Cinematic Piracy in China - Research Paper Example

? Cinematic Piracy in China Cinematic piracy and intellectual property in China Introduction Over the years, China has registered some of the worst records of copyright offenses in the globe. With its increased availability and distribution of counterfeited movies, music and software, its case has become a global concern. Traditional piracy involved making copies of movies and retailing them at much cheaper prices in the Chinese market. The Chinese government failed to intervene into the matter that was causing Chinese movie industries immense losses. By 2000, pirated material consisted of 94 percent of movies retailing in China. By mid 2000, global statistics estimated that China was the leading producer and promoter of counterfeit movies, music, and software in the world. Statistically, at least ninety one percent of China’s desktop computers have pirated origins (Pang, 2004). Sequentially, China registers the highest counterfeiting of entertainment products in a wide range. Moreover, the estimated value of these counterfeit goods lied between nineteen and twenty four billion in 2003. In China, the expertise at which piracy occurs presents a challenge in determining the counterfeit and the genuine intellectual property. In essence, intellectual property is the exclusive right and protection given to creations of the mind against duplication of the idea that is becomes ones asset. This paper will discuss why cinematic piracy has become so widely spread in China and present the alarming statistics at which this trend continues to surfice. Background information on cinematic piracy in China Cinematic piracy involves both the act of production and buying illegal copies (Larkin, 2004). The pirated video compact discs (VCDs) and DVDs enter the distribution channels in China retailing at exceptionally low prices that end up affecting the anticipated profit margins. The sale of these productions is at cheaper prices to which the original film maker may never get a return on their investment. Surprisingly, Hollywood movies appear in fake forms in China streets, before their official launch into theaters. In other cases, the circulation of pirated movies in China begins a few days after the premier entry into theaters. Some cinematic pirates often make use of hand-held video cameras in theaters during a movie premier to capture the entire movie. A camera copy is the name given to the movies produced in this manner. The picture quality is relatively of inferior aspects hence making the product undesirable. Many vendors of these pirated copies dupe the public in to buying them without actually communicating on the quality of the copies. However, the buyers of these products serve as equal accomplices in to this crime because they buy cheaply. These offenders then proceed to make copies in Asia, and in a few days, they gain entry into the market. Other copyright offenders rely on quality screeners in order to produce copies of Hollywood movies. Sometimes the copies come out in a quality that is easily confused with the original. The question that lingers on the minds of many innovators of products is whether China will seize from being an imitator or will it be an innovator by itself. In essence, China has embraced both of these traits in that it is an innovator and pirate of intellectual intelligence. Effects of cinematic piracy On the contrary, piracy may serve as deterrence to much needed innovativeness, but has not been the case for China. This is because China does not protect the right to accrue profits from copyrighted material hence diminishing the urge to create and be innovative (Beam, 2012). The secret lies in the ability to toy with the consumers mind for them into believing that a pirated product is the same as the original product. This is irrespective of the name change and minimal alteration to the original name. Ironically, the market tends to think that the product remains same in terms of quality, but they are not because of their counterfeit nature. Funny enough, market analysts speculate the innovator of the Chinese iPhones as being a pirate because the devise has similar features to that of Steve Jobs iPad and iPhone innovators. In essence, the pirate swindles a lot of money from the imitations the products produced by the copy cat company easily passes as the actual apple products. This trend has led to wide spread cinema piracy that has tremendously affected the cinema market. These ideas include those from music, artistic creations, symbols and designs. Some of the rights to intellectual property include trademarks, trade secrets, copy rights, and patents. Reports indicate that there is minimal understanding and respect for intellectual property. China as a republic offers minimal protection of copyrights making the country’s applications stores market a free and non regulated one. Sequentially, app and software developers find it hard to protect their products from piracy because of the existence of a black and back door market. China becomes a wild and vigorous market where the intelligent survive like the hackers who develop products that enjoy market acceptance and dominance. Ideally, the hackers make modifications to original applications and products in to new products at knock off prices making profitability for the real developers