POINTS FOR MEETING WITH THE NEW I & B MINISTER Received from Film Producers Guild of India

Piracy  law are in place but lack implementation

a.     Cable Network is a haven for pirates


b.     Cable Network licensing policy has to be addressed



CD/DVD duplication or replication plants must declare their production capacities. From their production reports you will find that the production not even 30 per cent of the declared capacity. The undeclared production constitutes piracy. Their balance sheets will indicate that.


Video Parlors are another area, which should be looked into. We have repeatedly represented to the Government on this menace, which is showing movies without procuring any rights. Every time we are told that they are all licensed by the state governments. The industry should not be allowed to suffer with this arrangement between Center and the States. Video Parlors will show only legally procured movies should be the condition of the License.


Example: a licensed liquor shop cannot sell illegal liquor; if they do they will be punished as per the law.


There is Excise on Music CDs when there is not such tax on Computer Software CDs. How can a legal copyright owner of the music compete pirates with the tax structure? Pirates neither pay taxes nor rightful royalty to the owner. Because of this rampant piracy the music business is totally dead.


Rationalization of Entertainment Tax  Industry suffers through the argument given to us It is a State matter. Industry needs to have a fair environment to conduct its business and worry about the mechanics of how the Government at the center or state is related. The spirit of laws is defeated with such arguments. Government should build bridges not walls.

Import Duties on Actual User Equipment: Enable the industry to compete the World Market. The entertainment industry around the western world is looking at us to use our talent and take advantage of the competitive price structure we can offer in the fields of animation, computer graphics, and special effects. New Zealand has attracted major production houses from the world to come and work there for their postproduction work because they were able to put the infrastructure in place.


Consultative Committee of I & B Ministry: To guide and advise the Ministers, Consultative Committee are set up under various ministries. At present, no such consultative committee has been set up under the I & B Ministry. It should be set up immediately to enable the ministry to examine the various issues concerning the film industry.


Cine Workers Welfare Cess: Each producer of Hindi films is required to pay Rs.20,000/- and the Regional Producers Rs.10,000/- towards Cine Workers Welfare Cess, at the time of censoring the film. When the Cess was introduced, the Cess rate was Rs.1,000/- and the same was increased to Rs.2,000/- in 1994. This exorbitant increase in the rate of Cess has added burden to the film producers who are already confronted with too many problems. The matter may, therefore, be taken up with the Union Labour Ministry to withdraw the Cess.

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