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Hollywood Asks Kiwi Prime Minister for Better “3 Strikes” Anti-Piracy Deal

A briefing has revealed that Hollywood summoned New Zealand Prime Minister John Key to meetings in the United States to discuss his country’s “3 strikes” anti-piracy law. The system is currently operational but after lobbying hard for its implementation the studios have refused to use it, claiming that the costs of sending notices to infringers are too high. They told Key that although they have great respect for the scheme, they now need a discount to make it work.

Kiwi Prime Minister John Key has had more than his fair share of piracy-related woes in the past year. The Megaupload raids and subsequent fallout sucked him into controversy after controversy, eventually leading the Kiwi premier to apologize to Kim Dotcom for illegal spying carried out by the government.

During a year where the raid on the Megaupload founder’s mansion became ever more politicized, critics have accused Key of getting over-friendly with Hollywood.

“Prime Minister John Key can have as many dinners with Hollywood executives and copyright lobbyists as he likes,” Dotcom told TorrentFreak in November. “The simple fact is that the NZ government, which has been acting like a subsidiary of the US government, is not above the law.”

However, the studios have a bit of a problem, one which they feel the government – and Key in particular – can help them with.

KeyHollywood

In 2011 New Zealand introduced the Copyright (Infringing File Sharing) Amendment Act with the aim of reducing illicit file-sharing by sending out warnings and ultimately punishing copyright infringers. The scheme is being used by RIANZ, the local RIAA equivalent, but Hollywood has boycotted the program claiming that sending notices is prohibitively expensive.

However, according to NZHerald quoting a Green Party briefing, Hollywood have been trying to get a better deal by lobbying Prime Minister Key directly.

The briefing from officials stated that the MPAA is “highly influential in Washington political circles” and “played a key role in shaping US trade policy to suit its particular interests.” Noting the industry’s power to influence policy makers, the briefing added that free-trade agreements now come with an established set of demands including tougher online copyright enforcement and longer copyright terms.

Subsequently and on the understanding that Hollywood were looking to make it easier to chase down file-sharers in New Zealand, Key went to the United States. The precise details of what was discussed there was not revealed, but indications point to making the “three strikes” scheme cheaper so that Hollywood can start sending out notices.

The notices, at NZ $25 (roughly $20 USD) per shot, are too expensive to send in large numbers and should be around NZ $2 each, rightsholders say. The ISPs, on the other hand, say that they costed their systems to handle large amounts and are now out of pocket. They actually want the cost of notices to increase.

The matter was settled in September 2012 when a review said the prices would stay put – for now.

Only time will tell whether Hollywood’s direct courting of John Key will lead to a better deal for the movie industry. If not, the “3 strikes” mechanism might stay unused by Hollywood, giving them no option other than to sue, something the recording industry in New Zealand believes is almost inevitable.

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  • Spr.

    Key’s an arse, so he’ll probably bend over. Two more years and he’ll be out and about time too.

    It’s disgraceful how he’s acting. Dotcom’s comment is pretty much on the ball this time. You can feel it in the digital industry down here, as well as in the general poplus. We pirate because we don’t get anything beyond rubbish TV rip offs from the States and Australia months after they show in their original countries. Hell, everything I’ve pirated I have never seen in a physical format down here.

    He should work on getting that second cable in, not playing as a Hollywood patsy.

    • dondilly

      You would think Key would learn. Last time he was dumb enough to bend over for US big media it resulted in a grovelling appology for the illegal actions the ki2i police and secret service were sucked into.

    • K1w1

      Don’t be a maroon! Who are we going to replace Key with? “Let’s build lotsa 300k houses in Auckland” Labour? “Let’s print some money” Greens?

      The magic disappearing ACT?

      Key is by lightyears the best leader we have. Sure, undoing some of the damage caused by her Clarkship is [and will remain] painful but if we pretend that we can carry on as if New Zealand is one big oil well, we will soon make Greece look prosperous by comparison.

  • Andrew
    • ITakeAPotatoChipAndEatIt

      This isn’t youtube, bro.

  • guest

    Fuck you. Stop destroying my country.

