Dapper Dan
05-14-2005, 07:14 PM
Screen-Gems.net is a proud advocate of Anti-Piracy! We do not advocate the illegal sharing and/or selling of pirated movies. Any threads or posts found on the boards promoting such things will be immediately delted and the posting member will be given a strict warning the first time, followed by banning if the offence occurs again.
The Motion Picture Association of America (MPAA) (http://www.mpaa.org/home.htm) and its international counterpart, the Motion Picture Association (MPA), estimate that the U.S. motion picture industry loses in excess of $3 billion annually in potential worldwide revenue due to piracy. Due to the difficulty in calculating Internet piracy losses, these figures are NOT currently included in the overall loss estimates. However, it is safe to assume Internet losses cause untold additional damages to the industry.
To combat these staggering losses, MPAA/MPA, on behalf of its member companies, directs a comprehensive international anti-piracy program. Established domestically in 1976, the program works to: implement and strengthen existing copyright protection legislation, assist local governments and law enforcement authorities in the investigation and prosecution of piracy cases, initiate civil litigation on behalf of its’ member companies against copyright infringers, conduct education outreach programs regarding the harmful effects of piracy.
Worldwide, MPAA/MPA anti-piracy activities have helped support legitimate markets that struggle to compete with pirate businesses. Pirate activities undermine every aspect of the legitimate filmmaking business since legitimate retailers cannot possibly compete fairly with pirate business. Pirate operations do not have the average expenses associated with the cost of doing legitimate business. Piracy negatively affects every rung on the ladder including the studios that invest in the film, the distributors, the retailers and foreign and local filmmakers.
To battle the problem, in 2000, the MPA launched over 60,000 investigations into suspected pirate activities, and more than 18,000 raids against pirate operations in coordination with local authorities around the world.
The MPAA/MPA directs its worldwide anti-piracy activities from headquarters in Encino, California. Regional offices are also located in Brussels (Europe, Middle East and Africa), Mexico (Latin America) Canada and Hong Kong (Asia/Pacific).
THE ECONOMIC PICTURE
Moviemaking is an inherently risky business. Contrary to popular belief that moviemaking is always profitable, in actuality, only one in ten films ever retrieves its investment from domestic exhibition. In fact, four out of ten movies never recoup the original investment. In 2000, the average major studio film cost $55 million to produce with an extra $27 million to advertise and market, a total cost of over $80 million per film. No other nation in the world risks such immense capital to make, finance, produce and market their films.
To recoup such enormous investments, the industry relies upon a carefully planned sequential release of movies, first releasing feature films in cinemas, then to home video, and then to other media. This release sequence not only provides the best financial return for studios, but also provides consumers with choices as to how they wish to view movies, and when. This carefully planned release sequence, which includes intervals for each specific media known as "distribution windows", are vital to the health of the industry. When piracy of a film occurs at any point in the release sequence, all subsequent markets are negatively affected.
One real-world example of piracy’s devastating impact on the legitimate marketplace is with the 1999 release of the film Star Wars: Episode 1 – The Phantom Menace. Pirate copies of the film (created by using camcorders in US theaters) flooded the Asian marketplace while the film was still in U.S. theatrical distribution. When the film opened legitimately in Asian theaters, attendance was far below expectations. In addition, home entertainment retailers lost vital business in the home video window due to the availability of pirated copies. In this case, piracy affected legitimate theatrical distributors, exhibitors and local businesses.
Today, U.S. films are shown in more than 150 countries, and American television programs are broadcast in over 125 international markets. However, piracy affects all films. Pirates steal creative works regardless of national origin, and the MPA fights to create a safe environment for both the works of MPA member companies, as well as other audiovisual entertainment.
THE LAW
The Copyright Act of 1976 gives the U.S. some of the strongest anti-piracy legislation in the world. The Act was amended in 1982, substantially increasing the penalties for the illegal duplication of copyrighted material, making such offenses felonies on the first offense. Copyright owners may also file civil lawsuits against copyright infringers, and the government may file criminal charges. Tough new United States Sentencing Commission guidelines have reinforced these penalties. The Communications Act of 1984, and later amendments provide comparable penalties and remedies for cable TV and satellite pirates.
Today, more than 80 nations have copyright laws. MPAA/MPA and its affiliated organizations work to strengthen these laws, when necessary, and suggest appropriate penalties as part of copyright reform. In some parts of the world where copyright laws are weak or nonexistent, successful charges have been brought against pirates under other statutes, such as receiving stolen goods, trademark violations, smuggling, and failure to pay custom duties.
In addition, intellectual property relations between the US and most foreign countries are governed by an array of multilateral treaties and conventions as well as bilateral agreements, including the Universal Copyright Convention (UCC) and the Berne Convention.
Lastly, various trade agreements also ensure the free flow and protection of intellectual property among nations. The MPA encourages foreign governments to abide by, and fully implement, important agreements such as the Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement and the World Intellectual Property Organization (WIPO) treaties.
TYPES OF PIRACY
OPTICAL DISC PIRACY
Optical Disc Piracy is major threat to the audiovisual sector. Pirate optical discs, which include Laser Discs (LD), Video Compact Discs (VCD) and Digital Versatile Discs (DVD), are inexpensive to manufacture and easy to distribute. In 2000, over 20 million pirate optical discs were seized, and by comparison, 4.5 million videos were seized worldwide in the same period.
