● 12.30.11
●● Cablegate: Peru’s Migration to Free/Open Source Software
Posted in America, Cablegate, Free/Libre Software at 1:10 pm by Dr. Roy Schestowitz
Summary: 3 cables from Peru where Free/open source gets mentioned, especially in relation to government policy
TECHRIGHTS has a dear contributor called Eduardo Landaveri, to whom the following Cablegate cables would probably provide insight that is needed for understanding of his home country’s policy regarding software. The first cable says that “[i]n 2003, the GOP[Government of Peru] passed a decree mandating that all government agencies use legally procured open-source software. GOP agencies had until March 31, 2005 to erase all pirated software and install the legitimate versions”; the second one is similar but newer and the third one is a bit gross because Intel is nominated for a goodwill award for merely attacking its competition and trying to make a profit at the expense of poor people in Peru. Intel is a viciously anticompetitive company.
↺ Intel is a viciously anticompetitive company
The three cables follow.
UNCLAS SECTION 01 OF 03 LIMA 000870
SIPDIS
DEPT FOR WHA/AND, EB/IPE SWILSON
COMMERCE FOR 4331/MAC/WH/MCAMERON
DOC FOR J. BOGER
USPTO FOR J. URBAN
LOC FOR S. TEPP
USTR FOR J. CHOE-GROVES
E.O. 12958: N/A
TAGS: ECON [Economic Conditions], ETRD [Foreign Trade], KIPR [Intellectual Property Rights], PE [Peru]
SUBJECT: PERU: SPECIAL 301 REVIEW
REF: A) State 23950 B) 04 Lima 1031 C) 04 Lima 1524
¶1. Summary. Post recommends that Peru remain on USTR's
Special 301 Watch List for 2005. Peru continued to face
high levels of copyright piracy, including a substantial
increase in optical disc piracy affecting the audiovisual
industry in 2004. Indecopi, the GOP's IPR administrative
agency, conducted high-profile raids and continued its
public awareness campaign. Peru continues to face several
problems, including the overall inadequacy of enforcement
and the lack of deterrent sentences. The GOP did not take
any significant steps to resolve the pharmaceutical
industry's concern about a lack of protection for
proprietary test data. GOP trade officials indicated that
the data protection issue should be resolved during the U.S.-
Andean free trade negotiations in 2005. End Summary.
High Rates of Optical Disc Piracy
---------------------------------
¶2. Despite Indecopi's efforts, copyright piracy rates
continued to climb in 2004. The audiovisual industry
suffered from a dramatic increase in pirated optical discs,
with an estimated piracy level of almost 75 percent, up from
65 percent in 2003. Jose Vega, General Manager of
Blockbuster Peru, informed us that the motion picture
industry lost an estimated $5 million in 2004 due to
audiovisual piracy. The large amount of imported blank
optical discs, as well as the wide availability of DVD
technology, helps account for this increase. Peru also has
one of the highest rates of musical piracy in the world.
According to the Anti-Piracy Crusade, 98 percent of CDs in
Peru are pirated. Martin Moscoso, head of Indecopi's
copyright office, and the Business Software Alliance noted
that Indecopi estimated that business software piracy levels
have decreased from 60 percent in 2003 to 56 percent in
2004.
Efforts to Rein in Piracy
But More Coordination Needed
----------------------------
¶3. Indecopi continued its "Anti-Piracy Crusade," which
began in 2002. Indecopi's anti-piracy efforts in 2004, in
collaboration with other government agencies as well as the
private sector, focused on: 1) intensifying enforcement
actions and 2) expanding the public awareness campaign.
Indecopi's copyright office conducted, jointly with the
national police and SUNAT (Peru's tax and customs agency),
37 raids in 2004 and confiscated over $20 million in pirated
goods and blank optical discs. In March 2004, the Peruvian
police, coordinating with one of Peru's special IPR
prosecutors, successfully uncovered and seized a shipment of
750,000 blank optical discs valued at $400,000 (Ref C). In
December 2004, the national police raided a Lima shopping
center where pirated goods are sold, confiscating over
$500,000 in pirated DVDs and CDs.
¶4. Private sector and Indecopi officials note that although
SUNAT has participated in several seizures of pirated goods,
it needs to become more involved in overall IPR enforcement.
