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China Concerned About Internal Copyright Infringers
sfled writes "Audience members at a recent movie preview had ID card numbers stamped on their theater tickets, were videotaped entering the lobby, and had to part with cellphones, watches, lighters, etc. as they passed through a metal detector. Why the big fuss? Because China's movie makers, artists and other creators of intellectual property are finally realizing that China's content-piracy industry doesn't just target imported movies, music, etc. Story at The New York Times, "free" registration, etc..."
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Janie took my gun...
November 1, 2002
The Pinch of Piracy Wakes China Up on Copyright Issue
By JOSEPH KAHN
SHENZHEN, China, Oct. 30 -- When the members of the preview audience showed up at China's fanciest new movie theater here this week, they were treated to much more than just the first look at Zhang Yimou's big-budget martial-arts film, "Hero."
Viewers had identity card numbers inscribed on their tickets. They were videotaped as they entered the theater's foyer. They handed over all cellphones, watches, lighters, car keys, necklaces and pens and put them in storage. Before taking their seats, they passed through a metal detector. Then they got a welcoming address.
"We are showing this preview for your enjoyment tonight," announced Jiang Wei, an executive with the film's Chinese distribution company. "I plead with you to support our industry. Please do not make illegal copies of this film."
Anyone in China who makes movies, writes books, develops software or sings songs for a living knows that popularity is barely half the challenge; such people must also fight intellectual piracy.
In a country where more than 90 percent of the movies, music and software are illegal copies sold for a fraction of the original price, Chinese artists have begun to join big foreign interests like Microsoft and AOL Time Warner to protest China's seemingly limitless capacity to make cheap knockoffs.
The local effort is not going to solve the problem right away. The United States trade representative's office grouped China with Paraguay and Ukraine this spring as among the worst copyright violators in the world.
Still, the tone has changed. Throughout the 1990's, intellectual property was mainly seen as a trade dispute pitting the wealthy West against the developing East. It's now also a domestic struggle, with local stars complaining that they get little fortune from their own fame.
"After the release, we often have only three days before the pirate copies hit the market," said Mr. Jiang of New Pictures distributors, which handles Mr. Zhang's movie releases in China. "The industry can't survive that."
The belt-and-suspenders security procedures during the limited release of "Hero" at New South Country Cinema here, just across the border from Hong Kong, were aimed at protecting what China's film industry hopes will be the biggest martial arts sensation since "Crouching Tiger, Hidden Dragon." The movie, with an all-star cast led by Jet Li, cost $30 million, making it China's most expensive film production to date. Beijing will submit it to the Oscars as a candidate for best foreign-language film. Miramax, a division of Disney, has bought the international rights.
Security guards heightened the drama at the theater. They ordered people to leave behind jewelry and pens to protect against "needlepoint" digital camcorders, though varying descriptions of how such devices worked sounded more like something Q made for 007 in a James Bond movie than a common pirate's tool. Uniformed policemen roamed the aisles during the film. A few sat in front of the screen and watched the audience with what appeared to be night-vision binoculars.
The intense scrutiny prompted a few complaints, but also some sympathy.
"Zhang Yimou is not about to go hungry," said Zhu Dazhong, a 48-year-old Shenzhen retailer who saw the preview. "But if he makes a good movie, people should pay a little money to see it. The quality of the pirate copies stinks anyway."
China's creative industry has been hit hard by the failure to enforce copyright laws. Artists and their lawyers say piracy has worsened since China joined the World Trade Organization late last year and pledged to meet international standards for protecting intellectual property.
"The Touch," an action-adventure film, was a recent casualty. At the release of the film in Shanghai in August, Michelle Yeoh, who produced and starred in it, boasted about how bodyguards protected the original film reels. When the show moved from theater to theater, Ms. Yeoh said at the premiere, the reels were to travel separately so pirates who got their hands on one reel could not copy the whole film.
Nonetheless, DVD copies were available on the black market four days after the nationwide release that month, and ticket sales slid fast.
A popular folk music group, Yi Ren Zhi Zao, or Made by Yi, had an even shorter run with its latest CD. A pirated disc made from a tape released early hit the market before the authentic version was in stores.
There are now 41 pirated versions of the album, said Zhou Yaping, who runs the group's production company, based in Beijing. He said many were sold openly in top department stores. The legal CD has a 1.2 percent market share, he said.
"Our hard work and money were stolen and sold cheap," Mr. Zhou said.
Foreigners have hardly been spared. Microsoft's latest operating system, Windows XP, was selling for 32 yuan, less than $4, in the back alleys of Beijing's technology district before Microsoft formally released the $180 legal version for the China market earlier this year.