Unlike traditional analog piracy, a digital pirated disc is as pure and pristine as the original. In addition, a production facility can churn out a huge volume of illegal discs in relatively short time. To illustrate this, an average illegal videocassette duplication facility with 100 VCRs can, in a 10 hour period, produce about 400 pirated cassettes, while pirates with the right CD pressing equipment can produce thousands of perfect VCDs or DVDs daily.
The MPA supports the introduction of effective measures to control the spread of optical disc piracy, such as licensing requirements for optical disc manufacturing facilities and the tracking of the import and export of manufacturing equipment. Strengthened cooperation among customs and enforcement authorities worldwide to share information relating to transnational operation of organized criminal enterprises engaged in production, export, or import of illicit optical discs is also critical.
INTERNET PIRACY
Online motion picture piracy is the unauthorized use of copyrighted motion pictures on the Internet. It is illegal to sell, trade, lease, distribute, upload for transmission, transmit or publicly perform motion pictures online without the consent of the motion pictures’ copyright owner.
Online piracy is a relatively new phenomenon, and, unfortunately, a growing trend. The MPA Worldwide Internet Anti-Piracy program investigates all forms of online piracy including: Downloadable Media, Hard Goods Piracy, Streaming Media and online offerings of illegal Circumvention Devices. The MPA is working closely with the online community to prevent the unauthorized use and distribution of film industry product on the Internet.
Downloadable Media
Downloadable Media refers to digital files that allow for motion pictures to be compressed and uploaded for direct download onto a computer. Pirates use Downloadable Media formats to illegally offer and distribute motion pictures to other Internet users. Typically, the pirate host will use illegal VCD copies of motion pictures to create digital copies that are recorded into a computer file. Using online communication avenues, including chat rooms, Internet Relay Chats (IRC), FTP sites, newsgroups, File Swapping Utilities (FSUs) and Web sites, the pirate offers these files to other Internet users who then download the motion picture file onto their own computers.
Hard Goods
Hard goods piracy refers to the illegal sale, distribution and/or trading of copies of motion pictures in any format, including videocassettes and all optical media product. Illegal hard goods are sold on web sites, online auction sites such as eBay and Yahoo!, and via e-mail solicitations.
Streaming Media
Streaming media refers to the transmission or transfer of data that is delivered to the online user or viewer in a steady stream in near real time. Similar to hard goods and downloadable media, It is illegal to stream copyrighted content without the express authorization of the copyright holder.
Circumvention Devices
A circumvention device is any physical medium or digital file that allows for the circumvention of content protection devices put on films, videos, discs, etc. to secure the copyrighted content. One such Circumvention Device is the unauthorized, so-called software utility DeCSS. Any person that has the DeCSS utility can use it to break the copy protection on DVDs making it possible for motion pictures in DVD format to be decrypted and illegally copied onto a computer’s hard-drive for further distribution over the Internet or otherwise, in perfect, digital format. Other common circumvention devices include "black boxes" and other illegal signal theft devices and macrovision defeators.
The Law
Online piracy is covered by the same laws that govern other forms of piracy. In addition, the US government recently amended federal copyright statutes to specifically address Internet copyright issues and enhance the protection of Intellectual Property online through the No Electronic Theft Act (NET Act) and the Digital Millennium Copyright Act (DMCA).
For more information on online film piracy, please see the MPAA web page section "Protecting Copyright in the Courts".
VIDEOCASSETTE PIRACY
Videocassette piracy is the illegal duplication, distribution, rental or sale of copyrighted videocassettes. In recent years, the MPAA/MPA shifted its investigative focus onto the illicit duplicating facilities or "laboratories" that are set-up to create and distribute pirated videocassettes. These facilities are often times capable of producing hundreds of thousands of illegal videocassette copies each year. These copies are then distributed to a variety of outlets including swap meets, co-operating video dealers and street vendors. The pirate product is often packaged in counterfeit videocassette boxes that resemble legitimate packaging.
Camcording: Pirates use hand-held video cameras to record motion picture films off of theater screens and then copy these films onto blank videocassettes and optical discs for illegal distribution. These illicit copies are not only distributed to pirates in the US, but also shipped overseas and distributed through illegal channels even before the film’s international theatrical release.
Screeners: Illegal copies are sometimes made from legitimate advance copies used for screening and marketing purposes.
Back-to-back Copying: A "back-to-back" copy is a pirate videocassette made by connecting two VCRs and then copying an original video onto a blank cassette.
Identifying an Illegal Video
The absence of any of a series of indicators can help point to pirated cassettes, including: the lack of special markings on the plastic cassette, low quality labeling, tape length that does not correspond to the film’s running time, or the absence of special colored gates on the cassette. Most importantly, pirate videocassettes are ALWAYS of inferior quality to an original. Consumers are cheated into purchasing sometimes shoddy,
unwatchable product where the sound is garbled and the graphics are poor. Videocassettes can also be analyzed on special electronic equipment to determine if they are counterfeit as well as to identify the source of the piracy.
