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Title Malaysia July Copyright Industrial Trend
Date 2009-10-30
Attached Files July_malaysia(20090715).pdf

 Knocked out by the knock-offs
 
<New Straits Times> June 15, 2009
 
In this article, the journalist wrote about the current optical piracy scenario in Malaysia and expressed the concern of some quarters that Malaysia risks being placed in the Special 301 Priority-Watch List next year if the piracy situation worsens.
 
Recently, the Recording Industry Association of Malaysia conducted a number of random checks at night markets and found 84 stalls hawking pirated discs in the Klang Valley alone. These included a wide selection of movie DVDs and music CDs. According to Mr Tan Ngiap Foo, the chief executive officer of the Recording Industry of Malaysia, the US Trade Representative is watching closely how Malaysia handles piracy problems and if nothing much is done, Malaysia runs the risk of being placed in the Special 301 Priority Watch List next year.
 
However, to many people, the pirated discs which are sold at knock-off prices represent dizzying choices although copyright owners would label this as an emblem of indifference, if not outright defiance. Mr Tan also pointed the drastic repercussion of failing to protect intellectual property --- Malaysia may fail to attract critical investments and trade agreement negotiations with the US may also be jeopardized. The piracy situation is aggravated by technological advancement where new technologies have enabled Internet users to seek free entertainment. The country’s new generation now regards entertainment as a privilege, not just a windfall. With the increasing availability of broadband and the upsurge in the number of Internet users in the country, Internet piracy has evolved into “grand larceny on a massive scale”. According to RIM, physical music sales dropped 80% since the mid-1990s, from a total earning of RM315 million in 1989 to RM56 million last year.
 
A parallel phenomenon is seen in the film industry. In April this year, just two days after the blockbuster Wolverine leaked on the Internet, local knock-offs were available on sale in DVD retail outlets. According to Mr Shamsul Jafni Shafie, the country manager for Motion Picture, the box office grossed RM268 million last year but would have made RM130 million more if not for piracy.
 
Last year, the law enforcement authorities seized 928, 453 pirated copies of optical discs totaling a value of RM18.5 million. This bleak piracy situation has resulted in the drop of employment at record companies by 80% since 1997. This is seen in the shutting down in March this year of EMI Records and the outsourcing to India of the finance operations of Universal Music.
 
Also, last year the Ministry of Domestic Trade, Cooperative and Consumerism had ceased proactive raids and conducted raids on complaints-only basis. This had resulted in far fewer enforcement actions than in the previous five years. According to Mr Tan, this move had “effectively scuppered efforts to curb piracy” and could have resulted in the doubling of the number of illegal outlets in the past year. However, since taking over the portfolio in April, Minister Datuk Seri Ismail Yaakob has pledged to renew the Ministry’s fight against piracy by resuming proactive raids, specifically focusing on the source of supply.
 
On the other hand, the software industry’s situation is more encouraging. According to Mr Roland Chan, a senior director of the Business Software Alliance, Malaysia’s PC software piracy rate was at its lowest ever last year at 59%, amounting to losses of RM1.3 billion. This is an improvement compared to previous years where the Malaysian PC software piracy rate had hovered around 60%.
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