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...records on raw materials and make it easier for Pahamin's agents to stage surprise raids. Other reforms will provide for specially trained prosecutors and judges in copyright-violation cases and will ensure that tougher penalties actually get applied. The U.S. industry, which claims it lost $287 million in CD sales to piracy last year in Malaysia alone, is lobbying with the U.S. Trade Representative for tough action against the country. "More investment in Malaysia is greatly dependent on the rate of piracy coming down," says Roland Chan, an executive of the Business Software Alliance, a large industry group. "Even...
...against counterfeiting much of a priority until the government realized that a bad reputation for protecting intellectual property would sink hopes of attracting critical investment. Piracy cuts into the profits of the big, predominately U.S. companies that produce so much of the global-entertainment menus. But Malaysia's legitimate CD producers feel the squeeze too. The government has encouraged legitimate digital production (which has expanded from one optical-disc plant in 1996 to around 50 today) as part of the country's effort to move up the technology ladder. Malaysian factories churn out an estimated 315 million CDs a year...
...industries. Employment at music-production studios has dropped a third since 1996, and many artists are holding back new releases until their rights are protected. Malaysian filmmakers released seven movies last year, compared with 18 in 1995, and box-office receipts are down 49% over the past two years. CD pirates "are like leeches, sucking the life out of the film industry," reports the Video and Film Industry Association of Malaysia...