THEATRICAL PRINT THEFT
Theft of a 35 or 16 mm film print from a theater, film depot, courier service or other industry-related facility for the purpose of making illegal copies is one of the most serious forms of piracy. This type of theft allows the pirate to make a relatively high quality videotape from the theatrical print, which then serves as the master for the duplication of unauthorized videocassettes. Fortunately, this type of theft is extremely rare due to the difficulty in obtaining the prints illegally and also in transferring the print to another format, such as videocassette.
SIGNAL THEFT
Signal theft refers to the act of illegally tapping into cable TV systems as well as receiving satellite signals without authorization. In addition, pirates have made businesses out of supplying consumers with illegally tampered cable decoders or satellite descramblers. Internationally, the problem becomes more acute when programs not licensed to a particular country are pirated from satellites and then re-transmitted in that country either by cable or broadcast TV.
BROADCAST PIRACY
Like signal theft, broadcast piracy is also defined by piracy that occurs on over-the-air broadcasts. However, instead of stealing signals, the illegal act may be the on-air broadcasting of a bootleg videocassette of a film or the on-air showing of legitimate films or television programs without permission from the copyright holder.
PUBLIC PERFORMANCE
Unauthorized public performances refer to situations where an institution or commercial establishment shows a tape or film to its members or customers without receiving permission from the copyright owner. This includes "public performances" where an admission fee is charged as well as those that are simply offered as an additional service of the establishment.
PARALLEL IMPORTS
Parallel imports describes the importation of goods authorized for manufacture or distribution in the exporting country but imported without express authority of the copyright or trademark owner. (Parallel Importation may or may not be lawful under local laws). Generally parallel imports undercut the domestic market by being available prior to authorized release in that market.
COPY PROTECTION TECHNOLOGIES
Many entertainment companies use copy protection technologies to protect their films against theft and some delivery systems for film content already use some form of copy protection, including DVDs (which use the Content Scrambling System), PPV, dedicated DSL set-top boxes, digital encryption encoding of satellite signals and videocassettes (which contain Macrovision).
Copy protection benefits consumers as well as the industry because without these safeguards, the industry would not be able to release their high-quality digital content for fear of widespread and rampant piracy. For instance, with PPV, because of the copy protection, there is a level of assurance that the movies won’t be copied freely so movies are offered at a very reasonable price considering the cost of making the product.
The motion picture industry has pursued those who distribute devices that break copy protection in any format. While no technology has yet proven foolproof, the industry continues to implement protection technologies which raise the threshold of difficulty and expense for the pirate and therefore help reduce piracy.
REGIONAL OVERVIEWS:
NORTH AMERICA
In 2000, approximately 350,000 illegal videocassettes and 4,000 VCRs were seized. To combat this problem, the MPAA initiates over 600 investigations into suspected piracy in the U.S. each year and at any one time has approximately 400 active cases. The MPAA maintains a toll-free anti-piracy Hotline number (1-800-NO-COPYS) in the U.S. for retailers and consumers to call if they suspect piracy. In addition, complaints can be directed to the MPAA email hotline at <A href="mailto:e@mpaa.org">hotline@mpaa.org">hotline@mpaa.org.
The majority of camcording in theaters in the US is conducted out of the New York City area. In addition, this is where the majority of large-scale video laboratories are located.
It is a violation of federal law (17 U.S.C. 106(1)) to distribute, rent or sell illegally duplicated copies, even if the copies are made by someone else (17 U.S.C. 106(3)). The Communications Act of 1934, as amended, (47 U.S.C. 605) and related statutes also prohibit the unauthorized reception of films via satellite or cable TV. Copyright infringement and violation of the Communications Act are felonies under federal law and carry maximum sentences of up to five years in jail and/or a $250,000 fine. Both laws also provide for copyright owners to seek civil damages.
State laws relating to video piracy are not copyright laws per se. However, various states have so-called "truth-in-labeling" laws and other statutes that can be effectively used to prosecute film and video pirates.
Forty-five states have "True Name and Address" statutes which can be used to combat video piracy. These laws impose criminal penalties for the rental or sale of video cassettes that do not bear the true name and address of the manufacturer. Video pirates who fail to identify themselves as the "manufacturer" of illegally duplicated cassettes violate these statutes. In some states these laws are currently first offense misdemeanors and the MPAA is seeking legislation to upgrade the violations to felonies.
ASIA/PACIFIC
The MPA operates anti-piracy programs in 13 countries in the Asia/Pacific region, estimating that its Member Companies lost in excess of $718 million in potential revenue regionally in 2003. The predominant piracy threat in Asia-Pacific is optical disc piracy, with hundreds of millions of illegal optical discs being produced, many of which are exported to other parts of the world.
In 2003, 84 percent of pirate optical discs seized globally were seized in the Asia/Pacific region. This included 98 percent of pirate VCDs and 75 percent of pirate DVDs. Recently, syndicates of pirates producing and distributing smaller volumes of illegal DVD-Rs – the region’s fastest growing pirate format – from homes and/or small business premises have emerged as a difficult-to-detect and growing problem.
An even greater concern is the connection in this part of the world of organized crime to pirate syndicates, which makes battling optical disc piracy more difficult, and dangerous.
