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Battling China's counterfeiters on their turf 

Warner Brothers fights Chinese piracy head on, but is victory possible?

Local residents buy pirated DVDs on a street in Lanzhou, in China's Gansu province. U.S. officials say China's counterfeit exports cost legitimate producers worldwide up to $50 billion a year in lost potential sales. 
EyePress via AP file
By Derek Levine
Reporter
NBC News
updated 8:12 a.m. ET Aug. 30, 2006

Derek Levine
Reporter
BEIJING - While millions of American moviegoers flock to the theatre this summer paying an average of ten dollars to see summer blockbuster films such as “Pirates of the Caribbean: Dead Man’s Chest” and “Snakes on a Plane,” Huang Yue of Beijing, like millions of others in China, simply walk down to their local street vendors and purchase a pirated copy for about a dollar.

In an attempt to beat DVD counterfeiters at their own game, Warner Bros. has decided to release its films on DVD for sale in China as quickly as 12 days after their theatrical debut, and at prices as low $1.25 a movie.

“This is a good strategy introduced by Warner Bros. because even though there are counterfeit copies of movies about three days after they reach the theatres, it takes about three weeks for vendors to perfect the quality,” say Huang Yue, a Graduate Student at Renmin University in Beijing and a movie buff.

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But, is a complete crackdown on rampant piracy in China possible?

Damage in lost revenue
Warner Bros. is one of the first studios to aggressively combat the losses Hollywood is suffering because of pirated DVDs. According to the Motion Picture Association, the organization which represents major Hollywood studios, piracy cost U.S. filmmakers an estimated $565 million last year. The study indicates that nearly 93 percent of all movie sales in China were pirated versions.

But, many in China would argue that pirated films are the only way they can afford to keep up with the times. The average salary of a person living in Beijing is $3,000 per year, according to a survey done by Renmin University. “Going to the movie theatre for the actual market price is just not within our financial means,” said Huang.

“Because of our low salaries compared to the U.S., piracy doesn’t end with the purchasing of DVDs,” explained Deng Ying, a Peking University Law student. “College age students and professionals have purchased computer software such as Windows XP, Microsoft Excel and Norton Antivirus for only six Kuai, which is equivalent to about 65 cents.”

Huang argued that working with pirated technology is necessary to keep up in a global world. “If the pirated versions of software were not available, most college students and professionals alike would not be familiar with such programs,” said Huang. “The worst thing that we can do is not be up-to-date with the latest advances in computer programs and technology in a globally competitive world.”

Pop culture infatuation   
And it’s not only keeping up with the Joneses in terms of new technology that the Chinese care about. What helps drive the rising piracy numbers is the fact that the Chinese have become increasingly infatuated with American movies and TV shows as American culture continues to spread across China at an accelerated pace.

“The Internet and an influx of entertainment magazines like Cosmopolitan and Vogue, which often run feature stories on American actors and actresses has resulted in great interest in such popular TV shows as “Friends,” “Desperate Housewives,” and “Sex and the City,” said Deng.

“The internet also serves as an outlet where Chinese people can write their thoughts about recently viewed TV shows. Lili Liu writes on sina.com, in a forum titled “American TV,” “‘Desperate Housewives’ is my favorite show for the interesting storyline and for the fact that I am a housewife and can relate to many of the characters.”


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