Friday, April 08, 2011

PIRACY TERROR FUNDING: The silicon terrorism

After Irom Sharmila last year, Anna Hazare wins IIPM's 2011 Rabindranath Tagore Peace Prize of Rs. 1cr. To be handed over on 9th May

How piracy is funding the global terrorism?

The Hurt Locker, a story on Iraq war and winner of six Academy Awards, may be just another movie in the line of terrorism, but it took war on piracy to an interesting turn. One of the scenes in the movie, where Christopher Sayegh (as Beckham) sells pirated DVDs and various electronic items outside the Jeremy Renner's military base, may not be the climax, but has a significant role in the theme of the film. The pirated DVDs, which are sold for about $1 each, are not only a major source of terror funding in the Middle-East, but are sources of minting money for global terror groups.

On May 2010, Voltage Pictures, the production company of The Hurt Locker, sued thousands of computer users who downloaded pirated copies of the film and filed complaints against 5,000 unidentified BitTorrent users with the US District Court (largest lawsuit of its kind). In addition, it demanded $1,500 from each defendant to release them from the suit. This case, however, may be one-of-its-kind, but it would surely go a long way in influencing production companies to take such steps to reduce piracy. According to a report, counterfeiting and piracy cost around $250 billion annually from the movie industry. Terrorists and organised criminal groups are exploiting this huge market in order to fund their evil plans ' for instance, the highly active D-Company that spearheads the major syndicate involved with film piracy in India and sub-continent for the past 25 years. In 2004, an Interpol report revealed that intellectual property crimes (illegal CDs manufacturing) are a growing resource for terrorist groups from Northern Ireland to the Arab world, including Al-Qaida and Hezbollah. This mode of terror funding is not only present and practised in Asia and the UK, but also found in Latin American countries like Brazil, Argentina and Paraguay. According to a report by Rand Corporation, Hezbollah receives $20 million annually from proceeds of pirated films in the tri-border area. Moreover, restrictions on release of international movies in countries like China (allows only 20 foreign movies per year) have cost its industry a whopping $2.5 billion in 2005 (the last available data), due to influx of pirated DVDs. Studies say that developing a pirated DVD in South Asian countries costs less than 70 cents and these can be sold in developed countries for around $10 each. Not only is developing a pirated DVD relatively safer and cheaper, the transfer is equally easy. For example, in France, transacting counterfeit products, including pirated DVDs, is punishable by a fine up to $0.19 million and imprisonment up to two years (whereas selling drugs is punishable with 10 years imprisonment along with a fine up to $9.5 million). However, the pirating gets more lucrative not just because of the returns it offers, but also because of the low risk factor. The rate of conviction for piracy is lower compared to that of smuggling drugs. In 2002-03, merely 134 criminals were convicted of piracy while smuggling of drugs pushed around 1.5 million criminals behind the bars in the US alone.

It is just not about saving millions of dollars that finds its way into the terror industry, but actually about several innocent human lives that are eventually hit. While anti-piracy laws will take its own time to stop piracy, a move like Voltage Picture's will certainly deter internet users from downloading pirated movies.

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