  • http://profiles.google.com/pianogamer Knut Harald

    Woah, legal matters are expensive? Who would have known? Maybe all the people who were wrongly sued and had to pay up, because a lavwyer would cost a lot more? “Justice” is expensive, the MPAA should pay the price and not push the costs on everybody else (file hosters, indexers, customers).

  • baah

    And then they call pirates “entitled”?

  • dondilly

    Give em an inch and they take a mile. They wont be happy until they have alledged downloaders hanging from gibbets in town and city squares across the country based on mere accusation backedby flimsy to non existent evidence.

  • jimmy671

    Come on Kiwi’s,show these MAFIAA arseholes,that you have balls the size of an Angus bull,and that YOU run your country NOT them.

  • SpenkFooo

    lol, like that dude really cares about what Shmollywood wants lol.

    GoToAnon.tk

  • Anyone

    if you need any more proof that their “damage” numbers are pulled straight out of their arse, this is it

    if they can’t pay this minor fee to stop “billions” in damages, clearly those “billions” don’t exist

    • Andrew me

      exactly, if they feel they are losing billions they should have no problem paying a few million to stop the pirating, why dont they, because they know they are not losing billions and that piracy does not affect their bottom line as much as they lie to everyone about.

      • DangerousPerson

        But piracy does affect their bottom line. In profit, not loses.

    • Cosmo

      Perfect comment, perfect thought….

    • SwoopingHuman

      Fantastic deduction.

  • Guest

    dictators

  • Hogspace

    Sounds like the Kiwis have got it exactly right. Well done.
    Now throw some of your bent politicians in jail please.

  • Guest

    So what if DMCA takedowns cost $20 to send in NZ? It’s offset by all the millions of dollars in lost revenue they save! Right? Right?

    I… I just don’t understand why Hollywood wants a discount…

    • MPAA

      Our accountants tell us that each $20 notice ends up costing us $250,000 to send.

      • guest

        We figure if we reduce the cost of the notices to $2 we could get that down to $249,982

    • Guest321

      Just $20 and they are bitching about it. Un-fucking-believable!! Greed knows no bounds for these parasites.

      RIAA doesn’t mind claiming $150,000 damage in court for downloading a single mp3. If $20 can stop that kind of damage, I don’t see what’s the issue here.

    • lll

      greed

  • http://www.facebook.com/forkingham.melle Forkingham Melle

    bloody sheep, that’s what they are

  • Ignas

    They will never get enough of you. And they will try as hard as they can to suck every cent out of you, while trying to save as much as they can on you. You let them have it their way once, they will try again.

  • 2013sUxAlready

    the MPAA is “highly influential in Washington political circles” and
    “played a key role in shaping US trade policy to suit its particular
    interests.”

    xD anyone surprised at that line?
    Seriously why the fuck isn’t there an uproar from the deepest of depths about this god forsaken cartel?

    • Andrew me

      Hopefully Dotcom has more on the government than anything the US can threaten them with. Now wouldn’t that be a laugh that a “sort of pirate” would be able to use his influence to stop Hollywood from using their influence to bribe the government. LOL talk about a mess of epic proportions.

      • Guest

        I suspect we haven’t seen anywhere near the bottom of Kim’s rabbit hole yet. He’s been pretty clear that part of MEGA’s purpose is to raise funds to finally go on the offensive against Hollywood. He’s even hired a high profile human rights lawyer to build a case against Dodd. This is a fuse leading straight back from NZ to the Whitehouse. Can’t wait until the spark finds its way to the powder.

        I think the ill advised raid against Megaupload will turn out to be one of the MPAA’s biggest regrets in its rapidly dwindling life.

        • Fantastic

          Yea I read a report from a dude that interviewed Dotcom recently in the months leading up to Mega launch, they played a game of poker and Kim’s ability to read them blew him away. Yea the mans is Smarter than anyone in Washington and Hollywood, they will regret this.

    • ITakeAPotatoChipAndEatIt

      I was gonna say something similar; I can’t believe they’d be so blatant.

  • MadAsASnake

    The right answer is for large numbers of NZers to lobby their MPs to remove this unethical law. Hollywood $ should not be afactor in NZ politics.

    • Whatever

      No, the whole population should just start downloading everything they can while they can at $20 a strike until they get 2 strikes.

      That’s about $52 a time including the average mistakes and wrong handling of those strikes.

