ABSTRACT
The advent of the 21st century has brought about significant advancements in communication and technological advances, which have created several opportunities for disseminating media content. Previously, content distribution was restricted to cable TV transmission or the trade of tangible media such as tapes, video recordings, and DVDs. However, the advent of the Web 2.0 phenomenon at the beginning of the 2000s allowed the Internet to become a highly effective channel for distributing content. Accessing multimedia data has become increasingly convenient with the advent of online streaming services, p2p network-based dissemination systems, and content service providers. The increased accessibility of content has also facilitated the unauthorized reproduction, alteration, and distribution of copyrighted material, commonly referred to as piracy. Piracy significantly impacts multimedia resource makers, resulting in substantial monetary losses and the non-receipt of revenues owing to unauthorized and unlicensed downloads. Of more worry is the societal normalization of piracy. Various techniques together referred to as digital rights management (DRM) tools have evolved throughout the years to combat piracy. The issue with conventional anti-piracy tactics is their susceptibility to circumvention.
The emergence and widespread adoption of blockchain innovation in recent decades have been remarkable. The robust and incorruptible characteristics of blockchains are the primary factors driving their widespread adoption and acclaim among the general populace. Hence, the inquiry emerges as to whether blockchain technology can effectively thwart piracy. This paper aims to determine the impact of digital piracy along with its variant ways and the application of blockchain technology that may be utilized to facilitate pirate detection and the source while equipping content providers with the means to safeguard their copyrights. To achieve this objective, the study examines the fundamental functioning of blockchain technology and analyses the prevailing techniques via which piracy is executed.
Keywords: Entertainment Industry, Online Piracy, Blockchain Technology, Ledger Technology, Watermarking.
Introduction
High-speed Internet access has led to an increase in online piracy, as well as the growth of illicit linking, video streaming, and stream-ripping sites, many of which promote and benefit from adverts for genuine items. Piracy Devices (PDs) that come pre-loaded with software that enables users to bypass subscription services to access pirated material are also rising in popularity. As the epidemic spreads, internet piracy poses the biggest danger to India’s burgeoning media businesses, which saw their revenue rise by 62% in March 2020.
In India, piracy of recorded music is a big problem. India’s music piracy rates are greater than in any other country save China, according to the IFPI’s 2019 Music Consumer Survey. Despite this, legal streaming services like Gaana, JioSwift and Spotify have seen a significant increase in use. Internet users in India revealed that they had pirated music in the preceding month, 67% of the population. Among those ages 16 to 35, this figure jumps to 75%. According to a recent survey, 63% of Internet users have downloaded unauthorised music in the preceding month using streaming sites or applications. According to statistics from Muso, Indian customers made 365 million visits to music pirate sites between June and August 2020.
Discussion
Annals of Cinema in India
Despite the economic slump, the Indian entertainment and media business, notably the film industry, known as Bollywood, has witnessed strong development over the previous several years. As the number of English and other foreign language speakers grows, so does the number of dubbed releases of international films in the United States. Despite the enormous quantity of films and theatre attendance, the business remains minor when compared to other worldwide industries. With a gross realisation of $2.1 billion, the film industry in India is substantially less successful than the film industry in the United States and Canada, which both generate a significantly smaller number of films (approximately 700 films). A lack of quality material, a lack of ticket sales and high occupancy are to blame. Since 1847, copyright law has been in place in India. Many modifications have been made to copyright law in the nation as a result of technical advances and the rising globalisation of the economy. IP rights are increasingly protected across the world as a result of this. Strengthened intellectual property (IP) rights are promoted by the United States of America. In addition, the WTO Agreement on TRIPS sets forth the universally accepted standards for intellectual property protection that all member states are obligated to codify. As a member of the WTO, India signed the TRIPS agreement in 1994, which required it to meet minimal levels of intellectual property protection. As a result of these changes, in 1994, new provisions were added to the Copyright Act that made it easier to enforce copyrights. The 1994 modification to India’s Copyright Act strengthened the law’s already robust safeguards for copyright protection. However, piracy is a major concern in India. India’s copyright rules are not up to international standards, according to the Indian government. The country’s new enforcement procedures have also failed to safeguard copyright. As part of the Special 301 provision, the United States is attempting to apply pressure on India to improve and strengthen the protection and enforcement of American intellectual property in India.
