SUNWAY UNIVERSITY MPW 1133/ 2133: MALAYSIAN STUDIES

GROUP ASSIGNMENT TOPIC 11 Pirated products have inundated the Malaysian markets and are causing many problems not only to the original producers and manufacturer but also to the Malaysian economy. What are the impacts of piracy on the Malaysian economy, the producers, manufacturers and the film industry? Evaluate the legislative and other measures taken by the government to counter these problems. Give further solutions for this problem.

Group Members Brian Liaw Vun Tien Jonathan Heng Fuqiang Koo Woei Hong Leow Hui Sien Leow Teck Sheng Regine Lee Sue Tine Seng Jing Han Soo Yee Ling

Contents
Introduction ....................................................................................................... 3 Types of Piracy products.................................................................................... 4 Causes of Piracy ................................................................................................ 5 Impact of piracy on Malaysian economy............................................................ 6 Actions Taken By Our Government and the Public............................................ 7 Conclusion and Final Thought and Suggestion .................................................. 9 References ....................................................................................................... 10

Introduction
Piracy had been a nuisance for quite sometimes in our country and nation. Piracy had not only brought significant losses to our country, but had vanished lots of opportunities which could benefit our country. Thus, piracy should to curb as soon as possible, to prevent further damages to our country. Piracy is the illegal replication of an original recording for commercial gain without the consent of the owner. It uses the copyright of the original publisher and made a gain. Piracy is a theft which leads to a loss to the owners of the property. Besides economic loss, piracy also affects the creative potential of a society as it denies authors and artists their legitimate dues. What is copyright? Copyright is defined as a right to authorise the use of ones work in different ways. It is the permission or the right to copy. The emphasis is not so much on the right to copy but on the right to prevent others from unfairly taking advantage ownership of the original owner of the copyright, who in most cases is the author, composer, artist and sculptor where the work originated. And also it is very difficult to give an address on copyright generally as laws differ from country to country. In Malaysia, copyright protection is governed by the Copyright Act 1987 which provides comprehensive protection for copyrightable works. The Act outlines the nature of works eligible for copyright (which includes computer software), the scope of protection, and the manner in which the protection is accorded. This means that piracy occurs when falsify a registered trade mark falsely apply a registered trade mark alter or remove a trade mark knowing it is a registered trade mark make a die or equipment that can help in falsifying or removing a trade mark sell, possess, distribute or import a good, knowing that the trade mark has been falsified or removed knowingly import, possess, sell, distribute or commercially deal with an infringing copy offer for sale infringing copies of computer programs Transmit a computer program to enable it to be copied when received. Piracy is a crime in Malaysia and is under amended Malaysia Copyright Act 2003. The offenders found guilty can be fined up to RM 25000 for each copy of illegal software seized and offenders can be jailed for up to 5 years.

Types of Piracy products

1. Books Book publishing has the longest history of dealing with piracy. Any unauthorised use of a copyrighted work, such as a book, school manual, journal article or sheet music, represents an infringement of copyright, unless covered by a copyright exception. Piracy of printed works affects both paper copies and works in digital format. In some developing countries, trade in pirated books often exceeds the legitimate market. Educational institutions represent a primary target market for pirates. Infringing activities include illegal commercial photocopying and printing, reproduction of books and materials in digital form, as well as distribution in hard copy or digital format. 2. Music & Film Music piracy includes both unlawful use of music and unauthorised use of music. Bootlegging (unauthorised recording and duplication of a live or broadcast performance) and counterfeiting (unauthorised copying of the material support, labels, artwork and packaging) are the most widespread types of music piracy. The unauthorised uploading and making available to the public of music files or downloading such files from an Internet site is referred to as Internet or on-line piracy. On-line piracy may also include certain uses of "streaming" technologies. As in the case of music, film piracy is either traditional or done over the Internet. It includes, but is not limited to, videocassette and optical disc piracy, theatrical camcorder piracy, theatrical print theft, signal theft and broadcasting piracy, and on-line piracy. 3. Software Software piracy refers to practices that involve the unauthorised copying of computer software. Internet (on-line) piracy The unauthorised downloading or distribution over the Internet of unauthorised copies of works such as movies, music, videogames and software is generally referred to as Internet or on-line piracy. Illicit downloads occur through file-sharing networks, illegal servers, websites and hacked computers. Hard goods pirates also use the Internet to sell illegally duplicated DVDs through auctions and websites. While trafficking copyrighted works through increasingly sophisticated electronic means, such as peer-to-peer file trading networks, Internet chat rooms, and newsgroups, has an ever increasing negative impact on cultural industries, it is also argued that curtailing this phenomenon limits the right of access to information, knowledge and culture. 5. Trademark and product piracy Trademark piracy is the illegal use of signs, names, logos (brands) and business names that brand manufacturers use to distinguish their products.

