The MPAA; The Real Pirates

BlueMonday

Can I Kick It?
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I've been reading over a lot of information on the internet lately about piracy in all it's forms; be it music downloaded in MP3s, DivX encoded DVD rips, or software ISO rips. And although I do not deny the wrongfullness of distributing pirated media over the internet or on the street, I think that many people aren't seeing the bigger picture of intercorporate price-discrimination, racketeering, and the unadulerated worship of money. Take the distribution of DVD movies in the following example.

When DVD players were introduced in the late nineties, manufacturers of the new electronics included in their DVDs a file encryption called CSS (Content Scrambling System). Industry leaders, particularly those that make up the MPAA (Motion Picture Association of America including major players Sony, MGM, Universal, and Warner Bros.), maintain that the CSS is an anitpiracy safegaurd. They claim that CSS was intended to prevent pirates from making copies of the movie using DVD ROMs.

The silly thing is, CSS doesn't do anything to prevent the copying of a DVD onto a hard drive. If you have a DVD ROM and have a little knowledge all you have to do is copy the DVD in it's entirety from your DVD ROM to the hard drive or onto a waiting DVD R. When you do this the you create a 4-5 Gigabyte file that includes the CSS encryption with it. You can then just take that file and play it, or if you've burned it to a DVD Rewritable media you can play it in a DVD player. Or if you have a fast internet connection or just a lot of time with a 56K you can send this to anyone.

Now admittedly, if you want to do anything with the file (like transfer it into the smaller DivX format) you will have to crack the CSS. In 1999 there were several groups in Europe that achieved this. Groups like Drink or Die and Masters of Reverse Engineering had it cracked. The MPAA was able to counter the moves made by these groups, but newer ones came out anyway that could break new company CSS encryptions and so on. Simply put, the CSS could never outdo the nerd factor. Hackers today laugh their asses off at the absurdness of CSS because of how simple it is to break. Now they have programs that can break the encryption in under three seconds by hammering CSS repeated with various codes.

The real reason for CSS is to screw the average consumer market (Joe Blow with a fistfull of cash and internet access just so he can have email and say to his buddies how connected he is with his 56K AOL connection; Joe Blow, the guy who just buys his DVDs down at Media Play). Here's how they do it:

Every DVD player out there comes with a hardware counterpart to the CSS software found on every DVD. When you put the DVD into the player, the player reads the CSS info. Ever wonder why you can't skip or fast forward through those disclaimers and piracy warnings on DVDs? That's CSS working; it is specifically forbidden for any manufacturer to distribute a DVD player that can skip those warnings. The second thing it does is display a region code for the DVD. The regions are broken down into:

  • zone 1: USA, Canada
  • zone 2: Europe, UK, Japan, South Africa, Middle East, Greenland
  • zone 3: Hong Kong, East & Southeast Asia
  • zone 4: Australia, Pacific Islands, New Zealand, South America, Caribbean
  • zone 5: Russia, Indian Subcontinent, North Korea, Africa, Mongolia
  • zone 6: China
    [/list=a]

    What this allows the MPAA to do is prevent DVDs bought in one region from being played in another region. If you buy a DVD in India and then try to play it with a player purchased in Europe all that you will see is the piracy warnings. With the CSS system, the MPAA can -one- monopolize the market and -two- charge whatever price they want to on the DVDs sold. Here in the US I can buy a DVD for about $20. In truth, DVDs have huge margins. Digital technology allows them to be churned out faster and cheaper than even VHS was ever able to come close to. What they are doing is charging what they believe the market will allow them to charge. That's why CSS is split into economic zones. People in India won't pay $20 American for a DVD (most of them couldn't afford to anyway) so they are charged much much less for it (a price more reasonable for them). In Europe and America, DVDs are the most expensive since people will pay exorbitant amounts of money for them.

    But that's only the first reason CSS is present. Although no one denies that Drink or Die created a CSS crack to pirate DVD movies through its massive underground network, Masters of Reverse Engineering was not. What MoRE was trying to do was create a linux platform that could read DVDs and thus you could play DVDs with a linux or unix operating system. At the time the only computer software company that would build software to play DVD movies (or formats derived from DVDs) was Microsoft. Obviously, Microsoft wasn't going to create a player for a competing operating system so it was up to the nerd world to take care of the problem.

    Listen: The MPAA denies this allegation and insists that MoRE was in the pirating business. They say that they would have licensed linux and unix to play DVD if those software names would have asked for it. Sounds spot on, but licenses from the MPAA are very hard to get ahold of. The MPAA has denied numerous licenses to smaller companies on several occasions; not to mention the security payment of $750,000 to $1,000,000 and a 6% royalty charge on ALL sales. Small names like linux would never be able to get ahold of a license with extortion rates like that.

    Once again this means millions, maybe billions, of dollars headed into the coffers of the MPAA and it's puppets. CSS allows them not only to charge whatever price they want to on DVDs but also allows them to completely control DVD players too. Saying as there are as many DVD players in America as there are VHS players (we're talking tens of millions of units here) and almost every electronics company producing DVD players we're definitely talking about hundred of millions of dollars going straight to the MPAA.

    ...when I get into the business world, I hope I can have ideas as fiendish and productive as this one.:D
 
$20 for a DVD! That's about £10, isn't it?. New DVD's here in blighty can cost up to £16 to £18, though the price usually drops a little after a few months of release. Let's face it, as long as these artificially high prices exist piracy will never be wiped out.

What gets me is the scam of getting us all to buy DVD players, then getting us later to buy DVD recorders - doubling their income!:mad:

We'll just have to see what happens when the cost of paying actors, etc, extra royalties for appearing in the DVD extras like commentaries. Though I hear that there's a new VHS Digital alternative to DVD being pushed through with greater storage and screen resolution. Betamax vs VHS all over again?

