At a hearing on the topic yesterday, many of the witnesses were sceptical of the claims and assumptions made by the affected US industries, including the MPAA and RIAA-commissioned reports. Harvard Business School Professor Fritz Foley called the basic assumption behind the industry loss figures into doubt.

“It seems a bit crazy to me,” PC World quotes him telling the Commission on the first day of the hearing. “To assume that someone who would pay some low amount for a pirated product would be the type of customer who’d pay some amount that’s six or 10 [times] that amount for a real one.” While some companies, such as EA (at times), don’t follow this ‘a copy equals a lost sale’ system, the majority do.

“Be careful about using information the multinational [companies] provide you,” cautioned Foley. “I would imagine they have an incentive to make the losses seem very, very large.”

Professor Foley’s comments reiterate what the Government Accountability Office told US congress earlier this year. There is virtually no evidence for the claimed million dollar losses. “Lack of data hinders efforts to quantify impacts of counterfeiting and piracy,” was one of the main conclusions from their report. In fact, copyright infringements may also benefit the entertainment industries and third parties, it argued.

An Intellectual Properly law professor at Drake University had another perspective. Pointing out there are two sides to economics, Professor Peter Yu noted that companies counterfeiting products in China may employ US workers, and consume US-sourced raw materials, so it’s not a straight loss. It’s similar to how VHS tapes were not the straight loss the movie industry predicted and claimed in the late 70s and early 80s. Yu also noted that it’s useful in spreading Western ideas to China, although how well lobbying will go down is anyone’s guess.

One of the best suggestions so far, however, came from Ohio State University law professor Daniel Chow. When asked how the size of the problem can be identified and quantified, he suggested that the agency should push the affected industries for more data, presumably data that backs up their claims (there is little-to-none available at present).

Professor Chow also noted that current enforcement efforts are not working (as we have previously reported), and that companies should start thinking about the long-term. It’s advice that the industries would be wise to follow, as every past copyright conflict has, despite a short-term loss, provided massive long-term benefits and growth for the affected industries.

Article from: TorrentFreak.

As demand grew Tony’s business expanded year after year, but by 2001 and although still busy, profits were being squeezed. By 2004 demand started to fall dramatically and in 2005 he had to close down his factory unit. Tony told TorrentFreak there was a new competitor in town.

“File-sharing, P2P – call it what you like. When you asked a customer why he wasn’t buying anything, 9 times out of 10 it was ‘BitTorrent this, LimeWire that’. Add that to the fact that huge numbers of PC users have burners and fast broadband and it’s obvious why I had to get out and earn a living another way. We had it good for a while but I don’t think those days are coming back.”

Cheap pirate media had just got even cheaper. With the advent of super-fast broadband there was little point in visiting the local counterfeiter when everything was just a few clicks away for free on increasingly user-friendly BitTorrent and other file-sharing sites. But what happens to the physical piracy market when the file-sharing sites are no more? Maybe China is about to find out.

During the last month Chinese authorities shut down hundreds of video sites, including some of the biggest BitTorrent trackers such as BTChina, for operating without an appropriate government license.

Now, according to a Chinese illegal DVD vendor, these shutdowns could be set to bring him and his competitors a sudden windfall – the exact mirror image of what happened to Tony several years ago.

“Pirated DVDs are the cheapest choice for people without free downloads online,” he said. “I expect my sales to triple before Christmas.”

While it’s still early days, officials in charge of clearing illicit vendors from the streets said that they had not yet witnessed a surge in demand for illegal DVDs. A spokesman for a Chinese IP lawfirm said that while there could be an increased demand short-term, file-sharers are resilient.

“Simply shutting down those websites might have an immediate impact, but where there’s a will, there’s a way,” he said. “The problem is, if you shut down the top two BitTorrent sites, then people are simply going to go to number three, number four or number five on the list,” he said. “You can cut off the head but sooner or later two more will grow back.”

Time will tell if an Internet crackdown on video sites will force customers back onto the streets, but perhaps more intriguing is the answer to this question – will it push them back into the arms of the legitimate vendors of movies and music? It seems unlikely.

Article from: TorrentFreak, check out our new blog at FreakBits.

Following the announcement came a two month investigation to ensure that sites were complying with the new rules – inevitably some fell foul. In March the authorities announced that dozens of websites would face penalties or be shut down for broadcasting material described as obscene, violent or fear-inspiring, or that could be detrimental to national security. Many were punished for simply not having the appropriate government certification.

Around a year later the government flexed its muscles again, shutting down more than 150 more video sites, bringing the total to more than 400 since the new regulations were announced.

In early November 2009, SARFT said it would continue cracking down on what it described as “unlicensed” video websites.

Continuing with its earlier justification, the government said it wished to provide a healthy environment for the country’s 200 million online video consumers, to eradicate what it described as lewd, obscene and violent content which had “severely undermined” the health of the country’s children. Although they weren’t initially mentioned, this time round authorities did included copyright issues as one of the reasons that the sites were to be closed.

Included in this swoop were several BitTorrent sites, including the very popular BT @ China. A notice on the site’s homepage explains that in the absence of an appropriate audio/visual license, the site has been ordered to shut down.

Another site, UUbird, which lists dozens of US shows such as Desperate Housewives, Prison Break, Heroes and Lost, said it would delete all links to TV shows and movies by mid-February.

As reported here on TorrentFreak a few days ago, BitTorrent is very popular China, with its main torrent client usage even surpassing that of uTorrent.

Article from: TorrentFreak, check out our new blog at FreakBits.

Following the announcement came a two month investigation to ensure that sites were complying with the new rules – inevitably some fell foul. In March the authorities announced that dozens of websites would face penalties or be shut down for broadcasting material described as obscene, violent or fear-inspiring, or that could be detrimental to national security. Many were punished for simply not having the appropriate government certification.

Around a year later the government flexed its muscles again, shutting down more than 150 more video sites, bringing the total to more than 400 since the new regulations were announced.

In early November 2009, SARFT said it would continue cracking down on what it described as “unlicensed” video websites.

Continuing with its earlier justification, the government said it wished to provide a healthy environment for the country’s 200 million online video consumers, to eradicate what it described as lewd, obscene and violent content which had “severely undermined” the health of the country’s children. Although they weren’t initially mentioned, this time round authorities did included copyright issues as one of the reasons that the sites were to be closed.

Included in this swoop were several BitTorrent sites, including the very popular BT @ China. A notice on the site’s homepage explains that in the absence of an appropriate audio/visual license, the site has been ordered to shut down.

Another site, UUbird, which lists dozens of US shows such as Desperate Housewives, Prison Break, Heroes and Lost, said it would delete all links to TV shows and movies by mid-February.

As reported here on TorrentFreak a few days ago, BitTorrent is very popular China, with its main torrent client usage even surpassing that of uTorrent.

Article from: TorrentFreak, check out our new blog at FreakBits.