TRADE BARRIERS & PIRACY OF U.S. MOVIES

The American motion picture industry not only entertains people in over 140 countries but supports businesses in those countries in the distribution and exhibition of movies - generating billions of dollars in revenue and returning a positive balance of trade in every country in which American films are exhibited.

However, even with these significant benefits, many countries continue to construct trade barriers to limit or even ban the exhibition and/or allow the piracy of  U.S. movies.

It may come as a surprise to find that a number of these trade violating countries are considered to be friendly neighbors to the U.S. Many countries enact restrictive barriers to U.S. film imports in the name of internal cultural protection, but are really intended to ban U.S. movies and essentially violate existing free trade agreements. The worst six that impose restrictive trade barriers and/or do not enforce piracy laws are the following:

Canada - yes, believe it or not, Canada does not have legislation that provides protection for copyright holders.  As such, Canada has become a major locale for illicit websites and a safe haven for Internet pirates.  Canada needs to bolster and re-write its Copyright legislation.

China - no surprise here. China has the most restrictive laws banning U.S. movies and is also one of the worst offenders of copyright infringement and piracy.

Indonesia - which just recently instituted a number of trade barriers against U.S. movies which, if enacted, would essentially ban U.S. motion pictures in the Indonesian market.

Italy - has rampant piracy problems. Italy has one of the highest online piracy rates in the world and the Italian government has done nothing to control this problem.

Mexico - is one of the worst offenders of piracy and is the leader in illegally recorded movies in theatres, which impacts the market throughout Latin America.  The Mexican government does not seem interested in addressing this problem.

Russia - while making some progress in combating Internet piracy over the last several years the practice is still rampant.  Unfortunately, the Russian authorities do not actively enforce its treaties and laws regarding Internet abuse.

IMPACT OF U.S. ECONOMY

The production and distribution of motion pictures and television programs is one of the country's most valuable cultural and economic resources. The media/entertainment industry employs over 2.2 million people and generates over $137 billion in wages.   The industry is comprised of over 95,000 businesses located in every state in the nation and currently contributes over $15 billion in tax revenues.  

Motion picture and TV production is a significant and vital economic force for the U.S. and we should endeavor to support and protect this industry both at home and abroad.

Cheers and Happy Movie Going!
Jim Lavorato