In 2003, the MPA operations in the Asia-Pacific region investigated nearly 15,500 cases of piracy and assisted law enforcement officials in conducting nearly 13,000 raids. These activities resulted in the seizure of approximately 44 million illegal optical discs, and the initiation of almost 9,100 legal actions.
Notable hubs for optical disc piracy in Asia/Pacific include China, Malaysia and Taiwan. China’s piracy rate is among the highest in the world, at 95 percent, and has increased in each of the past three years. Losses of potential revenue to MPA Member Companies last year due to piracy were $178 million and losses of potential revenue over the past three years were in excess of $500 million. Although China’s leadership has pledged to significantly reduce piracy, enforcement and local government will are lagging behind.
Malaysia, while still a leading source of exported pirate optical discs to other countries, is making strides in its fight against copyright theft. Recently, the country’s copyright law has been strengthened, with criminal penalties increased and enforcement officers given the power to arrest suspected copyright thieves. In 2003, enforcement officers conducted 12 surprise factory raids and more than 2,700 combined anti-piracy raids, resulting in the seizure of more than 2.8 million illegal discs.
In Taiwan, while the Taiwanese authorities have made positive developments in enforcement, particularly raids against optical disc factories, these efforts must be sustained and extended to other areas of enforcement, particularly the Internet. Taiwan needs to accomplish more in the area of legislation for optical disc licensing and the control of optical disc manufacturing equipment. Recent amendments to Taiwan’s Copyright Law raise fines, increase jail sentences and appear to be a step in the right direction, but the language passed by the Legislative Yuan is substantially weaker than had previously been approved by the Executive Yuan and is deemed insufficient by industry representatives.
Minimum penalties were deleted, significantly reducing deterrence. The 2003 amendments also failed to extend any protection against the circumvention of Technological Protection Measures, which are essential for the proper development of e-commerce and content on the Internet. Legislation that would have remedied these deficiencies and others failed to be enacted prior to the closure of the latest legislative session in June 2004 and remains pending. It will be important to ensure that effective further legislative amendments are completed, that enforcement is achieved from the perspective of the rights holders and that regular monitoring is used to keep the process on track.
Technologically sophisticated Japan and Korea represent the future of piracy in Asia, since high broadband Internet penetration in those countries permits computer users to download copies of films via peer-to-peer (P2P) networks. Japan is leading the region in the fight against P2P piracy, having launched prosecutions against the developer of a P2P network and several network users.
In Australia, increasing broadband penetration, together with consumer willingness to download illegal films presents a growing challenge. This challenge is being addressed through a focus on consumer awareness campaigns and a strong push for changes in legislation facilitated by the recent Australia-US Free Trade Agreement.
In Australia the industry has worked successfully with Customs to slow the tide of manufactured illegal discs entering the country from Asia, and is working with the police to address the corresponding increase in DVD-R burning and distribution of illegal discs, most openly at market stalls around the country. Persistent parallel importation of film industry products, especially DVDs, also adversely effects the legitimate theatrical and video markets in Australia and provides a ready source of ‘masters’ for illegal burning operations,
EUROPE, MIDDLE EAST & AFRICA (EMEA)
The MPA operates 31 anti-piracy programs in this region.
Traditional video piracy remains the major problem in the region despite increased seizures of pirated optical discs and the rapid spread of pirate activities on the Internet.
Turkey now faces the largest pirate VCD problem in Europe. The problem has moved from one of exclusively imported products to a situation where pirate VCDs are also being produced in-country. Turkey's legislation, enforcement mechanisms and court system are inadequate to curb pervasive piracy. To compound matters, a general amnesty in April, 2000, nullified all 174 criminal cases that had been initiated against pirates following pre-April 1999 raids.
On the policy level, the European Parliament is undertaking an important examination of new threats to the legitimate audiovisual sector including optical disc piracy and Internet piracy. The MPA looks forward to expeditious action by the EU on providing the necessary framework to fight piracy in these new forms. In addition, the MPA continues to fight for speedy ratification and implementation of the WIPO treaties and TRIPs standards.
Internet piracy is currently most notable in Germany, while "Smartcard" and "black boxes" present acute problems for the legitimate cable industries in the UK and other parts of Europe.
In addition, despite recent progress, Russia continues to have one of the worst piracy situations in the world. In 2000, the Russian Anti-Piracy Organization seized over 655,000 pirate videocassettes and over 171,000 pirate CD-ROMs containing films in MPEG4 format. These seizures point to sophisticated organized criminal groups controlling the duplication and distribution of pirate product. Russia has continued to do little to address wholly inadequate criminal enforcement against copyright infringers.
The Middle East has traditionally been plagued by inadequate sentencing for copyright violations. However, the MPA has noticed that some Middle Eastern Governments have been taking such violations more seriously.
LATIN AMERICA
The MPA operates anti-piracy programs in 14 countries in Latin America. Video piracy continues to be the main source of piracy in this region. In many countries piracy is linked to organized crime units, thus complicating piracy investigations and enforcement.
Brazil, the largest market in the region, also has one of the highest piracy rates, with piracy losses topping $120 million in 1999. It is the position of the MPA that the Brazilian Government has, to date, demonstrated inadequate commitment and attention towards protection of Intellectual Property rights.
