OUTBOUND INVESTMENT TO INDIA: Counterfeiting and Piracy in the Indian Entertainment Industry
April 01, 2008 | BY
clpstaff[email protected] Indian entertainment industry, boosted by a rapid growth in the number of digital consumers, will earn as much as US$28.9 billion…
The Indian entertainment industry, boosted by a rapid growth in the number of digital consumers, will earn as much as US$28.9 billion by 2012 according to the “Indian Entertainment and Media Industry 2008” report by PricewaterhouseCoopers and an industry group. Further the study shows that the Indian entertainment industry grew 17% in 2007 – a slight improvement on the 15% forecast, reaching US$12.82 billion, up from $10.95 billion in 2006. Amid the growth phase has been the overriding menace of counterfeiting and piracy which has engulfed the industry.
The Indian film industry, popularly known as Bollywood, makes more films than Hollywood yet its revenue is only 2% of what is earned by Hollywood. In order to address this the US-India Business Council (USIBC) is teaming up with the Federation of Indian Chambers of Commerce and Industry (Ficci) in a Bollywood-Hollywood initiative to conduct a study on the rampant counterfeiting and piracy in an attempt to add more muscle to fight piracy.
The USIBC entrusted the Indian arm of Ernst & Young to study how entertainment and media piracy affects India. The study The Effects of Piracy and Counterfeiting on India's Entertainment Industry will be unveiled at the annual Ficci Frames Conference and will reveal that counterfeiting and piracy costs the Indian entertainment industry US$4 billion and losses of approximately 800,000 jobs annually. The study goes on to challenge the entertainment industry to put together a holistic programme to fight piracy drawing on the power of consumers, the judiciary and policymakers.
Piracy and counterfeiting have proved to be a menace of such proportions that the very existence of the industry is at stake. Increased enforcement with meaningful deterrent penalties and swift justice is a way out. “A robust legal ecosystem” is required, according to the study as the battle against piracy is now being increasingly fought on a new frontier, the internet. The government has also come to realize that a strong legal frame work coupled with an effective implementation structure will help the country have a strong system of intellectual property protection (IPR). IPR enforcement is also necessary to strengthen the investment climate and attract and retain innovative companies and creative artists, the engines of economic growth.
In the context of a robust legal system, Digital Rights Management (DRM) could be the vehicle that offers protection of copyright and consequentially the investments made in the industry. DRM involves the application of a set of technical and legal mechanisms that allow copyright owners to control the access to their works, determine the types of permissible uses and the ultimate distribution of their works in the digital world. Specifically it incorporates the identification and protection of intellectual property in digital form through Technology Protection Measure (TPM) and Rights Management Information (RMI). TPMs refer to systems and technologies that allow copyright owners to control the access to their works, determine the types of permissible uses and terms of such uses and the ultimate distribution of their works in the digital world. RMI refers to mechanisms that identify digital works and are used to manage the provision of material to customers. The proposed amendments to the Indian Copyright Act, 1957 include the introduction of Section 2(xa) that defines RMI and Section 65B that provides for the protection of RMI. The proposed Section 65A introduces protection of technological measures.
The rapid development in the entertainment sector presents the right opportunity to curb piracy in order to maintain the growth curve. The management of the digital content through digital right management is leading to a downfall in piracy practices. The DRM system may also prove advantageous to the industry in the perspective of market segmentation based on price differentiation through technology.
Counterfeiting and piracy are being handled but a more proactive approach is needed. The sharing of international best practices is the best way forward.
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