CHINA ANTI-PIRACY RAID

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CHINESE OFFICIALS SEIZE 1.64 MILLION ILLEGAL

DVDS IN SOUTHERN CHINA ANTI-PIRACY RAID

Hong Kong – On March 17, acting on information provided by the Motion Picture

Association (MPA), anti-piracy officials from China’s National Anti-Piracy and

Pornography Office (NAPP) and Guangzhou Cultural Task Force, accompanied

by an MPA representative, raided a pirated optical disc manufacturing and

storage facility in the southern Chinese city of Guangzhou.

In what was the largest anti-piracy haul this year in China, officials seized 1.79

million optical discs, of which 1.64 million are suspected of having been illegal

pirated copies of legitimate movie and television titles.

Also seized in the raid were 30 machines used to erase Source Identification

(SID) codes that can allow investigators to determine the manufacturer of an

optical disc. Officials detained two men believed to be managers of the facility,

and are extending their investigation of the illegal operation.

The seized discs were infringing dozens of MPA member company films, as well

as every Chinese film released to date this year, and many American, Korean

and Japanese animation and television series titles.

“The Motion Picture Association and our member companies greatly appreciate

the efforts of the National Anti-Piracy and Pornography Office and Guangzhou

Cultural Task Force in shutting down what was clearly a significant operation,”

said Mike Ellis, Senior Vice President and Regional Director, Asia-Pacific for the

Motion Picture Association. “However, raids and seizures alone will not foster a

vibrant film entertainment business in China unless the Chinese government

aggressively targets intellectual property theft by opening its markets,

implementing strict laws and sentencing guidelines, and making clear to pirates

and the population at large that it will not tolerate criminal behavior.”

Piracy in Asia.

A comprehensive study aimed at producing a more accurate picture of the impact

NEWS RELEASE

that piracy has on the film industry including, for the first time, losses due to

internet piracy, recently calculated that the MPA studios lost US$6.1 billion to

worldwide piracy in 2005.

About US$2.4 billion was lost to bootlegging*, US$1.4

billion to illegal copying* and US$2.3 billion to Internet piracy. Of the US$6.1

billion in lost revenue to the studios, approximate $1.2 billion came from piracy

across the Asia-Pacific region, while piracy in the U.S. accounted for $1.3 billion.

In 2006, the MPA’s operations in the Asia-Pacific region investigated more than

30,000 cases of piracy and assisted law enforcement officials in conducting

nearly 12,400 raids.

These activities resulted in the seizure of more than 35

million illegal optical discs, 50 factory optical disc production lines and 4,482

optical disc burners, as well as the initiation of more than 11,000 legal actions.

*Bootlegging: Obtaining movies by either purchasing an illegally copied HS/DVD/VCD

or acquiring hard copies of bootleg movies.

*Illegal copying: Making illegal copies for self or receiving illegal copies from friends of a

legitimate VHS/DVD/VCD.

*Internet piracy: Obtaining movies by either downloading them from the Internet without

paying or acquiring hard copies of illegally downloaded movies from friends or family.

About the MPA: The Motion Picture Association (MPA) represents the interests of major motion

picture companies in the global marketplace. On behalf of its member companies, the MPA

conducts investigations around the world, assists with the criminal and civil litigation generated by

such cases, and conducts education outreach programs to teach movie fans around the world

about the harmful effects of piracy.

The MPA directs its worldwide anti-piracy operations from its

headquarters based in Los Angeles, California and has regional offices located in Brussels

(Europe, Middle East and Africa), São Paulo (Latin America), Montreal (Canada) and Singapore

(Asia-Pacific).

The MPA’s anti-piracy activities have helped to transform entire markets from

pirate to legitimate, benefiting video distributors, retailers, and foreign and local filmmakers alike.

The MPA member companies include: Buena Vista International, Inc.; Paramount Pictures

Corporation; Sony Pictures Releasing International Corporation; Twentieth Century Fox

International Corporation; Universal International Films, Inc.; and Warner Bros. Pictures

International, a division of Warner Bros. Pictures Inc.

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Source: MPAA