Business News

Posted: Sun., Feb. 15, 2004, 1:38pm PT

MPA sues China pirates

Move follows cases against other pressing plants

Mike Ellis

Ellis

SYDNEY -- The Motion Picture Assn. has launched court actions in China against two DVD factories, alleging they're producing pirated versions of Warner Bros. and Disney product.

Move follows cases against two other factories last year that resulted in the offenders paying financial settlements, publishing apologies and agreeing to check with the MPA's rep office in Beijing before seeking to replicate any MPA member studio's product.

The MPA estimates video piracy accounted for 95% of the market last year, up from 91% in 2002, resulting in lost income to the Hollywood companies of $176 million in 2003.

"The piracy situation is undoubtedly worsening in China," said Mike Ellis, the MPA's veep and regional director for Asia-Pacific anti-piracy ops. He noted the rate is the highest since 1995, when it was 100%.

"Until a nationwide enforcement campaign ... is implemented, it is difficult to imagine China relinquishing its position as the No. 1 violator of movie copyright in the Asia-Pacific region," Ellis said.

The MPA filed one civil action on behalf of Time Warner Entertainment against Zhanjiang Huali Jinyin Video, alleging it produced pirate versions of the TV series "Growing Pains."

Disney has sued Henan Xianda Optical Disc Co. for piracy of the movie "Lilo & Stitch."

Contact the Variety newsroom at news@variety.com

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