Now it can be told: In addition to destroying Hollywood, profits and the American way, film piracy also supports organized crime and terrorism.
Further studies will likely show piracy also induces acne and IRS audits, but I'm getting ahead of myself. On March 3, the Rand Corp. released a 182-page report, "Film Piracy, Organized Crime and Terrorism." (You can watch a video about the report here). Viz.:
It presents detailed case studies from around the globe in one area of counterfeiting, film piracy, to illustrate the broader problem of criminal—and perhaps terrorist—groups finding a new and not-much-discussed way of funding their nefarious activities. Although there is less evidence of involvement by terrorists, piracy is high in payoff and low in risk for both groups, often taking place under the radar of law enforcement.
and:
"Given the enormous profit margins, it's no surprise that organized crime has moved into film piracy," said Greg Treverton, the report's lead author and director of the Center for Global Risk and Security at RAND, a nonprofit research organization. "The profits are high and penalties for being caught are relatively low."
RAND researchers found no evidence terrorists are widely involved with film piracy, but they outline three cases where film piracy supported terror groups and warn that such connections could grow in the future.
"If you buy pirated DVDs, there is a good chance that at least part of the money will go to organized crime and those proceeds fund more-dangerous criminal activities, possibly terrorism," Treverton said.
While the study was funded by the Motion Picture Association, Rand states that "the views expressed herein are those of the authors and do not necessarily reflect the opinions of the MPA." And as described, the research sounds impressive: 14 case studies of film piracy, 2,000 pages of documents and interviews "with more than 120 law enforcement and intelligence agents from more than 20 countries," all of which point to the involvement of organized crime in South America, Russia and Asia.
The report also "outlines three cases where film piracy has helped support terrorist groups." These include the Irish Republican Army, an Indian group responsible for the 1993 "Black Friday" bombings in Mumbai and a Hezbollah-financing group located on "the tri-border area of Brazil, Argentina and Paraguay."
According to the report, profit margins on pirated DVDs are much higher than those for, say, Iranian heroin and Columbian cocaine. And the penalties are much lower. In France, for example, selling counterfeit products can get you a two-year prison term and a $190,000 fine; sell drugs and you'll see 10 years in prison and a $9.5 million fine.
Compelling stuff... but what are we supposed to do about it? The MPA is the international counterpart of the Motion Picture Association of America -- you know, the organization that just lost $20 million to budget cuts and is seeing a reduction of its overall size and scope for the same reasons that everything seems to be seeing a reduction of its overall size and scope. And for all those pages of evidence, it's hard to imagine a day when selling a pirated DVD is considered tantamount to a bindle of heroin. [Hat tips to Threat Level, Chamber Post and D.R. Stewart]
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