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While addressing the gathering, Motion Picture Association
International VP Mike Ellis said, "Moviemaking is an
inherently risky business. Contrary to popular belief that
moviemaking (for our members) 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."
Ellis pointed out that the industry lost US $3.5 billion
last year and added that the Indian audio visual market lost
$75 million. He also mentioned that 87 per cent of DVD s seized
came from Asia. He said that the piracy level in India is
at 60 per cent. This is a marginal increase from the 55 per
cent a couple of years ago.
Blasting the pirates, Ellis further said: "These pirates,
literally, are nothing but organised crime syndicates. They
are opportunists who look for easy money and also risk friendly.
Consider the example of a submerged tank which was used to
smuggle 70,000 VCDs from one port to another."
Other countries also face similar problems. Malaysia has
a major problem with syndicates rapidly replicating. Government
officials receive repeated death threats. "As far as
tackling the menace is concerned, containment is the number
one priority so that it doesn’t spill beyond all control.
In countries where we have government support and effective
enforcement like Hong Kong, we are starting to see progress
in containing the problem," Ellis said.
The second priority is reduction, which requires a multifaceted
approach that requires an effective prosecution and expedient
judicial process. Ellis however pointed out that this method
is completely lacking in India. "It takes 13 years to
get a result. There is need for education in India that everyone
loses when piracy flourishes," Ellis added.
Ellis pointed out that a DVD reward targeting source scheme
had been launched a few days ago. He stressed that the Indian
copyright law needed to be amended.
Another point that several other speakers made was that the
punishment should be a strong deterrent. Ellis gave the example
of the break point theory that was developed in Hong Kong
whereby 50 raids were conducted everyday for several years
in the city. In 1997 there were 1000 pirate shops. Today there
are around 100.
In fact the project was so successful that the number of
daily raids conducted has dropped to 35. Calculations were
made as to how many times to raid a pirate and this would
depend on factors such as the size of his business, value
of his rental.
"The aim is to increase the pirates cost of doing the
business to the level where the legitimate product can break
in. After all if you don’t protect what you own you own nothing,"
Ellis said.
Amarchand Mangaldas managing partner Pallavi Shroff gave
some stark facts and figures about how the pirates are responsible
for the rot setting in at the core of the entertainment industry.
She provided the following statistics: "The film industry
lost Rs 10 billion last year while the music business suffered
to the tune of Rs 7 billion. In 1997, 947 cases were registered
for music. In 2002, the number dropped to 578. Of these only
191 cases ended in conviction."
Shroff also mentioned that Napster started the problem of
online piracy with Peer to Peer file transfers. It was found
guilty of both contribution infringement as well as vicarious
infringement. The last one should be introduced in our country,
she advocated.
Shroff further went on to add that KAZAA and Morpheus have
created an even larger problem through their system of total
anarchy. This means that a system is created that is so complicated
that one cannot control it. It was pointed out that KAZAA
was let off the hook on grounds that it did not know the illegal
activities being conducted.
Shroff offered a solution by saying that a piracy fund should
to be set up. She urged FICCI to think along those lines.
Also technologists should work on anti piracy software although
it was also pointed out by another speaker that as soon as
this happens another software is developed to break the code.
Shroff stated that the industry should take the initiative
on its own to persistently track down internet infringers
and make sure they are prosecuted.
Another speaker Pravin Anand pointed out that through KAZAA
and Morpheus 400,000 movies are downloaded a day. "Today,
it takes 40 minutes but we are not far way from the time when
it will take 40 seconds," he warned.
One of the remedies Anand suggested was for statutory damages
to be introduced in India. In the US, the amount is between
US$ 50 - US$ 30,000 per infringement. If it is found to be
willful then the amount can go up to US $150,000.
Another solution lies in the three layered technological
sandwich. The first layer is a law the second layer is a lock
like CDROM keys and the third layer is law, which says that
breaking the lock is a punishable offense. One issue Anand
mentioned which was still in the air was that Hollywood wanted
software makers to include anti piracy technology on a mandatory
basis. However Microsoft and Intel refused as the cost of
software would increase
" Also, I feel that it is imperative that a copyright
infringement be made non-bailable. The burden of proof must
be shifted onto the accused. The judicial process should be
swift as it was found through research that the biggest fear
a pirate has is going to jail. Unfortunately, this fear exists
largely in the mind due to the negligible conviction rate,"
Anand added.
Anand drew attention to the fact that Ten Sports raised
a big hue and cry in June 2002 when the signals for the soccer
World Cup were stolen by unscrupulous operators. The Delhi
High Court passed the John Doe order. This enabled the police
the enter the premises of an operator where they were suspicious
of wrong doing. A recording of the telecast was made as proof.
Federation of Film Producers' Association (FIAPF) director
general Valerie Lepine-Karnik said that public authorities
in most countries were lackadaisical in tackling the problem.
It is not high on their agenda. "Legislations like Trade
related aspects of intellectual property (Trips) agreement
are not enforced with the hoped for efficiency degree. There
are different types of digital piracy. You can have the flea
market in cyberspace. These are hard good sales on the net.
Then there is downloading, streaming,. Now DVD circumvention
tools are available which is DeCSS. This enables one to duplicate
the disc," Lepine-Karnik added.
"Another problem being faced is that there are rapid
strides being made in the area of compression technology,"
Lepine-Karnik added. One solution she gave was for companies
to offer Internet business solutions. This refers to legitimate
services which are already being provided by the likes of
sightsound, ifilm, movielink.
In terms of laws for Europe Lepine-Karnik mentioned that
the European Copyright Directive had been adopted in June
2002. There is also a proposal for an Enforcement European
Directive to strengthen the fight against piracy!
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