  • MadAsASnake

    So at $20, it is too expensive to pull the same crap they pull with DMCA. If piracy really was costing them what they say it does, and three strikes worked, they should have no problem using it…

  • Anon99

    Keys is a total failure for even bending over to their request to go to a meeting over there. Total lack of gonads. Hope that everyone takes notes of all his dealings and jobs after he loses his PM position, so that he can be done for corruption while in government in relation helping these media companies. That is all they are, a group of companies. They should not be dictating laws or costs.

    If the laws change, protests will bring this back into the spotlight in such a way that no future kiwi PM will want to touch the MPAA/RIAA with a bargepole.

    • Guest321

      The fact that he is even making deals with a private business in a foreign country and bending over to their will is proof that he doesn’t have a backbone. Wonder how such bastards who don’t mind selling out his own country’s citizens can ever serve as the Prime Minister.

  • anonymous

    1st mistake-believing what the entertainment industries told the government
    2nd mistake-implementing the ’3 strikes’ legislation
    3rd mistake-acting like a lap dog and going to a meeting WHEN SUMMONED BY THE US ENTERTAINMENT INDUSTRIES! shows who is pulling his chain, eh!!
    4th mistake-even considering doing anything further to aid an industry THAT IS FUCK ALL TO DO WITH AND ONLY BENEFITS THE USA!
    5th mistake-considering dropping NZ even further in the shit than it is now after the assistance given to those industries via the US DoJ! is the guy fucking nuts? if he goes along with this, he deserves all the crap that will go with it and you can bet your arse, the US entertainment industries will deny any and all liability when it hits fan!!

    • eddy

      “..THAT IS FUCK ALL TO DO WITH AND ONLY BENEFITS THE USA!..”

      I may have put it a little more eloquently, but your rant is bang on.

      Why does the US believe that the rest of the world has an obligation to protect THIER products.?

      I am happily living in the UK, why should I care how much money a US industry is (allegedly) losing….We dont care about you’re buisnesses…..Deal with it.

      • Somebody_Else

        It does NOT benefit the USA, it only benefits the COMPANY.
        Even the artists get screwed, it’s not like they get any of the money, and even if they did, the MAFIAA would end up charging them for the full bill of the prosecution (even the stuff that the MAFIAA didn’t pay for) so the artists would end up even deeper in the hole than when it started.

  • Gwen

    I love how blatant the corruption is. It’s like the politicians and the meta-corporations know that the people cannot interfere. Of course people can protest but they’d accomplish more by sticking their thumbs up their asses.

  • Whatever

    Why is it allowed for an (criminal) organization to demand laws in other countries which they do not even have in their own country. Why does a country threaten another country to adopt laws which they themselves don’t use.

    For example, would Spain demand that Morocco implement sharia law to keep fugitives away in the interest of ice cream sellers on the south coast because of imagined lost sales to tourists ? This is what the US wants from the rest of the world.

  • Guest

    Sending bogus DMCA notices costs 0$ = ok

    Sending legit DMCA notices costs 20$ = bad

    FUCK YOU MAFIAA

  • djnforce9

    Typical MAFFIA. Just wanting other people to pay for their expensive legal crusades.

  • http://geekhideout.net/ The G33K

    Ah seems Hollywood is coming up against the standard problem of paying a third party for something that they cannot do themselves. They are now being reminded that copyright is not an inherent right and is absolutely up to the holder to enforce like any other IP (patents, trademark). So basically if they want something done they have to follow due process, procedural fairness and pay the government a VERY minimal fee to perform each duty. Like taxes, land & water rates, and electricity.

    Whats the problem? Oh that’s right entitlement beliefs.

  • dlovin123

    It sickens me that “Hollywood” can “summon” you to discuss politics…. as if they have the power to make / change laws and enforce policies… Oh wait they do that’s right.. they bought out a lot of people to push their agenda for them.

    My thoughts… a good sniper needs to take out a few of the leaders in charge. Then if the new ones make the same mistakes take them out too. Eventually they will understand they can’t keep pushing the little guy around and get away with it.

  • granted

    haha! The shoe is on the other foot now. They want the cost to be reasonable. Hollywood are such pussies and crybabies.

  • http://www.facebook.com/people/Brent-Alan-Newton/1355656399 Brent Alan Newton

    Hollywood can suck my balls. I can live without all the garbage they produce.