SUNAT assumed control of Peruvian customs in 2003 and has
worked with Indecopi on several raids. The head of
Indecopi's copyright office declared that SUNAT should take
a more active role in coordinating and conducting raids,
particularly at the ports. Currently, SUNAT is more focused
on facilitating shipments at ports by quickly clearing
containers. Many customs officials have had no prior
training on how to recognize counterfeit goods.
Harsher Punishments for
Copyright Infringements
-----------------------
¶5. Industry and Indecopi officials involved in the Anti-
Piracy Crusade agree that the GOP needs to improve IPR
enforcement. Both call for the establishment of specialized
judges to handle IPR cases, as well as greater authority for
the two special IPR prosecutors (who only have authority in
Lima). Currently, judges lack expertise in intellectual
property matters and have avoided imposing harsh sentences
on IPR violators. In July 2004, the GOP passed Law No.
28289, the Law on the Fight Against Piracy, which increased
the minimum penalty for piracy from a two-year to a four-
year sentence, with a maximum sentence of eight years.
There have yet to be any convictions under the new law,
although there are more than 1,000 IP cases pending before
Peru's courts.
GOP Mandates the Use of Legitimate Software
-------------------------------------------
¶6. In 2003, the GOP passed a decree mandating that all
government agencies use legally procured open-source
software. Unfortunately, this loosely written decree did
not establish which GOP agency was to take the lead on
implementation, nor did it designate penalties for
violations of this decree. GOP agencies have until March
31, 2005 to erase all pirated software and install the
legitimate versions. Peru's Software Association held
several educational sessions for Congressmen in 2004,
emphasizing the importance of using legal software.
Mario Camara, Deputy Director General of the Office of E-
Commerce and Information, informed us February 16 that not
all agencies have complied with the requirement. With no
agency designated as point of contact, it is difficult for
the GOP to monitor progress. Camera noted that his office
would meet with each GOP agency's Systems Office next week
to encourage them to comply with the decree. Camera also
warned that the lack of funding to purchase the new software
might limit some agencies' ability to procure legal
software.
Higher Taxes and a New Import Registry
--------------------------------------
¶7. A new decree passed as part of Peru's tax reform in
January 2004 requires importers of blank CDs to make valued
added tax payments in advance, improving SUNAT's ability to
trace subsequent purchases. In November, SUNAT began
imposing a higher tariff on all importers of blank optical
discs ($1.30 per DVD and $0.25 per CD), in an effort to
differentiate between legal and illegal importers.
¶8. In July, the GOP passed a law requiring that SUNAT
establish an import registry for all persons and companies
importing blank optical discs and recording equipment. With
the registry, SUNAT would be able to monitor the frequency
of optical disc importation and target those companies that
cannot justify legal sales of these discs. To date, SUNAT
has not yet established this registry.
Pharmaceutical Data Protection
------------------------------
¶9. The GOP did not take significant action in 2004 to
improve the protection of confidential pharmaceutical data.
The issue of data protection is increasingly sensitive, as
local generic drug producers have high levels of political
clout. Trade officials continue to argue that the TRIPs
Article 39.3 does not mandate any specific period of data
exclusivity. Peru, which is, along with Colombia and
Ecuador, negotiating a free trade agreement with the United
States, intends to resolve our data exclusivity concerns in
the FTA process.
Comment: Recommend No Change in Status
---------------------------------------
¶10. Post recommends that Peru remain on USTR's Special 301
Watch List due to the continued high levels of piracy and
copyright violations, as well as the continued lack of
protection for pharmaceutical test data. Despite increased
focus and awareness of IPR problems, the GOP has not
increased judicial enforcement of existing laws in order to
create a meaningful deterrent nor established clear
administrative measures for government agencies to comply
with those laws.
