Paul Kocher quote at the bottom...

Cheers,
RAH
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<http://www.hollywoodreporter.com/thr/article_display.jsp?vnu_content_id=1991585>

The Hollywood Reporter

Oct. 02, 2003 

Speciality film heads meet to respond to MPAA 

By  Gregg Kilday 
The MPAA may have hoped to create a nonproliferation treaty with its ban on 
awards-season screeners, announced Tuesday, but instead it set off a veritable bomb 
that sent shock waves throughout the film community. 

The heads of most of the studio-based specialty film companies met Wednesday in an 
unprecedented summit at the Four Seasons Hotel in New York to formulate a response. 

Bingham Ray, president of United Artists, MGM's specialty film division, took the lead 
in organizing the gathering, which brought together top executives from all the 
studio-affiliated labels except Fox Searchlight and the newly formed Warner 
Independent Pictures. (Fox Searchlight execs were later updated on the proceedings.) 

Those present or participating by phone are said to have included Miramax Films' 
Harvey Weinstein, Focus Features' David Linde and James Schamus, Sony Pictures 
Classics' Tom Bernard, and Fine Line's Marian Koltai-Levine. 

The group, with Ray acting as its spokesman, is expected to issue a statement today or 
Friday. Ray was unavailable for comment Wednesday. 

"It was the beginning of a dialogue," said one indie exec, who received reports of the 
meeting. "All of the indie companies have been getting a lot of questions and concerns 
from film critics, foreign distributors, foreign partners, exhibitors, artists -- 
writers, directors, actors -- and talent agencies, and there has been a lot of 
discussion." 

Another source close to the situation said: "I think it was a historic meeting with 
some pretty incredible minds. It was really more of a study group. They were asking a 
lot of questions." 

One approach that the group could take was suggested by a separate statement released 
Wednesday by Michelle Byrd, executive director of the IFP/New York. 

Signed by 33 filmmakers, producers and executives, the statement condemned the MPAA 
ban. 

"This last-minute policy change will seriously diminish the diversity and quality of 
independent films immediately and the mainstream film industry in the long run," the 
statement read. "Oscar consideration is a primary motivating factor behind the funding 
of riskier films, those of more serious content, films with ambitious narrative 
aspirations. Lacking Oscar potential, these films will not be made." 

It noted that "the least likely people to pirate -- Academy members and other insiders 
-- will suffer the most, particularly since most piracy comes from outside the U.S. 
and is the result of in-theater taping." The group proposed in the statement that "all 
screeners (both DVD and VHS) ... be watermarked and individually numbered so they can 
be traced and the perpetrators prosecuted." 

Among those lending their names to the statement, which was still growing at press 
time, were directors Robert Altman, Bill Condon, Peter Hedges and John Waters; actors 
Selma Blair, Hilary Swank, Chloe Sevigny and Tracey Ullman; producers Anthony Bregman, 
Lee Daniels, Ted Hope, Ross Katz, John Penotti and Christine Vauchon; and execs 
Johnathan Sehring and Ed Pressman. 

Byrd explained that Hope, producer of "American Splendor," brought his concerns first 
to her and others, such as Greenestreet Films' John Penotti, and Focus' Linde quickly 
weighed in. 

"The chief challenge facing independents is always one of access," she said. "Access 
to screens, distributors and, in this case, Academy voters. We want to ensure that 
these films are given a fighting chance in terms of recognition." 

Meanwhile, in other fallout from the MPAA decision: 

The MPAA issued a clarification to its member companies on one point. Although a 
number of Oscar consultants believed the ban, as originally stated, would have allowed 
them to distribute DVDs of films that would be available in the home video market -- 
for example, Disney/Pixar's "Finding Nemo" or the Universal release "Seabiscuit" -- 
the MPAA shut down that loophole. 

"It has been reported that some subsidiaries believe it is OK to send out screeners if 
the film has been released in home video form," the clarification said. "This is 
incorrect. The policy is no screeners of any kind are allowed to be sent." 

It was found that DVD mastering facilities such as Cinram, Deluxe, Sonopress, 
Technicolor and Warner Bros.' WAMO have been working for months with the studios to 
develop and implement forensically trackable DVD technologies specifically for the 
upcoming awards season. 

"We've been working with the studios for the past year in developing antipiracy 
technologies," said a disc replication manager, who wished to remain anonymous. "About 
six to eight months ago, two studios actually came to us and said, 'Hey, we foresee 
this being a problem, can you help us develop a solution?' The studios are very aware 
of this technology, and if at any point they wish to use it, we can. It's very robust 
technology, and it was sort of pushed along by two studios in particular." 

According to sources, 20th Century Fox has aggressively researched antipiracy 
developments. The studio is focusing on a particular watermarking technology that 
allows copyright holders to trace breaches back to the original DVD and its owner. Fox 
declined comment. 

Because of the advance work that the studios and replication facilities have already 
invested in protecting screeners from pirates, those familiar with the technological 
advancements question whether the MPAA even considered antipiracy antidotes before it 
rushed into the current across-the-board ban. 

"There are some serious questions as to whether the MPAA did due diligence in regard 
to the currently available technologies," the source said. "Its members are studios 
and they are our partners, and we have worked with them side-by-side on numerous 
technologies. Now whether or not word of these developments permeated the 
upper-echelons of the MPAA, I don't know." 

Rich Taylor, spokesman for the MPAA, responded: "All sorts of things were discussed 
and considered, and it was decided the new policy was the most effective and complete 
way of cutting off one of the sources of pirated material. Obviously, we are always 
seeking technological remedies that are more effective and we will continue to do so." 

The effectiveness of current DVD antipiracy technology was seen as the root of the 
current debate. 

Said Steve Weinstein, executive vp and general manager of Macrovision's Entertainment 
Technologies Group, which has pioneered video, audio and DVD copy-protection 
encryption: "Our technology is great for preventing devices like DVD-R recorders, VHS, 
analog recorders, analog recording onto a PC and direct connection to a camcorder from 
recording the movies. What it cannot prevent is that one copy (that) gets recorded by 
a talented individual with access to tools of the hacking trade. This is the problem 
the studios are facing. One leak can be magnified quickly by the P2P services or 
professional duplicators." 

One solution, suggested Paul Kocher, president and chief scientist, Cryptography 
Research Inc., "is to produce unique DVD-Rs or VHS tapes with forensic marks that 
allow any copy to be traced back to the original recipient. This is expensive and 
introduces some workflow challenges, but people are much less likely to let their 
screeners become a source of piracy if they know they'll get caught. The long-term 
solution is to move beyond VHS and DVD to high-definition formats with built-in 
support for forensic marking and strong security for targeted screeners as well as 
general consumer releases." 


-- 
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R. A. Hettinga <mailto: [EMAIL PROTECTED]>
The Internet Bearer Underwriting Corporation <http://www.ibuc.com/>
44 Farquhar Street, Boston, MA 02131 USA
"... however it may deserve respect for its usefulness and antiquity,
[predicting the end of the world] has not been found agreeable to
experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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