    • JordanKratz

      Me Too ! I actively Support the Death of all things MAFIAA and I havfe no sympathy at all for any of the pricks.

  • Claptrap

    Look at that smug look in the picture…just makes me sick to think this is the greedy prick that is ruining the internet.

  • Guest

    Public service message to all Kiwi citizens:

    Don’t make the same mistake the American people did in 2012. Drive John Key and Hollywood out of the government in disgrace at the next election.

  • Guest

    This is like saying the police shouldn’t pay for the petrol and manufacturing costs to sustain their vehicles with which they chase after crooks. Or like saying that they shouldn’t pay for the electricity to run their computers and servers.

  • Who

    ok so what happened to this 6 strikes shit? its over a week now and I still haven’t heard of any one complaining about it. so you keep blowing it out of your ASS MPAA.

    • Guest

      I don’t even know if six strikes has started yet.

      • Who

        it probably hasn’t started, just as I said weeks ago they postponed it again. hell its isn’t gona really matter if this solar flair hits LOL all electronics will get knocked out N e ways.

  • Anonymous

    Surely the million dollars or so saved for every 10 tracks that aren’t downloaded as a result of Three Strikes warnings would more than cover costs?

    If I were the Kiwi government, I’d be renegotiating the costs. Surely a tenth of the money saved by each warning–that is, $10,000 per track–would be a fair fee. That would leave 90% of the profits ($90,000 per track!) for Hollywood.

  • Violated0

    The scheme is being used by RIANZ, the local RIAA equivalent, but Hollywood has boycotted the program claiming that sending notices is prohibitively expensive.

    These are the people who lobbied hard to get these 3-strikes system introduced but as seen across the entire world they are the ones who now refuse to pay for it. Instead they want to have taxpayers foot the bill which during these harsh economic days, where even HAPODI are cutting down on their public funding, simply wont happen.

    Let us put this situation in context when “Hollywood” can buy out every 3 to 6 strikes scheme worldwide in the budget of just ONE TOP MOVIE and then charge anything they want for notices. So their financial ass is so tight they squeak when they walk!

    The end truth is that they know that they are fighting a battle that can’t be won and in NZ the population is too small to make an economically viable scheme compared to more populated countries. It is a doomed scheme like the UK’s own pending DEA which will have the same “no one wants to pay the operating cost” problem. That is the Government for you wasting public funds on doomed schemes.

    • http://gene-poole.tumblr.com Gene Poole

      If the US 6 strikes program had had as much oversight as the NZ 3 strikes plan, instead of being voluntary, we’d have a similar situation coming into play in the US as well – which is very telling that, in the american-lobbyist-heavy-plan, the accused end user is the one footing the bill to be able to plead his innocence. it’s exactly what the content industry’s end game has been all along, pushing to have their “rights” enforced at someone else’s expense. They don’t care who – ISP, customer, government (and therefore the public) – as long as it’s not them.

      Which is in itself kind of telling as well, in that they’re bleeding out from so many wounds already that very soon the *AAs won’t even have the budget to spend lobbying and chasing down their customers at all, as they’re struggling to stay afloat as it is.

      The pirate analogy is very apt. the content middlemen are in a galleon that has been shot full of holes by our fellow pirates. Pretty soon they’ll go under.

      Then maybe the artists can finally start getting paid properly like they should have all along.

      “But how will the artists get paid??” By stepping aside and letting them earn a living, that’s how.

    • Internet_Zen_Master

      That’s the part that I really find pathetic. If RIANZ, RIAA’s NZ cousin, is using the system, then why the hell is Hollywood complaining?

      The first time I heard about outrageous copyright infringement lawsuits, the people suing were the music industry.

      In other words, if the group that is legendary for suing people into oblivion finds a system that has a rather paltry fee as a requirement (seriously, $20 US is not that much when you look at the net income Hollywood studios are raking in, with or without their questionable accounting methods), then shut up and pay the damn fee already.

      What’s that? You’re complaining because this prevents you from sending takedown notices in bulk, and you’d actually have to hire people to check and see if things were infringing? Well too bad.

      Maybe Hollywood will be more accurate with the websites that it goes after now.