Signal theft is common in many Latin American territories, while Internet piracy has not yet posed a real threat due to lack of bandwidth in the region.
The Motion Picture Association of America (MPAA) (http://www.mpaa.org/home.htm) and its international counterpart, the Motion Picture Association (MPA), estimate that the U.S. motion picture industry loses in excess of $3 billion annually in potential worldwide revenue due to piracy. Due to the difficulty in calculating Internet piracy losses, these figures are NOT currently included in the overall loss estimates. However, it is safe to assume Internet losses cause untold additional damages to the industry.
To combat these staggering losses, MPAA/MPA, on behalf of its member companies, directs a comprehensive international anti-piracy program. Established domestically in 1976, the program works to: implement and strengthen existing copyright protection legislation, assist local governments and law enforcement authorities in the investigation and prosecution of piracy cases, initiate civil litigation on behalf of its’ member companies against copyright infringers, conduct education outreach programs regarding the harmful effects of piracy.
Worldwide, MPAA/MPA anti-piracy activities have helped support legitimate markets that struggle to compete with pirate businesses. Pirate activities undermine every aspect of the legitimate filmmaking business since legitimate retailers cannot possibly compete fairly with pirate business. Pirate operations do not have the average expenses associated with the cost of doing legitimate business. Piracy negatively affects every rung on the ladder including the studios that invest in the film, the distributors, the retailers and foreign and local filmmakers.
To battle the problem, in 2000, the MPA launched over 60,000 investigations into suspected pirate activities, and more than 18,000 raids against pirate operations in coordination with local authorities around the world.
The MPAA/MPA directs its worldwide anti-piracy activities from headquarters in Encino, California. Regional offices are also located in Brussels (Europe, Middle East and Africa), Mexico (Latin America) Canada and Hong Kong (Asia/Pacific).
THE ECONOMIC PICTURE
Moviemaking is an inherently risky business. Contrary to popular belief that moviemaking is always profitable, in actuality, only one in ten films ever retrieves its investment from domestic exhibition. In fact, four out of ten movies never recoup the original investment. In 2000, the average major studio film cost $55 million to produce with an extra $27 million to advertise and market, a total cost of over $80 million per film. No other nation in the world risks such immense capital to make, finance, produce and market their films.
To recoup such enormous investments, the industry relies upon a carefully planned sequential release of movies, first releasing feature films in cinemas, then to home video, and then to other media. This release sequence not only provides the best financial return for studios, but also provides consumers with choices as to how they wish to view movies, and when. This carefully planned release sequence, which includes intervals for each specific media known as "distribution windows", are vital to the health of the industry. When piracy of a film occurs at any point in the release sequence, all subsequent markets are negatively affected.
One real-world example of piracy’s devastating impact on the legitimate marketplace is with the 1999 release of the film Star Wars: Episode 1 – The Phantom Menace. Pirate copies of the film (created by using camcorders in US theaters) flooded the Asian marketplace while the film was still in U.S. theatrical distribution. When the film opened legitimately in Asian theaters, attendance was far below expectations. In addition, home entertainment retailers lost vital business in the home video window due to the availability of pirated copies. In this case, piracy affected legitimate theatrical distributors, exhibitors and local businesses.
Today, U.S. films are shown in more than 150 countries, and American television programs are broadcast in over 125 international markets. However, piracy affects all films. Pirates steal creative works regardless of national origin, and the MPA fights to create a safe environment for both the works of MPA member companies, as well as other audiovisual entertainment.
THE LAW
The Copyright Act of 1976 gives the U.S. some of the strongest anti-piracy legislation in the world. The Act was amended in 1982, substantially increasing the penalties for the illegal duplication of copyrighted material, making such offenses felonies on the first offense. Copyright owners may also file civil lawsuits against copyright infringers, and the government may file criminal charges. Tough new United States Sentencing Commission guidelines have reinforced these penalties. The Communications Act of 1984, and later amendments provide comparable penalties and remedies for cable TV and satellite pirates.
Today, more than 80 nations have copyright laws. MPAA/MPA and its affiliated organizations work to strengthen these laws, when necessary, and suggest appropriate penalties as part of copyright reform. In some parts of the world where copyright laws are weak or nonexistent, successful charges have been brought against pirates under other statutes, such as receiving stolen goods, trademark violations, smuggling, and failure to pay custom duties.
In addition, intellectual property relations between the US and most foreign countries are governed by an array of multilateral treaties and conventions as well as bilateral agreements, including the Universal Copyright Convention (UCC) and the Berne Convention.
Lastly, various trade agreements also ensure the free flow and protection of intellectual property among nations. The MPA encourages foreign governments to abide by, and fully implement, important agreements such as the Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement and the World Intellectual Property Organization (WIPO) treaties.
TYPES OF PIRACY
OPTICAL DISC PIRACY
Optical Disc Piracy is major threat to the audiovisual sector. Pirate optical discs, which include Laser Discs (LD), Video Compact Discs (VCD) and Digital Versatile Discs (DVD), are inexpensive to manufacture and easy to distribute. In 2000, over 20 million pirate optical discs were seized, and by comparison, 4.5 million videos were seized worldwide in the same period.
