The MPA operates anti-piracy programs in 14 countries in the Asia/Pacific region, estimating that its member companies lost in excess of $896 million in potential revenue regionally in 2004. The predominant piracy threat in Asia-Pacific is optical disc piracy, with hundreds of millions of illegal optical discs being produced, many of which are exported to other parts of the world.

In 2004, 67 percent of pirate optical discs seized globally were seized in the Asia/Pacific region. This included 99 percent of pirate VCDs and 73 percent of pirate DVDs. Recently, syndicates of pirates producing and distributing smaller volumes of illegal DVD-Rs – the region’s fastest growing pirate format – from homes and/or small business premises have emerged as a growing problem.

An even greater concern is the connection in this part of the world of organized crime to pirate syndicates, which makes battling optical disc piracy more difficult, and dangerous.

In 2004, the MPA’s operations in the Asia/Pacific region investigated 25,584 cases of piracy and assisted law enforcement officials in conducting more than 11,830 raids. These activities resulted in the seizure of 50,835,555 illegal optical discs; 38,098 illegal videocassettes; and 507 VCRs; as well as the initiation of 8,150 legal actions and receipt of 6,278 court decisions.

Notable hubs for optical disc piracy in Asia/Pacific include China, Malaysia, Taiwan and the Philippines. China’s piracy rate is among the highest in the world, at 95 percent, and has increased in each of the past three years. Losses of potential revenue to MPA member companies last year due to piracy were $280 million and losses of potential revenue over the past five years were in excess of $900 million. Although China’s leadership has pledged to significantly reduce piracy, enforcement and local government will are lagging behind.

Malaysia, while still a source of exported pirate optical discs to other countries, is making strides in its fight against copyright theft. Recently, the country’s copyright law has been strengthened, with criminal penalties increased and enforcement officers given the power to arrest suspected copyright thieves. In 2004, enforcement officers conducted nearly 5,000 anti-piracy raids, resulting in the seizure of more than 2.8 million illegal discs and 12 factory production lines.

In Taiwan, while the Taiwanese authorities have made positive developments in enforcement, particularly raids against optical disc factories, these efforts must be sustained and extended to other areas of enforcement, particularly the Internet. Taiwan needs to accomplish more in the area of legislation for optical disc licensing and the control of optical disc manufacturing equipment. Recent amendments to Taiwan’s Copyright Law raise fines, increase jail sentences and appear to be a step in the right direction, but the law is still deficient with respect to provisions governing Internet Service Provider liability that industry representatives believe are necessary to control Internet piracy.

In the Philippines, the Optical Media Board (OMB) estimates that piracy cost the entertainment industry in the Philippines nearly Php10 billion (US$177.8 million) last year. The piracy rate in the Philippines is estimated at 85 percent, among the highest in the world. Record seizures in 2005 by the OMB of pirate optical discs, as well as optical disc burners and factory replication equipment, have sent pirates a strong message that the Philippines is committed to protecting intellectual property rights, but there is still a long road to travel.

Peer-to-peer (P2P) piracy is a significant concern in countries with high broadband penetration rates such as South Korea and Japan, and is a threat in all countries with growing broadband user bases.

In 2004, Japanese law enforcement authorities obtained landmark convictions against pirate P2P network users and initiated the world’s first prosecution of a P2P network developer, the developer of the Winny network. In 2005, in Taiwan, a court handed down convictions including fines and jail sentences to the operators of a P2P subscription network, the Kuro network, and in Hong Kong, authorities launched the world’s first criminal prosecution against a user of BitTorrent (BT) technology.

In Australia, another of the region’s most wired countries, increasing broadband penetration, together with consumer willingness to download illegal films presents a growing challenge. This challenge is being addressed through a focus on consumer awareness campaigns and a strong push for changes in legislation facilitated by the recent Australia-US Free Trade Agreement.

While it has for some time been common for pirates to use hand-held video cameras to shoot illegal copies right off theater screens in the U.S., for immediate transmission to pirate replicators worldwide, the increased incidence of global “day and date” theatrical releases means that illegal camcorded copies of just-released movies are increasingly being sourced locally, often in markets where anti-camcording enforcement is lax. The MPA is working with exhibitors around the region to put in place best practice enforcement procedures and with governments where possible to introduce anti-camcording legislation.

In addressing piracy, tackling the problem at its source has proven a highly effective strategy, and the MPA has had success in a number of countries in the Asia-Pacific region with programs aimed at rewarding citizens for information leading to the seizure of optical disc production facilities and equipment. These reward schemes are aimed at identifying pirate manufacturing facilities, and have led to significant seizures of optical disc replication equipment.

As enforcement and prosecution continue to lag behind that devoted to other serious crimes – maintaining the perception that the risks and rewards of copyright piracy heavily favor the pirates – the threat of continued wholesale theft of intellectual property persists in the Asia-Pacific region.