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MPA Wins China DVD Lawsuit

by March 06, 2008
DVD Piracy takes a Small Hit

DVD Piracy takes a Small Hit

Walt Disney Pictures, 20th Century Fox, Columbia Pictures, Universal Pictures and Paramount Pictures sued Beijing Jeboo Interactive Science & Technology Co. in Shanghai late last year for supplying Internet cafes with computer software that allowed users to download and watch unauthorized movies. In the initial lawsuit, the studios demanded an “official apology” and compensation totaling more than 3.2 million yuan ($433,000). Jeboo runs their associated online movie website which is the largest online cinema in China and has network copyrights to more than 30,000 films and television programs.20 Hollywood movies were involved in the suit, including Hitch and Pirates of the Caribbean 2: Dead Man's Chest, the Motion Picture Association (MPA) said according to an AP report.

The studios have reached a settlement with the Chinese Internet company that resolves the pending lawsuits. The MPA said the terms of the deal are confidential but that Jeboo has apologized and paid a "significant" amount in compensation. According to the MPA, more than 90 percent of DVDs in China are pirated.

According to the report, estimates put piracy in China as costing American studios $244 million and Chinese studios $2.4 billion in lost box office revenue in 2005, the last year for which the group released such figures.

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Recent Forum Posts:

Jack Hammer posts on March 07, 2008 19:51
mtrycrafts, post: 385506
Yes, but this is not the first time they have pirated. So, how can they save face when it is an ongoing issue and not getting smaller.

That's especially where they need to save face. Basically China has been inefectual at controlling or limiting the amount of piracy going on (among many other problems). They want major companies to feel that they are making a strong effort to improve the situation.

Doing business in China is not as simple as here where you can just go lease a spot and get a business license and you are on your way. There the government has to approve of what you do and essentially becomes a partner. Compainies also need the Chinese governments permission to take money out of the country, you cant just wire your profits back to the States. Look at what McDonald's had to go through to open up shop on Beijing (look for what happened to the Mayor when he tried to muscle Mcd). None of it pretty.

Jack
mtrycrafts posts on March 07, 2008 18:47
Jack Hammer, post: 385193
In Chinese culture “saving face” is a big issue. And that's exactly why the $ amount requested was so low. To allow the goverment to “save face” for allowing pirating to occur. If they felt they were being insulted for not being in control of these things, it could ruin the chances of the legitimate movies ever becoming mainstream.
Jack

Yes, but this is not the first time they have pirated. So, how can they save face when it is an ongoing issue and not getting smaller.
3db posts on March 07, 2008 07:41
Jack Hammer, post: 385193
You have to realize that China is not the US, people there don't think or feel the same way we do about things, especially the government. The leadership there knows they have roughly a third of the world population and that many companies want to do business with them, and that if the government tells them no, that's it, they're out.

In Chinese culture “saving face” is a big issue. And that's exactly why the $ amount requested was so low. To allow the goverment to “save face” for allowing pirating to occur. If they felt they were being insulted for not being in control of these things, it could ruin the chances of the legitimate movies ever becoming mainstream.

Though it sounds silly and messed up from our perspective, you need to remember that regardless of what you may think is right or wrong, China is still a communist country and they are not fully concerned with our laws. That said, they still want our money. It's a delicate situation dealing with China.

The Government is fully embarrassed by the constant quality control issues that we take for granted that they've been experiencing lately. From Heparin to lead paint in childrens toys to ethyl glycol in toothpaste. The list goes on and on. Yet China is a potential gold mine for companies. So they keep doing business there. If these issues can be worked out with Government being able to save face, the studios know they can make huge profits, so they persist.

Jack

Thats a good summary Jack
Jack Hammer posts on March 07, 2008 06:42
You have to realize that China is not the US, people there don't think or feel the same way we do about things, especially the government. The leadership there knows they have roughly a third of the world population and that many companies want to do business with them, and that if the government tells them no, that's it, they're out.

In Chinese culture “saving face” is a big issue. And that's exactly why the $ amount requested was so low. To allow the goverment to “save face” for allowing pirating to occur. If they felt they were being insulted for not being in control of these things, it could ruin the chances of the legitimate movies ever becoming mainstream.

Though it sounds silly and messed up from our perspective, you need to remember that regardless of what you may think is right or wrong, China is still a communist country and they are not fully concerned with our laws. That said, they still want our money. It's a delicate situation dealing with China.

The Government is fully embarrassed by the constant quality control issues that we take for granted that they've been experiencing lately. From Heparin to lead paint in childrens toys to ethyl glycol in toothpaste. The list goes on and on. Yet China is a potential gold mine for companies. So they keep doing business there. If these issues can be worked out with Government being able to save face, the studios know they can make huge profits, so they persist.

Jack
mtrycrafts posts on March 06, 2008 18:08
Johnd, post: 384763
…That cost actually gets passed on to the paying consumer in lost revenue, keeping the msrp of DVD's artificially high. Score one for the MPA.

Yes, but you think the price per DVD will drop because of this case?
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