MOTION PICTURE DIST. ASSOCIATION (India) Pvt Ltd

Anyone who sells, acquires copies or distributes copyrighted materials without permission is called a pirate. Downloading a movie without paying for it is no different than walking into a store and stealing a DVD off the shelf. Motion Picture Piracy is committed in many ways, including via the Internet through downloadable files, selling pirated DVDs on the street or capturing and redistributing live broadcasts or performances without a license on the Internet. Downloading movies and music without the authorization of copyright holders is a growing international problem that presents serious challenges for the movie industry and has serious legal consequences.

People often download movies on the Internet because they believe they are anonymous and will not be held responsible for their actions. They are wrong. The illegal downloading and swapping of movie files is a serious crime. Pirates and their affiliates can and will be tracked for engaging in Internet piracy.

Internet piracy is the downloading or distribution of unauthorized copies of intellectual property such as movies, television, music, games and software programs via the Internet. Illegal downloads occur in many forms including file sharing networks, pirate servers, websites and hacked computers. Each file posted on the Internet can result in millions of downloads. Hard goods pirates also use the Internet to sell illegally duplicated DVDs through auctions and websites..

Downloading a movie off of the Internet is the same as taking a DVD off a store shelf without paying for it. Making movies is an expensive business, and it is a risky business because of the potential low rate of return on investment. When large number of people “consumes” movies without paying, these so-called “free riders” undermine the financial base of movie making. While free riders are even more harmful to developing movie companies seeking a sound financial footing in the marketplace, they threaten major movie studios as well. If millions of people continue to steal movies, the result will be that the movie companies, both large and small, will be unable to produce quality content.

At the moment, movie piracy in India is dominated by piracy of optical discs — DVDs and VCDs. Tens of millions of pirate optical discs are identified every year, but many, many more slip through the net and are distributed throughout the India.

However, the biggest threat to the movie industry today is not from illegal DVD factories, but from peer-to-peer file sharing, which allows copyrighted content to be distributed around the globe instantaneously without any compensation to the artists and producers of such content. MPA research shows that piracy cost the film industry in Asia-Pacific $5.5 billion in 2005. Of those losses, $1.8 billion is estimated to have been the result of Internet piracy. These are big numbers, and they are numbers that hurt everyone. The economic and social impact of IP theft is enormous and will have even greater, long-term implications if not brought under control.

The MPA embraces the Internet for providing innovation, new applications, channels and distribution, and is working to address new threats to content protection that unfortunately accompany the Internet.

Once a camcorded copy is made, illegal movies often appear online within hours or days of a movie premiere. Pirates sell these "master recordings" to illicit "source labs" where they are illegally duplicated, packaged and prepared for sale on the black market, then distributed to bootleg "dealers" across the country and overseas. Consequently, the film appears in street markets around the world just days after the US theatrical release and well before its international debut.

Optical disc piracy is the illegal manufacturing, sale, distribution or trading of copies of motion pictures in digital disc formats including DVD, DVD-R, CD, CD-R and VCD. These illegal hard goods are sold on websites, online auction sites, via e-mail solicitation and by street vendors and flea markets around the world. Much like downloadable media, the pirated motion pictures in hard goods format are typically poor quality video camera recordings.

While the majority of pirated optical disc products seized by law enforcement worldwide are made on advanced commercial replication lines, the low cost of disc burning hardware and blank discs has led to the proliferation of DVD-R and CD-R burner labs.

Theft of an actual film print (35 or 16 mm) 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 videocassettes.

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 supplied consumers with illegal 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.

Like signal theft, broadcast piracy is piracy involving over-the-air broadcasts. However, instead of stealing signals, the illegal act may be the on-air broadcasting of films or television programs without permission from the copyright holder.

Unauthorized public performances include 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 describes the importation of goods authorized for manufacture or distribution in the exporting country but imported without authority of the copyright or trademark owner. (Parallel Importation may or may not be lawful under local laws).

Illegal copies are sometimes made from legitimate advance copies used for screening and marketing purposes.

Illegal motion picture and television piracy is a thriving international enterprise. The Motion Picture Association (MPA) estimates that its member companies lose approximately US$1.2 billion each year in potential revenue in the Asia-Pacific region alone, and US$6.1 billion globally. In many countries, MPA member company losses are far outstripped by production, theatrical exhibition, home video distribution losses to local industry, as well as losses to governments in uncollected tax revenues. Consumer spending losses on filmed entertainment worldwide are estimated at US$18.2 billion.

In 2007, the MPA’s operations in the Asia-Pacific region investigated more than 36,200 cases of piracy and assisted law enforcement officials in conducting nearly 13,000 raids. These activities resulted in the seizure of more than 31 million illegal optical discs, 40 factory optical disc production lines and 6,400 optical disc burners, as well as the initiation of more than 10,000 legal actions.

In 2007, the average cost to make and market a major studio movie in the United States was $104 million (plus millions more to market internationally). Six out of ten movies never recoup their original investment. Fewer movies will be made and fewer creative risks will be taken if piracy continues to rob those who invest in movies.

For consumers to continue to experience the variety and quality of movies they expect, piracy must be controlled. The entertainment industry recognizes the potential of technology to deliver content in new and exciting ways. However, the looming threat of piracy can thwart innovation.

Whether you’re a consumer, a parent, or an educator, there are many positive, proactive ways to deal with the problem of piracy.

Enforcement efforts, combined with speedy resolution of copyright infringement cases in the court system, are essential components of our broad approach to eliminating piracy. Among the current measures to mitigate the level of illegal camcording activity are:

Investing in Security: Major movie studios are spending substantial amounts of money to upgrade movie print security across the country and have retained security companies to conduct routine bag examinations and handheld metal detector inspections at pre-theatrical screenings. Warning signs are also posted prohibiting camcording and alerting audiences that they might be observed by guards using night-vision monocular, or other methods.

Along with informing consumers that camcorder copies of movies are often illegally sold online by pirates, the MPAA is working with the National Association of Theatre Owners (NATO) to train the staff of their member theatre companies about how to identify and report suspicious behaviour. This is just one example of a history of collaboration and partnership with NATO, who supported the wide release of the anti-piracy trailers that were shown in thousands of theatres around the country in 2004.