Piracy ; the veiled parasite of the entertainment world.
Untold losses suffered by government and industry
Pirates and counterfeiters around the world are stealing intellectual property on a scale never seen before – unleashing a flood of fake goods onto global markets that threaten many legitimate jobs around world that depend on the competitiveness of innovative industries.
By conservative estimate, pirated and counterfeit products account for seven percent of global trade, with annual losses to legitimate rights holders running into the billions of dollars. A wide array of goods are now routinely knocked-off around the world from familiar items like CDs. DVDs, watches, textile designs, processed foods, consumer products, cosmetics, car parts and even entire automobiles. Trade in infringing goods is significantly harming American companies large and small and fake drugs and defective vehicle parts put public health and safety at risk.
Though not alone, China has emerged as a leading source of Pirated and Counterfeit products. The criminal syndicates that increasingly control the international distribution and sale of fakes are exploiting the failure or inability of China and other countries to effectively enforce intellectual property rights. The arrival of the internet has given enterprising individuals and companies overseas the means to download and steal leading corporate brand names, logos and identities from legitimate owners in the United States and other countries.
The problem here in India is no less which is the third largest Piracy market in the world. The world’s biggest Entertainment industry has been for long suffering from disease which it can do little about. The prevailing problem of audio and video piracy where on one hand is a boom to consumers is proving to be hidden worm sucking the blood of the government and the entertainment industry alike. Where the consumers enjoy the benefits of availing the latest products at less than half or even one third the market price, the dwindling official sales of creative work tell the pathetic story of avoidable commercial losses and gross infringement of IPR (Intellectual Property Rights).
The scourge of piracy is a combination of cheap access and exploitation of technology and an absence of conscience, sensitivity and morals towards manipulating works of other people for purely selfish gains. What is affected in the process is the taxation system to an extent which in turn affects the economy, the will to respect original work and an escape to cheaper ways of watching and using products built on the distorted and much maligned principle of illegal duplication. Yet, the stalwarts of creative work, the film and the music industry along with the government and the police have done little to control the ever growing fangs of this poisonous serpent.
On the contrary they have encouraged piracy by turning a blind eye to this apparently clandestine phenomenon. And pirates along with the common people stand to gain by distributing and consuming products meant for mass consumption.
It is estimated that millions of dollars are being lost in audio-video piracy in India. It is reported that titles that are released both in India and the U.S. have pirated DVDs and VCDs available in the Indian market within a few days. Indian Film Producers have at times been knocking at the door of the judiciary / administration to issue a notification even before release of their films to avert pirating of their products. Foreign producers are reluctant to release their films in India simultaneously with their other overseas releases due to the fear of losing substantial revenue. Indian enforcement authorities have begun to collaborate with overseas authorities to conduct search and seizures abroad to prevent the pirating of Indian Since the global economy is converging. It is imperative that India also conforms to international norms to protect intellectual property rights.
The law too has not been oblivious to this. The Copyright Act; 1957 was a bailable offence and this law an increase in piracy which invoked the producers to appeal to the government to stop this. To curb the hazard and in an effort to impose formidable legal checks, the Copyright Act. 1957 was amended in October . 1984 and has become a non-bailable offence with a minimum of 6 months of imprisonment and Rs. 50, 000/00 fine and a maximum of thee years imprisonment and Rs. 2 lakhs fine.
It is officially estimated that in 1984, the estimated loss to the entertainment industry due to audio-video piracy (95% ) was Rs.1000 crore per annum while at present it is risen to an astronomical Rs. 5000 crore per annum. Anti-Piracy & Trade Mark Investigation Bureau (a p I b) estimates that piracy has increased from 80% in 2000 to 95% at present.
While the success at the Box Office depends largely on the quality and the strength of the film, hall owners say that it is the jingles at the ticket counters In the cinema halls that ultimately determine the success of a film. Earlier an average movie used to run full house at least for four weeks, but today the u crowd thins out by the second week itself as the pirated VCDs and DVDs are out by the second or third day.
After much lobbying by film Stars and the Producers both the Central and the State like Tamil Nadu have already passed an order to book Video pirates and persons caught for piracy under the draconian “Goonda Act”.
In Andhra Pradesh, the Film Chamber of Commerce has constituted a Anti video piracy cell with the help of retired Police Officers to tackle the menace whereas in Mumbai too there is Social Service Branch (CB-CID) of Mumbai Police which has been establish to curb Video Piracy but it has been largely ineffective.