STRUBLE
Cable II:
VZCZCXYZ0002
RR RUEHWEB
DE RUEHPE #0699/01 0531554
ZNR UUUUU ZZH
R 221554Z FEB 06
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 8820
INFO RUEHBO/AMEMBASSY BOGOTA 3011
RUEHQT/AMEMBASSY QUITO 0042
RUEHLP/AMEMBASSY LA PAZ FEB SANTIAGO 0213
RUEHCV/AMEMBASSY CARACAS 9102
RUEHBU/AMEMBASSY BUENOS AIRES 2269
RUEHME/AMEMBASSY MEXICO 3281
RUEHBR/AMEMBASSY BRASILIA 6520
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAFCC/FCC WASHDC
RHEHNSC/NSC WASHDC
UNCLAS LIMA 000699
SIPDIS
SIPDIS
DEPT FOR WHA/AND, WHA/CEN, EB/IPE CLACROSSE AND AANDAMO
COMMERCE FOR 4331/MAC/WH/MCAMERON
DOC FOR JBOGER
USPTO FOR JURBAN
LOC FOR STEPP
USTR FOR JCHOE-GROVES
E.O. 12958: N/A
TAGS: ECON [Economic Conditions], ETRD [Foreign Trade], KIPR [Intellectual Property Rights], PE [Peru]
SUBJECT: PERU: SPECIAL 301 REVIEW
REF: A) STATE 14937 B) 05 LIMA 1971 C)05 LIMA 3794
¶1. Summary. Post recommends that Peru remain on USTR's
Special 301 Watch List for 2006. Peru continued to face
high levels of copyright piracy in all sectors, including
media, books, toys, apparel and other merchandise, in 2005,
including a slight increase in optical disc piracy.
Indecopi, the GOP's IPR administrative agency, conducted
high-profile raids and continued its public awareness
campaign. Peru continues to face several problems,
including the overall inadequacy of enforcement, inadequate
border protections and the lack of deterrent sentences. The
GOP, in concluding Free Trade Agreement negotiations with
the United States in December 2005, obligated itself to
protecting proprietary test data for pharmaceutical and
agrochemical products beginning in January 2007. End
Summary.
Peru's International Obligations
--------------------------------
¶2. Peru is a member of the World Intellectual Property
Organization (WIPO). It is also a member of the Paris
Convention, Berne Convention, Rome Convention, Geneva
Phonograms Convention, Brussels Satellites Convention,
Universal Copyright Convention, the WIPO Copyright Treaty
(WCT) and the WIPO Performances and Phonograms Treaty
(WPPT). Peru's 1996 Copyright Law is generally consistent
with the TRIPS Agreement. Peru joined the WCT in July 2001
and the WPPT in February 2002. Although most of the
provisions of these two WIPO treaties are included in Peru's
1996 Copyright Law, officials at Indecopi, the IPR
administrative agency, have acknowledged the need for
additional legislation in order to clarify the rights of
artists and producers. The National Association of Music
Publishers continues to criticize Indecopi's enforcement,
claiming that its members are not receiving the royalties
due to them. Peru's 1996 Industrial Property Rights Law
provides the framework for patent protection. In 1997,
based on an agreement reached with the U.S. Government, Peru
addressed several inconsistencies with the WTO TRIPS
Agreement provisions on patent protection and most-favored
nation treatment for patents.
Efforts to Rein in Piracy
Enhances Coordination
-------------------------
¶3. Indecopi continued its "Anti-Piracy Crusade," which
began in 2002. Indecopi's anti-piracy efforts in 2005, in
collaboration with other government agencies as well as the
private sector, focused on: 1) intensifying enforcement
actions and 2) expanding the public awareness campaign. In
March and November, the Anti-Piracy Crusade organized "Anti-
iracy Day" and "Movie Theater Day", in an effort to
increase public awareness about intellectual property
rights. On both days, Peruvian movie theaters offered
discounts on movie tickets prices, promoting increased
attendance. Moviegoers were encouraged to turn in pirated
DVDs in exchange for discounts on food and future movie
ticket sales. On both days, the Anti-Piracy Crusade
collected more than 80,000 pirated DVDs.
¶4. Indecopi's copyright office conducted, jointly with the
national police and SUNAT (Peru's tax and customs agency),
more than 60 raids in 2005, with 13 occurring outside of
Lima. Indecopi and SUNAT confiscated more than $30 million
in pirated and contraband goods and blank optical discs. In
July 2005, the Peruvian police, coordinating with one of
Peru's special IPR prosecutors, successfully raided "El
Hueco", a market known for selling pirated products in Lima,
and confiscated 8 tons of contraband and pirated merchandise
worth $300,000.
