Camcording in Montreal theaters: perspectives

UNCLAS MONTREAL 001220

SIPDIS

SIPDIS

Ref: MONTREAL 365, Montreal 436

STATE FOR WHA/CAN, WHA/PD, EB/TPP/IPC, DS/IP/WHA
PASS TO USTR (SULLIVAN, MELLE, GARDE)


E.O. 12958: N/A
TAGS: ECON ETRD KIPR CA
SUBJECT: Camcording in Montreal theaters: perspectives
from industry and law enforcement


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1. (SBU) Summary and Comment: The Canadian Motion Picture
Distributors Association's (CMPDA) Montreal anti-piracy
division and the Montreal division of the Royal Canadian
Mounted Police (RCMP) gave two different perspectives on
the scope and impact of camcording in Montreal theaters to
Econcouns and Econoff on December 6. The CMPDA continues
to stress the negative impact of theater camcording and the
lack of both law enforcement attention and legislative measures
to combat the problem. The Motion Picture Association now
estimates that through the third quarter of 2006, 18
percent of pirated movies sold around the world can be
traced to camcording in Montreal theaters--a revision of
the 40 to 50 percent figure given to Econoff in March (ref
A). The Association has not determined the financial
losses due to camcording, but estimates that CMPDA members
in Canada lost USD 118 million in 2005 due to general
piracy. The CMPDA also states that one individual may be
responsible for most of these camcorded movies. The
Association has lobbied the Canadian government to step up
efforts to stop theater camcording and to make it a
criminal offense.


2. (SBU) Montreal RCMP officers consider theater camcording
to be a low priority, and focus their IPR enforcement
resources on violations that have a public safety dimension
(such as counterfeit pharmaceuticals) or that cause serious
financial losses. The officers expressed skepticism as to
the scale of the camcording problem and its impact on
Canadian industry. The RCMP has encouraged industry
representatives such as the CMPDA to undertake their own
investigations of movie piracy and pursue civil litigation
under the Copyright Act. Using casework developed by the
CMPDA, the RCMP has twice arrested the individual believed
to be behind most Montreal camcording. The Crown Prosecutor
may bring charges early next year Q but even if convicted,
the alleged perpetrator will not receive jail time,
according to the RCMP.


3. (SBU) The lack of an anti-camcording provision in
Canada's criminal code introduces a significant "gray area"
into the legality of bringing a video recorder into a movie
theater. This aside, the lack of hard figures about the
extent of camcording in Montreal theaters, the impact of
this camcording on movie piracy worldwide, and especially
the financial injury this piracy inflicts on the
entertainment industry in Canada have hindered our case in
advocating the introduction of anti-camcording provisions
in Canadian law. Given the RCMP's little interest in
pursuing camcording, the lack of deterrent penalties for
filming in theaters, and the ever-improving technology of
cameras and computers, we would be surprised if this high-
tech pastime disappears anytime soon in Montreal.
End Summary and Comment.

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Industry Sees an Acute Camcording Problem, Urges Action
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4. (SBU) A representative from the CMPDA's anti-piracy
operations in Montreal told Econoffs that his organization
has revised its statistics with regard to the role played
by Montreal camcording in movie piracy worldwide. While
previous statistics based on Motion Picture Association
(MPA) figures estimated that between 40 percent and 50
percent of all pirated films could be traced to Montreal
theaters, new figures indicate that this percentage is
closer to 18 percent. This percentage is based on MPA
estimates through the first three-quarters of 2006 showing
that 54 of 60 theater camcordings in Canada occurred in
Montreal--out of a total of 295 camcordings worldwide.
The MPA based its data on examinations of movie watermarks
in pirated DVDs that can be traced back to specific
theaters (see ref A). (Comment: The Canadian government
and the RCMP have questioned the industry figures in the
past. The CMPDA claims that the contrast between the
40-50% estimate of pirated films from Montreal theaters and
the current 18% estimate is a result of the MPA taking a
Qmore globalQ approach to its study of pirated films, and
incorporating the contribution of other geographical areas--
especially Europe--to worldwide movie piracy. The lack of
hard data regarding the extent of theater camcording in
Montreal and its financial impact is a source of difficulty
in conveying the need for the inclusion of an anti-

camcording provision in CanadaQs criminal code. End
Comment)


5. (SBU) The CMPDA representative laid out a picture of
camcording in Montreal theaters as the product of one well-
organized individual with links to global piracy circles.
According to the CMPDA, the individual camcorded movies at
five large theaters in the greater Montreal area, usually
on the first afternoon of a filmQs release. Using a high-
quality webcam, the individual recorded films directly to
his computerQs hard drive to capture a high-quality image.
He would then transfer the movie file to high-capacity
storage hard drives in his home. The CMPDA stated that a
select group of individuals involved in the pirated
industry around the world--including in the United States
--could then gain access to the hard drives and merely
"drag and drop" the full film file onto their own hard
drives. The high-tech nature and relative simplicity of
this system helps explain how films such as "The Chronicles
of Narnia" could be shown in a Montreal theater and later
sold in DVD form on big city streets within a matter of
hours.


