September 08, 2005

DVD Formats, Counterfeiting, Organized Crime Connection

Along with mentioning the persistent Chinese hackers and the Chinese spies apparently operating in Canada, would Paul Martin bring this to Hu Jintao's attention, and also to the attention of the foreign dignitaries from other countries mentioned in this post?


For those interested in the new DVD formats, whether Blu-ray or HD DVD which is a compromise format, cheaper and compatible with current DVD and CD formats, thus allowing use of older technology, the fight is ongoing. Apparently, there is regional coding which is a copyright protection; the new technology is continent specific. In other words, the thing won't work if someone tries to copy a DVD on another continent. I think it even reports back any hacking to break this; for the exact details, see the Financial Post, "Both sides in the DVD format war are deadlocked", Sept. 6, 05, FP5.

Example of the problem: Counterfeiting DVD's -- "Counterfeiting operation uncovered in Co Meath", 03 June 2005 19:29

[. . . . ] Polythene tunnels that were originally erected on a farm to produce mushrooms were used by a criminal gang to produce up to 600 DVDs an hour - up to 3 million a year - on 20 DVD burners and printers. [. . . . ]




A SNAPSHOT OF OPTICAL DISC PIRACY AROUND THE WORLD

The problem of large-scale pirate optical disc production began in China in the mid-90s. When China cut off the export of piratical discs in the late 1990s, the pirates packed up their equipment and relocated to more hospitable areas where enforcement was lax or absent. Now we are seeing major problems with DVD production in Malaysia, Thailand, Taiwan, Philippines, and Indonesia. Pakistan, Bangladesh, Ukraine, and elsewhere in Central Europe are host to factories replicating pirate copies of music CDs. The music industry's problems today are always a danger sign for us, since pirates often start with music and then move on to movies, video games and other products.

In the past year, we have also witnessed a major surge of large-scale factory production of DVDs in Russia. Today there are at least 26 optical plants in Russia, including at least five that specialize in the production of DVDs.[. . . . ]

. . . . selling them on the streets by the kilo. Pirate DVDs are sold everywhere—at street markets, in kiosks, in retail stores and over the Internet.

Those 26 plants in Russia currently have capacity to replicate about 300 million DVDs and CDs a year; legitimate demand in Russia is approximately 18 million units. This excess capacity points to the fact that the Russian pirates are targeting export markets—OUR export markets. [. . . . ]

THE ORGANIZED CRIME CONNECTION

Several U.S. government agencies are bringing attention to the link between organized crime and copyright piracy. The Federal Bureau of Investigation's website home page states the following:

''Unlike criminals who engage in other types of criminal activity, those who commit IP crimes can not easily be categorized. Counterfeiters, software pirates, and trade secret thieves are as different as the intellectual property they counterfeit, steal, and sell. In general, software pirates have an acute interest in computers and by extension, the Internet. Many counterfeiters hail from foreign countries, such as South Korea, Vietnam, or Russia. They are frequently organized in a loosely knit network of importers and distributors who use connections in China, Southeast Asia, or Latin America to have their counterfeit and imitation products made inexpensively by grossly underpaid laborers. There is also strong evidence that organized criminal groups have moved into IP crime and that they are using the profits generated from these crimes to facilitate other illegal activities. [. . . . ]


There is much more if you link -- several segments.

Do you think Canada is immune? Another topic for PM to broach in his meetings with foreign leaders such as Hu Jintao.


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