Tag Archives: china

Varied Results for Organizations Who Want Off the World’s Notorious Markets List

Following on from the MPAA’s submission of international offenders who fail to respect American intellectual property to the United States Trade Representative (USTR), the office today released its annual list of “notorious markets,” designed to name and shame those included into cleaning up their act. As has become the norm, it provided relief for some, and throws down the gauntlet for others to up their efforts in the year ahead.

The idea is simple enough: flag organizations and online platforms who facilitate the unlicensed use of American intellectual property.

Seal of United States Trade Representative Exective OfficeBy putting these companies and sites on show for all to see, the USTR forces them to choose a path; either commit to improving the legality of their site by removing content and practices that infringe upon intellectual property rights, or confirm that they have no interest in respecting the law and expect the appropriate authorities to come calling.

Marking the importance of protecting those IP rights, the office’s Ambassador Michael Froman had this to say about the 2014 out-of-cycle report:

“American innovation fuels our economy.  Intellectual property protects the contributions and livelihoods of the 40 million Americans whose jobs are supported by intellectual property-intensive and associated industries. The theft we’re shining a light on today is detrimental not only to creators and inventors, but also to consumers.”

The report singled out entities like Spain’s seriesyonkis.com, China’s Xunlei, and software provider Aiseesoft for their positive progress on curbing infringing content on their respective platforms, since appearing on the list’s 2013 edition.

Providing these positive results is an important element to the report, placed prominently at the front as an example to those who find themselves on the notorious list further in. A prominent example held up by the press is Alibaba, whose subsidiary Taobao facilitated counterfeit operations around the time the Notorious Markets list came into existence. Since then Alibaba has made significant efforts to clean house and went on to make a record debut on the New York Stock Exchange last year.

On the other side of the coin, companies that didn’t make it off the offender’s list must redouble their efforts. The gap between expectation and reality can sometimes be wide, however, as demonstrated in the case of VKontakte. The Russian social network remains on the list despite appealing its presence after it took steps to curb pirated content sharing. But as we discussed in February, VKontakte has made only limited attempts to deal with this illegal activity, and it will evidently take much more for it to reach legitimacy in the eyes of U.S. rights holders.

In the end, legitimacy is exactly what the Notorious Markets list is all about. It recognizes that the copyright economy is worth more than $1 trillion to the United States and a major provider of jobs around the country, and presents those that undermine that value for all to see.

If an organization that appears on the list has no interest in becoming a legitimate business in the eyes of the law, they will of course continue on their path of piracy, in which case more substantial legal power needs to be wielded to remove that threat.

For those who value their business credibility, however, the USTR is simply showing some tough love. Clean up your act, prove your commitment to valuing intellectual property, and next year perhaps your company can be held us as a positive example to follow, rather than an offender to avoid.

House of Cards Piracy Shows Why Legal Global Streaming Works

It’s a universal truth that where demand goes unsatisfied, piracy quickly follows. For the creative industries, there are high hopes that an equally predictable trend will unfold: where legal streaming services roll out, piracy quickly tails off.

It’s been a theme that characterized much of February for us, from the news that Norway, where streaming music services dominate, has seen a dramatic reduction in piracy, to the post-Oscars analysis of where Academy Award winning titles are available and how piracy spikes if they’re not.

House of Cards piracy is the latest example to underline this phenomenon, as season 3 of the Netflix original series prompted a surge in social media and viewing activity in markets where the platform is active, and soaring piracy levels in countries where it isn’t.

 

Season 3 was only released last Friday, yet unlicensed viewing in countries around the world already numbers in the six figures, with China heading the illegal access list at more then 60,000 downloads. That doesn’t begin to factor in a number of other methods of finding the program without paying for the privilege, as technology like VPN access helps viewers to bypass geographical restrictions and log in to the same version of Netflix made available to U.S. consumers.

Although there is also illegal access in countries where Netflix does operate successfully, not least the U.S. and United Kingdom, the general consensus is that any market will have some amount of residual piracy.

While that element needs to be tackled with more familiar education and enforcement tactics, promoting legal access channels and penalizing where pirates knowingly disregard them, the most promising new prong in fighting copyright infringement is rolling out legitimate streaming services in markets where they don’t currently operate.

In the case of House of Cards this would of course be Netflix, first and foremost, although it isn’t hard to imagine a scenario in which the company licenses such a popular title to another service if it can’t get into the market itself. China springs to mind in the first instance, given the censorship issues and other red tape for American companies operating in the country, but there are enough other international markets in which Netflix isn’t being compensated at all for its hit production and would surely love to bridge the gap with licensing income.