Piracy is either done by making multiple copies from DVDs or by capturing the entire film in Cinema halls with the help of video camera, which are called “camera prints”. While the former makes its way from almost all over India, the latter normally comes in bulks from small places from U.P. and Bihar where the check on the halls are minimal. The final good quality prints come from overseas. For instance, a camera print of “Garam Masala” and “Shaadi No.1” were caught being duplicated at “Star city” theatre at Ghaziabad and was then circulated all over India. These kinds of tendencies affect the Producer
Distributor and Exhibitor alike but since the Producer is the Copyright Owner of the product. He should chiefly take the onus and the responsibility of its Copyright protection. But it is often noted that the producer after selling his film to the distributor absolves himself of all responsibility since the deal is already done, ignoring the fact that he too is deeply affected in the process.
Largely due to the illegal involvement of the police who is engaged in “Hafta Vasool” (protection money) the anti-piracy officials are discouraged. This is because, firstly the anti-piracy officials and investigation agencies are not paid for their efforts to crack open the centre of these unofficial activities. Secondly, because the police due to their own vested interests inform the pirates before the raid are conducted. This facilitates the menace to continue unchecked mostly cutting the revenues of the producers entertainment industry as a whole and also causing a substantial revenue loss to the government.
In the past few years, diligent officers like Mr. CHANDRA MOHAN RAO who is keenly involved in Anti-Piracy activities in Mumbai, have conducted extensive raids all over India and have been successful in seizing property and equipment worth crores but due to a combination of reasons, the tendency of piracy goes unabated.
Mr. Rao says-‘There have been occasions when the Film Producers Association have given money to some anti-piracy officials belonging to their group to curb these activities but unfortunately a part of this revenue has been given to people conducting piracy to stop it. Often, this lasts just for a week or so after which it is back to its normal course of business not solving the problem at all. The complex involvement of the police force has also aggravated the problem who earns an average estimated monthly of Rs. 15000 to Rs. 25000 from Video Theatres. It is not only the unlicensed video theatres which have to pay the police but also the Licensed Video Theatre owners pay the Police to save themselves from unnecessary harassment and questioning.
There is a strong reason behind this. The Maharashtra government issue approximately 100 for Video Theatres whereas there are over 500 hundred Video Theatres in alone. The unlicensed video theatres pay regularly to the police in order to remain in Business as procuring a license takes an investment of Rs. 2 lakh to Rs. 2.5 lakh, a cost which is normally needed to procure an NOC. To obtain an NOC, One has to go through bribing several departments such as PWD, BMC, ELECTRICAL DEPT; FIRE BRIGADE, TRAFFIC POLICE Etc;. So, normally, to avoid this humdrum, they are willing to pay the police as that is the most convenient method to carry on business unhindered apart as Video Copyright license fee. The tickets to these video theatres are measly sum of Rs. 5 to Rs.15 and most of them manage families who depend on them for their livelihood.
Like the BAN on dance bars, these Video Theatres should be either completely shut down or entirely legalized with the police receiving strict instructions not to receive Hafta as that is compounding the problem to a large extent. A cleanliness drive can not function unless complete co-operation is meted out by the police and the administration alike to prevent unnoticed but huge revenue losses to the government. It is to noted however, that in January 1989, there has been a red-handed seizure of 100 VCRs worth Rs. 27 lakhs by Dadar Police Station. Similarly in Feb. 11990 365 VCRs worth crores were seized by Goregaon Police Station. These raids were conducted by senior officer Mr. Chandra Mohan Rao but the case was settled outside the precincts of the judiciary by Video Right Holders.
It is estimated on a daily basis in Mumbai alone, more than 1lakh CDs, VCDs, DVDs, MP3 and software CDs are hawked amounting to a turnover of Rs. 1 crore daily under the nose of the police. If this is calculated on a yearly basis, that can be mammoth sum and therefore a loss to the government and the industry. What if this is calculated on the basis of the whole country? Not only this to make the situation hopeless there have been thousand of cases since 1984 and till date there has been not even from paying the entertainment tax as well a single conviction to punish this offence despite the presence of such a stringent amendment law regarding piracy.
Therefore, it is imperative on Dy. Chief Minister Mr. R, R.Patil and Home Minister of Maharashtra and Mumbai Police Commissioner Mr. A.N.Roy to look into the matter and take urgent and decisive steps to curb these poisonous malpractices for the betterment of society as a whole. The government should not only ban the process of piracy but also the viewing of pirated material with severe punishment. This would improve the matter considerably, discouraging the sale of pirated material and would lend due protection to the intellectual property rights of material which are currently being sold and viewed cheaply.
On the whole, if piracy checked by bringing in stringent measures both by the government and industry, substantial vice and corruption can be suitable contained. And above all due and just regard can be given to associations, industry and individuals for their efforts to create the products.
By- Akbar Husain.
Chandra Mohan Rao
Anti-Piracy & Trade Mark investigation Bureau
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