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TACKLING INTERNATIONAL
              PIRACY


      AFRICA CINEMA BUSINESS ROUNDTABLE

                              LAGOS


                          AUGUST 31, 2009




Dayo Ogunyemi
234 Media Partners
+234.803.390.9988
+1.917.309.8278
dayo.ogunyemi@gmail.com
HOW BIG IS THE PROBLEM OF COPYRIGHT INFRINGEMENT
FOR NOLLYWOOD?

     Geographical Spread
     North America & Caribbean
     UK/Europe
     Rest of Africa

    Media Categories
     Television/Satellite
     Physical (DVD/VCD) sales
     Online (digital download/streaming)




                                                   1
COPYRIGHT INFRINGEMENT LAWS
 What are the exclusive rights of the copyright holder?
    Right to reproduce
    Right to distribute
    Right to publicly perform
    Right to publicly display
    Right to make derivative works

 The exclusive rights of the copyright holder are not self-enforcing

 The vast majority of rights are protected by CIVIL ACTIONS, not
  CRIMINAL ACTIONS

 SELF-HELP IS THE NORM

 Remedies for Infringement: the US has a statutory damages
 provision:
  Strict liability - $750 to $30,000 per work
  Willful infringer - $150,000 per work


                                                                        2
HOW MUCH IS NOLLYWOOD LOSING? ATTACHING A
VALUE TO THE PROBLEM
 New York
   >200 Locations visited
   Average inventory of 150 titles; Average sales of 8 copies/week per title
   Annually, 40,000 copies sold per location, 8 million copies per year
   At an average wholesale selling price $5, estimated value - $40 million

 US
   >1500 locations (NY, FL, MD, DC, TX, CA, MA, IL)
   Average inventory of 100 titles; Average sales of 7 copies/week per title
   >54 million copies sold, estimated value - >$270 million

  North America
   Estimated value - > $350 million

 UK/Europe
   Estimated value - >$150 million


  Rest of Africa
   Estimated value ->$300 million


                                                                                3
HOW DO YOU COMBAT COPYRIGHT INFRINGEMENT

 Create a Clearing House of Rights

 Monitor & Enforce in Key International Markets against Key Players
   Broadcast players – cease & desist + licence
   Physical sales
    —  Buy & Record
    —  Sue
    —  Settle
   Online
   —  Notice & Take down

  Create viable distribution channels
   Convert “piraters” into legitimate distributors
   Build independent distribution
    —  Physical
    —  Online
    —  Broadcast sales




                                                                       4
PROCESS
 Right holders sign up with clearing house

 Identify ownership in a database

 Clear/vet third party infringement (he who comes to equity must
  have clean hands)

 Fund the monitoring and enforcement effort

 Authorize licensing




                                                                    5

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Tackling International Piracy For Nigerian Movies

  • 1. TACKLING INTERNATIONAL PIRACY AFRICA CINEMA BUSINESS ROUNDTABLE LAGOS AUGUST 31, 2009 Dayo Ogunyemi 234 Media Partners +234.803.390.9988 +1.917.309.8278 dayo.ogunyemi@gmail.com
  • 2. HOW BIG IS THE PROBLEM OF COPYRIGHT INFRINGEMENT FOR NOLLYWOOD?   Geographical Spread  North America & Caribbean  UK/Europe  Rest of Africa  Media Categories  Television/Satellite  Physical (DVD/VCD) sales  Online (digital download/streaming) 1
  • 3. COPYRIGHT INFRINGEMENT LAWS  What are the exclusive rights of the copyright holder?   Right to reproduce   Right to distribute   Right to publicly perform   Right to publicly display   Right to make derivative works  The exclusive rights of the copyright holder are not self-enforcing  The vast majority of rights are protected by CIVIL ACTIONS, not CRIMINAL ACTIONS  SELF-HELP IS THE NORM  Remedies for Infringement: the US has a statutory damages provision:  Strict liability - $750 to $30,000 per work  Willful infringer - $150,000 per work 2
  • 4. HOW MUCH IS NOLLYWOOD LOSING? ATTACHING A VALUE TO THE PROBLEM  New York   >200 Locations visited   Average inventory of 150 titles; Average sales of 8 copies/week per title   Annually, 40,000 copies sold per location, 8 million copies per year   At an average wholesale selling price $5, estimated value - $40 million  US   >1500 locations (NY, FL, MD, DC, TX, CA, MA, IL)   Average inventory of 100 titles; Average sales of 7 copies/week per title   >54 million copies sold, estimated value - >$270 million   North America   Estimated value - > $350 million  UK/Europe   Estimated value - >$150 million   Rest of Africa   Estimated value ->$300 million 3
  • 5. HOW DO YOU COMBAT COPYRIGHT INFRINGEMENT  Create a Clearing House of Rights  Monitor & Enforce in Key International Markets against Key Players   Broadcast players – cease & desist + licence   Physical sales —  Buy & Record —  Sue —  Settle   Online —  Notice & Take down   Create viable distribution channels   Convert “piraters” into legitimate distributors   Build independent distribution —  Physical —  Online —  Broadcast sales 4
  • 6. PROCESS  Right holders sign up with clearing house  Identify ownership in a database  Clear/vet third party infringement (he who comes to equity must have clean hands)  Fund the monitoring and enforcement effort  Authorize licensing 5