a dream. Efforts by the Chinese government to combat this vice Over the years, Chinas has made significant progress in terms of applying Intellectual property rights that have for a long time received back lashes. The strides made by this republic are in accordance with international IP rights so as to reduce piracy related issues. With the emergence of new forms of digital piracy, China has registered higher rates of cinematic piracy with an increasing population connected to the Internet and sharing files. Moreover, the sale of genuine movie or music has become inhibited because of the pirating culture immensely accepted in China. This has made the penetration of original movies from Hollywood strenuous in acquiring theatrical play in cinema halls across China. Ironically, this vice is seems to be part and parcel of the running of China’s economic operations as it brings substantial amount of revenue to the economy. In essence, the China population shamelessly embraces this practice oblivious of the fact that it brings financial degradation to the original makers of the pirated products. In 2003, China’s sale of licensed movies accounted to at least eighteen percent while the industry was making profits in billions. This gap between the total sales of movies and the total sales of licensed movies and films represents a large percentage of the existing pirated cinematic work. Further statistics indicate that the production capacity is much higher than the sales made presents the gross rate at which China indulges in piracy of intellectual property. In 2005, the profits from copyright piracy were in two hundred billion US dollars. It is worth noting that in 2008, the piracy rate registered a ten percent drop. However, despite the drop, China remains at the top of the vice of piracy globally (Liang, 2011). According to Pang (2004), the prevalence of piracy in China is at alarming rates, which has negative implications on the Chinese copyright laws. It is worth noting that China restricts the entry of film work from foreign producers. As a result, the Chinese law did not protect any intellectual property that gained entry into China without its knowledge. That clause in the Chinese copyright law contributed to the high rates of pirated cinematic works in China for an unusually long time. However, the world trade organization (WTO) pushed China to amend its copyright laws. WTO made claims that the mentioned clause allowed China to engage in copyright offenses without any action. Pirated material was circulating freely in China, but the copyright owners could do nothing about it because China’s laws hindered any form of action. However, through pressure from WTO, China agreed to alter the clause. Since April 2010, the clause in article 4 of the Chinese copyright law forbids the exercise of copyrights in a way that causes detrimental effects to the public. In addition, China added a new article that recognized copyright agreements. In the proposed amendment on article forty eight, the amendment suggested that the original owner of an idea or product has an entitlement to revenues from any copyrighted material. In essence, all revenue needs channeling through the department of National Copyright Administration within China’s state council. Ideally, the department has the mandate of keeping information concerning the original owner or author of producible content. Any other party that intends to benefit from the material becomes liable to a usage fee that is payable to the administration then transfer to the relevant beneficiaries. Essentially, the beneficiaries are the original scripter’s of the product. On the contrary, article forty six contravenes the right to progress as it protects any individual who intends to make multiple productions without invoking the original owner of intellectual property. This means that they may do so without having to seek authorization from the original producers. Sequentially, this translates to immense harm on the producers because it cuts down on the profits that the producers had initially anticipated. However, the amendment does not international artists who intend to make a living from the Chinese market especially through internet piracy. This means that it is easy for the population in China to access and download music from international artist with ease as there are no regulations protecting these artists. In contrast, the reproduction of these artists’ music is remarkably after a period of three months after the music hits market. Therefore, this serves as ray of hope for artist seeking to cash in on China’s market because of the profit window allowed by the republic. All these aspects fall under a section forty six of the amendment on piracy and reproduction of intellectual property. Despite the copyright act amendment, other countries feel that the Chinese government is not doing enough to enforce the copyright law. Although the government has often called for closure of distribution channels that were selling pirated films and music, the trend of piracy continues. The copyright law does not offer a harsh stand on the repercussions of piracy since China does not support the entry of foreign cinematic work. Therefore, insufficient measures of making this issue go away have led to its current increase. Subsequently, the lack of commitment by China’s Music Copyright