¶5. In September 2005, SUNAT and Indecopi signed a
Memorandum of Understanding, enabling Indecopi to assign one
officer to the Port of Callao. This officer works closely
with Customs to review incoming shipments. In six months,
Indecopi and SUNAT screened 51 containers and confiscated
the contents of 18 containers that were illegally
transporting contraband and pirated goods. Private sector
and Indecopi officials agree that this is a step in the
right direction, although they believe that SUNAT, which
assumed control of Peruvian customs operations in 2003, must
become more involved in overall IPR enforcement. Many
customs officials have had little or no prior training on
how to recognize counterfeit goods.
¶6. In October 2005, Post, the U.S. Patent and Trade Office,
and U.S. Customs conducted an IPR training seminar for
Customs and Indecopi officials. U.S. Customs officials
advised the Peruvian participants on obligations under TRIPs
and best practices for finding and seizing contraband and
pirated goods. One issue highlighted by the conference was
the need for Peru to meet its TRIPS obligations; many
Customs officials were unaware of TRIPS and how the
agreement affects how they do their job.
High Rates of Optical Disc Piracy
---------------------------------
¶7. Despite Indecopi's efforts (detailed below), copyright
piracy rates remained the same in 2005. The audiovisual
industry suffered from the piracy of optical discs, with an
estimated piracy level of almost 75 percent, up from 65
percent in 2003. Jose Vega, General Manager of Blockbuster
Peru, informed us that the motion picture industry lost an
estimated $5 million in 2005 due to audiovisual piracy. The
large amount of imported blank optical discs, as well as the
wide availability of DVD technology, helps account for this
increase. Peru also has one of the highest rates of musical
piracy in the world. According to the Anti-Piracy Crusade,
98 percent of CDs in Peru are pirated. Martin Moscoso, head
of Indecopi's copyright office, and the Business Software
Alliance noted that business software piracy levels remained
the same since 2004, at approximately 54 percent.
Formal Importation of Blank Discs
Decreases But Contraband on the Rise
------------------------------------
¶8. Indecopi estimates that in 2005, approximately 100
million blank optical discs were legally imported into Peru,
a decrease of 10 million since 2004. Indecopi approximates
that of these 105 million discs, only 14 million were used
for legal purposes. Martin Moscoso, Director of Indecopi's
Copyright Office, explained that, due to the high private
copy levies (approximately 200-300 percent of costs) imposed
by the Peruvian Artists Association in 2005, formal
importers of blank optical discs chose to reduce imports in
order to avoid paying such a high fee. Moscoso also
indicated that contraband of blank optical discs has
increased, although official figures are unavailable.
SUNAT Implements Registry
-------------------------
¶9. In July 2004, the GOP passed a law requiring that SUNAT
establish an import registry for all persons and companies
importing blank optical discs and recording equipment. With
the registry, SUNAT would be able to monitor the frequency
of optical disc importation and target those companies that
cannot justify legal sales of these discs. On September 25,
2005, SUNAT published regulation 020-2005, which established
the norms for the import registry. Importers of blank
optical discs must provide SUNAT with the number of units
imported, the name of the commercial organization that will
sell the discs, the commercial brand of the discs, the model
information and format characteristics.
¶10. The registry went into effect on October 24, 2005.
According to SUNAT officials, legitimate importers of blank
optical discs have faced no difficulty in providing SUNAT
with the necessary information. However, importers that
either use the discs for illicit means or sell them to
illegitimate vendors have been more reluctant to provide
SUNAT with the information. SUNAT officials predict that
the level of legal imports of blank optical discs will
decrease in 2006, as more discs are smuggled across land
borders. SUNAT plans on improving its border protections to
crack down on the contraband of blank discs.
New Regulations to Strengthen IPR Enforcement
---------------------------------------------
¶11. The GOP in 2005 passed several new regulations aimed at
improving the IPR environment. On October 28, SUNAT,
coordinating closely with Indecopi and the private sector,
issued a resolution modifying the January 2004 decree that
required importers of blank CDS to make valued added tax
payments in advance. The new regulation seeks to improve
SUNAT's ability to trace imports of blank discs and their
subsequent purchases. SUNAT now charges an advance VAT of
$0.03 per CD and $0.06 per DVD. Under the regulation, SUNAT
is now able to audit importers' sales to determine the
legitimacy of the sale and who are the largest consumers of
blank optical discs. If a company feels that it has paid
too much in VAT, it must provide SUNAT with evidence of its
sales. SUNAT would then issue a credit for future VAT
payments.