As for the 'real pirates', since when did big corporations do anything else? They have to fill their coffers somehow.:midfinger
 
Erm, that middle finger was at the blood sucking capitalist meatgrinding machine, in case you were wondering.
 
Originally posted by BlueMonday
(..)
  • zone 1: USA, Canada
  • zone 2: Europe, UK, Japan, South Africa, Middle East, Greenland
  • zone 3: Hong Kong, East & Southeast Asia
  • zone 4: Australia, Pacific Islands, New Zealand, South America, Caribbean
  • zone 5: Russia, Indian Subcontinent, North Korea, Africa, Mongolia
  • zone 6: China
    [/list=a](..)


  • UK is a part of Europe. D'uh. :crazyeyes
 
<UK is a part of Europe. D'uh.>

Only officially.

Sadly we remain the most xenophobic country of all region 2.

:king: RULE BRITANIA!

Urk. Must respect my neighbours...:beer:

Erm, shall we get back to DVDs now?
 
Now, I should warn you that I am an intellectual property hardliner, so bear with me:

While I sympathize with your argument at face value about MoRE,
what's so ridiculous about the division of the world into price zones? Of course they're going to charge different market rates for different areas, and I wouldn't have it any other way. The market can't bear as high a price in India as it can in downtown Toronto. What's wrong with charging the higher price here? It's no different than a florist charging more for flowers on Valentine's Day, or having a sale after Christmas. And it's not like the price doesn't fluctuate for DVDs within those markets.

What pisses me off about the information economy is that anybody with a computer seems to denounce marketing practices that they would find perfectly acceptable for toilet paper, shipping and haulage, or servicing wood chippers.

R.III
 
The tactics of the information industry cause anger simply because, to me at least, they are so blatant in their abuse of their power.

Besides, you can't pirate toilet paper.
 
Charging $10 in one country and $15 in another is basicly an income related taxation by the company.

If I'm going to pay tax then it should be to the government.

(Assuming that they make a profit in both countries and only over charge us because we can afford it. Witch is all too common.)
 
Originally posted by vonork
Charging $10 in one country and $15 in another is basicly an income related taxation by the company.

If I'm going to pay tax then it should be to the government.

(Assuming that they make a profit in both countries and only over charge us because we can afford it. Witch is all too common.)

Not necessarily. Even if produced at the same point, DVD retail prices may differ from one region to another for several reasons: manufacturers tax, sales tax, currency differences, higher retail costs (labour, overhead), higher per-unit shipping costs, etc.

Here in Canada, I know that certain auto manufacturers have set up "territorial price system so that Canadian car dealers sell their cars at a different price than the Americans, and aren't permitted to sell cross-border. The reason? Currency variables. The prices are set so that the CDN price is equal in purchasing power terms to a Canadian buyer's pay packet, but not an American buyer's. How unfair is that? Not at all. Both the US and CDN consumer pay the same on an apples to apples comparison, and the Canadian dealers can't use their currency advantage to "dump" artificially cheap cars into the artificially expensive US market.

But all the same, even if the difference is pure profit, I can't help but point out that charging what the market will bear is, uh, a free market. The very system that made things like Civ possible. And no one is forcing you to buy DVDs. If you were really that upset, you'd could say "no DVD's!" and sit and play Civ3 all day in protest like I plan to until the prices drop.

R.III
 
On a free marked there would be uncoded DVD-players. But the market isn’t totally free it’s a bit monopolized. I have however been able to purchased this service, but that is not give to the everyday customer.

I have a question that suddenly pops up in my mind. If I compose a song or write a book it is () C ) for as long as I live and about 70 years after to whoever inherit me. But when does today’s movies and songs that are property of a company become public property.
 
Copyright is copyright, and whatever the rule is where you live for songs and books applies also to filmed entertainment, etc.

So if it's death +70 for some, then it's usually death + 70 for all. Not everybody in the OECD has ratified these limits, though. Incidentally, one area of intellectual property law I am not sold on is these extended protections - the point of the tradeoff between artistic monopoly to protect the creator(s) is that the state protects it now on the understanding that it enters the world later. Before such protections, patents - for example - were premised on the idea that if you didn't bring the thing protected into the public domain, it would stay a private secret in the hands of a few forever. Obviously, lengthen the protection too much and it sort of destroys the tradeoff.

And re: your comments, vonork, in a free market there can be uncoded DVDs. But it is not economic for someone to produce them, given the threat of 'unfair' use.
 
Well, that would not be a problem for the DVD-player manufacture now would it? But it is a problem fore company’s that produce DVD-movies. I guess they maid some sort of a deal.
 
Originally posted by Richard III
...what's so ridiculous about the division of the world into price zones? Of course they're going to charge different market rates for different areas, and I wouldn't have it any other way. The market can't bear as high a price in India as it can in downtown Toronto. What's wrong with charging the higher price here? It's no different than a florist charging more for flowers on Valentine's Day, or having a sale after Christmas. And it's not like the price doesn't fluctuate for DVDs within those markets.

The point is that with CSS, consumers can't purchase the same DVDs at lower prices. I have no porblem with market based pricing, but when it becomes impossible for a consumer to go to another country on his own penny in order to save money, then we have "price-discrimination." The free enterprise system was invented to benefit the wary consumer, so that if he knows that he can get a better price from a different seller good for him and bad for the business who lost him. With encryption systems like CSS in place it forces consumers in one region to pay the extortion price, not the true market price. If he can get a better price soemwhere else, why shouldn't the consumer be able to do it? What CSS amounts to is essentially a monopolization of the industry.

UK is a part of Europe. D'uh.

Yes, thank you for the Geography lesson, Jism.
 
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