Raid on Small Video Store Shows Broad Scope of Anti-Piracy Effort

A tiny store in the mid-San Fernando Valley 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, about half of the Arleta store’s English-language movies had been removed and packed into boxes marked as evidence.

And although 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 costs them an estimated $1 billion to $2 billion a year.

“I’d say just about every day, 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.

Faced with mounting losses, the MPAA has adopted a dual strategy in defending the industry against video pirates that makes use of 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, 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 such as that of 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 California’s True Name and Address Statute, which prohibits the false labeling of commercial products.

Crispin Josef, 38, the owner of Celebrity Video, was not arrested during the raid Friday 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 could be liable for 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 a polite “Yes, sir,” and “No, sir,” never denying that 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 repeatedly. 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 said.

Josef said he bought 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.”

The MPAA has established a hotline, (800) NO-COPYS, and pays up to $15,000 for tips leading to criminal convictions.

Dolson acknowledged an occasional twinge 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, said Judy Denenholz, vice president of Walt Disney Co.’s anti-piracy division, “It’s not fair to a legitimate retailer who buys legitimate tapes to have to compete with someone who is cheating.”