Digital technology and computer software were added to areas usually covered by copyright by an amendment made to the Copyright Act of 1957 in 1994. In terms of copyright law, India’s modified 1957 Copyright Act is one of the most contemporary in the world, according to (IIPA).High pirate rates and inadequate enforcement tactics have kept India on the “Priority Watch List” even though the country has extensive de jure copyright protections. The copyright rules in India are very similar to those in the United States. For a film to be eligible for copyright protection, it must have been created from scratch.“... [originating] from the producer and not a duplicate of some other copyrighted work” is the definition of originality.
India ranks third in online piracy traffic, with over 7 billion visits to unauthorized torrent networks in 2022, according to the Ankura Piracy Statistics. The study examined pirate demand across various platforms, including unauthorized broadcasting, torrent downloading, web downloading, and stream-ripping sites. It revealed that TV material is the most popular, accounting for 46.6% of total traffic to websites. Disseminating books was also highly targeted, at 28%. Film piracy accounted for 12.4% of traffic, followed by music and software at 7.0% and 6.80%, respectively. The study highlights the need for increased awareness and enforcement of piracy laws in India. These data demonstrate the widespread and enduring nature of piracy in India, regardless of the Film Industry as well as the government’s attempts to address the issue. Notwithstanding the implementation of stringent legal restrictions, such as the Copyright Act and various other laws the availability and pervasiveness of these unauthorized networks have played a significant role in the ongoing expansion of the issue.
The Effects of the Entertainment Industry on the Economy
The entertainment sector is dominated by movies, which account for a significant portion of revenue. There is a socio-cultural component to movies that exists in addition to the economic part of their significance.
As previously said, movies serve as reflections of society and are influenced by the social environment, but they may also catalyse change by changing the way society behaves, acts, and presents itself. A society’s problems and the concerns that preoccupy the thoughts of its citizens may be easily depicted in films, as demonstrated by the development of the Hindi film industry, commonly known as Bollywood (Hindi film business).
The digitalization of the entertainment business is a danger. It is a result of the Digital Proficiency Scheme for Rural India, which was implemented. More sustainable and lucrative business models across all media industries have been promised as a result of this development. The year 2012 saw the beginning of the long-awaited digitalization of cable television.
Legal Obstacles in Implementing Copyright Legislation in India
The Copyright Act of 1957, most recently amended in 2012, regulates copyright legislation in India. Copyright owners own exclusive rights to reproduce, disseminate and publicly display their operations, as granted by the law. Moreover, India’s digital security policies pose challenges in effectively enforcing copyright limitations.
India faces challenges in enforcing copyright laws due to the widespread availability of pirated material and the difficulty in identifying and identifying those who infringe. Violents often use VPNs and proxy websites to conceal their IP locations, complicating identification. The Digital Millennium Copyright Act (DMCA) and the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 are two legislative measures used by copyright holders in India to address these issues. The DMCA allows copyright owners to issue removal orders to sites with illicit content, requiring networks to remove the content or face copyright violation charges.
Infringement Tools of Copyright on The Internet
Internet copyright infringement can be categorised as follows:
Browsing On the Internet
Internet browsing is similar to bookshop browsing, but without buying anything. Browsers copy data into local memory, a feature of current browsing technology. The Amendment Act of 2012 clarified that preserving a work or performance in electronic transmission does not constitute copyright infringement.
In the United States Supreme Court in ACLU v. Reno the nature of Internet surfing was explained in this way:
A “hypertext” formatting language known as HTML and “browsing” tools are used on the Internet. HTML documents may be shown on the web that include text, graphics, audio, animation, and moving video. Including hyperlinks in HTML documents allow for the flexible assessment and organisation of data and the easy discovery of similar content, even when the data is spread across several computers all over the world and is saved in different formats.
Internet surfing is a kind of reproduction under the UK Copyright Designs and Patents Act, 1988 and the MAI judgement from the United States. The EC Directive, on the other hand, states that surfing results in a temporary copy on RAM, which is excluded from the reproduction right. Any literary work that does not violate copyright laws is regarded as “reading” and “using” under this Directive. According to several authors, the mere act of browsing does not constitute copyright infringement.
The US Court in Religious Technology Centre Netcom on Communication Services ruled that digital browsing is fair use if there is no business or profit motive. This is likely when someone reads a copyrighted work online and decides not to buy a copy, as there isn't a market for temporary copies. However, under the 2012 amendments, storage for private or personal use, including study, is covered under fair dealing.