¶12. The Lima Municipality in October 2005 issued Order 717
to improve the ability of police to raid local vendors of
pirated products. The regulation now enables the Municipal
Government, working with the police, to revoke licenses for
those vendors who sell pirated products. The Anti-Piracy
Crusade lauded the new regulation, but commented that the
Lima Government has yet to enforce it. Indecopi continues
to work with the Lima Municipality, as well as several other
municipal governments, to encourage the protection of
intellectual property.
Amendment to the Artists
Protection Law Pending
------------------------
¶13. In July 2004, the Prime Minister approved a Supreme
Decree establishing the Law of Artists, Interpreters and
Music to protect the interests and rights of those involved
in the creative arts, including performers and producers of
musical recordings and motion pictures, from acts of piracy.
The decree argued that blank optical media was being used
for "private copies" and piracy of media and software,
violating copyright laws. Under the law, the Peruvian
Artists Association can apply a levy of 200-300 percent on
all blank optical discs, to be paid by the manufacturers of
blank recording media.
¶14. The private sector, working with Indecopi, the Lima
Chamber of Commerce, and the Peruvian Artists Association,
sought to have the levy reduced to a more reasonable 20
percent of the value. A recommendation was passed to the
Ministry of Trade in early January 2006 for action. If the
Ministry of Trade agrees with the recommendation, it will
pass the document to the Prime Minister's office for a
Supreme Decree.
Still No Convictions of IPR Violators
-------------------------------------
¶15. Industry and Indecopi officials agree that the GOP
needs to improve IPR enforcement. Both call for the
establishment of specialized judges to handle IPR cases, as
well as greater authority for the two special IPR
prosecutors (who only have authority in Lima). Currently,
judges lack expertise in intellectual property matters and
have avoided imposing harsh sentences on IPR violators. In
July 2004, the GOP passed Law No. 28289, the Law on the
Fight Against Piracy, which increased the minimum penalty
for piracy from a two-year to a four-year sentence, with a
maximum sentence of eight years. There have yet to be any
convictions under the new law, although there are more than
1,000 intellectual property cases pending before Peru's
courts.
¶16. In mid-2005, Indecopi filed a lawsuit for piracy and
money laundering against one of the main optical disc
importers. The case remains in the Judiciary, and the
importer has filed a countersuit against the Indecopi
officials for slander and wrongful prosecution. Martin
Moscoso lamented that the Peruvian Judicial system is
inherently slow and corrupt -- this case could take several
years to resolve.
Deadline Extended for Legal Software Use
----------------------------------------
¶17. In 2003, the GOP passed a decree mandating that all
government agencies use legally procured open-source
software. GOP agencies had until March 31, 2005 to erase
all pirated software and install the legitimate versions.
The E-Government Office in the Prime Minister's Office in
late 2004 took the lead in implementing this project. In
mid-2005, Rafael Muente, the new Director of the E-
Government Office, conducted an audit of the software used
by GOP agencies. He found that only 60 percent of GOP
agencies were following the decree. In November 2005, the
GOP issued a regulation extending the deadline for
installation of legal software to December 31, 2006.
Increased Problems with Lack of
Patent Protections for Pharmaceuticals
--------------------------------------
¶18. In 2005, three U.S. pharmaceutical companies complained
that Indecopi was not adequately protecting patents. In all
three cases, the companies noted that they face unfair
competition from local distributors selling foreign-made
pirated copies of their best selling products. While
Indecopi initially issued a precautionary measure against
the local producers, this measure, per Peruvian law, expires
after 120 days. In several cases, Indecopi ordered the U.S.
companies to prove that the local distributors are selling
pirated copies of their patented medicines, which is
contrary to TRIPS obligations. This process takes time and
substantial funding, during which the company can still sell
the pirated product on the market. Even if Indecopi orders
a local distributor to cease sales of the allegedly pirated
product, the distributor can appeal the decision; during the
appeals process, local producers can resume sales of the
"pirated" product. The companies estimate that they have
lost more than $5 million in damages due to lost government
procurement sales.
