FEATURED ARTICLE:

PHILIPPINE AUDIO VIDEO PIRACY - HISTORY & BACKGROUND

   
Optical disc piracy (audio and video CD, software, Playstation) in the Philippines was practically negligible up to 1997, while cassette piracy was contained and limited to sidewalks, public markets, and door to door selling. In 1998 the industry suddenly found itself faced with a deluge of pirate audio and Playstation CDs, mostly imported from Malaysia, Taiwan, Hongkong, and China.

In 1999, the situation became worse as the Chinese-Pilipino mafia, as the pirates are referred to, also went into illegal manufacturing as excess machines from Hongkong, Macao, China, Taiwan and Malaysia were shipped out to other countries including the Philippines. Foreign pirates teamed up with local Chinese-Pilipino pirates in the importation and/or local manufacture while the Chinese-Pilipino who used to do the retail now used the Moros from the south to handle the retail aspect of the business throughout the country.

The arrangement is logical and practical. The Chinese-Pilipino mafia have the money, connection, and know-how, but they do not fight back while the Moros, mostly Maranaos from Iligan and Marawi and Maguindanaos from Cotabato, who are well organized and whose network of distribution covers all towns and cities from Aparri to Jolo, fight back. They have even terrorized and intimidated the police force in many towns and cities as far as Northern Luzon.

Worst, in 2000, the Moros, seeing how lucrative the business is, now also have entered the illegal manufacturing business. It is feared that the MNLF before and the MILF now have also entered the picture as protectors and financiers of the Moro traders, making this a rich source of funds second only to drug trafficking.

Pirate audio CDs, which retail up to P900 per disc in 1997 now retails for P35 only. The situation is further aggravated by the entry in year 2000 of cheap (less than P2,000), good quality clone VCD, CD, MP3, Playstation players. Pirate CDs are sold even in the classiest malls and shopping centers (except in SM and Rustan Malls), in fleamarkets, public markets, sidewalks, door to door, and even in church and government and private office bazaars especially during the Christmas season - ALL OVER THE COUNTRY.

It is estimated that the pirate audio disc piracy is now a P1 Billion a year illegal business while the legitimate industry has dropped by 25% in year 2000. With the vigorous anti-piracy campaign that has been waged since 1998, at least 15 replication machines have been confiscated, but at least 12 more are still to be identified, located and raided. More machines are expected to be brought in into the country as the governments of Malaysia, Hongkong and China crack down on piracy in their territory.

It is also estimated that around 50% of pirate CDs and VCDs enter the backdoor through General Santos City and Osamis City, were even now rice and sugar are smuggled and flood the South, an open secret in Mindanao. The other 50% are locally manufactured mostly in Luzon.

The Philippines - terrorized by Moro bandits and Muslim separatists who have their tentacles as far as the remotest barrios in the north, wracked by worsening widespread poverty, graft and corruption and discontent, with thousands of miles of unprotected shoreline that are conducive to smuggling, with a government beset by gargantuan problems brought about by years of mismanagement apathy - it is the best scenario to be the dumping ground and center of piracy and counterfeiting in Asia.

   

   

NOTE: This article was written by Mr. Danny Olivares, former PARI President, and was lifted from the PARI (Philippine Association of the Record Industry) website at www.pari.com.ph.

 

 

 

 

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