What is presented as the fifth installment of the Harry Potter series, "Harry Potter and the Leopard Walk Up to Dragon," has already reached Chinese bookstores. Though the cover attributes the book to J. K. Rowling, the British author, her publisher says the official version -- its title and subject matter will be different -- will not be available until next year. The Chinese edition is an inventive fake.
Altogether, the International Intellectual Property Alliance estimates that Chinese piracy costs foreign companies about $2 billion a year, or roughly a quarter of the total global losses attributed to copyright violations.
But while Chinese copyright holders probably do not lose as much money, local outrage generates more publicity than foreign pressure. A flurry of domestic lawsuits has attracted regular attention.
The country's two leading Internet portals, Sohu.com and Sina.com, sued each other, each accusing the other of stealing content. Mr. Zhou, of Yi Ren Zhi Zao, sued Chinese factories for manufacturing the illegal CD's. He won damages of 300,000 yuan, about $36,300, in a Beijing court.
Even the Buddhist monks of the famed Shaolin Temple have joined the fight. The temple pioneered Shaolin boxing, which evolved into kung fu. It has sought to trademark its name and has flung lawsuits against companies that use Shaolin as a brand, including one maker of canned pork.
Whether the lawsuits and publicity will slow the piracy remains to be seen.
The government has sought to demonstrate that it is finally taking the matter seriously. In August, the state-run China Daily tallied the exact number of pirated video and audio discs, 43.45 million, that had been destroyed in a crackdown so far this year.
But at a huge electronics bazaar in Shenzhen, not far from the movie theater that showed Zhang Yimou's premiere, vendors offered a cornucopia of China's latest releases for about a dollar each. "Together," the latest Chen Kaige film, which hit local movie houses in late September, was for sale in the top-quality DVD-9 format.
Legitimate DVD movies cost at least five times that much, and few were on sale at the bazaar. First-run movie tickets in China go for 30 to 50 yuan, about $4 to $6, depending on the show and the quality of the cinema.
"Hero" was not available on the black market -- yet. But Mr. Jiang, of the distribution company, said that despite the extensive security, he was still nervous.
"I won't be at ease until Nov. 4 or 5," he said. "If they managed to pirate it, it will be out by then for sure."
Yeah... every time I go into any Oriental grocery store, there is always the ubiquitous rack of video tapes with hand-drawn titles in Mandarin or Cantonese, sometimes even Hangul-Ma (but that's Korean, so never mind that). So, if I want to, I can buy pirated copies of mainland Chinese movies for like 3-5 bucks down at the corner grocery where I by my red bean buns and udong. And, I've been able to do this for at least the last three years. And China JUST noticed?
Voodoo Girl is the bomb!
I attended this screening in Shenzhen and did not notice any of the security measures reported in the article.
I had to hand over my mobile phone but that was it.
I didn't see anyone openly vidcaming the movie, but pirate DVD copies of Hero are readily available in Shenzhen, Shanghai and Beijing for about 7 Chinese yuan (US$0.80).
A dream is good. A plan is better.
I lived in and worked in Malaysia for a year. I can tell you that 80%+ of the dvds/vcds/software out there in the field are illegal copies. no question about it.
That is, a Chinese person might not make 6k per month,
but he does not spend 1.2k for rent either. Nor
does he spend $500 per month for food.
I remember when I was living in a third-word country
many years ago where the starting salary was $20 per month
for the locals. In comparison, my 5-bedroom appartment
in perhaps the most afluent part of the city was
$5 dollars per month, complete with a gatekeeper,
marble floors, etc,. (but the can of imported Coke was
It is very foolish to say the the $800 per year for the
Chinese is little money. What counts is his his puchasing power.
soon Hollywood will rip their ideas off just as they have always done in the past. Like with Yojimbo = A Fistfull of Dollars
Nice try, but "A Fistful of Dollars" is not a Hollywood film, or even American film. It is European.
In fact, most films in the "Western" genre were made by and for Europeans.
Everyone uses ideas from other peoples' work. Even Akira Kurosawa did.
Suddenly? No. The change came quite some time ago, under Deng Xiaoping, who was pragmatic enough to declare that "It is glorious to be rich" and that "It doesn't matter whether the cat is black or white, as long as it catches mice". In other words, prosperity was the objective moreso than maintaining a clearly nonfunctional ideology.
So, since then, they've basically been a vaguely capitalist single-party dictatorship; there are some socialist traces left like state-owned companies, but they've been edging away from them as well as the guaranteed-employment model.
Only the dead have seen the end of war.