Pharmaceutical Data Protection
------------------------------
¶19. The U.S. pharmaceutical and agrochemical industries
also continue to be concerned about Peru's protection of
confidential test data. Peruvian government health
SIPDIS
authorities approved the commercialization of new drugs that
were the bioequivalents of already approved drugs, thereby
denying the originator companies the exclusive use of their
data. In effect, the Government of Peru allows the test
data of registered drugs from some companies to be used by
others seeking approval for their own pirate version of the
same product. U.S. companies also are concerned that the
Peruvian government does not provide patent protection for
second uses, which would allow a company with a patented
compound for one use to subsequently patent a second use of
that compound. Although Peruvian law provides the means for
effective trademark protection, counterfeiting of trademarks
and imports of counterfeit merchandise remain widespread.
¶20. While Indecopi did not take significant action in 2005
to improve the protection of confidential pharmaceutical
data, the GOP did conclude negotiations on a bilateral free
trade agreement with the United States. In doing so, the
GOP committed itself to protecting proprietary test data for
pharmaceutical and agrochemicals for ten years. The free
trade agreement, once signed and ratified by the U.S. and
Peruvian Congresses, is scheduled to go into effect on
January 1, 2007.
2006 Training Plans
-------------------
¶21. In 2006, Post, working with the U.S. Patent and Trade
Office and the Department of Homeland Security, plans on
hosting several training classes in Peru for key IPR and law
enforcement officials. In February 2006, the International
Law Enforcement Academy (ILEA) in Peru, with assistance from
the U.S. Customs and Border Protection, hosted a training
seminar for 50 officials from Peru, Brazil, Argentina and
Paraguay. During the seminar, officials learned new
techniques for investigations and seizures, how to prepare a
case report for pending prosecutions, and best practices
from U.S. Customs.
¶22. Post in 2005 submitted to State/INL a request for
funding for an IPR training seminar for Peru's special IPR
prosecutors, police and judges. To date, Post has not
received an answer from State/INL on its proposal. If money
is not available from State/INL, Post will seek funding from
alternate sources, such as the U.S. Patent and Trade Office
and the private sector.
¶23. Post also plans on sending several Indecopi Officials
to the United States for an international visitors IPR
program. Additionally, we would like to work with the U.S.
Patent and Trade Office to host a conference on Peru's
obligations under TRIPS and the U.S.-Peru Free Trade
Agreement.
Comment: Recommend No Change in Status
--------------------------------------
¶24. Post recommends that Peru remain on USTR's Special 301
Watch List due to the continued high levels of piracy and
copyright violations, as well as the continued lack of
protection for pharmaceutical test data. Despite increased
focus and awareness of IPR problems, the GOP has not
increased judicial enforcement of existing laws in order to
create a meaningful deterrent or established clear
administrative measures for government agencies to comply
with those laws.
ARELLANO
Cable III:
VZCZCXYZ0000
PP RUEHWEB
DE RUEHPE #2106/01 1662249
ZNR UUUUU ZZH
P 152249Z JUN 07
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC PRIORITY 5873
INFO RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
UNCLAS LIMA 002106
SIPDIS
SIPDIS
DEPT FOR D, E, AND EEB/EPPD NSMITH-NISSLEY
COMMERCE FOR 4331/IEP/WH/MCAMERON
USTR FOR BENNETT HARMAN
E.O. 12958: N/A
TAGS: BEXP [Trade Expansion and Promotion], ECON [Economic Conditions],
EINV [Foreign Investments], ELAB [Labor Sector Affairs], ETRD [Foreign Trade],
USTR [Office of the Special Representative for Trade Negotiations],
AID [Agency for International Development, International Cooperation Administration], PE [Peru]
SUBJECT: EMBASSY LIMA NOMINATES INTEL FOR SECRETARY'S AWARD
FOR CORPORATE EXCELLENCE
REF: STATE 71180 AND PREVIOUS
SUMMARY
-------
¶1. Embassy Lima is pleased to nominate Intel Semiconductores
del Peru S.A. for the Secretary of State's 2007 Award for
Corporate Excellence. Intel Corporation's office in Peru is
an outstanding example of Intel's commitment to corporate
social responsibility, education and bridging the digital
divide. In only two years of existence, the small Peru
office has made major contributions to economic development
in Peru and meets the standards of conduct in all eight
categories on which the award is based. Described below are
three concrete examples that show why Intel deserves this
award: Intel's groundbreaking "PC Peru" program, the
recently launched Intel Education Initiative, and an IT
training center for the visually handicapped. END SUMMARY.
