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Gaming Industry and Uncle Sam Ally to Fight Pirates

Axis of Evil beware, the League of Justice is coming for you.
Author: Warren Stallworth
Published: February 12, 2008
In an unprecedented move between two long-time enemies, the games industry and Big Brother are looking to work hand in hand to fight piracy and strengthen the U.S. economy. The Entertainment Software Association (ESA for short) filed a Special 301 report with the U.S. Trade Representative(USTR), detailing the increase of piracy in European and Asian countries and its effect on the software industry at large. Countries like China, Malaysia, Russia, Paraguay, and even Canada were identified as having persistent problems that have held back growth and artificially constrained the industry.


Michael D. Gallagher, CEO of the ESA, revealed that though the industry had a record breaking year in 2007, with more than $18.85 billion in receipts, piracy held back what could've been an even more ground-breaking year. The Special 301 report identifies online piracy, through torrents and warez, factory produced CD and DVD media, and internet cafe piracy as the primary reasons the gaming industry has had trouble breaking into the global market at large. This becomes an even more glaring problem at the realization that 80 to 90 percent of the market in Asian, Middle Eastern, Central and South American, as well as Eastern Europe countries don't clamp down on any of these forms of piracy.

"Countries that support computer and video game piracy discourage publishers from establishing viable and legitimate markets. The Special 301 process sends a strong message to them to clean up their act to avoid damaging trade sanctions," Gallagher explains. "In 2007, our industry had a record-breaking year with receipts totaling $18.85 billion, but piracy closes off promising markets, artificially limiting our industry's ability to contribute even more economic growth to the American high-tech economy and economies of our trading partners.

"USTR has been a leader in the fight to protect America's creative industries from the theft of our products. This year our Special 301 filing highlights countries that urgently need to begin backing up their commitment to creativity and innovation. We look forward to working with USTR and other supporting government agencies to achieve tangible results and hopefully succeed in lowering piracy in these key countries. Freeing these markets from the pirates' stranglehold will also help empower a local video game economy."

The ESA is hoping that by filing the Special 301 report from the International Intellectual Property Alliance (IIPA) that the USTR and other world organizations will force these beleaguered markets to adopt international standards and compile with copyright laws. In turn, the local gaming economy for these countries will be stronger and more profitable. That means only good things in the long run, such as more games and a broader audience. Someone needs to give Japan and the U.S. a run for their money.

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