Film Industry Strikes Back at Video Piracy

In a raid that was hardly a scene from an action flick, a tiny video store became the latest target of an increasingly aggressive campaign by the film industry to combat video piracy.

By the time investigators from the Motion Picture Assn. of America finished sorting through Celebrity Video’s inventory, roughly half of the store’s English-language movies had been removed and packed into boxes marked “evidence.”

And, while investigators admitted the take from Celebrity was a drop in the bucket--about 300 videos--they said the raid demonstrates the industry’s determination to strike back against a crime that film companies say loses them an estimated $1 billion to $2 billion a year.

“I’d say just about everyday, somewhere in this country, there is some kind of seizure of pirated videos taking place,” said David Dolson, supervisor of the MPAA’s anti-piracy investigations, as he removed illegal copies of “Toy Story,” “Twister” and other recently released U.S. titles from the store’s shelves.

“We’re stepping up the pressure. Wherever we find piracy we’ll ferret it out. If it’s in Anchorage, Alaska, we’ll go there,” he said.

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Faced with mounting losses, the MPAA has adopted a dual strategy in defending the industry against video pirates that makes use of both criminal and civil courts.

In the largest cases, often involving laboratories capable of illegally reproducing hundreds of tapes at once, the MPAA works with police agencies to conduct raids and criminal prosecutions against suspected ringleaders.

In June, for example, MPAA investigators working with the New York Police Department broke up a ring in the Bronx that allegedly sold more than 100,000 videotapes a week, grossing more than $500,000. The operation was so sophisticated it not only produced tapes of first-run movies that had not yet been released on video, it also sold tapes of films that had not even been released in theaters. Thirty-seven people were arrested in the one-day operation.

But police rarely get involved in smaller cases like Celebrity Video, where MPAA investigators discover a store is renting but not producing counterfeit videos.

Instead, MPAA investigators take their evidence to Superior Court, where they obtain a writ of seizure allowing them to confiscate counterfeit tapes. The writ is based on a California’s True Name and Address Statute, which prohibits the false labeling of commercial products.

“As an industry, we first try to involve law enforcement,” said Judy Denenholz, vice president of the anti-piracy division of Disney. “But because of a shortage of resources we will also go after them in the civil courts.”

Crispin Josef, 38, the owner of Celebrity Video, was not arrested and faces no criminal charges. He is, however, the target of a civil suit filed by the MPAA. In addition to the loss of his inventory, Josef faces damages of up to $5,000 for each pirated title found in his store, said Dolson, a retired captain with the Los Angeles Police Department.

Although visibly shaken, Josef answered investigators’ questions with “yes, sir” and “no, sir,” never denying he bought pirated tapes. He watched from behind the counter as three investigators scrutinized his inventory, one tape at a time.

“Are you sure you didn’t make these? Are you sure you’re telling me the truth?” Dolson asked Josef again and again. Dolson also repeatedly asked Josef for the source of the tapes.

“You give me the address where the machines are and we’ll cut a real deal with you. Otherwise, you’re looking at a lot of money,” Dolson told him.

Josef said he purchased the tapes for $20 each from an anonymous man who came into his store. He said he bought the tapes in an effort to keep his small business afloat.

“I knew this was illegal, but I bought them because it’s so expensive. If I buy a tape for $75, I don’t make any money,” Josef said “I’m going to try to start over. I have to. This is my bread and butter.”

Marissa Pickar, a spokeswoman for the MPAA, said the agency will also pursue civil penalties against first-time offenders as a slap on the wrist.

“Sometimes we’ll do civil instead of criminal as a deterrent,” Pickar said. “And let’s face it, when you have rapes and murders going on, video piracy is not always a top priority for police.”

But it is a top priority for the MPAA, which has established a toll-free hotline, (800) NO-COPYS, and pays up to $15,000 for tips leading to criminal convictions. There are smaller rewards for reporting stores renting pirated videos.

In addition to the financial losses, Denenholz said, Disney and other companies are concerned about inferior tape copies that create a negative perception of their products.

“Particularly with animated works, we want everyone to enjoy the films in their finest quality,” she said. “When someone views a poor-quality tape, they’ll think Disney produces poor quality. That is not the image we want.”

Despite his tough manner, Dolson said he does occasionally feel a tinge of regret when raiding small businesses like Celebrity Video.

“Professionally, I have no problem with it,” he said. “This is our job and these people are violating the law and costing our member companies and the consumer a lot of money. Personally, I hate to see a guy like this suffer. He’s a little guy and there’s not much money in it on this level.”

But, Denenholz said, “It’s not fair to a legitimate retailer who buys legitimate tapes to have to compete with someone who is cheating.”