Unlike traditional analog piracy, a digital pirated disc is as pure and pristine as the original. In addition, a production facility can churn out a huge volume of illegal discs in relatively short time. To illustrate this, an average illegal videocassette duplication facility with 100 VCRs can, in a 10 hour period, produce about 400 pirated cassettes, while pirates with the right CD pressing equipment can produce thousands of perfect VCDs or DVDs daily.
The MPA supports the introduction of effective measures to control the spread of optical disc piracy, such as licensing requirements for optical disc manufacturing facilities and the tracking of the import and export of manufacturing equipment. Strengthened cooperation among customs and enforcement authorities worldwide to share information relating to transnational operation of organized criminal enterprises engaged in production, export, or import of illicit optical discs is also critical.
INTERNET PIRACY
Online motion picture piracy is the unauthorized use of copyrighted motion pictures on the Internet. It is illegal to sell, trade, lease, distribute, upload for transmission, transmit or publicly perform motion pictures online without the consent of the motion pictures’ copyright owner.
Online piracy is a relatively new phenomenon, and, unfortunately, a growing trend. The MPA Worldwide Internet Anti-Piracy program investigates all forms of online piracy including: Downloadable Media, Hard Goods Piracy, Streaming Media and online offerings of illegal Circumvention Devices. The MPA is working closely with the online community to prevent the unauthorized use and distribution of film industry product on the Internet.
Downloadable Media
Downloadable Media refers to digital files that allow for motion pictures to be compressed and uploaded for direct download onto a computer. Pirates use Downloadable Media formats to illegally offer and distribute motion pictures to other Internet users. Typically, the pirate host will use illegal VCD copies of motion pictures to create digital copies that are recorded into a computer file. Using online communication avenues, including chat rooms, Internet Relay Chats (IRC), FTP sites, newsgroups, File Swapping Utilities (FSUs) and Web sites, the pirate offers these files to other Internet users who then download the motion picture file onto their own computers.
Hard Goods
Hard goods piracy refers to the illegal sale, distribution and/or trading of copies of motion pictures in any format, including videocassettes and all optical media product. Illegal hard goods are sold on web sites, online auction sites such as eBay and Yahoo!, and via e-mail solicitations.
Streaming Media
Streaming media refers to the transmission or transfer of data that is delivered to the online user or viewer in a steady stream in near real time. Similar to hard goods and downloadable media, It is illegal to stream copyrighted content without the express authorization of the copyright holder.
Circumvention Devices
A circumvention device is any physical medium or digital file that allows for the circumvention of content protection devices put on films, videos, discs, etc. to secure the copyrighted content. One such Circumvention Device is the unauthorized, so-called software utility DeCSS. Any person that has the DeCSS utility can use it to break the copy protection on DVDs making it possible for motion pictures in DVD format to be decrypted and illegally copied onto a computer’s hard-drive for further distribution over the Internet or otherwise, in perfect, digital format. Other common circumvention devices include "black boxes" and other illegal signal theft devices and macrovision defeators.
The Law
Online piracy is covered by the same laws that govern other forms of piracy. In addition, the US government recently amended federal copyright statutes to specifically address Internet copyright issues and enhance the protection of Intellectual Property online through the No Electronic Theft Act (NET Act) and the Digital Millennium Copyright Act (DMCA).
For more information on online film piracy, please see the MPAA web page section "Protecting Copyright in the Courts".
VIDEOCASSETTE PIRACY
Videocassette piracy is the illegal duplication, distribution, rental or sale of copyrighted videocassettes. In recent years, the MPAA/MPA shifted its investigative focus onto the illicit duplicating facilities or "laboratories" that are set-up to create and distribute pirated videocassettes. These facilities are often times capable of producing hundreds of thousands of illegal videocassette copies each year. These copies are then distributed to a variety of outlets including swap meets, co-operating video dealers and street vendors. The pirate product is often packaged in counterfeit videocassette boxes that resemble legitimate packaging.
Camcording: Pirates use hand-held video cameras to record motion picture films off of theater screens and then copy these films onto blank videocassettes and optical discs for illegal distribution. These illicit copies are not only distributed to pirates in the US, but also shipped overseas and distributed through illegal channels even before the film’s international theatrical release.
Screeners: Illegal copies are sometimes made from legitimate advance copies used for screening and marketing purposes.
Back-to-back Copying: A "back-to-back" copy is a pirate videocassette made by connecting two VCRs and then copying an original video onto a blank cassette.
Identifying an Illegal Video
The absence of any of a series of indicators can help point to pirated cassettes, including: the lack of special markings on the plastic cassette, low quality labeling, tape length that does not correspond to the film’s running time, or the absence of special colored gates on the cassette. Most importantly, pirate videocassettes are ALWAYS of inferior quality to an original. Consumers are cheated into purchasing sometimes shoddy,
unwatchable product where the sound is garbled and the graphics are poor. Videocassettes can also be analyzed on special electronic equipment to determine if they are counterfeit as well as to identify the source of the piracy.