society has an effect on the royalties associated with intense airplay of artists’ productions (Na, 2012). Remarkably, the fine imposed on copy right infringement rights increased from almost eighty US dollars to almost two hundred US dollars that serves as an intense warning to those who wish to contravene this right. Further, the amendment of this act provides for the pursuance of cases against infringement of copyright provisions. The prevalence of piracy in China has had positive effects on its fast growing economy. The pirated material has two types of market in China. There is the primary market that buys pirated work without prior knowledge that it is not genuine. These clients of pirated film work often confuse the fake for the original. On the other hand, there is a ready market for pirated work that prefers the low prices that come with fake film work. The sales to both of these groups have increased in the last few years. Piracy has led to the closure of movie theatres in China. The products of these movie industries could not survive in a market crowded with forged cheap cinematic works (Berry, Xinyu, &Rofel, 2010). The increasing competition led to closure and sustantial losses to China’s own movie industries. The prevalence of piracy denies the Chinese people job opportunities in the film production industry, as well. The irony of cinematic piracy on China’s economy On the other hand, dealers in the forged movie industry have made enormous profits over the years. With minimal rules and regulations in the industry, the illegal business is making billions of US dollars in profit each year. The profits made by Chinese copyright offenders’ cause losses to the copyright owners. The copyright offenses have a negative influence on the global economy. With China being one of ten fastest growing economies on the globe, this type of business has also experienced relative growth, as well. This exerts a global pressure on the movie industry and Hollywood specifically. The recent efforts to lower the rate of cinematic piracy have resulted to saving millions of USD by Hollywood movie industry. For example, the 10% drop in 2008 translated to 864 USD saved. These statistics showcase that cinematic piracy in China has vast economic effects (Wang, & Zhu, 2003). The corruption of piracy in China increased to the high rates because of several factors. One of the factors is the lack of measures of lowering the rate of piracy from the government. In addition, the fact that there is a wide gap in purchasing powers between western people and the Chinese people leads to the serious preference of the cheaper pirated cinematic works. In addition, the advancing technology presents people with fast access to the Internet leading to a tremendous increase in the circulation of pirate material. The availability of quality screeners and hand-held cameras presents people with a capacity to produce quality-forged material that can easily pass for genuine work. This increases sales of pirated movies. Statistics indicate that technology has presented China with a vast capacity to counterfeit with expertise. In addition, the stringent censure of any intellectual property gaining its entry to China presents an additional drive for piracy (Zhang, 2004). The censure only leaves piracy as the only avenue through which the Chinese people can access to Hollywood products. In addition, the censure law did not protect the copyright of material not authorized for distribution in China, a fact that led to immense indulgence in copyright offenses. Moreover, the movie industry has to make profit through the sale of Hollywood products despite the stringency of the government. Conclusion Ideally, the fact that the Chinese government does not act immediately to lower the rise of piracy presents the greatest challenge. In its defenses, the government of China seized and destroyed thousands of pirated material that it intercepted. In addition, the relevant authorities also closed down retail shops suspected of venturing in the sale of pirated materials and their licenses of operation revoked. Therefore, focus has shifted from the enactment of laws that protect intellectual property to the actual implementation of these laws by the Chinese government. Lastly, it is evident that cinematic piracy is a real business in the Chinese market presenting the dealers with billion of USD in profits yet causing gross losses to the Hollywood movie industry (Wang, 2003). The increasing advances in technology only serve to present more opportunities for copyright offenders to exploit new avenues of digital piracy. The statistics of the situation implies that new measures need to come into place to lower the rate of cinematic piracy. References Beam C. 2012. The Chinese Steve Jobs Is Probably a Pirate :China’s greatest innovators are the people ripping off companies like Apple and Nintendo. Article from future tense. Available at http://www.slate.com/articles/technology/future_tense/2012/10/china_s_pirates_are_improving_iphones_ipads_and_other_technology_.html [Accessed on December 7, 2012] Berry, C., Xinyu, L., &Rofel, L. (Eds.). 2010. The new Chinese documentary film movement: For the public record. Hong Kong: Hong Kong University Press. 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New Cinemas: Journal of Contemporary Film, 2(2), pp. 119-136. Read More