4.

Causes of Piracy
Counterfeiters engage in imitations because it does not cost them as much time and finances as compared to the original innovators of the product. The original innovator invests in research and development, the initial licensing costs, product positioning and distribution amongst other costs. The counterfeiters find ways of cheaply prototyping the product, its labeling and packaging in large volumes, gets it onto the market secure their windfalls and re-investing their illegitimate gains in the same business or diversifying their imitations or up scaling them or investing in legitimate business such as the stock exchange or real estate. Therefore counterfeiters do not create their own trends in the market and face minimal market failure risks because they hijack other manufacturers intellectual property to make huge financial savings in production and distribution. Besides that, the causes of piracy are believed to stem from backgrounds that are created by society. Piracy is most often caused by a high demand for a particular item or product that is difficult or illegal to obtain. Piracy can also be caused by weak enforcement of intellectual rights, high income potential, lack of legal opportunities to gain wealth or income, and even by a low level of awareness of the issue by the public. These are some of the reasons behind piracy are

Lack of or inadequate witness protection programs by the intelligence units Most counterfeiting units are owned by rich criminals who set up their illegitimate industries in very poor and marginalized communities and neighborhoods in order to acquire cheap labor The poor citizens earn their livelihoods from these illegitimate industries and prefer to earn merger wages rather than informing the authorities of the illegitimate operations Some of the government authorities are key collaborators and beneficiaries of these counterfeit operations therefore citizens know speaking or acting against them is of no use. In cases of fake labels put on clothes, shoes, handbags and accessories sold as originals to citizens who have no means of ever affording the real labels, such citizens see no harm in spending much less amounts to dress up in near- perfect look alike labels. Music piracy is astronomically rampant as most youngsters desire entertainment and have no means of earning money to purchase dozens on every changing music trends and ever increasing new artists thus the booming business in cheap copying and downloading of CDs

Impact of piracy on Malaysian economy

The Impact of piracy had brought much harm to our economy. Here are some of the industries badly affected by piracy.

1. Producers The expectation of illegal copying may cause some products not to be marketed at all, because the manufacturer does not believe that legal sales would be sufficient to recover the costs of production and distribution. In this case the loss to rights holders is the profits and royalties that would have been earned had the product been created and brought to market But for the actors and directors, they will not be getting a considerable portion of back end money; it may not be that harsh of a reality to deal with it as this industry, recognition of your work, your name and your face is paramount, free streaming is just another way of upping your visibility. 2. Manufacturers The number of additional authorized copies that would be sold is not equal to the number of illegally duplicated copies. Pirates typically sell their wares at prices substantially discounted from street prices; the substantial price discounts induce some people to purchase the product who would not otherwise do so. In addition, some unauthorized copies are produced for non-commercial reasons (e.g., making a copy for a friend). There is a substantial difference between getting a copy for free from a friend and having to pay the street price; hence some of these copies would not be purchased if the consumer had to pay something approximating the street price. 3. Film industry Loss of revenue is of concern to networks and film company masters because it is illegal, cutting into profits and virtually unstoppable. It may even be of concern to workers on the lower rungs of the entertainment industry who find their salaries the means of cutting overhead to make up for losses due to piracy. Reduced revenues to the motion picture industry also result in reduced revenues to other parts of the economy which supply services to the movie industry such as materials and equipment suppliers, accountants, trades people, marketers and lawyers. They, in turn, demand less from their own suppliers and so on. Piracy therefore also reduces output, profits and employment along the supply chain. Furthermore, due to this fall-off in demand, employment in all of these industries is reduced and workers have less to spend on other goods and services for their own consumption, be it travel, computers or cars, etc. This leads to further rounds of reduced output, employment and taxes.

Actions Taken By Our Government and the Public.