Linking
It’s important to note that links are just a reference to a website’s URL, which falls under the category of facts. Linking is one of the most powerful ways to spread information on the Internet. They come in three varieties:
Concerning the issue of copyright, links sprang to prominence in Shetland Times Ltd. v. Dr. Jonathan Wills and Zet News Ltd. Both parties provided an Internet-based news service in this instance. In October 1996, “Shetland News” used hypertext connections to the related news pieces in the online edition of “Shetland Times.” These users were able to go right over to Shetland Times’ homepage, which is full of advertisements, and instead focus on the linked articles. Both of the defendant’s websites and the plaintiffs were cable programmes, and the plaintiffs contended that the defenders had infringed copyright. The judge granted an interim injunction and ordered that the defenders’ website erase all connections to the “Shetland Times” until the final ruling. Hypertext links are not protected by copyright, and the legal argument was not whether connections infringed copyright, but whether headlines constitute literary works and therefore are protected by copyright law.
Links should not be copyrighted since they are facts. The copyright of a compilation of facts, on the other hand, is protected. Compilation of facts is a major issue in a major case, Feist Publications Inc. v. Rural Telephone Service Co. According to the Supreme Court of the United States, the selection and arrangement of facts in factual compilations must be unique.
It has been added to section 52 of the Copyright Amendment Act of 2012, which deals with non-infringement. The clause reads:
(c) if a copy of a work or performance is temporarily or inadvertently stored to give access or integration via electronic connections, access or integration, the right holder has not explicitly banned such links, access or integration.
Peer-To-Peer File Sharing and Copyright Infringement
P2P file sharing involves transferring files between computers using the internet or server sites. If permission is not granted, the receiving party may infringe on reproduction rights by duplicating or using the transmitting party's hard drive. Infringement may occur due to transitory broadcasting sites and local legislation. The US Supreme Court’s UMG Recordings Inc. v. MP3.com Inc. case ruled on content availability for download from websites. The defendant was accused of infringing when, without the appropriate copyright owner’s authorisation, it made available for download its collection of countless audio recordings. Rumor has it that service providers like Grokster and Morpheus are already the targets of legal action. For all the fans of KaZaa vs. BUMA/STEMRA, Fast Track software given by the defendant allowed users to transmit data without needing a centralized server, the Amsterdam Court of Appeal found.
P2P is a temporary Internet network that enables users to connect and read data directly from each other’s hard drives without intermediary servers. It is a communication model where both parties have equal capabilities and can start conversations at any time. P2P was initially designed to minimize server bottlenecks, but it gained popularity when Napster used P2P technology to promote file sharing. Communication nodes may have both server and client capabilities in some scenarios.
In 1999, Shawn Fanning created Napster, a P2P programme that paved the way for the rise of P2P. After its debut as an unstructured peer-to-peer system, Napster required a central indexing and peer-finding service. Peer-to-peer file sharing is widely regarded as the first of its kind. When it comes to P2P music piracy, the first case was determined in 2010 in A & M Records v. Napster. There were Napster users throughout the world and the music they possessed on their computers, they were eager to share with other users. Using a central server, Napster was able to monitor its users for copyright infringement. In other words, Napster was aware of the infringing act, which is a necessary condition for it to be considered an indirect infringement of copyright. The U.S. Court of Appeals ruled that Napster was responsible for copyright infringement. Shortly after losing a legal case, Napster stopped the downloading of any copyrighted material. Following an injunction, Napster shut down its network in July of that year.
NAPSTER Case
Peer-to-peer networking’s first legal case was the Napster lawsuit. Shawn Fanning wanted to show his pals the music he had on his computer. He came up with the idea of creating software that would allow music stored on one computer to be transferred to another. It was a concept that no one else had come up with. He quit college at the age of 17 to develop this programme. Napster has made it possible to transmit music in the MP3 format. It must be downloaded and installed on a computer to do so. Napster may now be accessed by the computer, thanks to this.
Napster is a file-sharing program that connects computers to download music files. It is a conduit for communication but does not accept or store unauthorised music. Music files (MP3) can be transferred between computers. Napster uses a centralized server for indexing, the first way of indexing. At one point, about 25 million people were using Napster, allowing them to download copyrighted music for free. However, it does not accept or store unauthorised music.
Legal action against Napster was brought by several record labels to stop it from engaging in, or encouraging other people to engage in, the illegal downloading and distribution of copyrighted music.
PIRATE BAY Case
Torrent Freak is a corporation based in Sweden. It uses BitTorrent Tracker features to facilitate file sharing over the Internet with the aid of other computers. For violating copyright law, the company’s founders were tried in a Swedish court. Their defence was based on the fact that no copyrighted content was hosted on their server. They were fined and sentenced in 2009. However, there are claims that the judges were influenced by political prejudice. Their appeal is pending as well.
