U.S. hammers Canada, other countries over copyright protections

Canada may be the United States' largest trading partner, but it remains on a "priority watch list" of countries with the worst records for protecting copyrighted material.

In its 2012 annual report on trade barriers and content theft, U.S. Trade Representative Ron Kirk's office put Canada on a list of 13 countries -- including India, China, Pakistan and Russia -- that were singled out as the worst offenders.

The office said it was waiting to see if Canada would enact "long-awaited copyright legislation" and suggested that the country needs to take more steps to tighten border security by "providing customs officials with ex-officio authority to take action against the importation, exportation, and trans-shipment of pirated or counterfeit goods."

Under the category of "positive developments," Kirk's office removed Malaysia and Spain from the watch list, citing improvements to strengthen copyright protections in those countries.

Christopher Dodd, chairman and chief executive of the Motion Picture Assn. of America, commended the trade representative's office for its report, which he said "highlights content theft and barriers in foreign markets that pose threats to the continued growth of U.S. creative industries and the U.S. economy. Strong copyright protection and enforcement are vital to our industry's ability to create U.S. jobs, grow our own economy, and expand U.S. exports."

A copy of report can be found here.

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-- Richard Verrier

Photo: U.S. Trade Representative Ron Kirk delivers a speech at Singapore Management University on April 26. Credit: Roslan Rahman / AFP/Getty Images

MPAA's former tech officer now argues against SOPA, PIPA

[This post has been updated. See note below. ]

The MPAA's former chief technology policy officer is speaking out against anti-piracy bills that were a top priority for his former employer. Paul Brigner, who resigned from his job last month as senior vice president for the MPAA, said he has changed his tune on the much-maligned Stop Online Piracy Act (SOPA) and the Protection Intellectual Property Act (PIPA).

"I firmly believe that we should not be legislating technological mandates to protect copyright -- including SOPA and Protect IP,'' Brigner said in a statement posted on CNET.

The bills, which were intended to crack down on foreign websites trafficking in pirated goods, sparked a massive online protest from Wikipedia, Google and other tech giants, which argued that the bills would lead to censorship online and force some websites out of business. The protest effectively derailed the bills, dealing a blow to the MPAA, which had lobbied heavily in favor of the measures.

But Brigner told CNET that his year-long experience at the MPAA caused him to change his views on the anti-piracy bills, concluding that they would not work.

"Did my position on this issue evolve over the last 12 months? I'm not ashamed to admit that it certainly did," Brigner posted on the technology website. "The more I became educated on the realities of these issues, the more I came to the realization that a mandated technical solution just isn't mutually compatible with the health of the Internet."

A spokesman for the MPAA, which lobbies on behalf of the major Hollywood studios, declined to comment on Brigner's statement.

The MPAA's Chief Executive Chris Dodd, the former senator from Connecticut, has not abandoned the issue entirely. He has had conversations with representatives of the tech industry about ways to fight online piracy, such as working with internet service providers to send out alerts to consumers to deter online copyright infringement. It's unlikely any new bills would introduced until after the presidential election.

[For the record: an earlier version of this post incorrectly quoted a statement attributed to Brigner. The post has been updated.]

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Photo: Protesters in New York recently demonstrate against the Stop Online Piracy Act and Protect Intellectual Property Act proposals. Credit: Mario Tama/Getty Images

'The Hunger Games' used as bait by hackers

The "Hunger Games" heroine Katniss is apparently catnip for hackers.

Cyber criminals have been dangling the lure of of free online copies of the blockbuster film to trick young fans into downloading malicious software onto their computers.

In the two weeks preceding the movie's March 23 premiere, experts identified some 37 instances of offers for illegal movie downloads that were "poisoned."

"It's not actually the 'Hunger Games' footage, it pretends to be that," said Marian Merritt,
internet safety advocate for Norton, industry giant Symantec's brand of anti-virus software. "It's posted merely for the purpose of tricking fans."

