Some of Washington’s most powerful lobby groups ramped up their fight today over the Stop Online Piracy Act, which was just introduced in the U.S. House of Representatives. The Independent Film & Television Alliance echoed points that MPAA chief Chris Dodd made in a speech today — that the bill empowering the government to block overseas websites that traffic in copyrighted content would protect jobs. It’s needed to stop “drastic damage to the legitimate marketplace … measured both in films that cannot be produced and in lost returns on investment in films that have been,” IFTA CEO Jean Prewitt said. National Association of Theatre Owners CEO John Fithian adds that the legislation “is an important step to protect the jobs of 160,000 movie theater employees and sustain one of the vital engines of the nation’s economic growth.” The plan also was supported by a collection of unions including the American Federation of Musicians, American Federation of Television and Radio Artists, Directors Guild of America, International Alliance of Theatrical Stage Employees, International Brotherhood of Teamsters, and Screen Actors Guild. If the bill doesn’t become law, they said in a joint statement, then “rogue sites will continue to siphon away wages and benefits from members of the creative community, greatly compromising our industry’s ability to foster creativity, provide opportunities, and ensure good jobs.”
But Consumer Electronics Association CEO Gary Shapiro warned that if Congress passes the bill — also known as the Protect IP Act — then “the notoriously litigious content industry could simply accuse a site that it is selling a product that could ‘enable or facilitate’ a copyright infringement, thereby allowing accusations to shut down sites vital to the Internet economy.” He says that “could lead to mass shutdowns of websites and Internet-enabled services.” The group plans to bring several Internet venture capitalists to Washington tomorrow to make that case.
While content owners and tech companies slug things out, cable companies straddled the fence. National Cable and Telecommunications Association CEO Michael Powell said the group favors “new, reasonable tools that will protect copyrighted goods while balancing the obligations of organizations that conduct business on the Internet.” Cable companies, he added, “will continue to explore further steps to thwart digital theft and we look forward to working with the House Judiciary committee on this important legislation.”


There is no correlation between online piracy and lost profits. The exact opposite is true.
Chris, could you elaborate on what you mean by the exact opposite is true? It just doesn’t make sense to me.
I think what Chris is saying is there’s no possible way you can prove that everyone who watched a pirated copy of a movie would have otherwise paid to see that movie, had they not had the option of the pirated copy.
He’s saying studios can’t prove they’re losing this amount of money due to pirates.Maybe those people downloaded the movie because they had no intention of paying for it and if there were no pirated copy, they just wouldn’t have seen it.
I’m astonished how much lobbying power media industries have in Washington. Seriously, if they spent as much time on truly critical issues as they do chasing phantom piracy “losses” which have already been debunked by our own GAO, our country would be so much better off.
When online piracy occurs on a film (Wolverine for example)…it prevents the film from reaching full box office potential. When studios make less money, they cut employees. Granted, on that case, the movie was pirated before the release date and had a drastic effect. But you can’t say there is no correlation…much less preaching that the exact opposite is true. People don’t want to lose their job so you can watch a shaky cam pirated video of the current films from the comfort of your futon.
Teenager #1: “Dude I’m sick of people on Wall Street. They’re so greedy, like they don’t even care if people are losing their jobs as long as they get to save some money.”
Teenager #2: “Right on. You want to head down to Occupy Wall Street with me?”
Teenager #1: “Nah, not right now. I’m about to watch this copy of ‘Paranormal Activity 3′ I downloaded.”
Teenager #2: “Score!”
So, you live in a Kevin Smith movie then?
You’re SOOOOO right!
Corporations aren’t greedy. They’re just misunderstood. It’s all the people who “steal” from them which in turn forces massive layoffs and paycuts. Because it’s not enough to turn a profit, you need to make RECORD profits.
If only we treated the corporations better and lowered their tax rate down to zero, they’d CERTAINLY spend all that extra cash raising employee wages and hiring new workers and in NO WAY give each other golden parachutes.
Motherfucker, please! Were you born last night. Online piracy is ruining the studios like mixed-tape cassettes ruined the music industry.
It ain’t.
Your comments show a COMPLETE LACK OF KNOWLEDGE. Warners was/IS having one of the best 5-year periods in it’s history, bragging to the press, etc.
And remember a few years ago when they laid off 300 employees – during a Great Year?????