THEATRICAL PRINT THEFT
Theft of a 35 or 16 mm film print from a theater, film depot, courier service or other industry-related facility for the purpose of making illegal copies is one of the most serious forms of piracy. This type of theft allows the pirate to make a relatively high quality videotape from the theatrical print, which then serves as the master for the duplication of unauthorized videocassettes. Fortunately, this type of theft is extremely rare due to the difficulty in obtaining the prints illegally and also in transferring the print to another format, such as videocassette.
SIGNAL THEFT
Signal theft refers to the act of illegally tapping into cable TV systems as well as receiving satellite signals without authorization. In addition, pirates have made businesses out of supplying consumers with illegally tampered cable decoders or satellite descramblers. Internationally, the problem becomes more acute when programs not licensed to a particular country are pirated from satellites and then re-transmitted in that country either by cable or broadcast TV.
BROADCAST PIRACY
Like signal theft, broadcast piracy is also defined by piracy that occurs on over-the-air broadcasts. However, instead of stealing signals, the illegal act may be the on-air broadcasting of a bootleg videocassette of a film or the on-air showing of legitimate films or television programs without permission from the copyright holder.
PUBLIC PERFORMANCE
Unauthorized public performances refer to situations where an institution or commercial establishment shows a tape or film to its members or customers without receiving permission from the copyright owner. This includes "public performances" where an admission fee is charged as well as those that are simply offered as an additional service of the establishment.
PARALLEL IMPORTS
Parallel imports describes the importation of goods authorized for manufacture or distribution in the exporting country but imported without express authority of the copyright or trademark owner. (Parallel Importation may or may not be lawful under local laws). Generally parallel imports undercut the domestic market by being available prior to authorized release in that market.
COPY PROTECTION TECHNOLOGIES
Many entertainment companies use copy protection technologies to protect their films against theft and some delivery systems for film content already use some form of copy protection, including DVDs (which use the Content Scrambling System), PPV, dedicated DSL set-top boxes, digital encryption encoding of satellite signals and videocassettes (which contain Macrovision).
Copy protection benefits consumers as well as the industry because without these safeguards, the industry would not be able to release their high-quality digital content for fear of widespread and rampant piracy. For instance, with PPV, because of the copy protection, there is a level of assurance that the movies won’t be copied freely so movies are offered at a very reasonable price considering the cost of making the product.
The motion picture industry has pursued those who distribute devices that break copy protection in any format. While no technology has yet proven foolproof, the industry continues to implement protection technologies which raise the threshold of difficulty and expense for the pirate and therefore help reduce piracy.
REGIONAL OVERVIEWS:
NORTH AMERICA
In 2000, approximately 350,000 illegal videocassettes and 4,000 VCRs were seized. To combat this problem, the MPAA initiates over 600 investigations into suspected piracy in the U.S. each year and at any one time has approximately 400 active cases. The MPAA maintains a toll-free anti-piracy Hotline number (1-800-NO-COPYS) in the U.S. for retailers and consumers to call if they suspect piracy. In addition, complaints can be directed to the MPAA email hotline at <A href="mailto:e@mpaa.org">hotline@mpaa.org">hotline@mpaa.org.
The majority of camcording in theaters in the US is conducted out of the New York City area. In addition, this is where the majority of large-scale video laboratories are located.
It is a violation of federal law (17 U.S.C. 106(1)) to distribute, rent or sell illegally duplicated copies, even if the copies are made by someone else (17 U.S.C. 106(3)). The Communications Act of 1934, as amended, (47 U.S.C. 605) and related statutes also prohibit the unauthorized reception of films via satellite or cable TV. Copyright infringement and violation of the Communications Act are felonies under federal law and carry maximum sentences of up to five years in jail and/or a $250,000 fine. Both laws also provide for copyright owners to seek civil damages.
State laws relating to video piracy are not copyright laws per se. However, various states have so-called "truth-in-labeling" laws and other statutes that can be effectively used to prosecute film and video pirates.
Forty-five states have "True Name and Address" statutes which can be used to combat video piracy. These laws impose criminal penalties for the rental or sale of video cassettes that do not bear the true name and address of the manufacturer. Video pirates who fail to identify themselves as the "manufacturer" of illegally duplicated cassettes violate these statutes. In some states these laws are currently first offense misdemeanors and the MPAA is seeking legislation to upgrade the violations to felonies.
ASIA/PACIFIC
The MPA operates anti-piracy programs in 13 countries in the Asia/Pacific region, estimating that its Member Companies lost in excess of $718 million in potential revenue regionally in 2003. The predominant piracy threat in Asia-Pacific is optical disc piracy, with hundreds of millions of illegal optical discs being produced, many of which are exported to other parts of the world.
In 2003, 84 percent of pirate optical discs seized globally were seized in the Asia/Pacific region. This included 98 percent of pirate VCDs and 75 percent of pirate DVDs. Recently, syndicates of pirates producing and distributing smaller volumes of illegal DVD-Rs – the region’s fastest growing pirate format – from homes and/or small business premises have emerged as a difficult-to-detect and growing problem.
An even greater concern is the connection in this part of the world of organized crime to pirate syndicates, which makes battling optical disc piracy more difficult, and dangerous.
In 2003, the MPA operations in the Asia-Pacific region investigated nearly 15,500 cases of piracy and assisted law enforcement officials in conducting nearly 13,000 raids. These activities resulted in the seizure of approximately 44 million illegal optical discs, and the initiation of almost 9,100 legal actions.