The government performed some action to curb piracy. These actions such as: 1. Enforcement Continued vigilance needed to legalize use of software in enterprises By implementing mandatory annual software audits within the enterprises, pirated software usage could be reduced as these results have to be filed with the Companies Commission of Malaysia and the Enforcement Division of MDTCC. In addition, IIPA recommends implementing software asset management (SAM) protocols to drive the use of legal software in the corporate sector; training programs targeting senior management of companies; and public awareness campaigns to highlight the damage caused by piracy to creativity and innovation and to the growth of the IT industry. Resolve market access barriers. Mall and Night Market Piracy Require Anti-Piracy and Licensing Approach impose landlord/distributer liable. Pending adoption of such a measure, all legitimate dealers in malls and night markets should be licensed, and unlicensed dealers should immediately be closed down. This action could reduce number of seller and distributer of pirated goods. 2. Legislation Case backlog to shows desirability for more specialized IP courts Malaysian Government to assign more dedicated judges to the criminal IP courts, and to establish the promised 15 Sessions courts (with IP specialists) around the country to reduce backlogs and obtain convictions that will be publicized in the media as a form of deterrence. In addition, IIPA urges continuous judicial reform and training efforts to sensitize the judiciary as well as prosecutors on the serious nature of IP infringements Strengthening the law of Copyright Copyright Act, 1987, as last amended by Copyright (Amendment) Act should further strengthen the laws by making possession of pirated goods an offense; holding landlords and mall owners liable when they are aware of (or have constructive knowledge of) piracy activities on their premises and continue to allow such illegal activities; confirming legal protections for access control technological protection measures; providing mandatory minimum jail sentences for piracy and/or sentencing guidelines to ensure imposition of deterrent sentencing; allowing the filing of civil actions based on information gathered during criminal antipiracy operations conducted by law enforcement agencies.

Action taken by the public. As the public and the community, they can prevent piracy by not supporting pirated products. Besides that, as consumers, we could try to follow these simple acts.

When buying a tune on the Internet and download it, make sure you dont send a copy to a friend or someone who might sell it to others. If you get a tune from someone, dont re-send it to others. Dont make copies of DVDs and give them out to your friends Dont download products from file-sharing services if youre not entitled to them. Dont pay a fee to join a file-sharing service that you know isnt authorized to provide the goods its distributing. They may allow you to download all the tunes or movies you want, but its against the law. Dont copy CDs or DVDs. If shopping online, beware of sites that arent familiar to youand that are selling expensive products at prices that are way too good. Examine the wrappings of the tunes and other products you buy offline and make sure they look original and are of the usual quality for the product. Look for the brand insignia of the manufacturer on the product and make sure it looks they way its supposed to. Dont buy CDs or DVDs from street vendors. Their products are often counterfeited. Dont record a live public performance when you dont have permission. Most public performances prohibit the use of video equipment, cameras, and other recording devices. You may be depriving the artist and those who depend on the artist from income. Ensure that the product is certified by relevant regulatory bodies within then country and customs.

Conclusion and Final Thought and Suggestion

References
International Intellectual Property Alliance (IIPA). (2014). INTERNATIONAL INTELLECTUAL PROPERTY ALLIANCE (IIPA) 2014 SPECIAL 301 REPORT ON COPYRIGHT PROTECTION AND ENFORCEMENT. International Intellectual Property Alliance (IIPA). KRISHNASAMY, N. (2006). 12TH ABU COPYRIGHT COMMITTEE MEETING AND SEMINAR IN BRUNEI ON 15 -17 MEI 2006. MPA-Canada. (17 February, 2011). MPA-Canada. Retrieved from Ipsos MediaCT: http://mpacanada.org/press/IPSOS-OXFORD-ECONOMICS-Report_February-17-2011.pdf Standford University. (n.d.). Standford University. Retrieved from The Effect of Piracy: http://cs.stanford.edu/people/eroberts/cs181/projects/dvd-css/piracy.htm Strauss, K. (2014). Forbes. Retrieved from Forbes.com LLC: http://www.forbes.com/sites/karstenstrauss/2013/03/06/tv-and-film-piracy-threateningan-industry/ UNESCO. (n.d.). World Anti-Piracy Observatory. Retrieved from http://portal.unesco.org/culture/en/ev.phpURL_ID=39412&URL_DO=DO_TOPIC&URL_SECTION=201.html. Yu, P. K. (2007). CAUSES OF PIRACY AND COUNTERFEITING IN CHINA. Guanxi: The China Letter. Zimmerman, P. C. (2013). The Global Growth of Counterfeit Trade. Springer Science+Business Media New York, 7-31.