6. (SBU) The act of camcording in a theater is not illegal
under Canadian law, and only becomes an offense when a
camcorded movie is distributed on the internet or in
another form, according to the CMPDA. The CMPDA has urged
the Canadian government to introduce an anti-camcording
provision in the criminal code, which would give both local
police officers and RCMP officers the power to arrest
individuals caught camcording in theaters. The CMPDA says
that currently, only the RCMP (CanadaQs federal police) can
act against individuals camcording movies and only if the
camcorded movies are subsequently distributed for sale.
Even if a theater manager spots someone camcording a film,
local police will refer inquiries to the RCMP. The CMPDA
says that in order to convict someone under the Copyright
Act, it is not enough to see someone in a theater with a
camcorder in order to bring a case against him or
her. One must actually prove "commercial intent" on the
part of the person filming, who might claim that they are
simply recording a copy for personal use. "We need to
catch [the person filming] while they are actually setting
up," the CMPDA official stated, and then be able to prove
that the movie in question appeared in pirated form
afterwards.


7. (SBU) The CMPDA has helped train theater employees at
key Montreal-area theaters to detect camcording. The
Association says it is difficult to spot individuals
camcording for commercial use given the ease of set-up, the
small size of webcams, and the fact that they have no red
light or other telltale indicator. Furthermore, even if
law enforcement stops an individual during the course of
the movie, he can press a "stop" button to avoid saving the
film, and his computer will have no record of wrongdoing.
However, if law enforcement officials are able to catch the
suspect while he or she is leaving the theater, after
having recorded the film to his or her hard drive, they
might have a chance of pressing charges, the CMPDA said.

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Major Player Arrested and Released Twice
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8. (SBU) According to the CMPDA, this was the case in the
beginning of September when the CMPDA collected evidence
that facilitated the RCMP's arrest of the individual whose
recordings had been allegedly transformed into pirated DVDs
around the world. The RCMP released the individual after
questioning, with the caveat that he was not to return to
movie theaters in the city. Although the number of
camcordings traced to Montreal dropped significantly for
one month following the arrest, it gradually increased
again. Convinced that the individual had resumed his
camcording, the CMPDA collected further evidence and
convinced the RCMP to arrest him for a second time in
October. The CMPDA official noted that the suspect was
again released after being questioned by RCMP officers and
with the understanding that he could not enter a movie
theater. The CMPDA official stated that it was unclear how
much money the suspect had received for each incidence of
camcording.

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Arrests -"A Favor" to Industry; Camcording "Not a Major
Problem," According to Law Enforcement
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9. (SBU) A discussion with a superintendent and a staff
sergeant combating intellectual property crimes at the
RCMP's Montreal headquarters yielded a different
perspective on camcording and the best means of tackling
the issue. The RCMP states that it focuses its limited
IPR-dedicated resources to issues that have health and
safety components (e.g., counterfeit pharmaceuticals) or
that have a large, demonstrable financial impact. The RCMP
is currently undertaking a "fact-finding mission" on all
IPR issues as part of its mission to combat "economic
Crime" to determine what sorts of problems exist and how
best to address them with existing resources.


10. (SBU) With regard to the arrest of the individual who
had been pursued by the CMPDA, RCMP officers stated that
they arrested the individual "as a personal favor" to a
CMPDA official, and that they did not view theater
camcording as "a major issue." The officers said that IPR
holders could pursue legal action against suspects engaged
in camcording via the civil code without needing to engage
the RCMP. They acknowledged, however, that a conviction
under the civil code would not result in prison time, and
would usually involve a relatively small fine. The RCMP
officers also took a different view of the camcording
suspect, seeing him as "a small player," being manipulated
by a larger piracy organization(s),and not receiving
lucrative financial rewards for his work. One RCMP officer
expressed concern that the RCMP not be seen as "the
enforcement arm of industry," noting that the "industry
comes to [the RCMP] more and more" with requests for
action. Although the RCMP officers suggested that industry
representatives could pursue litigation through the civil
code on their own, they commented that proving an
individual had a commercial purpose to his camcording could
be difficult.

Marshall