TRANSFORMATIONAL "PC PERU" PROGRAM
----------------------------------
¶2. In March 2005, Intel and Peruvian President Alejandro
Toledo announced the launch of the "PC Peru" program, aimed
at bridging the digital divide by offering low-cost
high-quality computers throughout Peru. With more than half
of the population living in poverty and one of the lowest
computer penetration levels on the continent, the Peruvian
government wanted to raise the quality of life for its
citizens by providing better access to IT and Internet-based
resources. Intel convinced other computer component
manufacturers, distributors and content providers to join
Intel in supplying the components at heavily discounted
rates. In order to stimulate the Peruvian IT industry, all
of the computers were assembled entirely in Peru by at least
five local companies. The assembly was done under
international standards and certified by Intel.
¶3. Two models were initially offered under the PC Peru
program at over 300 points of sale, with the lower priced
package costing $399. Each PC included a 40GB hard drive, a
15" monitor, a 52x CD-ROM, a keyboard, a mouse, two 240w
speakers, a 1.44MB disk drive, free anti-virus software, the
Linux operating system, three months of free Internet
service, a warranty, and free training. To make the PCs even
more accessible, Intel provided a 36-month payment plan
option. One model included an Intel Celeron 1.8 processor
and 128MB RAM, while the other included an Intel P4 2.26
processor and 256MB RAM.
¶4. During the launch phase with the Peruvian Ministry of
Production, 4,140 of these low-cost computers were sold
publicly and distributed throughout Peru. The private sector
continued selling the PCs after the Peruvian government's
direct involvement ended, and reached 20,000 units sold in
2006. There are countless testimonials of how access to
affordable PCs improved the lives of lower and middle class
Peruvians. Many small and micro enterprises were able to
computerize their inventories, create websites, use e-mail to
contact clients, expand their sales, and even begin exporting
their products. Many of the PCs were acquired by schools,
giving students their first access to a computer and the
Internet. Currently, PC Peru offers four more modern
packages from $457 to $620, which can be purchased online at
www.pcperu.org. This program has been so successful, that it
is being replicated by Intel in several other Latin American
countries.
INTEL EDUCATION INITIATIVE
--------------------------
¶5. Intel's Education Initiative is a worldwide program aimed
at training teachers to effectively integrate technology into
their classrooms. Primary and secondary school teachers are
taught how IT can improve and facilitate their students'
learning, are coached on how to apply IT to existing
curricula, and are given free on-line resources and
interactive lessons. Each teacher participates in 10, 4-hour
modules (40 hours) of practical workshops plus 20 hours of
homework. They learn to develop unit plans, incorporate the
Internet in classes, design web pages, use multimedia
programs, and how to transfer what they learn in workshop to
other teachers. The Teachers are also put in contact with
other trained teachers around the world, and invited to
future meetings and Intel seminars. Each teacher receives an
extensive Study Program Manual and a CD-ROM with resources.
The use of IT and the Internet motivates students and
stimulates their creativity.
¶6. In September 2006, less than two months after taking
office, Peruvian President Alan Garcia witnessed Intel and
the Ministry of Education signing an agreement launching the
pilot program of the Intel Education Initiative in Peru.
During the first phase of the pilot program, which began in
February 2007, foreign Senior Trainers trained 33 Peruvians
for 40 hours, after which they themselves became qualified
Senior Trainers. In the second phase, which began at the end
of April 2007, 10 of these new Senior Trainers are training
100 teachers from 5 public schools in the Lima area that were
selected by the Ministry of Education to become Master
Teachers (trained teachers that will help expand the program
throughout Peru). This 10-week training also consists of one
4-hour module and 2 hours of homework per week, and is
scheduled to be completed in mid July. Intel paid 100
percent of the pilot program costs: brought in trainers;
rented computer center; provided manuals, CD-ROMs and
incentives for Senior Trainers; and donated computers to a
Ministry of Education training center.
¶7. The pilot program is being monitored by the Education
Department of the Pontifical Catholic University of Peru,
which will present its evaluation in mid July. After the
pilot phase, the next step will be to train 300 additional
Master Teachers in August 2007, with the goal of training
3,000 teachers nationwide (in all of Peru's 25 regions) by
the end of 2007. After the conclusion of the pilot phase,
the costs to continue and spread the program will be split
50-50 by Intel and the Ministry of Education. Intel also
signed an agreement with San Martin de Porres University to
help expand the training program throughout Peru.
