KEY POINTS:
Hollywood studios are planning a New Zealand website for legally downloading movies as a way to reduce internet piracy.
The Motion Pictures Association representative in this country - Tony Eaton of the New Zealand Federation Against Copyright Theft (NZFACT) - recommended the move in a report to MPA
bosses for the Asia-Pacific region, which faces the biggest threat from piracy.
State owned ISP Orcon is developing a download site but it is not clear if these are linked to MPA plans. With rapidly increasing broadband speeds and a revolution in online media, users are accessing pirated copies of films. The effect on studios' revenues is still small.
But Eaton says illegal downloads are increasing and part of the problem in this country is that there is no legal download site for Hollywood movies.
He declined to specify timing for such a site or the pricing structure but confirmed the official site was being considered by the regional bosses.
Australia has five such legal download websites sites - including one associated with Telstra's BigPond - and there are 14 in South Korea.
With New Zealand's slow broadband speeds there is limited demand for movie downloads to computers. But that is expected to change as broadband speeds improve with the growth of IPTV services, such as those being developed by Orcon.
Likewise, television programmes have been downloaded from American websites with youth-oriented shows like TV3's Heroes particularly attractive to downloaders.
Eaton - whose main role is to oversee anti-piracy measures - said that NZFACT had a limited involvement in overseeing copyrights, many of which are made by the same six studios that dominate the movie sector. But he said roles overseeing piracy of TV shows would increase.
COPYRIGHT COPS
Under the new Copyright Act passed this week, the Government has given Hollywood studios extra powers to crack down on internet piracy.
NZFACT convinced politicians to make internet service providers their online police. And the internet people aren't happy about their new role.
Under the act, NZFACT and the record industry body Rianz can complain to ISPs about content available through their services which they say breaches their copyright.
Organisations like the ISP body Ispanz and internet New Zealand said ISPs had not opposed putting complainants and alleged offenders in touch, as occurs in Canada.
But they are furious New Zealand has adopted new obligations similar to those in the United States requiring ISPs to take down sites and make them unavailable.
The requirement puts ISPs - some of which are small companies - in a vulnerable position for claims of lost revenue, said Jamie Baddeley, president of the ISPs body Ispanz.
"We have to make a judgment about who owns copyright - how do we know?"
NZFACT's Eaton says the new ISP requirements are important to halt a tide of pirated film and TV content online.
He said NZFACT and the record industry body Rianz would meet with ISPs soon to hammer out how the new rules are to be applied.
BUM NOTE
Rianz will also be taking a tougher line on copyright theft under the new law.
Film and TV studios are leading the global push to hold back piracy.
Legal download sites have slowed the rot for the corporate music world. But after decades of soaking up generous margins, illegal downloads have decimated record sales for the big corporates. In the US, the Recording Industry Association of America has undertaken aggressive raids on what it considers to be offenders.
In New Zealand, Rianz chief executive Campbell Smith said the new law provides content creators with certainty in crucial areas after several years of change.
Smith said he was happy with the new obligations. "ISPs will be compelled to take reasonable responsibility for the activity that takes place on their networks, suspension and termination of infringers' internet accounts and the use of filtering technology.
"On behalf of our member labels and musicians, we look forward to continuing discussions with ISPs about their responsibility for protecting copyrighted content on their networks."
But supporters for internet freedom are unhappy they are getting caught up in the copyright business.
HOLLYWOOD HURRAH
Governments are under a lot of pressure to protect copyright, and in this case telecoms companies - many of them local firms - are being held accountable for policing the internet. But Hollywood and the New Zealand record industry are already receiving generous handouts from taxpayers.
Maybe ISPs just don't provide the sort of photo opportunities as Peter Jackson and the annual music awards do.
AUSSIE AUSSIE AUSSIE
Australians have cracked down on Hollywood studios using the generous new incentives aimed at developing the Australian business to make American blockbusters.
The Film Finance Corporation decided Justice League Mortal will not qualify for the new incentive, and the production is likely to leave the country.
Producers threatened to take both the adaptation of the DC Comics superhero franchise and the sequel to Happy Feet overseas, probably to Canada or New Zealand, if the company did not qualify for the 40 per cent tax offset on money spent in Australia. TV production attracts a 20 per cent offset.
The Australian newspaper reported that the project was deemed not Australian enough and Arts Minister Peter Garrett's comments last month that to secure the offset films would need to have a "cultural resonance" and "a significant Australian content component to them".
Justice League Mortal leaving Australia would jeopardise more than 100 contract jobs. The film would still be likely to qualify for a 15 per cent tax rebate offset - aimed at attracting Hollywood productions - which is also available as a cash scheme in New Zealand.
There is no word yet whether Justice League has any serious plans to film in New Zealand.
'ME TOO'
Aussie producers will be pleased that the incentives aimed at boosting the local business and not Hollywood movies have been clarified.
But in this country, the Government-backed industry lobby group the Screen Council has stepped up its calls on the Government to develop a similar scheme here. In a letter last month to Arts and Culture Minister Helen Clark, Economic Development Minister Pete Hodgson and Broadcasting Minister Trevor Mallard, Screen Council executive director Tim Thorpe said the more generous Australian product offsets were a good model.
"This letter asks you to urgently consider the introduction of an equivalent producer offset for New Zealand. We are concerned that the Australian screen industry may gain an edge over New Zealand because of the advantages of the new incentive to investors and production companies, who may forsake New Zealand as a result.
"We are also aware of New Zealand production companies who are considering relocating their productions to Australia to take advantage of the offset.
"Already a number of investors, including Australian and overseas banks, are considering financial packages for producers.
"It is anticipated that producers will be able to structure more favourable terms for their productions, based on a stronger equity position, including claims on rights. This will lead to a stronger, more sustainable industry based on better capitalisation."
Presumably we will know if the industry gets another top-up at election time.
