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>> a special report from what has been dubbed the most dangerous place in europe. criminal gang culture might be the norm but a local billionaire has been able to get some of the best football star's to join his club. an official inquiry issues a damning critique of the official reaction of bahrain. >> we have already started the reforms. some have been prosecuted for the treatment that has led to death. >> fortunes are made not by developing products but by issuing patents.

>> we have seen them used not for making anything but for suing people for infringement. it is now regarded as the most dangerous place in europe. there are bomb attacks almost daily, tales of torture and people going missing. dagestan is blighted by militant gangs and violence. the football team has brought attention. bankrolled by a local billionaire, the squad has some of the best known names including samuel eto. we have been too dagestan. >> people have a swagger in

their step. something is restoring pride and hope to people in this downtrodden part of russia. it is football. local team is being plucked from obscurity and thrust into the international spotlight. global stars lined the streets inspiring people here to dream. dagestan is now the epicenter of an islamist insurgency. they would like an islamic state across the north caucasus. russian soldiers have been battling this rebellion in the rebellion south. bombings and assassinations tapping virtually every day. terror attacks emanating from here have reached the heart of moscow. most russians are too terrified to come to dagestan, but

tonight at the premiere moscow club is to play the home side. eto has just signed for $30 million a year making him the world's best paid player. roberto carlos is the manager. four minutes in, eto scores and the crowd goes wild. >> people have poured millions into this team and they say it is money well spent. >> who is paying for this? this is a local home town billionaire called suleiman kerimov and he is the one thankfully in this fantasy. the reclusive oligarchic is

reported to have up an epiphany when his ferrari crashed. when he cheated death, he decided to invest in his homeland. what do they think of his global shopping spree in a place where most people are lucky to earn 250 pounds a month? >> it is his money. he can do what he likes with it. everything he is doing is for dagestan to support our republic. >> this helps to distract people from terrorism, not just football. everything is connected. >> the ecstasy wears off. the moscow site equalizes and then score another four goals. the mood sours. i discovered that this project is not without its critics. i spot a banner the rating fans for ignoring islamic principles. -- berating the fans for

ignoring islamic principles. was good people are coming to our public but we don't want football to be a new religion. -- >> good people are coming to our republic but we don't want football to be a new religion. >> our republic is the poorest part of the area. our people are hungry. they are being killed and we are in the middle of a civil war and yet they sit and watch the spectacle. like you don't have to stray far from the football pitch to see with this man means. just around the corner, i am shown the site of the latest bomb blast. this exploded outside a shop selling alcohol. then there was a second much

more powerful blast coincided to arrive with the arrival of the emergency responders. my guy is a counter terrorist officer but he does not want to show his face. government officials and police are the main targets of the militants. >> in many of our colleagues die in too deep. many mothers have lost sons and wives have lost husbands, children, their fathers. what can we do? we have to fight this battle to the end. >> this building is the center of the fight against extremism and it is extraordinary that we are given a chance to talk to the people who work here about their jobs. i asked my guide whether things are improving.

>> unfortunately, it is not getting any better, they have become brittle and more cynical. they're just people who would do anything. they have been sucked into the swamp and they can't get out. >> another officer shows me an example of this brutality. the story of this man is particularly shocking. his father was a local police chief. his wife, his sister, went to put flowers on the grave and they were blown up. the last remaining was killed billionaire suleiman kerimov believes that creating jobs is the best way to fight the insurgency. this is the promo for one of his projects, a brand new city.