Merritt said cyber criminals often use big cultural events -- such as the royal wedding or the release of the "Twilight" movies -- to dupe the unwitting into downloading a bit of malicious software onto their computers.

Such programs allow hackers to gain access to the information stored on that computer, infect other computers on the home network and beyond, Merritt said, or use the computer as a "bot" (short for robot) to launch a variety of attacks, such as sending out spam or being part of a coordinated "denial-of-service” attack.

"The 'Hunger Games' in part is of appeal to the youngest kids," Merritt said. "We find that kids are particularly vulnerable to this kind of threat, the poisoned search result threat."

Merritt urges parents to talk to their kids about steering clear of such online promises of sensational content, such as leaked videos. Norton and other companies, of course, make software that's designed to prevent this problem. A free version of Norton Safe Web Lite can be found here.

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Photo: Jennifer Lawrence portrays Katniss Everdeen in a scene from "The Hunger Games." Credit:  Murray Close / Lionsgate 

CW switches to next-day streams for episodes of prime-time series

After studying the viewing behavior of its young audience, the CW television network has switched strategies and is no longer delaying the online release of such popular shows as "Gossip Girl" and "The Vampire Diaries."

CW -- a joint venture of CBS Corp. and Warner Bros. -- said Thursday that it would begin making episodes of its prime-time series available several hours after their initial television broadcast. The move is significant because it illustrates how television companies are moving quickly to adapt to rapid changes in technology in an effort to protect important revenue streams.

"Consumers have been telling us that they want the ability to watch their shows whenever and where ever they are," said Rick Haskins, CW executive vice president of marketing and digital programs. "If we don't listen to them, we will be missing an opportunity."

In recent years the CW has made dramatic changes in its online strategy as the network has figured out how to better monetize digital views of its programs.

Early on, the network hesitated to put its shows on the Web at all. But since September 2010 the CW has been delaying the online release of its episodes until three days after airing.

The three-day blackout was designed to boost the TV ratings, and thus protect the important TV advertising revenue. Advertisers pay premiums to reach viewers who watch shows on TV or within three days of their original airing, if the program has been digitally recorded.

CW executives were betting that viewers would be so eager to watch fresh episodes of their most popular shows, including "The Vampire Diaries," "One Tree Hill," and "90210," that they would watch them on TV rather than wait to see them on their laptops.

Viewers were eager to see the latest episode, all right. Research by the Warner Bros. anti-piracy group discovered that nearly a third of online viewers of CW's most popular shows were so motivated that they watched them on a pirate website.

"And 50% of that consumption was done during the first three days after the television run," Haskins said. "That's a lot of money out of our pockets."

By releasing its shows just a few hours after their TV broadcast (at 3 a.m. Pacific time), the CW hopes to reach viewers who otherwise would have pirated them. New technologies also allow the CW to measure the number of online viewers and determine whether they watch the commercials, providing another source of reliable audience data to share with advertisers.

The CW also has been at the forefront of advocating heavier "commercial loads," so the online streams contain as many ads as would be seen in a TV broadcast.

That is a departure from conventional wisdom among most online video distributors. Many believed that online viewers would lack the patience to sit through too many commercials. Sites such as Hulu offer episodes with about half the number of ads that would run on TV.

"We have found that viewers were indeed willing to watch a full commercial load," Haskins said.

CW also announced Thursday that it was introducing its first mobile application for iPad, iPhone and Android platforms. The app enables full-episode streaming of the network's prime-time series and provides a feature for fans to alert their friends on Facebook and Twitter that they are watching a particular episode.

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Photo: Joseph Morgan in a scene from the CW hit "The Vampire Diaries." Credit:  Quantrell Colbert /  CW

Piracy reduces foreign box office receipts 7%, study says

A new academic study provides ammunition for those who say online piracy is hurting Hollywood's bottom line.

A paper by economists Brett Danaher of Wellesley College and Joel Waldfogel of the University of Minnesota estimates that piracy caused a 7% decline in international box office returns during a one-year period bridging 2005 and 2006 studied by the academics.

