Piracy in Bollywood
Tuesday, April 22nd, 2008 by Patrick RossI had the opportunity to hear celebrated Indian filmmaker Bobby Bedi on the Hill last night. Well, let me say I heard him, but it was hard to understand him, because the high stone walls of the Rayburn foyer are not conducive to good acoustics, and my ears have never been very sharp since a series of ear infections as a child.
I managed to make out the gist of his speech, though, namely that he wished there were more IP protection in his country, that doing so would boost the Indian economy, and that while Hollywood makes much of its money off of redistribution (pay-per-view, broadcast rights, DVDs), Bollywood makes maybe 5% from redistribution.
Why is that important? In Hollywood, only a small fraction of movies make back their cost in their theatrical run. Producers count on additional revenue streams coming in that might help the film get into the black (even then some fail to do so, but that is how so many copyright-related industries are funded similarly to venture capital, the gamble is that some major successes will cover other losses).
If a filmmaker knows his only shot at recouping the money of his investors is to do well in a theatrical run, he will likely play it safe, spend very little money, and make a movie most likely to please the masses based on what has pleased them before. In other words, you won't see anyone making a pricey blockbuster like "Lord of the Rings" a a funky cultural film like "Juno." No, if women in brightly colored clothes spinning and twirling worked in your last movie, you'll do it again in the next one.
Copyright is, at its philosophical heart, as much about promoting creativity as it is profit. That is the innovation that the Founding Fathers discussed. George Washington University Law Professor Mike Ryan, director of the Creative and Innovative Economy Center, made a similar point last night. His center has produced a number of studies on developing nations, and repeatedly has found that innovation and creation are essential to economic growth. (Ryan also participated in our Academic Symposium last December.) Ryan and the CIEC sponsored last night's event.
Thanks to Andrew Noyes at Congress Daily, I was able to get a few more words of wisdom from Bedi. He told Andrew that India's IP protection laws are solid, but enforcement is "pathetic… We still haven't been able to convince officers that it is actually theft." He added that in Mumbai, "if you are stopped for talking on your cell phone while driving, you'll spend a night in jail. If you're caught pirating a movie, no such luck." (Disclosure: I support strong enforcement against pirates, but I'm not sure I support jailing a driving cell-phone user. Someone driving while applying makeup? The pillory.)
According to Noyes (I didn't hear this last night), Bedi is producing a three-film series on the Indian legend Mahabharata at a cost of about $70 million, the most expensive motion picture project in Indian history. Bedi, naturally, is concerned about the effect piracy might have on the film. To quote one final time from Andrew's story, "So long as pirates earn a high share of movie revenues, producers must focus on making relatively inexpensive movies. To finance a grander vision, the creators must receive not just the critical but also the monetary rewards of inventiveness."
Hear hear.
