Canada’s Lag on WIPO Stands out on Antipiracy Watch List

House Caucus Co-Chmn. Schiff (D-Cal.) and Goodlatte (R- Va.) planned Thurs. to introduce a resolution pushing foreign govts. to “lead by example,” Goodlatte told a watchlist announcement event. That means ending complicity in piracy through govts.’ use of unlicensed software, and even production of pirate copies in state-owned facilities, as well as imposing govt. computer and network use policies, and publicizing the message that piracy is wrong.

Piracy is “nothing less than high-tech shoplifting,” whether it involves street sales of CDs or uploading, said Schiff. And data on piracy still mostly exclude the cost of outlaw Internet activity, he said. The caucus effort is “critical to keeping the pressure on” problem countries, MPAA Chmn. Dan Glickman said, urging that IPR advocates focus on shaming China into compliance before the 2008 Beijing Olympics. The Chinese don’t want a “constant bombardment of destructive press” during the Olympics, he said. RIAA Chmn. Mitch Bainwol said RIAA is “doing lots in the area of self- help” stateside but needs Congress’s help in global efforts. Assn. of American Publishers Pres. Pat Schroeder gestured as she joked: “We worship at your feet.”

Canada should amend its laws to comply with WIPO by granting “clear rights to protect online transmissions,” encourage “effective assistance” by ISPs in identifying file- sharers, improve border control and stiffen penalties, such as criminalizing camcording, Goodlatte said. Federal and state bans in the U.S. have sent camcording operations north of the border, Glickman said. “Parliamentary process is complicated,” he said, explaining Canada’s glacial advance toward a camcording ban. Glickman added that progress was being made with Canadian authorities.

Don’t let Russia into the WTO unless it shows “concrete actions” to protect IPR, Goodlatte said to a chorus of agreement. He called corruption “the crux of the problem” in Russia. He cited a meeting with Russia’s patent chief, who was frustrated over govt. interference in its system, modeled on the U.S.’s. Schiff said a staffer had verified Thurs. that dirt-cheap Russian download store AllofMP3.com remained online. It’s “another day that Russia has failed to live up to their promises,” he said, alluding to the U.S.-Russia trade agreement identifying AllofMP3.com as an infringing website (WID Nov 21 p6). The film Blades of Glory was being sold on Moscow streets 48 days before its release there, he added. Russian criminal groups increasingly use botnet- driven spam to sell software to unwitting consumers who don’t realize the product is counterfeit, said Business Software Alliance Pres. Robert Holleyman.

China is improving -- unsteadily, speakers said. Piracy is an “epidemic” there and punishments a “slap on the wrist,” but the govt. is promoting licensed software use on govt. computers, Goodlatte said. “China has the opportunity to be a success story” at a time 35% of software is infringed around the world, Holleyman said, noting a 10-point drop in China’s piracy rate since 2003. IT jobs there have increased 300,000 in that time, showing the link between IPR and economic growth, he said. But Schroeder, like Glickman a former member of Congress, was less charitable. China has “absolutely no compunction” about copying U.S. publishers’ works, she said.

Malaysia is a “leading source” of pirate PC and console games, said Steven Mitchell, Entertainment Software Assn. vp- IP policy. Goodlatte said licensed and unlicensed factories there crank out pirate copies. Despite “efforts by Mexican authorities,” piracy dominates ESA’s market in their country, Mitchell said. The caucus wants Mexico to improve state and local judicial training and enforcement, pay for educational efforts by the nation’s attorney general and cancel commercial licenses for facilities found to have been used in piracy. The videogame industry fuels the larger tech economy, with $6 billion spent on broadband, HDTV sets and other technologies enabling gaming, Mitchell said.

Of the copyright industry trade groups, only MPAA has Internet piracy data. Its latest study, for 2005, blamed Internet piracy for $2.3 billion of $6.1 billion in U.S. studio losses and $7 billion of $18.2 billion of world losses (WID May 5/06 p13). Holleyman called Internet piracy the fastest growing aspect of illicit software, though piracy of physical media still predominates. AAP will publish figures, probably next year, on book and text piracy using the Internet, Schroeder said, calling online pirate operations “late to come to books.” Bainwol sees scant distinction between physical and Internet piracy for music, because street-sold hard discs are often burned from illicit downloads, he said.

In regard to blowback from the WTO case against China, Glickman said MPAA is on the lookout. With senior Chinese ministers coming to the U.S. next week for talks, the case may come up informally, he said: “We're watching to see if there’s any short-term retaliation” from China. The political approach to getting countries to get serious about IPR is a complement to low-level talks, Goodlatte said, calling it “carrot & stick.”