      Okay, that’s just wishful thinking on my part.

      The Zen Master says, “We’ll see.”

  • Internet_Zen_Master

    You want New Zealand to reduce the cost of infringement notices from $20 US down to $ 2(NZ)?

    The Zen Master says, “Pffthahahahhahahahahahahahahahahahahahahahahahaha *breathes* ahahahahaahahahahaahahahaha!!”

    YEAH NO.”

  • Putinho

    mUHAUEHAUEHUAHEuaheuHAUHEUh stupid MPAA whores

  • SCP-914

    Easy way to reduce piracy? Reduce copyright lengths. More stuff would be in public domain and legal to download. (Meaning the people who download older stuff won’t be committing copyright infringement because they’ve expired.) Besides, how is a dead person supposed to keep on creating new works?

    • Christopher Kidwell

      Agreed. 5 years, tops, copyright on anything today. If you haven’t made your money in 5 years from making something, you are never going to in reality.

  • Who is

    Amazing when a bunch of business fuckwits can now influence govenments overseas they call and he goes running like a lapdog.
    Who the fuck runs te country’s now govenments or rich pricks sitting in ivory towers.
    Bart Simpson said it best
    We need another Vietnam to thin out there ranks a little

  • http://www.facebook.com/profile.php?id=100005069441277 Chuck N Dies Last

    More horse shit. Who care$..

  • Pingback: Hollywood Asks Kiwi Prime Minister for Better “3 Strikes” Anti-Piracy Deal | SafetyFist.com

  • daposter

    Hollywood “summoned”…?

    and on top of it he went ( what a political/diplomatical skill set is that?)

    Hollywood’s agencies are supposed to defend and enforce the copyright of the artwork that they represent (see a normal contract: they take ownership of the artwork, they also take on enforcing copyright in the name of the artist).

    So, seems they don’t want to fulfill their side of the contract, because enforcing copyright is expensive:

    If I want to enforce copyright on something it costs me some $$ up front, which I can recupe if the violation proves to be one: so I need to do even more expensive homework securing proof.

    Why should large agencies (shortnamed for all as “hollywood”) not need to do the same?

    Online piracy: if I come with a subpoena to an ISP for data on an access or abuse, I need to pay.
    On the ISP side: in a larger ISP you need a couple of people plus a full time counsel for that (not all subpoenas are correct, most are overreaching and answering them would put the ISP into a hot seat between the asking party and the party (parties) who’s information is to be released.

    So, $25 per notice (includes finding out in logs what, when, where, assessing validity of the information request, paperwork) is a bargain if there is any such a thing.

    Again, “Hollywood” wants to reap the profits, but when it comes to render the promised service of enforcing the copyright for the artist, they don’t want to pay out.

    Simple legal situation:
    obviously ‘Hollywood’ does not want to pay for it’s enforcement activity, which equates refusal to enforce a copyright,
    which voids the copyright claim if it is actively decided not to procede with enforcement for no matter what reason.

    So, artists: if you want your copyright “right” enforced by the party who gives you $0.50 on the $20 and pockets the rest, unwilling to come up with costs to enforce your copyright (which you pay them for by only taking $0.50), you need to get on the horn with a counsel and sue ‘Hollywood’ for breach of contract now.

    daposter

  • JordanKratz

    Fuck You Hollywood ! We will not give you a Dime of our Money you damn Slimeballs !

  • Gadfly

    Hollywood SUMMONED the New Zealand PM? SUMMONED? Can they spell arrogant? They may be able to spell it but I’ll bet they don’t know what it means. And the cost TO THEM for filing notices is prohibitive? Gee! That’s why don’t go the movies.

  • HollyWoodMong

    If I was an ISP, I’d set each notice at $150 USD. Call that a decent amount and see Hollywood go fuck themselves while you’re making money on them. They want to make money, they better have the right evidence. For $150 they could be getting $1000′s back, given they know that their evidence is solid; if not, go fuck yourself.

  • sleipner

    One word folks,it starts with G ends with D and has a whole lot of blood sucking in the middle,ah GREED don`t you just love it and we can`t forget its good friend hypocrisy,where oh where would politics be without these two obnoxious bedfellows

  • Smokealot

    C’mon John. I bet your kids fucking torrent they are in there late teens.

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