Cebu Technological University - Danao Campus

Sabang, Danao City, Cebu, Philippines 6004

A Case Study on the Issues of the Detrimental Effects of Piracy in the

Film Industry in the Country

In partial fulfillment of the subject CPE Laws and Professional Practice

Jolebeb M. Castanares

BSCpE 3A - Day

Engr. Chona Dagatan

Executive Summary

Piracy seems to become a norm in today’s time. It is done for making a profit illegally and to

spread crime through it. This also causes to attract consumers in committing such crimes. The

findings in this study greatly suggest that the detrimental effects of Piracy in the film industry,

drag the producers, consumers, and the economy. Piracy should not be neglected. The key

recommendation for this study is to meet the standard for copyrights as it will serve as an

advantage in managing the contents that have been produced and at the same time focused on

educating the people to avoid ignorance. As it is aligned with the evaluation and solution that

has been done and proposed in this study.

Background of the Study

Movies and films are the things people tend to enjoy in their free time or leisure time. People

tend to watch movies in cinemas and others watch them on legal digital platforms. This simple

entertainment can also cause disturbance to others. Now a days Piracy is very prominent, people

tend to do piracy to gain money. Downloading a movie illegally and burning it on a CD and then

selling it on the sidewalks seems to be pretty common and normal in the country, this also

includes the people who watch on illegal sites. According to an article by Magkilat (2022), the

percentage of consumers who are accessing piracy sites for movies has grown to 61% according

to their study. The piracy issue seems to be not that serious but the Film industry is struggling

with this. In an article by Seguerra (2021) she stated that “The increase in pirated content

consumption worsened the Filipino film industry situation.”. This supports the issue of the

detrimental effect of piracy in the film industry in the present times.

Case Evaluation

The following problems are the effects of doing and committing piracy:

I. Plagiarism – Piracy means an unauthorized action in the reproduction of someone’s

work. This is relatively connected to plagiarism though not completely as it is. It may not

be obvious but in the Film industry, there is a lot of piracy and plagiarism happening.

Plagiarism occurs when a movie isn’t well known and the people who do piracy seem to

gain interest in it and plagiarize it to make more profit from it. An article by CopyLeaks

(2020) stated that “Many filmmakers plagiarize content from others but try to alleviate

the plagiarism cases by terming the similarity as an inspiration.” This shows that

plagiarism will always occur together with piracy.

II. Terrorism – It may seem trivial but piracy can be connected or related also to terrorism.

Terrorists use it the do crimes and to spread hate. In a study by Treverton, et.al, (2009)

they stated that “terrorist groups have in some cases used the proceeds of film piracy to

finance their activities. Counterfeiting threatens public safety and national security

besides being a threat to the global Information economy.” This information is very

alarming since it involves a greater risk of using piracy to do such acts.

III. Economic Recession – One of the greatest contributors to the economy is the Film

Industry. In an article by Seguerra (2021) she stated that “The film industry contributes

at least P11 billion to the economy” This is a very big amount of money that has been

contributed to the local economy, but at the same time the Film industry can drag down

the economy. In an article by GlobePh (2021) they stated that “Approximately 40 percent

of people engaged in the local and media entertainment industry are currently jobless,
 further dragging the economy.” This gradually shows how piracy negatively affects the

local economy.

Proposed Solutions

Solutions are there to mitigate or end an existing problem. The following are some of the

possible solutions for the detrimental effects of piracy in the Film Industry:

I. Copyright the Work – Establishing and producing movies or content is very hard.

Having the produced movies or content with copyright may not stop the piracy, but at

least the owner is making a smart move. An article by Safranski (2020) stated that

“copyrighting your work will make it far easier to monitor and take down infringements

online, and get it taken down when it occurs.” This action will help in supervising the

work or movie that has been produced.

II. Legal and Enforcements – This action or solution is crucial in preventing piracy using

CD or digital platforms. An article by Stout (2021) stated that” With the correct anti-

piracy services, operators can identify consumers who are watching illegal streams and

incentivize them to switch to legitimate services.”(p.1) this action is way better in taking

down people who do piracy with social media.

III. Educate the Audience – Since piracy seems normal to people who do business with it

and consumers who associate themselves with buying pirated CDs without care and by

illegally accessing unauthorized sites to watch for free. This audience and consumer need

to be educated. In an article by Fraudwatch (2021) they stated that “pirating has become

such a norm, not many realize it is an illegal thing to do. For that reason, one of the most
 important and effective steps to protect your business from digital piracy is to educate the

audience all about it.” This statement is true, for people tend to commit it without

knowing. That is why it is necessary to educate the audience.

Conclusion

This case study aims to understand the detrimental effects of Piracy in the Film industry on the

country. Based on the aforementioned detrimental effects of piracy, these problems that the

people are facing in which are plagiarism, terrorism, and economic recession. These effects drag

both the producer and economy which affects both parties making films and movies and

contributes to the economic to grow. These problems are also very prominent for people tend to

encounter them on a basis that tends to be not neglected. The aforementioned solutions or

actions are realistic and achievable, they may not eradicate the existing problem but they will

mitigate the problems. This study has proved the detrimental effect of piracy on everyone.

Recommendations

The people seem to see piracy as a norm that should not be minded that much. Based on the

evaluation the researcher recommends that make sure that the produced film or content must

meet the standard for copyrights as it will serve as an advantage in managing the content that has

been produced and at the same time focused on educating the people to avoid ignorance. As it is

aligned with the evaluation and solution that has been done and proposed in this study.
Implementation

Implementing the recommendation above will help both the producer and audience or consumer.

Both parties must attend a seminar related to the Piracy and Optical Media Act to execute the

recommendation. This seminar will be led by veteran Filmmakers, DTI, and by Lawyers. The

Filmmakers will educate the beginner in meeting the standard for copyrights. While DTI is also

responsible for explaining how important it is to support the local film industry in helping the

economy grow by making films internationally. Lastly, the lawyers will help by giving them

knowing more about the laws and countermeasures to do if they encounter such problems. The

impact of this process in implementing the recommendations is expected to be positive and

educational as both parties are involved and will be assessed as this will be implemented.

References:

Magkilat B.C (2022, April 21) Business, Trade & Energy: 61% of PH consumers access piracy

sites – study

Retrieved from:

61% of PH consumers access piracy sites – study – Manila Bulletin (mb.com.ph)

CopyLeaks (2020, October 23) Plagiarism In Movies: A Behind-The-Camera Story

Retrieved from:

Plagiarism in Movies: A Behind-the-Camera Story | Copyleaks

Garcia Jr. and Masigan (2001, August 17) An In-depth Study on the Film Industry In the

Philippines
Retrieved from:

FILM INDUSTRY EXECUTIVE SUMMARY (pids.gov.ph)

GlobePh (2021, June 25) Online Piracy in PH Persists

Retrieved from:

Online Piracy in PH Persists - Globe Newsroom

Treverton et.al (2009) Film Piracy and Its Connection to Organized Crime and Terrorism

Retrieved by:

Film Piracy and Its Connection to Organized Crime and Terrorism | RAND

Seguerra L.D (2021, January 17) Piracy: A perennial problem in Philippine Cinema

Retrieved by:

Piracy: A perennial problem in Philippine Cinema | FDCP

Stout A. (2021, August 2) 6 Ways to Stop Digital Piracy.

Retrieved by:

6 Ways to Stop Digital Piracy (Viaccess-orca.com)

Fraud Watch (2021) Three Effective ways to Combat and Address Digital Piracy

Retrieved by:

3 Effective Ways to Combat and Address Digital Piracy - Digital Brand Protection –

FraudWatch