Another DVD Piracy Ring Busted

Another counterfeit DVD shop was busted in Canada. In Mississauga, ON, just 30 minutes west of Toronto, Ontario police seized more than 75,000 illegal copies of recent hit movies, including Michael Moore’s Sicko, and The Simpsons Movie. Reports indicate that this operation, which was filmed by CBC News hidden camera, managed to create and sell copies of The Simpsons Movie a mere 14 hours after it hit theatres! As for profit, although undoubtedly healthy for those involved, this wasn’t at the expense of a consumer’s deep pockets: the discs sold for just $4 a piece!

In February of this year, the International Intellectual Property Alliance (IIPA) pegged Canada as a leading manufacturer and exporter of bootlegged movies such as those just seized, and illegal devices that facilitate pirated activity, like “modification chips” used to allow counterfeit games to be played on videogame consoles. In fact, the IIPA said that the issue of unauthorized camcording in Canada (where someone secretly films a movie in the theatre, then creates copied discs of said recording) is nearing “crisis” levels: in 2006, 20-25 per cent of pirated DVDs discovered were sourced back to Canada!

According to CBC News, the recently squashed Mississauga, ON operation had produced likely close to $21 million worth of blockbuster movies. What’s baffling is that many of the store’s “regular” customers had no problem providing their names and phone numbers for the company files; and some even stopped by as the accused were being arrested, and asked when the store would re-open! Canadians either don’t understand that counterfeit DVDs are illegal; or they simply don’t care.

It will be interesting to hear what the IIPA and the Canadian Anti-Counterfeiting Network (CACN) have to say about this: in May 2007, the CACN set out an action plan for the government to address problems relating to counterfeiting and piracy. This incident is sure to add fuel to its fire.

Former Head of Allofmp3.com Acquitted

The head of former Russian music download Website www.allofmp3.com was acquitted of charges filed against him by several music companies that claimed the site was selling their music without consent.

Other sources report that, in addition to offering tracks without permission from the music labels, allofmp3 was also undercutting the pricing of other “legitimate” services. Apparently a “legal loophole” led to Denis Kvasov’s acquittal. This loophole has since been revised, albeit after Kvasov’s tenure with the company, thus leaving the Website’s former head foot loose and fancy free.

The current head of allofmp3’s parent company, Mediaservices, says that the site did in fact pay royalties to a Russian licensing group for the digital tracks it sold. However, the record companies in question say that the licensing group itself does not have permission to distribute their tracks, nor collect royalties on them.

In this case, should allofmp3 be penalized, or the Russian licensing group? If allofmp3 claims ignorance to the licensing group’s alleged unauthorized practices, then can it really be blamed? There are currently two additional cases pending against allofmp3.

It appears that Russia has a bad rap for piracy in general. In February, the International Intellectual Property Alliance (IIPA) pegged Russia and China as its main concerns in relation to piracy.

“While there have been developments in both these key markets over the year, the bottom line is that piracy levels have not come down at all or only marginally, and some problems have grown worse,” noted Eric H. Smith of IIPA at that time.

The IIPA says that piracy rates for some sectors in Russia are estimated at over 70 per cent. Before you drop your jaw in shock, keep in mind that the IIPA also has its eye on Canada, having labeled our home and native land a growing piracy concern.

Canadians Are Pirates

Today, the Canadian Anti-Counterfeiting Network (wait, we have one of those?) presented a study to the governmental powers-that-be that outlines a proposed plan to combat piracy in Canada. Will it work?

For anyone who thinks piracy here is small in comparison to other countries, think again. We're actually behind many developing countries (yes, you read that right) in instituting proper measures that would prevent the prevalence of everything from fake copies of the latest film release, to bogus, "cracked" software applications.

In fact, the International Intellectual Property Alliance (IIPA) says that Canada is the leading manufacturer and exporter of bootlegged movies and illegal devices that facilitate pirated activity, like “modification chips” used to allow counterfeit games to be played on videogame consoles. Apparently we're also the place to go for content if you want to make pirated reproductions of movies (via concealed camcorders in movie theatres, for example). The IIPA sourced back 20-25 per cent of pirated DVDs to Canada! Who ever said Canada wasn't tops in anything?

All joking aside, piracy is a serious issue. For every person that buys a pirated DVD or piece of software, that's one less legitimate copy that gets sold. This means profits are down for everyone involved and, in some cases, can result in the loss of jobs. Many sources, including the RCMP, estimate economy losses related to piracy to be in the billions of dollars.

Yet despite this knowledge, people continue to grab DVDs from some hole-in-the-wall store. Why? Because they're 5 for $20, that's why. Who cares if the cover of the DVD is a photocopy of the actual DVD jacket? Or if Russian subtitles run across the bottom of the screen? Or I have to watch some guy’s silhouette in the theatre as he gets up for a bathroom break during the flick? There are many who wouldn’t even think of watching such horrible-quality recordings, but judging from the number of pirated movies circulating in the country, it's safe to assume there are just as many who would.

So how do we stop these "thieves" from perpetrating again? Should manufacturers spend less on the quality of their products and more on bringing the costs at retail down? Probably not. Whether the problem is high prices, accessibility, or simply “stickin’ it to the man”, people will continue to buy pirated products as long as they are available. All we can do is take measures to eliminate the people who sell them.

Does this mean hiring more cops, or taking some off the streets (how about those pesky parking cops?) and putting them on a special piracy task force? Do we start fining huge amounts of money for possessing, or selling pirated DVDs? Do we raid shops and throw the culprits in jail for the night to “teach them a lesson?” Call me crazy, but I can't see how shoving over the murderers and drug dealers to make room for the dude selling copies of Spiderman 3 from the back of his truck is the solution.

The CACN proposes, among other things, tougher punishments, more resources dedicated to the issue (including police officers and educational programs), and stricter enforcements at the border. And the CACN cites a survey that says almost half of Canadians would call me crazy, and throw guilty parties in the slammer.

Whatever the solution, piracy is a problem that has only been getting worse in Canada. I don't know anyone who hasn't owned, or at least seen, a pirated copy of something or other: a DVD release of a movie that just came out in theatres; a pirated version of the latest PC software; or an MP3 track downloaded from an illegal, P2P Website. The suggestions CACN proposes are a step in the right direction, but we’re still far off from ridding the country of pirated product.

As a sidenote for those interested: the most “guilty” regions for piracy in Canada include Vancouver and Richmond, British Columbia; Calgary, Alberta; Toronto and Markham, Ontario; and Montreal, Quebec.