The study did not estimate the effects of piracy on domestic box office or DVD sales.

The authors looked at a period before and after the 2003 launch of the popular BitTorrent technology, which is widely used by film pirates. Since movies have typically premiered first in the U.S. and are usually available via BitTorrent soon after they hit theaters, the study compared movies' foreign box office receipts to their domestic takes before and after the advent of Internet piracy.

It found that the overall decline in overseas box office receipts was 7%, which during the period studied amounted to a drop of $240 million. The researchers found a more significant decrease in foreign box office compared with domestic for science fiction and action films, genres that tend to be more popular among the online piracy community.

While there's much debate over the effectiveness of laws intended to crack down on piracy, such as the failed Stop Online Piracy Act and Protect Intellectual Property Act, Danaher and Waldfogel note that one easy solution would be to decrease the amount of time between U.S. and foreign releases of movies.

That's something Hollywood is already doing. Most big-budget movies now debut simultaneously in most countries and a growing number are actually premiering first overseas, including the upcoming "Battleship" from Universal Pictures and "Prometheus" and "Ice Age: Continental Drift" from 20th Century Fox.

The release of the study was first reported by Deadline.

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Photo: "Prometheus" is scheduled to premiere overseas before it opens in the U.S., a move that could deter online piracy. Credit: Kerry Brown / 20th Century Fox

Feds blitz websites streaming live sports before Super Bowl

Days before the Super Bowl, federal authorities blitzed more than a dozen websites illegally streaming live sporting events.

U.S. Immigration and Customs Enforcement (ICE) and other agencies announced Thursday that they had seized 16 websites and brought criminal charges against a Michigan man who operated nine of them.

Yonjo Quiroa, 28, of Comstock Park, Mich., was arrested Wednesday and charged with criminal copyright infringement. Authorities said he operated websites that streamed pirated telecasts of live sports, including some pay-per-view events. Those included games from the NFL, NBA and NHL as well as World Wrestling Entertainment. Quiroa received $13,000 in profit from the illegal sites, authorities said.

"This enforcement action ... sends a strong message to website operators who mistakenly believe it's worth the risk to take copyrighted programming and portray it as their own,'' ICE Director John Morton said in a statement.

U.S. Atty. Preet Bharara, Southern District of New York, added: "These websites and their operators deprive sports leagues and networks of legitimate revenue, forcing spectators and viewers to bear the cost of this piracy down the line."

The arrest was part of a larger crackdown, coming days before the Super Bowl, in which federal law enforcement officials seized more than $4.8 million in fake NFL merchandise, including T-shirts, jackets and other souvenirs, from flea markets, stores and vendors nationwide.

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Photo: New England Patriots quarterback Tom Brady throws during practice on Wednesday in Indianapolis. The Patriots are scheduled to face the New York Giants in Super Bowl XLVI on Sunday. Credit: Mark Humphrey / Associated Press

Petition demands probe into comments by MPAA chief Chris Dodd

As if former Connecticut Sen. Chris Dodd needed another headache. Last week the Internet lobby defeated anti-piracy bills in Congress heavily backed by the entertainment industry. Now, the Motion Picture Assn. of America's chairman is under fire for remarks he made on a news program.

On Sunday, an online petition claiming more than 10,000 signatures demanded that the White House investigate comments made by the Dodd last week in an interview on Fox News. During the interview, Dodd suggested that lawmakers who don't support tougher anti-piracy laws could lose financial contributions from Hollywood.

"Those who count on quote 'Hollywood' for support need to understand that this industry is watching very carefully who's going to stand up for them when their job is at stake," said Dodd. "Don't ask me to write a check for you when you think your job is at risk and then don't pay any attention to me when my job is at stake."

Those comments, the petition stated, represent "an open admission of bribery and a threat designed to provoke a specific policy goal. This is a brazen flouting of the 'above the law' status people of Dodd's position and wealth enjoy."

MPAA spokesman Howard Gantman responded: "Senator Dodd was merely making the obvious point that people support politicians whose views coincide with their own. When politicians take positions that people disagree with, those people tend not to support those politicians."