BITTORRENT Protocol
The BitTorrent protocol was created by Bram Cohen in July 2001. For the transport of huge files, BitTorrent has become a popular protocol. Ipoque, a German firm that develops bandwidth management solutions for universities and Internet service providers, has officially issued its 2008/2009 Internet traffic report. Analysis of Internet traffic from throughout the globe totalled more than one petabyte. P2P traffic accounts for 45-78 per cent of all Internet traffic; P2P traffic accounts for 27-55 per cent of all Internet traffic.
Digital Piracy’s Effects on India’s Film Industry
Music Industry
INR 1,068 crore per year is estimated to be generated by India’s recorded music industry. To gain an estimate of how many jobs the music business generates, a researcher looked at the workforces of big record companies (which earn the majority of industry revenue). Between 500 and 600 people work for the top 12 record firms, according to the statistics. Another 200-300 small labels employ three to four people on average, according to industry discussions. The recorded music industry directly employs 1,460 people, according to this estimate, which is based on many sources.
Based on the statistics, it has been anticipated a 12 per cent lower revenue share for films due to music. Accordingly, we allocate INR 2,090 crores of film industry income to music.
The film industry employs over 2.8 million people. By applying the lower 3% (the cost allocation for music by producers) to this overall employment figure, 5,590 FTEs of film industry employment may be assigned to the music sector.
Despite a challenging 2014 and 2015, India’s music industry looks to be on the upswing. The sector grew by 24.5 per cent from INR 858 crore in 2017 to INR 1,068 crore in 2018. Despite these challenges, the Indian music industry has the potential to become one of the world’s leading music marketplaces if they can be addressed. Piracy, on the other hand, is the most significant issue for the business. India has seen a boom in the use of smartphones, as well as in the number of illegal material downloads. More than seven out of ten Indian internet users admitted to illegally downloading music, according to a recent survey. Due to unlawful P2P programmes, streaming apps, stream-ripping websites, or even infringing websites in India or neighbouring countries like Bangladesh and Pakistan, the recorded music industry loses $250 million a year.
Employment Losses Due to Piracy
The Organization for Economic Co-operation and Development and the European Union Intellectual Property Office have calculated that between 4.2 and 5.4 million jobs will be lost worldwide as a result of piracy and counterfeiting in 2022, a rise of 110 per cent. The total cost of counterfeiting, which ranged from $737 to $898 billion in 2013, is expected to rise to $1.54 to 1.87 trillion dollars in economic and social terms by 2022, according to a recent report. When it came time for MASCRADE 2017 (Movement Against Smuggling and Counterfeit Commerce) to understand better the connection between illegal trade, organised crime and terror financing, a FICCI-KPMG study was issued.
Social Impact Due to Piracy
The study reveals that piracy is causing moral loss in the country, affecting children and adolescents, leading to youth unemployment, increased organized crime, corruption, and terrorist attacks. The content from pirate sites exposes teenagers and pre-teens to malware, remote access trojans, pornography, gambling, and adult dating. The Australian Digital Alliance reports that pirate websites expose preteens and teens to sexually explicit content for the first time. Research shows that 782 of the high-risk ads on 835 pirated sites were for unregulated products. Video-streaming sites reveal 50% of HRAs, while link-sharing sites reveal 32%. Approximately 115 million page visits are made daily on these sites.
Blockchains are a new digital architecture that facilitates data and asset movement on the World Wide Web, promoting decentralised accountability, transparency, and agreement. They use cryptographic methods from arithmetic and computing technology to apply a unique digital signature to each transaction owned by the initiating user. These signatures are privately held but can be publicly verified, allowing anyone to confirm the delivery of an asset. However, no one can use the signature for their operations.
Blockchains differ from current nodes by eliminating the need for trustworthy middlemen to ensure privacy and reliability. Instead, they establish confidence naturally via the use of peer-to-peer connections. They enable individuals to immediately swap digitised assets securely and fairly.
Role of Blockchain in the Prevention of Piracy in Entertainment
Blockchain technology serves as the foundational basis for the whole cryptocurrency ecosystem. The primary benefit of blockchain is its autonomous nature. The current state of the film business involves a mandatory process for film release, regardless of whether it is in Hollywood or Bollywood. This process includes the scrutiny of many committees and censor boards before a film can be released.