Layoffs have rarely anything to do with “loss of moneys” or profits. If the majors would layoff 2 unnecessary execs from the top tier, they’s save the same amount of cash if they had laid off 100 below the line employees. GET REAL.
oh, okay “chris”, because some random dude says this on the internet, all the while not including any facts, links, or studies to back the claim, we should just all take your word for it.
You’d like a link eh? How about an independent study by the US Government Accountability Office that concludes, all the numbers the industry cites, yeah, they’re made up. Pure speculation.
Here’s your link:
http://www.gao.gov/new.items/d10423.pdf
Block the Rogue Sites!
By the way, you ever seen what comes up when you search “Tianaman Square” on Google in China?
there will ALWAYS be pirates. wasting your money on lobbyists will NOT help you. you know what WILL help? making BETTER MOVIES that actually put asses in seats.
Terrifying precedent.
People need to think long and hard about enforcement and unintended consequences before they support this bill. A website can change its domain name in the blink of an eye, offering the exact same content. What kind of due process would a suspected website have before being shut down? Would this bill give government the authority to instantaneously block suspected websites? What’s to stop governmental abuse of power? How would you even know if they are abusing power, if they block access? Do you really trust the US government and politicians to restrain themselves and act ethically on this?
I fail to see how the unemployed/low-income 18-24 male demographic can save jobs in Hollywood. What a waste of government resources.
I’ll believe the sincerity of the big studios and the entertainment unions about piracy when they go after the real pirates of bootlegs–the Chinese and North Korean governments. Because as I see it now, they want to do exactly what the record labels did when Napster erupted…go after college dorm students with superfluous lawsuits. Yep, they want to curb the “billions” being stolen by schlubs filming a new release in the theater with a shaky video camera. Hell, if jobs are so important, why have so many jobs in the theaters been eliminated by automation? They didn’t seem so concerned then, did they? And in a few years when they can satellite-beam a movie directly to a theater, are they going to be crying then about even more jobs eliminated? How long before even buying a ticket at a theater involves a human transaction, hmm? The hypocrisy and greed in all of this is vomit-inducing.
EXCELLENT POINT! China and North Korea EACH YEAR steal more money from the majors by their government’s OKing of the bootlegs than ALL the pirates on The Pirate Bay. Do the math!
China alone has 1,349,000,000 million people – and piracy is rampant. Bootlegging is rampant. So – where is the MPAA & Independent Film & Television Alliance in asking Congress to BLOCK China from our films? No where. Can you spell ‘Hypocrisy’?
My guess is people who don’t think this is an important issue worth trying to combat have never made a film, have no dog in this fight, and really shouldn’t be on this site giving their 2 cents. If any of you ever made a movie, worked your asses off to get it funded and distributed and then had to see it be pimped out for free on some shitty website making money off of it, a site that had absolutely no investment or risk when it comes to making the movie, I guarantee you you’d feel quite differently.
Governments should never have access to an ON/OFF switch for websites. The potential for abuse of that power is too great.
Hollywood needs to look at their output of lousy movies and high ticket prices and address those issues to increase audience and box office numbers instead, rather than looking for scapegoats.
Ahh the old “burn down the house because of some ants in the house” kind of law.
Is it really that hard to catch the camcorder guys? Really?
I know it is easy to sue the chuckle head who downloads the shaky-cam
This law will make the websites that host copyrighted content liable for the dude who uploads it. Say good bye to YouTube
The studios will never be able to beat “free” but maybe holding off on the $10 ticket charge to see a show might help.
I have worked in the industry. And I can honestly say I think the overreach in this is breathtaking. Like YouTube, better enjoy it while you can if the industry big wigs can buy enough politicians to pass this bill the site is a goner. Because despite their crap about it being about overseas sites, YouTube will be gone since they can’t take the clips down fast enough. Oh, the industry won’t take the blame for it, they’ll be ‘we loved YouTube’ because its loss will piss people off, while in their offices they will be toasting each other.
As for the whole privacy costs us boodles thing. I just remember that the biggest drop for the record business happened right after they succeeded in eliminating that huge huge problem – Napster. What Napster was good for was introducing people to new artists, new songs. People sampled and then bought what they liked.