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Photo: Motion Picture Assn. of America Chief Executive Chris Dodd. Credit: Chip Somodevilla / Getty Images

 

MPAA's Dodd warns Washington not to let pirates sink PIPA/SOPA

Senate Majority Leader Harry Reid's decision on Friday to put off a vote on the controversial Protect Intellectual Property Act in the Senate next week was hailed by Silicon Valley but brought a stern warning from Hollywood's chief lobbyist.

"As a consequence of failing to act, there will continue to be a safe haven for foreign thieves; American jobs will continue to be lost; and consumers will continue to be exposed to fraudulent and dangerous products peddled by foreign criminals,'' Chris Dodd, chairman of the Motion Picture Assn. of America, said in a statement.

The MPAA strongly backed the the bill intended to crack down on foreign websites engaged in piracy.  But the legislation, along with a similar measure in the House, has encountered enormous opposition from Google, Wikipedia and other tech companies that led an unprecedented Internet strike on Wednesday to protest the bills which they view as misguided and damaging to the Internet economy. The protest prompted several senators to back off their support for the bills.

"With today’s announcement, we hope the dynamics of the conversation can change and become a sincere discussion about how best to protect the millions of American jobs affected by the theft of American intellectual property,'' Dodd added. "The threat posed by these criminal operations has been widely acknowledged by even the most ardent critics.  It is incumbent that they now sincerely work with all of us to achieve a meaningful solution to this critically important goal.”

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Photo: Motion Picture Assn. of America Chief Executive Chris Dodd. Credit: Chip Somodevilla / Getty Images.

The Morning Fix: 'Idol' ratings tumble! SOPA and PIPA fight rages on.

After the coffee. Before trying to make this a three-day weekend.

The Skinny: I'm picking the Giants and Patriots this weekend, which is no doubt also the match NBC wants for the Super Bowl. Friday's headlines include a look at the new Star Wars video game, a box office preview, the latest on the piracy legislation fight and a tumble in the ratings for "American Idol."

The Daily Dose: Co-worker Ben Fritz asks this burning question: Mirror mirror, on the wall, which media conglomerate engages in the most blatant cross-promotion of them all? "Top Chef" fans likely noticed that this week's episode was essentially an hour-long commercial for June's big-budget movie "Snow White and the Huntsman." Film star Charlize Theron was the guest judge and the challenge was to cook a meal fit for an evil queen (guess which character Charlize plays). Not mentioned in the episode is that "Snow White" comes from Universal Pictures, which like "Top Chef" network Bravo is owned by Comcast Corp.'s NBC Universal. Smart corporate synergy or crass product placement? How about both?

Can't we all get along? The battle over proposed bills to fight piracy continues to rage on. Hollywood is furious that its efforts to curb theft and piracy have been overshadowed by Silicon Valley's claims that the laws will hurt innovation and free speech. In the meantime, an activist group has been hacking into websites to protest the bills and some sites went dark for a day as a form of protest. Of course, if Hollywood and the TV networks shut down for a day for political purposes, they'd hear about it from regulators and consumers. On Friday, Senate Majority Leader Harry Reid cancelled the vote on one of the bills. Meanwhile, on Thursday the feds shut down the site Megaupload for violating piracy laws. The latest coverage from the Los Angeles Times, New York Times and Variety.

An expensive galaxy far far away. It cost $200 million and took six years to make. No, we're not talking about James Cameron's next movie. We're talking about Star Wars: The Old Republic, the costliest and riskiest video game ever made. The Los Angeles Times looks behind the scenes at the making of the game and what it will have to do to be a hit.

Jump ball. Reading the stories about the box office this weekend and it seems to me that there is not going to be any dominating by any movie. "Underworld: Awakening," Sony's latest chapter in its vampire series (is it sign of how out of it I am that I have never heard of this franchise?) is expected to end up on top. I am no expert but I predict "Haywire," the action movie starring Gina Carano, is going to do better than people think. Projections from the Los Angeles Times and Hollywood Reporter.

