VZCZCXRO4521
RR RUEHBI RUEHCI
DE RUEHCG #2227/01 2720905
ZNR UUUUU ZZH
R 290905Z SEP 06
FM AMCONSUL CHENNAI
TO RUEHC/SECSTATE WASHDC 9979
INFO RUCPDOC/USDOC WASHDC
RUEHNE/AMEMBASSY NEW DELHI 1980
RUEHBI/AMCONSUL MUMBAI 4854
RUEHCI/AMCONSUL CALCUTTA 0596

UNCLAS SECTION 01 OF 02 CHENNAI 002227 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR MAC/ANESA/OSA/LDROKER/ASTERN 
USDOC FOR ITA/TD/ITI/KJENCI/EHOLLOWAY 
USTR FOR SOUTH ASIA 
SCA/INS FOR MNEWBILL 
 
E.O. 12958: N/A 
TAGS: ECON ETRD PGOV KIPR IN
SUBJECT: KARNATAKA PROPOSES TO AMEND ANTI-PIRACY LAW 
 
REF: 05 CHENNAI 0975 
 
¶1. Summary: Following in the footsteps of their Tamil Nadu 
counterparts, the Karnataka police propose to amend an existing law 
intended to fight street crime to include video piracy.  The 
ineffectiveness of the existing anti-piracy law in Karnataka 
prompted the local Kannada language film industry to demand an 
amendment. Karnataka Chief Minister Kumarasamy, himself a former 
film producer, is expected to drive the process forward. Local 
representatives of the Motion Picture Association (MPA) of America 
believe an amendment would significantly impact piracy crime in 
Karnataka. Elsewhere, in a sign of rising awareness of the problem, 
Pondicherry police shut down the operations of a local video store 
owner who pirated movies on the side. However, distribution of 
pirated movies over the Internet poses a challenge to the state 
police forces as they lack technical expertise to investigate and 
prosecute such cases. End Summary 
 
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Anti-piracy Example from Tamil Nadu Bears Fruit 
--------------------------------------------- -- 
 
¶2. Spurred by the success of the Tamil Nadu police in combating 
video piracy, the Karnataka police are examining the possibility of 
amending the Karnataka Goondas Act to bring piracy under its purview 
(see Ref A).  M.K. Srivastava, Additional Director General in the 
Karnataka Police who oversees the enforcement of the Karnataka's 
anti-piracy law, told Post that currently repeat offenders usually 
go back into business in a matter of days as magistrates tend to 
grant them bail. The Karnataka police seize the offenders' compact 
disk (CD) burners to make the operation uneconomic; however the 
impact on pirates is minimal. 
 
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Karnataka to Follow Tamil Nadu's Foot Steps 
------------------------------------------- 
 
¶3. Video piracy in Karnataka has begun to have an impact on the 
local Kannada language movie industry.  The industry had a good run 
in 2005 but Kannada movie producers are concerned that unless action 
is taken they could be the next targets.  Kumar Bangarappa, a 
Kannada movie actor and former Karnataka irrigation minister, told 
Post that the market for Kannada movies is small and the loss of 
revenue from even one center has an impact.  With Karnataka Chief 
Minister Kumarasamy also a film producer, Bangarappa is sure that 
the Karnataka Goodas Act will be amended to cover video piracy. 
This optimism is shared by Karnataka's Director General of Police, 
B.S. Sial who told Post that the Chief Minister is interested in 
amending the law. 
 
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Hollywood to Benefit from Karnataka Crack Down 
--------------------------------------------- - 
 
¶4. Video piracy in neighboring Tamil Nadu dropped significantly 
after the Tamil Nadu Goondas Act was amended to include piracy in 
the list of offenses.  Raja Pannir Selvam, a legal counsel employed 
MPA to represent its interests in south India, told Post that the 
act had curbed piracy considerably.  Most pirated copies of 
Hollywood movies seized in Tamil Nadu come from Malaysia or from 
neighboring states of Karnataka and Kerala, according to Narender 
Pal Singh, Additional Director General of Tamil Nadu.  He added that 
those prosecuted spend a year in prison and then have to spend 
another year appearing before various courts, which usually puts 
them out of business.  Bangalore, with its presence of a large 
information technology industry, has emerged as major center for 
pirating of Hollywood movies, MPA's Pannir Selvam told Post.  The 
MPA has helped the Karnataka police bust a massive pirated CD 
production facility in that city, but the offenders are back in 
business as they were arrested for the first time and were able to 
secure bail.  Amending the Goondas Act in Karnataka would have 
stopped them, he said. 
 
--------------------------------------------- - 
Pondicherry Police Crack Down on Pirated CDs 
--------------------------------------------- - 
 
¶5. Elsewhere in south India, Pondicherry has been another large 
source of pirated movies, according to MPA's Pannir Selvam. 
Pressure from the neighboring state of Tamil Nadu and the MPA forced 
the Pondicherry police to shut down a prominent video parlor in the 
city on August 16, 2006.  The politically well connected owner of 
the establishment, a known pirate, eluded the Pondicherry police, 
however.  MPA representatives told Post he had been tipped off by 
informants within the police.  They draw some satisfaction, however, 
 
CHENNAI 00002227  002 OF 002 
 
 
from the fact that the local police force had finally acted. 
 
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Web Piracy Challenges State Police Forces 
----------------------------------------- 
 
¶6. Comment: Increased pressure from state police forces has forced 
pirates in south India to switch from selling CDs to sending movies 
as compressed files over the Internet.  Both Singh of the Tamil Nadu 
police and Srivastava of the Karnataka police told Post that they 
have received increased reports of pirates switching to the 
Internet.  Their respective forces are incapable of intercepting, 
investigating and prosecuting such transactions, however.  At 
present, they claim, only the central government has the trained 
manpower and equipment to fight piracy on the web.  Enhanced 
capacity for state police forces to fight web-based piracy is needed 
to improve enforcement of intellectual property rights across India. 
 End Comment. 
 
HOPPER