Russia's piracy problem could hinder WTO acceptance

December 12, 2005

Looks like Harry Potter has placed a curse upon the chances of
Russia gaining a seat a seat in the World Trade Organization (WTO) next year. The WTO is the only
international body dealing with the rules of trade between nations. Russia
will need the blessing of the United States among a few other countries
before they can join. A major issue holding things up is the rampant
piracy in Russia of U.S made software goods.

An example of the problem was given in
this Reuters article, reporting that a Moscow shop displays evidence
boldly upon a shelf: a DVD of "Harry Potter and the Goblet of Fire" that is
not yet (legally) out on DVD anywhere and even the theater release in Russia is
not until December 22. Yet, there it is, for a tempting 100 roubles.

Russian has been negotiating WTO membership for about a decade. If it
fails to wrap up a deal with the United States and others in Hong Kong, it
will miss its target of joining the WTO next year, pushing back entry to
2007, Russian officials say.

There are three main sticking points: barriers to foreign aircraft
makers, access to Russia's financial services market and the theft of
intellectual property, including films.

"The problem we face in Russia...is getting worse, not better," said
Dan Glickman, chairman of the Motion Picture Association of America, which
lobbies for Hollywood studios.

"(We) cannot support Russia's accession to the WTO, an organisation
founded on rules, until these problems are addressed satisfactorily," he
said last week in testimony to a U.S. Congressional subcommittee.

Russia says it deserves more credit for its efforts to crack down on
the pirates.