Blockchain technology in the movie business offers an autonomous and sustainable method to handle the growing intricacy, considering modern transnational networking and online distribution patterns. The utilization of blockchain technology simplifies the process of addressing piracy and infringement of copyright. Blockchain computing can resolve these issues by establishing immutable archives of events involving all aspects of the movie, including the concept, notion, and screenplay. Once the information is stored on a distributed ledger, it enables the continuous tracking of every resource at any given moment.
The diverse benefits of blockchain technological advances in combating the problem of virtual & intellectual property infringement. By utilizing the autonomous characteristics of blockchain technology, producers are provided via a secure channel to distribute their creations with full trust. Blockchain, with its comprehensive and unquestionable ledger, accurately preserves and monitors the provenance of electronic belongings, eliminating any uncertainty or disagreement regarding lawful possession.
The effectiveness of blockchain is enhanced by the employment of intelligent contracts and cryptography approaches. Smart deals are automated contracts that enforce predetermined standards to guarantee that the dissemination & use of electronic material comply with the conditions established by the originator. By utilizing this automatic compliance system, producers may rest assured knowing their innovative intellectual interests will be protected from unlawful exploitation.
When it comes to the never-ending fight over online and IP counterfeiting, the use of blockchain technology is one unbeatable friend. This cutting-edge technical approach can help protect the flourishing online environment, which will lead to a tomorrow wherein innovation thrives unfettered, and counterfeiting dies out.
Digital rights management (DRM) techniques, including watermarking, coded anti-piracy signs, metadata surveillance, and permanent digital authorization, have been developed to combat piracy. However, these methods are susceptible to circumvention, such as media encoding, and can be easily eliminated. Therefore, the global community urgently needs innovative and efficient strategies to combat piracy.
Given that Blockchain is a peer-to-peer (p2p) technology, it has the potential to serve as an efficient and trustworthy transmission method founded on peer-to-peer networks. In essence, an audiovisual system based on blockchain technology would maintain constant sovereignty over the content, meaning it would know the individuals who download, view, and possess the movie. Each person involved in this structure guarantees the transparency of transactions.
The authors present a conceptual model for a blockchain-based peer-to-peer multimedia content distribution infrastructure, addressing colluding identification issues in p2p platforms. The platform's high security ensures unauthorized access and quick tracking of pirate instances, ensuring a secure and efficient platform for multimedia content distribution.
Blockchain technology is gaining acceptance in the entertainment sector, with Hollywood corporations creating unique NFT compilations of film icons using blockchain companies. This has led to an online ecosystem for the sale of these tokens of value. The integration of blockchain technology in the movie business has opened up opportunities for industry stakeholders, storytellers, producing companies, and media giants. Despite global regulations, the entertainment sector is unlikely to be pushed back.
AI algorithms like GPT3 can revolutionize media consumption, but they can also have negative impacts on combating piracy. GPT3 and other AI can produce counterfeit copies of films, soundtracks, and other material, allowing pirates to share and distribute unauthorised versions, posing a threat to the integrity of the digital landscape.
AI technologies are increasingly using watermarking to authenticate content, such as films and pictures, by incorporating an electronic signature or identification. This allows users to authenticate their work as the creators of the material. However, relying solely on watermarking is insufficient. To enhance the effectiveness of watermarking in combating AI-generated fake news, blockchain technology can be used to create a comprehensive record of watermarks. Blockchain is an autonomous digital ledger used to document transactions over a network of computers, allowing for the creation of a registry of watermarks. This results in immutable and easily verifiable documentation of the authenticity of the information, facilitating easy authentication and detection of altered or counterfeit information.
A Way Forward
While blockchain may not offer a definitive answer to piracy, it can effectively mitigate the unauthorized dissemination of content. Since each piece of data in a blockchain may be encoded with a cryptographic transaction, each attempt to upload or modify content will generate a permanent record, so guaranteeing a lasting method to eradicate piracy.
Blockchain technology will also provide significant opportunities for small participants in the film business to showcase their work on a large platform. Although the big players may not experience a significant influence, independent and new artists would undoubtedly benefit.
For illustrative purposes, let’s consider an example: ‘Spotify’ deducts 80% of the revenue from each tune sold, resulting in a relatively tiny portion of money for the songwriter. By eliminating the involvement of third parties, Blockchain technology offers the potential for more benefits. The complete manifestation of the Blockchain seems to be a tool that will revolutionize the perception and management of technology. Despite being in its nascent phase, this disruptive technology is already exerting a significant influence in various domains. Shortly, the film and entertainment sector will also be impacted by this technological transformation.
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