his right hand man is showing me this stadium, part of his and flemish added too. he is finalizing plans for a bigger stadium. -- his right hand man is showing me this stadium, part of his bigger strategy. >> if there was jobs, that would be something. if i had no way out, i might take up arms, too. "tell him that this seems to me that he is doing more than the government. -- i tell him that it seems that he is doing more than the government. >> indeed, he is. take the stadium, it was originally a government project and a huge amount of money was provided. nothing has been done. now, suleiman kerimov has bought it and it has been done properly. the public funds were just stolen. >> more and more people are

drawn to new ideas and are rejecting the mainstream. football is no exception. the league has 32 teams playing every sunday morning and there coordinator is dismisses of the money driven model. their slogan.e we live in the territory of dagestan which i would like to be the territory of islam. >> they follow a strict brand of islam imported from saudi arabia. he tells me that their dream is a new social order in dagestan built on sure real law. >> if we see a brother drinking or attacking a woman, we remind

him of where he lives. generally, people react well. if we had our way, you would not be able to buy alcohol or tobacco here and you would never find women who walk around uncovered like you. >> what does he think about people who take up arms for the cause? >> these people have chosen a certain path and will answer for what they will do. if they are right, then there awaits prizes. i swear to allah, i do not condemn them. >> this kind of talk alarms the authorities and sometimes least too heavy-handed responses from the security forces. the consequences can be deadly. i have come to investigate an incident in a village. few people have jobs here and

prospects are bleak. this mosque had begun to attract a new crowd of young believers. in may, during friday prayers, the building was surrounded by armed security forces. plainclothes officers came in and arrested 150 worshipers including 15 schoolboys. the young imam shows me evidence of abuse. they were taken to a station where they were beaten and some had their hair torn out and their beards shorn off. the village of teachers appeared to be complicity. >> the police summoned the headmaster and his deputy to the station. the teachers heard shouts and screams. they knew what was going on, the

teachers called them dogs for going to the mosque. >> the head monster -- the headmaster said that they are a sworn enemy of the islamic group. he claims that the young radicals would force all of the women to wear veils. he has denounced a reign of terror in which prosected the teachers have been murdered. little did he suspect that he would become the next target. i head for the school and find a biology teacher who agrees to tell me what happened to his boss. >> they shot him in his home at point blank range in the face. his wife and son were watching tv. who did it and why?

nobody knows. >> the situation here is still very tense. back at the mosque, he says he sure that the radical underground killed at the school head. >> we don't think that murdering people is the way to solve problems. that is not the way to sit have justice. this war has been going on for 20 years. >> with increasing numbers of men taking up arms, it seems that the very lawlessness of the authorities is feeding this insurgency. it will take more than football stars and millions of dollars to cure the ills in this society. >> a surprising thing happened in the gulf. in bahrain, the king sat and listened to the conclusions of

an investigation into protests. he was told his police had used fear and torture against political opponents and a special court set up to deal with those arrested denied him justice. he also denied claims that they were homegrown and not orchestrated by iran. the government promised to act in the findings. the minister of cabinet affairs was asked what they intended to do. what did you know that your security forces were this brutal? >> we accept the reports. the most important thing is to fix things and to go forward with the country. we want the truth even if that implicates the government. >> blindfolding, handcuffing,

beating come out punching, with electrocution, sleep deprivation, and numerous others. these are things that came as a complete surprise? >> we have to make it clear that it is anti king and his government have investigated. -- we have to make it clear that the king and his government have investigated. we cannot tolerate human rights violations it was clearly syste. >> action has to be taken. >> what action will be taken? >> we have already started the reforms and 20 people have been prosecuted for mistreatment that has led to death. we're working with our allies

and international organizations to change the system and to implement reform. >> are you saying that you're committed to becoming a proper democracy? >> we started this at 10 years ago. i have to remind you that until recently, bahrain was viewed by leading democracies as a place for reform. >> the king gave you your job. >> they did not use this for reform. >> are you committed to becoming what anyone in the west would recognize as a proper democracy? >> we have begun the democratic process. the people of bahrain should decide how we would deal with this. >> of course, they have to wait on the killings say so. when will the king won bahrain

to become a democracy? >> we would like to have the institution to move far rain forward. we need to do more and we need to expedite for our people. -- we would like to have the institutions to move bahrain forward. >> what do you think of the actions of the security forces? >> the reports confirmed that they have not engaged the protesters. they have been located away from the protests. >> you don't regret this? >> we have worked to enhance and integrate ourselves. >> would you have published this report if it had not been from the americans? >> we have done it because we want the best for our country.