Continent of Australia from space. Australia i...

Continent of Australia (Photo credit: Wikipedia)

Meanwhile it’s Australia that provides the most immediate case study of how introducing a legal viewing alternative will impact piracy levels. Frequently found atop the illegal viewing figures despite its relatively small consumer base, the country saw House of Cards piracy almost on a par with China.

Here, however, Netflix seems all set to launch this month, giving consumers almost no time to wait for the popular title and everything else that the company’s expansive archives will bring.

If Australians decide that convenience (and, we would hope, copyright) trump the awkward access of covert connections and malware-plagued piracy sites, then piracy levels should decline.  The experiment is ongoing, but the early results are promising that legitimate digital channels can connect viewers around the world to content they love, without having to resort to illicit and unreliable access points to get it.

 

Asia-Pacific Piracy Poses a Familiar Foe for Rights Holders

In the West the copyright focus may be shifting to illegal streaming services like Popcorn Time, but in some parts of the world it’s still file sharing and illegal downloads that occupy anti-piracy activists.

A new report from Sandvine suggests that activity on these types of torrent and file sharing platforms can be as high as one-third  of ALL traffic in peak periods, causing concern for rights holders around the world. 

torrent progress

A torrent in action | Image Credit: nrkbeta

The region in question is Asia-Pacific, encompassing major markets like China, Indonesia, and South Korea. The Global Internet Phenomena report. The company’s summary findings state:

Filesharing is dead? Not in Asia: As a percentage of traffic, Filesharing traffic continues to decline globally in almost all regions except Asia-Pacific, where it still accounts for more than 33% of total traffic.

While the equivalent U.S. figure of 5% is still too high for the comfort of the creative industries, it represents a more manageable challenge against the wider ecosystem of content theft. Combining more contemporary measures of copyright infringement with this more familiar foe, however, prompts real cause for concern.

The value of emerging markets in the East is often held up as the future of entertainment income, particularly for American movie makers as they court increasingly wealthy Chinese audiences. But those efforts face significant challenges because of both stringent bureaucracy, as we reported earlier this month, and the kind of unchecked piracy that the Sandvine report highlights.

Whether or not governments in the Asia-Pacific are willing to crack down on file sharing activity remains to be seen. Their actions will play a major part in just how far Western creators are able to not only expand into these potentially lucrative markets, but also how effectively they can protect their intellectual property as they go.

 

China Walks the Line Between Celebrity and Censorship

When it comes to controlling content, the Chinese government is more vigilant than most. A familiar frenemy to most major U.S. tech companies, it frequently clashes with the likes of Google to filter our search results and content that it finds objectionable (which doesn’t take much).

While the country undoubtedly wants the connections and revenue that come with attracting such major brands and services to its shores, the commitment to freedom of information that they bring is far less appealing.

China flag in front of aerials

Can China continue to obstruct digital airwaves? | Image Credit: Mark Tollerman

Now it appears that TV and movies will be the next content frontier on which this China censorship battle will be fought.

Through a series of convoluted red tape measures, Chinese internet service providers who plan to air imported shows will be subject to increased scrutiny and editing before popular titles like “The Big Bang Theory” and  “Breaking Bad” can hit China’s screens. For companies who could otherwise immediately serve up these headline shows to an eager domestic audience the delays are likely to grate.

The piracy angle to this story is perhaps the most frustrating, given that availability is such a crucial part of the formula for convincing viewers to use legal services. When shows aren’t available via a legitimate platform, the chances are that they can be accessed through an illegitimate one. In this case everyone except the piracy site loses, as legal services are denied a paying viewer, revenue is lost to the original creator, and even China’s government fails in its mission to censor an imported show. Many titles on piracy sites simply run in their original, unedited form, potentially cutting the government out of the loop entirely.

This comes at a time when China’s curious mix of capitalism-backed Communism has its own media giants extending their reach into Hollywood. Alibaba, for one, is coming off the back of a hugely successful IPO and a strong financial quarter, with a significant part of its plans to capture new users lying in the U.S. creative industries. On the export side, American studios are showing huge interest in further exploration of the Chinese movie-going market, where imported films are already subject to quota yet make up a little less than half of the country’s box office.

With such a rapid acceleration of its entertainment industry on both the import and export front, China’s government is going to have to balance an increasing number of spinning plates as it seeks to censor incoming content, curb piracy that circumvents its efforts, and still exploit the economic value that the creative industries present.