Secrets of phone hacking. Earlier this week, News Corp. settled a bunch of claims having to do with phone hacking at the company's now-closed tabloid News of the World and its still up-and-running paper the Sun. While the company has tried to say that settling is not an admission of guilt, that's a hard sell. In the meantime, the Guardian, the biggest thorn in News Corp.'s side, offers up its story on how the media giant hid and misled authorities about the scope of the scandal.

Out of tune? Fox's "American Idol" returned Wednesday night and only 21.9 million tuned in to watch the season debut of the show's 11th season. Yes, the number is the lowest for the show since Season 1. But it is also an amazing number for a show that old. In my opinion, it is a little too early to start playing Taps for "American Idol." More on the numbers from the Wall Street Journal.

Inside the Los Angeles Times: Betsy Sharkey went crazy for "Haywire."

-- Joe Flint

Follow me on Twitter. Even when I'm not there, I'm there. Twitter.com/JBFlint

Photo: "American Idol." Credit: Michael Becker / Associated Press.

MegaUpload file sharing site shut down for piracy by Feds

This post has been updated. See note below.

The Department of Justice announced Thursday that it has conducted a major action to shut down MegaUpload, a popular file-sharing site widely used for free downloads of movies and television shows.

After receiving indictments from a grand jury in Virginia for racketeering conspiracy, conspiracy to commit copyright infringement and other charges on Jan. 5, federal authorities on Thursday arrested four people and executed more than 20 search warrants in the U.S. and eight foreign countries, seizing 18 domain names and an estimated $50 million in assets, including servers run in Virginia and Washington, D.C.

MegaUpload is a "digital locker" that allows users to store files that can then be streamed or downloaded by others. Its subsidiary site MegaVideo became very popular for the unauthorized downloads of movies and TV shows. Users whose uploaded content proved particularly popular were paid for their participation.

DOCUMENT: Read the indictment against MegaUpload

In a joint statement, the Justice Department and FBI called the action "among the largest criminal copyright cases ever brought by the United States."

Ira Rothken, an attorney for MegaUpload, said in an interview that he only learned of the actions in a press release this morning and had not yet read the entire indictment. "Our initial impression is that the allegations are without merit and MegaUpload is going to vigorously contest them," he said. "We have deep concerns over due process and assets being taken without the opportunity for a hearing."

According to the indictment, the operators of MegaUpload earned more than $175 million in illegal profits and caused an estimated $500 million in harm to copyright holders.

The site is advertised as having more than 50 million daily visitors, according to federal authorities.

Four of MegaUpload's operators have been arrested in New Zealand, while three more remain at large. The seven each face a maximum of 55 years in prison.

Not listed on the indictment is rapper Swizz Beatz -- real name Kasseem Dean -- who, according to a report in the New York Post, is the CEO of MegaUpload. Beatz is married to pop singer Alicia Keys.

Rothken said that Beatz had not been running the site but that recently there had been "a transition period going on." 

The news is sure to be welcome in the entertainment industry, whose leaders have faced a recent setback in their push for the Stop Online Piracy Act and Protect Intellectual Property Act. The proposed bills, if passed, would make it easier for U.S. courts to go after piracy sites that, unlike MegaUpload, operate entirely overseas.

Critics who believe the bills are heavy-handed and don't adequately protect civil liberties conducted a U.S. Internet "blackout." As many as 10,000 websites went black Wednesday, among them Wikipedia, Craigslist and Reddit. The protest helped to pressure lawmakers to oppose SOPA and PIPA.

The Obama administration announced its opposition to the bills in their current forms Saturday.

[Update, 2:55 p.m.: The websites of the Justice department and Universal Music Group, which had been involved in litigation with MegaUpload, were down on Thursday. The sites were attacked by members of the hacker group Anonymous in response to the actions against MegaUpload, according to a report on CNET News.]

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Photo: The homepage of Megaupload.com. Photo: Associated Press