And while it might not entirely be the same for the film industry it isn’t all that different. People aren’t going to the theaters because they don’t see the point in paying X bucks plus Y for parking and Z for popcorn to see something they aren’t excited about seeing. Even if piracy wasn’t available, they would wait for it to come out on DVD. Cowboys and Aliens’ problem wasn’t piracy. As for the DVD sales – sure, people who pirate might not borrow the DVD from the library or that rental from Blockbuster or Netflix – but people who were only going to watch something once were never ever going to buy the friggin’ dvd. If they want to own it, they want to own it – maybe even in several versions. Think I’m wrong? Remember back when being able to videotape Television was going to destroy the market for reruns and professional videos? Boy they were right weren’t they. The reason that market is dropping is that people who have less money have realized that they wait long enough they can get the DVD for lots less, they already have the classics so the most of the catalog sales have happened. The reality of how hard the economy is on all levels of the middle class is beyond the understanding of Producers/Executives who fund the MPAA and the IFTA. Their bubble protects them from decisions like can I afford to buy both chicken AND hamburger.
The truth is that it is reasonable to track and attempt to prosecute the pirates who make money – you know the ones who make physical copies and actually SELL thousands of their copies, that is theft of real not imaginary or hoped for customers. This doesn’t even begin to deal with that, all this bill does is let the industry big whigs throw some weight around and then tell their stockholders how hard they are on piracy, even as their actions do nothing to really stop it.
Kids who download movies won’t spend more money on entertainment even if pirated material get harder to access. Sorry for not providing a link to studies made, but generally speaking pirates are either kids with no real money to spend on stuff (that is, they wouldn’t pay to see all the stuff they download) or media interested young men who besides download pirated material also spend a significant amount of money on movies, dvds, blu-rays, etc.
If Hollywood really wants to increase its income, then look over how media is delivered. Why should people in different countries have to wait for a movie or television episode, when it is already available in another country? It’s these things that cause people to download stuff. Realize that it’s not just about getting something for free, it’s about getting access to something that otherwise would be impossible.
If a person loves a teve show, it’s perfectly understandable that he or she would download it as soon as possible, (i.e. an hour after it’s been aired in the US) rather that wait for six months or more *hoping* that some network will decide to air it… or wait to buy the DVD-set.
I’m for a global internet service, where you can pay for media content and get access to it at the same time all over the world.
Oops – I meant to say “China alone has 1,349,000,000 people” — not “China alone has 1,349,000,000 million people”.
Protection from copyright theft IS important.
However, the freedom of access to an open internet is MORE important.
Therefore this is not the solution to the problem. This bill should be blocked and new avenues to protect copyright holders explored. This is another example of companies trying to trying to take away rights for their own financial gain. Censorship for profit is not the answer.
O’k so they whine about poor poor ordinary workers. And they care about them and don’t wan’t them to lose jobs… And then they spent $215 million on that stupid Lone Ranger movie that will bomb. Or $165 millions on Cowboys & Aliens or $150 millions on Mars Needs Moms. And they would not need to fire anyone if they would stop paying so much money to actors and musicians.
I mean here is ordinary Joe or Jane. They look at that MTV Cribs show. And they see how those actors and musicians and some rappers that they didn’t even heard of have this rich, luxury, $20 millions homes. And then they look at those spoiled, rich, cheating celebrities. They see them every day in their Ferraries, their expensive cloth. And then come rich bosses of film industry and say: “People, you can’t download and watch for free any movie or tv show or music. You have to go and pay all your money so that we could pay those millions to those celebrities so that they can go to clubs, party, cheat and buy their cars and houses”….
Stop paying them so much!
So the vultures have found the excuse to introduce the internet patriot act. Hollywood of all institution is the enabler here. Really sad. We are gradually heading into dictatorship in America. Dont let the senate and house of reps confuse you, they are easily controlled with money
Good luck with that. You had the chance to deal with the online community years ago and turned your nose up at them, just like Napster did. Too late now.
Isn’t it cool that the motion picture lobby is the most powerful in the country? I just heard that on the radio. Where’s all that money coming from?
If anyone would look at the current state of what’s being offered on any download sites, for the most part, the time of the ” shaky cam ” really doesn’t happen as much-unless it’s a summer blockbuster or a major hit- not like a number of years ago where on Monday mornings you would have seen all of the previous Friday cinema releases available in all their cammed glory. With the DVD window being at least 3-4 months in most cases the cams for a majority of films don’t appear. A DVD rip appears usually about a month or two before the official release. My point is this….I treat any film I download as a screener…just like I used to get when I worked for a video store for years. If the movie is good I will buy the film new to support that film. (For example– I just purchased Attack
the block using this process) But if the film is shite the studio knew they were making shite and were just after first weekend profits but then when they cry about the grosses not being up to their stupid projections…..they blame piracy….look up the top 10 pirated films All of those films turned a major profit….wonder if the video sales were helped by a few downloads…..
