The MPAA funded report report titled ‘Film Piracy, Organized Crime, and Terrorism’ claims that terrorist groups use film piracy to finance their activities, while organized gangs see it as a significant revenue stream. Selling pirated goods is a ‘low-risk, high-profit enterprise’ which attracts criminals of all sorts according to the report. And, as if that is not bad enough, in some areas the influence of these pirating gangs extends into law enforcement and political leaders, who are bought, intimidated, or induced to create “protected spaces” where crime flourishes.

Something that jumped out during the first glance at the report is the blurring of terms. On page 3 of the report, one of the reasons things can, and are, overstated is explained as a footnote.

“The terms “piracy” and “counterfeiting” are used interchangeably in this report, although they can mean different things.”

Unfortunately for the study, they do mean VERY different things. ‘Piracy’ in this context tends to refer mostly to digitally representable items, while counterfeit goods can run the gamut from aircraft parts, to cigarettes. In France, you can’t sell certain brands of handbag on eBay easily, because they might be counterfeit. Fake aircraft parts (which don’t meet specs) are a major problem for the airline industry (also counterfeiting) and fake cigarettes are a commonly seized item at international borders. If you want another example, just look no further than your spam folder – count the number of Viagra, and other medications you are offered – all counterfeit.

It only goes downhill from there. Early in the report, it moves on to talk about definitions of organized crime, including some that are so loose it’s hard to see anything except a lone person’s opportunistic crime as being ‘organized’. In fact, by the definitions given, the RIAA may be an organised crime gang, or the UMP party in France, making 3-strike Sarkozy, the head of a crime syndicate.

Digression aside, the case studies that underpin these findings also fail to pass scrutiny. The very first one mentions a seizure of 9400 discs in a shipment. Using a standard weight of a DVD (60g, with box), it comes to about half a ton, and assuming each disc can be sold for $10 (a high price) that’s only $94,000. A kilo of cocaine has a higher street value (about $160,000 right now, according to Cleveland Police), and is much easier to transport. In addition, drugs don’t tend to suffer from the ‘do it yourself’ aspect that gives sites like the Pirate Bay and Mininova such heavy traffic. No value is ever given for the ‘profit’ made either, only..

The combined proceeds from CD/DVD piracy and drug sales were estimated, for the purpose of assigning asset forfeiture, at $3 million.

Throughout many of the case studies listed, there is little hard evidence to actually link crimes. One cites packages arriving at a location containing copied DVDs, and when the police arrived, several men with false papers attempted to run. This leads the author to the assumption of using immigrants to work a copying operation, despite the only evidence mentioned being a single person trafficked.

If movies are the easy, safe and profitable way, as the report suggests, then someone’s not telling these gangs. A little chart is even produced, which lists gangs worldwide and the work they’re involved in.  There are no prizes for guessing that they all apparently participate in DVD copying, but more surprisingly, its the only activity they all share.

The true purpose of the report is of course to force authorities worldwide to do something about piracy, or criminal gangs and terrorist groups will take over. We have no doubt that the MPAA will cite this study in nearly every press release they issue from now on, and bring it onto the political agenda. Here are a few recommendations the report gives.

* Piracy should be made a priority offense within anti-gang strategies.
* Laws should be enacted to grant investigators greater authority to sustain investigations, conduct surveillance, and obtain search warrants.
* Key piracy cases should be fought in the organized-crime or money-laundering divisions of prosecutors’ offices.
* Governments should share intelligence with industry-led anti-piracy efforts.

It is likely that the MPAA will use these findings to get tougher anti-piracy laws. This wouldn’t really be a problem if it would only affect commercial piracy. However, as a side-effect people might have to prove that the music on their iPod is legit when they go through customs, and at home their ISP might be looking into their download behavior.

Unsurprisingly, a large percentage of sources given in footnotes, happen to be the very groups that have funded the story, the MPA(A) and FACT, which should seriously dent the credibility of the report. However, it is to be expected that this report will be given the same credibility as other MPAA-financed studies, despite their dubiousness. As a result, expect more laws to tackle this ‘threat’, which will only ever be used against everyday citizens, and that’s just how the likes of the MPAA like it.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

“DVD and other piracy can now be more profitable than drug trafficking,” AFACT’s director of operations Neil Gane told The Australian. “That’s why crime organizations are going into it.”

It might not sound familiar to some of you, but a similar claim was made some four years and 9500 miles away, in the UK. Back then, during a campaign called “piracy is a crime” they made similar allegations (see the top of this page, court. wayback machine), allegations that didn’t stand up to scrutiny back then, when we first encountered them.

Do these? Well, the article in question makes use of the infamous LEK study, and even the MPAA knows it’s inaccurate (pdf). So, it’s not exactly off to the best of starts. Unfortunately, that’s also the only start. Despite a trawl of the websites and press releases put out by the two organizations (the other being Foxtel), there is only one recent link (doc) between drugs and ‘piracy’ and that is the prosecution of ONE MAN just over a month ago, for cultivating cannabis, and what is described as ‘multiple copyright offenses’.

