Piracy Causes Huge Losses to Indian Economy

MUMBAI, March 27: A new
study from the U.S.-India Business Council (USIBC) has found that theft and
piracy in India's entertainment industry are affecting the country’s economy,
resulting in the loss of as many as 800,000 direct jobs and about $4 billion
each year.

The study, The Effects
of Counterfeiting and Piracy on India's Entertainment Industry, was commissioned as part of the USIBC-FICCI
Bollywood-Hollywood Initiative, which covers film, music, television and video
games, and has been funded by the Global Intellectual Property Center of the
U.S. Chamber of Commerce. The initiative involves the Federation of Indian
Chambers of Commerce and Industry (FICCI). The study was prepared for the USIBC
by Ernst & Young India.

Ron Somers, the president
of USIBC, commented: "This study is only the beginning. Now that we have
documented the job and revenue losses to the Indian entertainment industry from
piracy, we intend to continue fighting piracy across the board. We will strive
to bring these findings to the attention of the average person in India. We
will attempt to enlist more effectively the U.S. and Indian governments to
cooperate in fighting the scourge of piracy in India, as well as in the U.S.
and worldwide. We strongly support passage by India of optical disc legislation
that will thwart piracy in this important industry. We are pleased to stand
shoulder to shoulder with counterparts in India to help protect jobs and
revenues that are now being needlessly lost to piracy."

Added FICCI’s secretary
general, Dr. Amit Mitra, "This study shows that the best way to make the
boom in the Indian entertainment bigger is to stop the affliction of piracy.
For the average Indian who wants to increase his or her chances for being
employed in Bollywood and associated industries, fighting piracy is a place
where all our collective efforts must start. The media and entertainment
industry in India is an industry of the future. India's entertainment industry
already generates more than $11 billion annually for the country, growing at a
combined annual rate of over 18 percent. If we can stop piracy, these industries
will grow even faster and employ more Indian workers.”

The U.S.-India Business
Council, formed in 1975 at the request of the government of India and the U.S.
government to advance U.S.-India commercial ties, is hosted under the aegis of
the U.S. Chamber of Commerce.

—By Irene Lew