U.S. in Conflict With Israel on Piracy Issue

Goaded by complaints from U.S. movie and software producers, the Clinton administration is moving toward a confrontation with Israel over widespread piracy of American films and compact discs, U.S. officials said Friday.

The office of U.S. Trade Representative Charlene Barshefsky may impose trade sanctions against Israel when it issues its annual report on global protection of intellectual property rights in late April, the officials said.

For years, Washington has been fighting an off-and-on trade war with China over pirated videotapes, music CDs and computer software, along with other violations of copyrights. But a similar conflict with Israel--the foreign nation with perhaps the most clout on Capitol Hill--could spark a far greater controversy in Washington.

“U.S. industry has stepped forward with very strong assertions of ongoing and even accelerating intellectual property rights violations in Israel,” a Barshefsky aide said. “We will assess all of the information and continue our contacts with the Israeli government and the Palestinian Authority over the next month.”

A State Department official said videotape and CD piracy in Israel is “reaching epidemic proportions.” Twice in the last two years, the official noted, the Israeli Knesset has weakened an already feeble copyright law. Moreover, he said, the laws that are on the books are not enforced.

The possibility of trade sanctions was first raised publicly earlier this month in a speech by the U.S. ambassador to Israel, Edward Walker. He warned Prime Minister Benjamin Netanyahu’s government that “Israel’s fundamental interest must be protecting intellectual property rights.”

Over the years, the U.S. government has found it difficult to play political hardball with Israel, even when Jerusalem’s policy runs directly counter to U.S. efforts in the Middle East. Israeli governments traditionally call on their supporters in Congress to blunt administration policies that they dislike.

It may be more difficult for Netanyahu’s regime to play that game this time, however.

Some of Israel’s strongest advocates in the United States are in the film and software industries. Moreover, other Israeli supporters have made it clear they back Jerusalem in its relationship with its Arab adversaries, but are far less willing to give the country carte blanche in matters of business.

Although Israeli companies own the illicit factories, some are located in West Bank territory under the control of the Palestinian Authority. Officials hope to enlist Yasser Arafat’s Palestinian regime in the effort to close down the pirate plants. But there have been no threats of trade sanctions against the Palestinians, at least not yet.

Under U.S. law, Barshefsky’s office must report to Congress annually on the status of intellectual property rights around the world. The office is empowered to impose sanctions against violators at the same time it issues the report. The trade representative’s decision is final, however, and does not require congressional ratification. The lawmakers could, of course, overturn sanctions by passing legislation but that is a cumbersome process.