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[10 Jun 2004]
WASHINGTON (AFP)
Pakistan, Brazil and other countries were also cited as culprits in the spread of counterfeit and pirated movies and music, at a hearing before the Senate Foreign Relations Committee.
The hearing by the high-profile panel marked a sign of growing concern in Washington over piracy of music, films and other creative works, which some say costs tens of billions of dollars to US industries.
"The spread of theft of America's creative works flows like a swiftly running river in every nook and cranny of this planet," Jack Valenti, president of the Motion Picture Association of America, told the panel.
Valenti cited China and Russia, "where the problems are large and growing at an alarming rate" and where "organized criminal groups play a large role in the replication and distribution of pirated DVDs."
In both countries, "the piracy problems are spilling out beyond their borders to infect markets all around the world," Valenti told the panel.
"We also have serious piracy problems in Brazil, Pakistan, Malaysia, Taiwan and Thailand, as well as many other countries," Valenti added.
Valenti said the piracy issue is especially vexing in China, because the US entertainment industry is often barred from selling legitimate works there.
Valenti said that in 1998, the average US film distributed to Chinese cinemas on a revenue-sharing basis earned 1.9 million dollars for the US company, but by 2002 that amount had fallen to 500,000 dollars.
"In 2003, the pirates captured at least 95 percent of (the Chinese) market," he said. "The current level of piracy is worse than it has been at any time since 1995, when the rate was 100 percent."
Mitch Bainwol, chairman and chief executive of the Recording Industry Association of America, said that although dozens of countries have had music piracy problems, "four countries -- Russia, China, Brazil and Pakistan -- stand out."
Bainwol said that Russia "is the world's largest exporter of pirate CDs" and that these "are causing serious damage to the legitimate market for recorded music worldwide."
He said pirated Russian CDs have been found in more than 26 countries, and that its criminal enforcement system "has failed to stem persistent commercial piracy."
Bainwol said that Pakistan, like Russia, produces illegally copied CDs in factories and exports them worldwide. They produced 180 million discs last year, he said.
"Our industry lost 70 million dollars to piracy in Pakistan in 2003, and suffered a 100 percent piracy rate," he stated.
Valenti meanwhile said that Brazil "is beset with piracy" with one out of every three tapes or DVDs pirated.
"Our member companies lose an estimated 120 million dollars every year in Brazil to piracy," Valenti said.
"Street market sales of locally 'burned' recordable DVDs and low quality recordable CDs are ubiquitous, and Internet sales of pirated optical discs are also increasing rapidly. While Brazil has good copyright laws, their enforcement is abysmal."
Committee chairman Senator Richard Lugar said piracy is growing despite various treaties and protection under the World Trade Organization.
"Although intellectual property piracy occurs in numerous countries, the records of four nations are particularly troubling. Piracy is rampant in China, Russia, Brazil and Pakistan," Lugar said.
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