Notable hubs for optical disc piracy in Asia/Pacific include China, Malaysia and Taiwan. China’s piracy rate is among the highest in the world, at 95 percent, and has increased in each of the past three years. Losses of potential revenue to MPA Member Companies last year due to piracy were $178 million and losses of potential revenue over the past three years were in excess of $500 million. Although China’s leadership has pledged to significantly reduce piracy, enforcement and local government will are lagging behind.
Malaysia, while still a leading source of exported pirate optical discs to other countries, is making strides in its fight against copyright theft. Recently, the country’s copyright law has been strengthened, with criminal penalties increased and enforcement officers given the power to arrest suspected copyright thieves. In 2003, enforcement officers conducted 12 surprise factory raids and more than 2,700 combined anti-piracy raids, resulting in the seizure of more than 2.8 million illegal discs.
In Taiwan, while the Taiwanese authorities have made positive developments in enforcement, particularly raids against optical disc factories, these efforts must be sustained and extended to other areas of enforcement, particularly the Internet. Taiwan needs to accomplish more in the area of legislation for optical disc licensing and the control of optical disc manufacturing equipment. Recent amendments to Taiwan’s Copyright Law raise fines, increase jail sentences and appear to be a step in the right direction, but the language passed by the Legislative Yuan is substantially weaker than had previously been approved by the Executive Yuan and is deemed insufficient by industry representatives.
Minimum penalties were deleted, significantly reducing deterrence. The 2003 amendments also failed to extend any protection against the circumvention of Technological Protection Measures, which are essential for the proper development of e-commerce and content on the Internet. Legislation that would have remedied these deficiencies and others failed to be enacted prior to the closure of the latest legislative session in June 2004 and remains pending. It will be important to ensure that effective further legislative amendments are completed, that enforcement is achieved from the perspective of the rights holders and that regular monitoring is used to keep the process on track.
Technologically sophisticated Japan and Korea represent the future of piracy in Asia, since high broadband Internet penetration in those countries permits computer users to download copies of films via peer-to-peer (P2P) networks. Japan is leading the region in the fight against P2P piracy, having launched prosecutions against the developer of a P2P network and several network users.
In Australia, increasing broadband penetration, together with consumer willingness to download illegal films presents a growing challenge. This challenge is being addressed through a focus on consumer awareness campaigns and a strong push for changes in legislation facilitated by the recent Australia-US Free Trade Agreement.
In Australia the industry has worked successfully with Customs to slow the tide of manufactured illegal discs entering the country from Asia, and is working with the police to address the corresponding increase in DVD-R burning and distribution of illegal discs, most openly at market stalls around the country. Persistent parallel importation of film industry products, especially DVDs, also adversely effects the legitimate theatrical and video markets in Australia and provides a ready source of ‘masters’ for illegal burning operations,
EUROPE, MIDDLE EAST & AFRICA (EMEA)
The MPA operates 31 anti-piracy programs in this region.
Traditional video piracy remains the major problem in the region despite increased seizures of pirated optical discs and the rapid spread of pirate activities on the Internet.
Turkey now faces the largest pirate VCD problem in Europe. The problem has moved from one of exclusively imported products to a situation where pirate VCDs are also being produced in-country. Turkey's legislation, enforcement mechanisms and court system are inadequate to curb pervasive piracy. To compound matters, a general amnesty in April, 2000, nullified all 174 criminal cases that had been initiated against pirates following pre-April 1999 raids.
On the policy level, the European Parliament is undertaking an important examination of new threats to the legitimate audiovisual sector including optical disc piracy and Internet piracy. The MPA looks forward to expeditious action by the EU on providing the necessary framework to fight piracy in these new forms. In addition, the MPA continues to fight for speedy ratification and implementation of the WIPO treaties and TRIPs standards.
Internet piracy is currently most notable in Germany, while "Smartcard" and "black boxes" present acute problems for the legitimate cable industries in the UK and other parts of Europe.
In addition, despite recent progress, Russia continues to have one of the worst piracy situations in the world. In 2000, the Russian Anti-Piracy Organization seized over 655,000 pirate videocassettes and over 171,000 pirate CD-ROMs containing films in MPEG4 format. These seizures point to sophisticated organized criminal groups controlling the duplication and distribution of pirate product. Russia has continued to do little to address wholly inadequate criminal enforcement against copyright infringers.
The Middle East has traditionally been plagued by inadequate sentencing for copyright violations. However, the MPA has noticed that some Middle Eastern Governments have been taking such violations more seriously.
LATIN AMERICA
The MPA operates anti-piracy programs in 14 countries in Latin America. Video piracy continues to be the main source of piracy in this region. In many countries piracy is linked to organized crime units, thus complicating piracy investigations and enforcement.
Brazil, the largest market in the region, also has one of the highest piracy rates, with piracy losses topping $120 million in 1999. It is the position of the MPA that the Brazilian Government has, to date, demonstrated inadequate commitment and attention towards protection of Intellectual Property rights.
Signal theft is common in many Latin American territories, while Internet piracy has not yet posed a real threat due to lack of bandwidth in the region.