So, we’ve gone from one guy, with 3,300 movies+TV shows and growing some cannabis (total punishment, 7 month suspended sentence, and a 2 year good behavior order) to Organized Crime. Despite the utter failure of the similar campaign in the UK years earlier (where the only thing remaining of the campaign is the ‘You wouldn’t steal a…” advert) Australia seems determined to try and make it work.

However, there is a plus side, in that AFACT have established a market price it believes consumers feel to be the worth of a DVD. In all their estimations of yearly capacity, they give a ‘street value’ of roughly $5AUS, which is about $4.77 US (3 Euros, or £2.40). In this they differ from the campaign in the UK, where the value given was some 20 times greater. In this, while telling lies, they are also more truthful.

In the end, no ‘criminal gang’ will forego their drugs, weapons or other lucrative money-making operations for DVD piracy. The reasoning is as plain as it is simple. With drugs, or guns they have small, highly valuable goods that can’t be easily obtained elsewhere. As the world becomes increasingly connected, and peer-to-peer becomes simpler to use, more reliable, less time consuming AND more powerful, the potential returns on selling bootleg DVDs reduces, ask Tony. Ten years ago, people had dial-up, and hard drives were maybe big enough for 2-3 DVDs. Now you can buy terabyte hard drives, and even the TorrentFreak researcher, living in the middle of rural Georgia, 10 miles from the nearest shops, has an 8Mbit connection.

The reasons for comparisons become clear when you hear the comments of Foxtel’s head of Fraud, Mark Mulready (a ‘former police prosecutor and detective’), who told The Australian “Police should have all the same investigative tools to fight piracy they currently have for organised drug trafficking or money laundering,” so, as usual, it’s about not having to spend time and money on civil cases, but having the taxpayer foot the bill, and the ability to use law enforcement to patch their business model.

Rehashing failed campaigns is a sign that the industry has no new ideas, and is desperately trying to avoid dealing with the root of the problem , themselves and their greed. When even the police are so into ‘piracy’, that there are too many to prosecute, it’s time to stop sticking your head in the sand, and deal with the causes.

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.

In a translated interview with Norway’s Aftenposten entitled “Goebbels Would Be Proud”, Biafra tells us a little bit about how he feels about the RIAA, big record labels and even the media. He isn’t pulling any punches either.

“I have two different opinions on file-sharing” says Biafra, drawing a metaphorical line in the sand – with good (small labels) on one side, and bad (big labels) on the other.

“You may take from the big labels,” he orders, “because the only thing they do is steal from both the artists and the audience.” Not many would disagree with you there, Jello.

The ‘good’ side are the small guys, explains Biafra to potential file-sharers: “Don’t take from the smaller, independent labels. Then fantastic bands would have to surrender way too early, because they can’t afford it,” he says, whilst completely forgetting that popularity fills concerts and downloads are a good way to achieve that these days. According to MAMA Group who manage the Kaiser Chiefs and Franz Ferdinand, future profit is there to be unlocked – and it lies in the live concert. Popularity through free downloads could be the key to these, time will tell.

“Support the independent labels, but the big ones ,fuck’em. Anyways, I haven’t found anything in many years which come from a large label worth buying” says Biafra, as he tosses aside his attacks on singular big labels and gets his teeth into the collective might of the RIAA:

“The RIAA reminds me most of the Godfather,” Biafra says, tipping his head to the side and changing his voice to Marlon Brando mode:

“We will sue you. If you want out of this without going to court, we can make an arrangement: Give us $5000. If not, you will find a horses head in your bed.”

Suddenly he is back to being Jello Biafra again, and talks about why RIAA action against file-sharers is wrong: “They are doing this to 12 year old girls, they are doing it to 80 year old women, and they do it to students. There are plenty of examples that show people having to quit school because they had to give all their money to the recording industry instead,” he says gravely.

Biafra then explains that he doesn’t do any downloading himself as he doesn’t have a computer before launching himself at the media: “It’s so dumb, that even the American edition of CNN is just a bunch of right-twisted parrots babbling about the primary elections, letting the war in Iraq pass in silence. Then it is up to the artists to fill the void.”

Then, in a final show of support for the small guy, Biafra concludes: “When smaller performers express their political views they are gagged. But when Mel Gibson or Arnold Schwarzenegger does it, then it’s okay. Because they fit better into the media profile.”

“Goebbels would be proud.”

For those who haven’t seen it yet, here’s a RIAA training video, that may give some insight into the organization.

Many thanks to HÃ¥vard

Source: TorrentFreak, for the latest info on copyright, file-sharing and anonymous VPN services.