Terrifying precedent.
This must indeed be a terrifying prospect for gutter trash pirates, counterfeiters and freeloaders the world over.
I just remember that the biggest drop for the record business happened right after they succeeded in eliminating that huge huge problem – Napster. What Napster was good for was introducing people to new artists, new songs. People sampled and then bought what they liked.
Wow, that is some Fox News worthy spin right there…
The truth is that it is reasonable to track and attempt to prosecute the pirates who make money – you know the ones who make physical copies and actually SELL thousands of their copies…
Are you actually suggesting that only pirates dealing in physical wares are making money? Seriously? Digital piracy websites are making money hand over fist.
This is another example of companies trying to trying to take away rights for their own financial gain. Censorship for profit is not the answer.
There is no right to piracy. Piracy is not free speech. Shutting down piracy/counterfeiting websites is just the government doing exactly what it’s supposed to: protect property rights and enforce the law.
I’m an artist & writer, and I have no illusions whatsoever that my wonderful, caring “big brother on the hill” is pursuing this in any way, shape, or form to protect ME or any other creative “liberal types” (tho I’m not actually overtly liberal) from the big bad Internet pirates digitally stealing away with our IP… This is nothing less than a thinly first step in what I assure you will soon become a full fledged ASSAULT on the free exchange of thoughts and ideas the Internet allows which has led directly to the so-called “Arab Spring” and Occupy Wall Street protests that have become, again in large part thanks to the Internet, a world-wide awakening of the long-slumbering masses… They FEAR that which they have created for the very fact that they CAN’T control it. They will therefor DESTROY it in it’s present form. Mark my words, they cannot WAIT to get a good long running start at this particular “slippery slope”… And has anybody here been asked what OUR opinions are in regards to this blatant censorship? Will anybody US get a say or perhaps (Lord forbid!) a VOTE on this manner?? It’s time to occupy more than Wall Street, my fellow American patriots. Not only have they stopped LISTENING altogether, but they have clearly stopped pretending to even ASK us anymore… So the few (lobbyists & special interests) continue to dictate to the many. Just so long as WE continue to allow it…
Defending a persons “right” to STEAL is simply unacceptable.
Internet piracy is theft. Are you anarchists? You wouldn’t walk out of Ralphs without paying just because Procter and Gamble makes a profit. If you argue that the product created by artists and carpenters, actors and electricians are not worthy of your money then don’t watch their movies. But if you choose to see their work, pay for it. That’s what civilized people do. The simple facts are – yes, the music industry almost ceased to exist thanks to online theft. Yes, every studio in America is producing fewer movies than ever because it has become harder to make a profit. (That’s destroying real jobs which produce real taxes, paying real people who spend real money on what YOU sell.) Yes, the pensions of every blue collar union worker in Hollywood is almost entirely dependent on residual payments from the studios (a percentage of gross receipts) which are greatly endangered by this theft. Yes, stealing these movies actually takes food off the tables of hard working stiffs like you. Rights have always come with limitations. You can’t kill, you can’t hurt people, you can’t yell “fire” in a (increasingly less) crowded theater, and YOU CAN’T STEAL. The only “slippery slope” threatened is that if this bill doesn’t pass it will appear to be an official endorsement of burglary and lawlessness.
Well said. I’ll add this… people use the crappy quality of many films and TV shows as an excuse to pirate them. Well conversely, if you want to see quality films and TV shows, support them by paying for them. I just produced my first TV show and make just enough to put food on my table. Those who moralize piracy should try working their asses off on something only to see it offered for free days later. The entertainment industry isn’t just made up of Bruckheimer-esque tycoons, counting piles of money. The majority are regular people just trying to make ends meet – read the credits, see how many people it takes to make a film. By pirating their intellectual property, you’re not only taking money out of our pockets, you’re also essentially supporting the massive corporations to whom piracy has a negligible to their bottom line. Want to see crappy entertainment? Keep pirating the good stuff because you think everything online should be free. The sense of entitlement that many people have is just galling.