violence does not benefit anyone in bahrain. >> it had nothing to do with an arms deal? >> we want to move forward. we want to deal with the social division that has polarized the country. we need to build the trust once again. unless we start the reform, we will not move forward. we need now to work together. everyone in bahrain must work together. >> thank you. >> fancy a slice of toast? be careful. if you heat the temperature, you might be impinging on the bread refreshen method. the american patent system is

used to suit and countersuit over intellectual property rights. the man who invented the internet does not like it at all. >> london's design museum, home to lots of innovative products that have turned into big money for their inventors. they have to make sure that their ingenuity is protected. if you have had a brilliant idea? you had better get a patent said that you can have a chance to make some money. now, inventors are beginning to worry that double patent system is falling into disrepute. they say that it is tendering innovation rather than helping. here is one clever idea, a smart

phone application that teaches you chinese. it is the work of this digital design agency. they are generating modest income but now that could be dwarfed by a huge legal bill. this came in the post one morning. the problems came and went baffling documents arrive in the london office. >> this came from a company in america said that we are infringing on some of their patents. it it shows a telephone talking to a facts machine and this is dated december 7th, 1999. -- this shows a telephone talking to a fax machine. here is another bit, "a memory within each of the units capable of storing the results.

this is a couple of the to a local direction of each of the units to a central location." is that clear? >> i have no idea what that means. >> it says that you have done that. >> i am on the wiser. >> they are demanding licensing fees. he is talking to a lawyer about how he should respond and what it means for his business. >> this is another risk that we will have to consider. this is another thing that we will have to consider that we have perhaps not thought about. >> they sent similar documents to all sorts of software makers. and every case, they claim that their technology is being employed to make the applications work.

this is a company based in texas with a pretty simple website. there is a piece from edison talking about his intentions, not by accident but i work. all of their work seemed to be about demanding fees from companies they accused of using their technologies. they are what their critics would call a patent trial -- troll. i contacted the co2 ask him if he would like to discuss this. he declined. -- i contacted the ceo to ask him if he would like to discuss this. there is concern that cases like this show that the patent system is going wrong. >> these were intended to allow an inventor to protect his interests and to give him the right to argue that this idea has been infringed upon by

others. what has happened is in parts of the patent community, would see people acquiring the rights to patents without actually using them except to sue people for infringement. it sounds like the inventor you met has been confronted by that process. the problem is that if there is a business to be made, people will find a way. >> is is helping or hindering innovation? >> specifically in the context of software patents, this is hindering innovation in a very dramatic way. >> it is not just a small players affected. the technology industry has become a battleground where patents are weapons and everyone is suing everyone else. microsoft is suing motorola and htc is suing apple who in turn

is suing all sorts of other software firms. google has been racing to acquire its own patents. what is your reaction? >> this has been forced on us by the realities of the patent. i regret that so much money has to be spent. it should have been spent on inventing new ideas. >> it is all good business for the intellectual property lawyers. they say that this system is a barrier to innovation. >> the progress that has been made is self-evident and cannot support the suggestion that this is -- >> if the british software developers came to you with a

threat from the u.s., it would be expensive to deal with that. >> major litigation is expensive but we have systems over here that have been set up to handle small cases by small to medium enterprises. it has a damages limit of 500,000 pounds. >> it will cost them a maximum of half a million pounds. quite a lot. >> i appreciate that sometimes it can hurt but to say you are small is not a valid defense. >> technology is indeed advancing so rapidly that even quite recent inventions are now museum pieces. ever more money and energy is spent on fighting the wars and they will have to come up with the next big thing.

>> that is all for this week. from all of us, goodbye. >> make sense of international bbc.com/news. >> funding for this presentation is made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and union bank. >> union bank has put its financial strength to work for a wide range of companies, from small businesses to major corporations.

what can we do for you? >> "bbc newsnight" was presented by kcet, los angeles.