¶8. Worldwide, the Intel Education Initiative has trained
nearly five million primary and secondary school teachers in
more than 40 countries since the program's launch in 2000.
Intel invests $100 million per year in this program, and
plans to train 10 million teachers more in the next five
years. Intel donated 10,000 PCs to schools in developing
countries in 2006 and plans to donate at least 90,000 more.
COMPETITIVENESS CENTER FOR THE VISUALLY HANDICAPPED
--------------------------------------------- ------
¶9. In 2004, three blind young Peruvians, who had used a
World Bank grant to launch Peru's first cyber cafe for the
visually impaired in 2003, established the non-profit
Association for Technology and the Handicapped (ATECNODIS).
Later that year, Intel helped ATECNODIS establish the
Peruvian Competitiveness Center for the Visually Handicapped
(CCD), providing the building for the Center in the San Borja
district of Lima, bringing foreign specialists to train
ATECNODIS' volunteers, and donating 15 computers.
¶10. The CCD is a modern IT facility with accessible hardware
and software that has provided individualized training to
hundreds of visually handicapped Peruvians in computer and
Internet use. Courses offered include: Introduction to IT,
Windows Operating System, Microsoft Word, Excel, Internet and
E-mail, Magic, Messenger, Open Book (scanner), Interactive
Encyclopedias and Dictionaries, JAWS, and Mexvox. Since
2005, the CCD also offers text and book digitization services
for the handicapped. ATECNODIS, with Intel support, is a
leader in promoting the social inclusion of handicapped
Peruvians.
OTHER INTEL ACTIVITIES INVOLVING PERU
-------------------------------------
¶11. Intel has begun offering its wireless laptop "Classmate
PC" in Peru for only $270 per unit. These low cost laptops
are especially designed for primary and secondary school
students. Intel donated 200 units to the Peruvian government
for distribution to public schools in May 2007.
¶12. Intel made possible Peru's first ever wireless district
in 2004, donating the infrastructure to provide free wireless
"hotspots" throughout Lima's Miraflores district. Similarly,
in September 2005, Intel and two other companies launched the
"Wireless Cuzco" initiative, which provides free wireless for
the central plaza of Peru's number one tourist destination
high in the Andes.
¶13. Peruvian students participate and have won awards in
Intel's International Science and Engineering Fair (ISEF),
the largest pre-university science fair in the world.
Sponsored by Intel since 1997, Intel's ISEF brings together
the most promising innovators and scientists at the primary
and secondary school levels. Prizes include cash and full
university scholarships.
INTEL'S PERU OFFICE
-------------------
¶14. Intel has had a presence in Peru for eight years, but
its local office opened two years ago and currently has four
employees. Intel Peru's corporate social responsibility
contributions, with so few employees in such a short time,
are truly amazing.
¶15. In addition to its exceptional corporate citizenship
which contributes to economic development and innovation,
Intel's Peru office follows exemplary employment practices
and all Peruvian laws and regulations. Intel Peru has not
violated any laws or standards, and has not been involved in
any acts of corruption. Intel Peru is known as a great and
safe place to work.
COMMENT
-------
¶16. Intel, an innovative U.S. firm respected worldwide, has
made a real difference in Peru with a solid commitment to
improving education and bridging the digital divide. The
work Intel has done in Peru is an excellent example of
Intel's broader commitment to corporate social responsibility
and great business practices worldwide. Intel Peru, with a
staff of only four, has done more to contribute to
development in Peru than many huge firms and deserves the
Department's recognition for its exemplary accomplishments.
With the U.S.-Peru Trade Promotion Agreement (PTPA) close to
fruition and Peru hosting the Asia-Pacific Economic
Cooperation (APEC) forum activities in 2008 (including visits
by Secretary Rice and President Bush), this would be a great
time to recognize a model U.S. company that is doing great
things in Peru.
STRUBLE
That’s all from Peru for now. █
Share in other sites/networks: These icons link to social bookmarking sites where readers can share and discover new web pages.
Permalink Send this to a friend
----------
➮ Sharing is caring. Content is available under CC-BY-SA.