The “Twenty Fifth Frame” of Piracy

This is a unique example, for the cheated companies are not present in Ukraine, nor do they delegate their rights to local firms. Why squander money on legal defense if it is easier to call the whole country a pirate, prohibit everything, and celebrate a legal victory?

The above-mentioned Mashel factory has been working in Ukraine for over 5 years. According to the owner, whose name is universally known in Ukraine, he has no links with Bulgaria. Meanwhile, the IFPI thinks it is from there that European piracy has moved to Ukraine. When this writer was visiting the factory, the latter was dubbing a CD with the Kyiv city administration’s reference book. This was preceded by putting out songs sung by Ukrainian artists. The closure of the factory, already browbeaten by endless inspections, will mean these services will have to be ordered abroad. For the factory is like a printing shop: it would be strange, to say the least, to take one to court for violations committed by the “editorial board.” It is the customer who should be punished materially and criminally. Besides, only a very interested economic rival can reduce the anti-piratical campaign in Ukraine to the closure of bona fide factories.

It would not be a gross exaggeration to say that this rival is the International Federation of the Phonographic Industry, Ukraine’s chief critic. It was in fact founded by 5 multinational corporations holding 80% of the world audio market.

Yury Khovkhun, managing director of the Ukrainian Union of the Users of the Objects of Copyrights and Related Rights, affirms that IFPI activities is nothing but redemption of the funds invested in it by multinational audio moguls. It is for this reason that about 3,000 other audio firms have united, to counterbalance the IFPI, into an international league of their own, the FIPI. What is more, but for the FIPI which, incidentally, controls 80% of copyrights, such music as flamenco would perhaps no longer exist now. For multinational corporations only recognize first- magnitude stars.

The IFPI can really be suspected of the misuse of meanings - “struggle against rivals” instead of “struggle against copyright violators.” One of its projects, unofficially circulating among Ukrainian audio manufacturers, deals with licensing and even producing unrecorded optical carriers. There is no question of intellectual property here. According to Ukrainian producers, this is realization of the “Hong Kong option” for wiping out a whole sector of industry.

Mr. Purik says that uninterrupted toying with the idea of combating piracy, without discriminating between the guilty and the innocent, has already forced the company owners to prepare a place in Russia to which the Ukrainian production capacities, technologically most up- to-date and economically effective, may move. Each of the working factories provides an annual UAH 10,000 revenue for the budget of Ukraine today, but tomorrow this may go to the Russian budget...

It would be wrong to say Ukraine pays no attention at all to counterfeit products. It has ratified the Geneva and Bern conventions, and the Law on Copyrights and Related Rights. A sufficient legal foundation has been laid to protect intellectual property, and Ukraine agrees to further improve it. But it would be an exaggeration to say this property is under protection. Street hawkers’ stands are stocked to capacity. TV and radio air is not averse to counterfeits. Computers are stuffed with “swiped” programs. And no police raids will help here. Yet, latest law- enforcement reports say that 29 clandestine workshops have been unearthed, UAH3-million-worth products seized, and 88 criminal cases opened over the past year.

As long as private interests are being defended by the state alone, the result will be minimal. On the other hand, attention to Ukraine on the part of copyright holders, for instance, opening an office of the Motion Picture Association of America (MPAA) which the largest national private channels are prepared to support, may bring real and rapid successes.

It is far easier to punish a criminal than to forestall a crime. But this cannot be done if all are criminals. What is needed is a package of legal, social, and economic measures, drawn up specifically for Ukraine. What is needed is concrete work on the Ukrainian market of audio products. The fear of breaking the law must be supplemented with the desire and possibility to observe the latter.

INCIDENTALLY

Stefan KRAWCZYK, IFPI regional director for the countries of Central and Eastern Europe, expressed this organization’s opinion to The Day ’s Mykola SIRUK :

“We estimate that the Ukrainian market can consume 5-10 million licensed CDs. Meanwhile, Ukraine’s five factories, of which the IFPI knows, produce over 70 million counterfeit CDs. So, in fact, only one factory can produce the licensed products.

“To tell the truth, Ukraine has begun lately to put the video-audio industry in order. This happened after the Ukrainian government became aware that video piracy has a negative effect on this country’s image. I am satisfied with governmental measures. Counterfeit products are gradually vanishing from the streets. The authorities have begun to investigate into the activities of and are going to close the above-mentioned factories. However, they will stand a chance to work if they receive the author’s license to put out a product.

“Our organization, founded in 1933, consists of 144 participants representing 70 countries of the world and accounting for 80% of the audio-recording firms. We are not going to suppress the Ukrainian producer, we only want this market in Ukraine to function within the limits of the law.”