hope to soon welcome Russia into the WTO, and believe that it will open a new chapter in a productive and constructive U.S.-Russia relationship built on shared benefits and obligations.  But blind hope should not guide this important mission. We, Congress and the Administration should ensure that Russia demonstrates in action, and not just in words, that it is prepared to accept its various responsibilities. Meeting its obligations under the 2006 agreement should be an absolute and non-negotiable prerequisite.

Neil Turkewitz
Executive Vice President, International