PIRACY PROBLEM MOUNTING—IIPA REPORT
International Intellectual Property Alliance (IIPA) released report Fri. on continuing piracy plague, saying problem accounted for $8.3 billion in losses in 2001 in 51 countries surveyed. Interactive Digital Software Assn. (IDSA), one of IIPA’s members, said American game publishers continued to lose billions of dollars each year due to rampant piracy of their products. IDSA joined other members of Washington-based IIPA in recommending that govt. single out more than 50 countries for their failure to adequately protect intellectual property rights in accord with international obligations.
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IDSA Pres. Douglas Lowenstein said: “The worldwide growth of the U.S. game software industry is especially remarkable when you consider that it has largely occurred in only 4 markets: North America, Western Europe, Australia/New Zealand and Japan. But there are at least 100 other countries around the globe where there is virtually no legitimate market for our products due to rampant piracy. It is no exaggeration to say that the growth of the U.S. videogame business is limitless if we can reduce piracy in these untapped markets to incidental levels.” IDSA said estimates of losses to piracy in 14 of countries producing most problems, including Mexico, revealed more than $1.9 billion lost to industry due to prevalence of pirate product in those markets: “For example, losses in Korea and China -- where there is a growing popularity of PC and console games and a rapidly expanding hardware base -- combine to total about half of the $1.9 billion.” IDSA said total global losses for entertainment software industry were significantly higher than $1.9 billion, as current study didn’t reflect: Losses incurred in U.S., Canada and Western Europe; those resulting from direct download via Web; or losses in markets where there were no reliable data -- such as many parts of Eastern Europe.
IIPA said that under Special 301 trade law, U.S. Trade Rep. Robert Zoellick can impose trade sanctions following investigation and consultation period. IIPA report details in separate chapters IP legal and enforcement-related deficiencies of more than 50 countries. In addition to IDSA, IIPA represents AFMA (formerly American Film Marketing Assn., Assn. of American Publishers (AAP), Business Software Alliance (BSA), Motion Picture Association of America (MPAA), Recording Industry Assn. of America (RIAA).
As part of IIPA filing with Office of U.S. Trade Representative, MPAA asked that Taiwan remain on “Priority Watch List” for DVD and movie piracy but requested shift for Malaysia from “Priority” to “Watch” because of strong antipiracy measures by govt. there. MPAA said Thailand’s “Watch List” status should be reviewed at midyear for progress against counterfeiting. Assn. said 3 countries were among biggest exporters of pirated DVDs. MPAA also requested “Priority Watch” status for Lebanon due to govt.’s inaction against cable piracy.