FBI Cracks Down On Movie-Piracy Rings
Associated Press

June 29, 2006 9:24 a.m.

http://online.wsj.com/article/SB115158190712394099.html?mod=home_whats_news_us


NEW YORK -- The Federal Bureau of Investigation dropped the curtain 
Wednesday on two movie piracy rings that specialized in sneaking digital 
camcorders into theaters and shooting hit films like "Ocean's Twelve" and 
"The Passion of the Christ," then duplicating and distributing millions of 
bootlegs world-wide.

Agents arrested 13 people in raids across the city, including some they 
said were about to pirate the potential summer blockbuster "Superman 
Returns," which opened Wednesday.

Some of the DVD knockoffs included the FBI warning seen at the start of 
legitimate discs -- "no small irony," Mark Mershon, head of the bureau's 
New York office, said at a news conference.

The counterfeiters had been operating since 1999. Industry officials 
believe they were responsible for nearly half of all the illicit recordings 
made in the U.S.

Using computer file-sharing networks, the suspects distributed the 
counterfeit films to Pakistan, Singapore, Hong Kong, Malaysia and other 
countries, said Michael Robinson, an anti-piracy official for the Motion 
Picture Association of America. The bootleggers "fueled a huge, huge 
underground economy," Mr. Robinson said.

Because counterfeiters sometimes bribe their way into advance screenings, 
their work can hit the black market before the movies are released in 
theaters -- part of a broader scheme that the movie industry says robbed it 
of an estimated $18 billion in global revenue in 2005.

The MPAA contacted the FBI in 2003 after learning that a knockoff version 
of "The Matrix Reloaded" was circulating on the Internet.

The association's investigators had determined that the movie had been 
pirated during a special screening at a Manhattan theater. The FBI 
responded by launching an undercover operation targeting people known as 
cammers, who specialize in covertly filming movies in theaters.

Court papers said the FBI learned the cammers often used assistants, known 
as blockers, who "would sit in strategic positions surrounding the cammers 
so as to camouflage and conceal their filming activities" and "prevent 
people from blocking the view of the video camera."

The video shooters were paid several hundred dollars per film by 
manufacturers who would duplicate and package fake DVDs in counterfeit 
labels for distribution to street peddlers, the court papers said. The 
bootlegs sell for up to $19 a piece.

The suspects were awaiting arraignment in federal court in Manhattan. Each 
could face up to five years in prison if convicted of conspiracy, copyright 
infringement and trafficking in counterfeit goods.


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         



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