COICA. The Role of the US Government and Online Piracy

Authors Avatar by j-dizzle (student)

   Bray-Morris  

JD Bray-Morris

Gov./Econ

December 17, 2010

The Role of Government and Online Piracy

The Motion Picture Association of America (MPAA) has been aiding entertainment in this country for almost 90 years. In 1922 it was created under the name The Motion Picture Producers and Distributors Association of America in order to protect films from government censorship. Initially the organization acted as a sort of watchdog, by refusing to let any “offensive” material into movies whatsoever. However, in the late sixties the MPAA developed the rating system, allowing much more freedom of expression for filmmakers whilst also maintaining a way to inform people on the content of any given movie. More recently, the Internet has created positive opportunities for movie viewers yet challenging battles for the movie industry. Illegal downloading and streaming has swept the world in a tidal wave and cost Hollywood large sums of profit. The MPAA is currently working to end this copyright theft.

Although the public does not generally consider pirating the same as stealing, it is; and it impacts our economy in the same way other theft does. The American film industry supports over 2.4 million jobs and 140 billion dollars in wages. In just one day of shooting our economy gains $225,000 in local profit. In New Mexico alone the industry provides 4,055 jobs and $146.8 million in wages. It also accounts for 15.7 billion dollars in public revenue through federal taxation. Although these are tough economic times even for a successful industry like Hollywood, they cannot compete with free illegal alternatives such as torrent sites. In 2005 the estimated total loss due to pirating is  around $22 Billion (Castro, 1). This loss in revenue impacts everybody from actors to technicians to consumers. Because in order to compensate for money lost due to pirating, legitimate legal companies must charge more for the use of their products.  So even though someone who downloads a movie illegally may not have to pay for the film directly, he/she is helping to bring down the economy piece by piece and will eventually become monetarily affected by his/her own choice at some point down the line. People need to understand that file sharing is both economically unwise and ethically very questionable.

After the market crash in 2008, the entertainment industry took a dive as well. However, January of 2009 yielded surprisingly high profits for box offices across the country. Due to an unusual $1.3 Billion movie ticket return in a single month, congress justified eliminating $246 Billion in tax breaks for all film projects after February of 2009. A spokesperson from the MPAA, Angela Martinez, claims that the film industry needs the tax breaks just as much as others do. She said, "There is no doubt that the motion picture industry is a vital component of the American economic engine, generating billions of dollars every year in state and federal taxes and employing workers all over the country" (Puzzanghera, 1). With the repeal of these beneficial tax cuts, the financial weight of illegal pirating feels heavier than it ever has. For this reason the MPAA dedicated the latter half of 2010 to pushing S. 3804, the Combating Online Infringement and Counterfeits Act (COICA), through congress. This bill would shut down, “‘Internet sites dedicated to infringing activities’ which it defines as a site that is ‘primarily designed, has no demonstrable, commercially significant purpose or use other than, or is marketed by its operator…to offer’ unauthorized access to copyright-protected content” (Castro, 2). The Bill, introduced by Sen. Patrick Leahy in September, has been placed on the Senate Legislative Calendar and currently has 18 co-sponsors. Along with a number of other film organizations, the MPAA wrote a letter of encouragement and gratitude to Senator Leahy, thanking him for placing copyright protection in high importance. “We commend you for your efforts to carefully craft S. 3804 to adhere to constitutional requirements that protect free speech and provide appropriate due process for all affected parties. We thank you again for your tireless efforts to protect workers, businesses, and consumers, and look forward to continuing to work with you and your Senate colleagues to enact strong legislation aimed at addressing rogue websites” (MPAA).

Join now!

Senator Leahy introduced the Bill to the Judiciary Committee, of which he is the chair, and received unanimous support for it by his colleagues. According to a release by the MPAA in November Senator Orrin Hatch from Utah has also been a significant leader in pushing for this bill. He sits on the Judiciary Committee alongside Sen. Leahy as its senior Republican member. He said, “This legislation is critical to our continued fight against online piracy and counterfeiting. By coordinating our efforts with industry stakeholders and law enforcement officials, we’ll be better able to target those who are profiting ...

This is a preview of the whole essay