Piracy of audiovisual content not only results in huge revenue losses for legitimate streaming service providers and governments, but also puts users of illegal services themselves at risk. Sheila Cassels, Executive Vice President of the Audiovisual Piracy Alliance (AAPA), told kathimerini.gr that in many cases, access to pirated websites involves the theft of personal information, passwords, and even the launch of ransomware that results in payment. a ransom is required to allow the use of the computer system. Kassels, who recently traveled to Athens for a conference on combating audiovisual piracy, emphasizes that more legislative and operational action is needed to crack down on piracy schemes.

How effective are the measures taken by the audiovisual industry to combat piracy?

In fact, the audiovisual industry devotes significant resources to fighting piracy. These resources include the use of technological security measures such as conditional access, digital rights management, fingerprinting, and watermarking to protect content. These measures include issuing notices and requests to stop ISPs (Internet Service Providers) from hosting pirated websites and training law enforcement officials.

The audiovisual industry has made many strides – often in cooperation with law enforcement – ​​in combating illegal distribution of content, as well as older forms of piracy such as card sharing (subscription only), which have all but been eliminated. in many parts of the world. However, as the industry continues to develop new technologies and methods to stop this illegal activity, hackers are gaining experience and inventing new ways. This is why the need to track, detect and counter new piracy practices is constant. However, given the dynamic nature of the way piracy works, it is difficult to eradicate it.

According to research, streaming piracy is on the rise worldwide. Why is this happening;

According to a Bournemouth University study commissioned by AAPA, the number of illegal pay TV users in Europe and the UK increased by almost 25% between 2018 and 2021. The income of those who develop these activities increased by 12.6% to more than 1 billion euros, and 17.1 million Europeans – almost the population of the Netherlands – had access to illegal IPTV services in 2021. 12% of users are in the 16-24 age group. A similar pattern can be seen in other parts of the world, although the extent of piracy penetration varies from region to region and country to country.

There is no clear or simple answer to this question. For example, Bournemouth University found that varying levels of broadband penetration reflect levels of piracy. As the bandwidth and speed of the Internet increase in different countries, it is not surprising that piracy is on the rise in them. Keep in mind that the barriers to developing a pirate business are not particularly high. Pirates also know that the risk of detection is low. Even if their activities are disrupted, they can recover fairly quickly by using a different IP address, for example, or even by moving their servers to another country. This is also facilitated by the lack of knowledge about the identity of their customers on the part of hosting providers. Hosting providers are also often located overseas, in areas such as the Seychelles, Belize and Panama, where they are less likely to be sued.

What are the financial losses caused by piracy?

The AAPA has not quantified the impact of piracy on audiovisual productions. However, the aforementioned Bournemouth University study found that legitimate TV providers lost €3.2 billion to piracy in 2021. This is a significant amount, which means the industry has less money to spend on audiovisual production and innovation. It also means a significant loss of tax revenue: Legitimate providers pay less because profits are lower, and pirates are not known for paying taxes!

What measures should be taken against piracy?

The first and most important step for the audiovisual industry is to use and maintain effective security measures. They should evolve as new threats emerge. However, it is important that the industry has a range of regulatory and legal processes in place to support the fight against piracy. There are many European directives that recognize this need and provide for everything from conditional access to the protection of intellectual property rights.

There is also legislation that does not specifically deal with intellectual property but is related to money laundering and financial fraud and is used to prosecute pirates. Recently, dynamic blocking of pirated websites, which is required by Internet Service Providers (ISPs) to block users from illegal content, has become increasingly common. This measure has been successfully implemented by the Intellectual Property Organization in Greece and we, as the Alliance Against Audiovisual Piracy, are calling on other countries to adopt a dynamic blocking measure.

However, dynamic blocking of pirate sites is not a complete solution. There are still gaps in the legislation that need to be filled immediately. For example, the recent European Digital Services Regulation (DSA) does not require hosting providers to know their customer details, which only applies to platforms with more than 45 million users. In addition, the rules do not apply to non-European countries.

Most importantly, however, the DSA is not addressing the concerns of the industry and many MEPs about adopting mechanisms to combat live stream piracy. Of particular concern to AAPA members is the piracy of sports broadcasts such as football events. Their value lies only in the live broadcast and is minimized when it ends. The audiovisual industry needs to make sure that ISPs and hosting providers comply with the requirements to stop illegal transmissions. However, while 110 MEPs demand legislative action, the European Commission disagrees. The Commission is currently developing a recommendation that has no legal force and support.

Rather, we would say that the prompt and immediate satisfaction of requests from copyright holders is based on the willingness of intermediaries, including hosting providers, to respond to them. Although developments at the regulatory level are being monitored and future legislation is possible, albeit somewhat remote and unlikely, the current situation does not offer anything new for the industry. And this is unlikely to change the behavior of the mediators, who so far show little desire to cooperate.

Why is partnership important in the fight against audiovisual piracy?

AAPA considers collaboration and communication essential. Piracy is not something that one partner can fight. Many illegal streaming services include content from many parties. AAPA provides a platform for dialogue, in accordance with applicable law, where its members can exchange information, knowledge and experience, agreeing to joint action. Because piracy is a global problem that goes beyond national or regional borders, the Alliance works with partners around the world.

The benefits of cooperation and understanding are also evident in AAPA’s relationships with law enforcement, which we support through the provision of training and advisory support. In this context, AAPA is a member of the Interpol Advisory Group on Combating Online Piracy and works closely with the European Police Service (Europol), with which we have a Memorandum of Understanding, and the European Union Agency for Cooperation in Criminal Justice (Eurojust). Through these partnerships, we aim to raise law enforcement awareness of piracy and the need to allocate resources to combat it. Much of our training is focused on fighting piracy and providing law enforcement with the tools they need.

Why is it important that consumers have comprehensive information about pirated services?

Research by the European Union Intellectual Property Office (EUIPO) shows that it is not always clear whether consumers are aware that they are using pirated services, so there is a large information gap. It is important that consumers know how to recognize a legitimate service or where to find information about what is legal. The Agorateka web hub (https://agorateka.eu/) developed by EUIPO offers access to national portals containing detailed information on legal services at the national level. This is a useful source of information that should be given more attention.

However, there is a real need for information to give consumers a comprehensive understanding of the risks of using pirated content. One of these risks comes from malware. A study commissioned by AAPA found that within 71 seconds of entering a pirated website, someone could be the victim of stolen personal information, passwords, and even ransomware (ransomware).