WASHINGTON -- Movie piracy has exploded in Russia, prompting Hollywood to request that Washington reconsider the special trade status afforded that country.
In a filing with the U.S. Trade Representative logged Friday, the Intellectual Property Alliance (IPA) said Russia is among seven countries rife with pirates. Other countries are Poland, South Africa, Thailand, Brazil and Malaysia.
The Motion Picture Assn. -- the international sister org of the Motion Picture Assn. of America -- estimates that the U.S. film biz lost $3 billion-$3.5 billion in 2002 to worldwide piracy. Both the MPA and the Recording Industry Assn. of America are members of the IPA, with the RIAA also reporting massive losses due to overseas piracy.
"We urge the United States and governments around the world to take immediate action to prevent the destruction of the global creative community and to pave the way for greater economic growth by creating conditions that will nourish rather than inhibit the creative mind. We all lose if we fail," RIAA international exec veep Neil Turkewitz said.
Valenti: Keep close watch
MPA chair-CEO Jack Valenti said Russia and the other six countries highlighted in the IPA report must be monitored carefully by Washington to see if those governments are making a concerted effort to pass copyright laws and enforce existing ones. If problems persist, U.S. Trade Rep. Robert Zoellick has the option of reviewing trade agreements, as well as asking for tariff sanctions.
DVD piracy in Russia is now so rampant that it has destroyed the legitimate domestic market and impacted markets throughout Europe, with Russia becoming a leading manufacturer of pirated DVDs, Valenti said. Many of the manufacturing plants are owned by organized crime syndicates.
"Without significant changes and effort at all levels of the government, Russia will have the dubious distinction of becoming the premier piracy supplier throughout all of Europe. The burden of stopping piracy rests largely on the will of the Russian government," Valenti said.
Poland's big black market
In turn, Poland has become a haven for Russia's massive export of illegal DVDs, which are widely available, including at Poland's Warsaw Stadium markets.
As in Russia, piracy in South Africa is rising steeply, according to the MPA. Custom officials aren't doing enough to stem the tide of pirated DVDs being smuggled out, the MPA says.
"Corruption among customs officers is a major problem in South Africa and is greatly inhibiting any efforts at border enforcement," Valenti said.
In addition, Taiwan has long been a hotbed for movie piracy.
Contact Pamela McClintock at
pamela.mcclintock@variety.com