Streaming Thieves: Curbing OTT Piracy

Introduction

OTT piracy, the unauthorized copying, distribution, or streaming of content from over-the-top (OTT) platforms, is a growing concern. This digital property theft undermines human creativity, compromises cybersecurity, and erodes the economy.

OTT piracy directly impacts the revenue of content streaming companies. By offering free or low-cost access to copyrighted material, pirates divert subscribers away from legitimate platforms. This loss of revenue can hinder the production of new content and limit investment in innovation.

Pirates employ various techniques to circumvent DRM protections and distribute content illegally. They may record content from their screens, create fake apps, or operate unauthorized websites. These platforms often offer free downloads or lower subscription fees, making them attractive to consumers seeking to avoid paying for legitimate services.

The COVID-19 pandemic exacerbated the issue of OTT piracy. With people confined to their homes, demand for online entertainment surged, leading to a significant increase in unauthorized content consumption.

A report by Ai Plex agency in Bengaluru revealed that "Scam 1992," a popular series on Sony LIV, was widely shared and discussed online, despite the platform having only two million subscribers. This suggests that a significant portion of the viewership was attributed to piracy.

Similarly, the hit series "Ashram" on MX Player is estimated to have lost 20% of its potential viewership due to illegal streaming.

According to a 2021 report by Digital TV Research, India's OTT players were expected to lose $3.08 billion in revenue to piracy by 2022. Globally, the cost of online streaming piracy was projected to reach $52 billion by the same year.

However, the actual economic loss due to piracy is likely much higher. Recent reports estimate that piracy costs industries in India an estimated 200 billion rupees per year. This substantial amount negatively impacts businesses of all sizes.

Legal Framework

India currently lacks a specific law directly addressing digital piracy. While existing legislation offers some legal avenues, a comprehensive law tailored to the digital age would provide a more robust framework.

The Copyright Act of 1957 provides a foundation, defining "infringing copy" to include content broadcasted through OTT platforms (Section 2(m)). It outlines copyright infringement as unauthorized actions (Section 51) and imposes criminal penalties for such offenses (Section 63), including imprisonment and fines.

The Information Technology Act of 2000 further addresses digital piracy. Section 79 requires intermediaries to prevent hosting or publishing content that infringes intellectual property rights. Section 66 prohibits the illegal distribution or copying of copyrighted material online, with potential penalties of imprisonment and fines.

Article 19(2) of the Indian Constitution balances freedom of speech and expression with the protection of OTT platforms and their content creators.

The Bhartiya Nyaya Sanhita defines "counterfeit" as creating one thing to resemble another with the intent to deceive.

Organizations like the National Association of Software and Service Companies (NASSCOM) and the Business Software Alliance (BSA) actively promote the use of legitimate software, educate end-users and law enforcement, and support efforts to combat digital piracy.

CASE LAWS

Universal City Studios Productions LLLP 2024

The Court issued a broad injunction against defendants who were infringing copyrighted works on various online platforms. The injunction prohibits defendants from communicating, hosting, storing, reproducing, or distributing infringing content through their websites. Additionally, the Court ordered Internet Service Providers (ISPs) to block access to infringing websites and instructed the Domain Name Registrar to lock and suspend domain names associated with these websites.

To address the ever-evolving nature of online infringement, the Court implemented a "Dynamic+ injunction." This allows plaintiffs to target mirror, redirect, or alphanumeric variations of infringing websites and seek protection for future copyrighted works. This ensures the injunction's effectiveness even if defendants attempt to circumvent it by creating new websites or uploading new content.

Factors Contributing to the Increased Use of Pirated Content

Cost: The high cost of subscribing to multiple streaming services has led many people to seek out cheaper alternatives, such as illegal downloading.

Sharing: Pirated content is easily shared online, unlike the restrictions imposed by legitimate streaming platforms. This ease of sharing accelerates the spread of pirated content.

Accessibility: In areas with limited or expensive internet access, piracy offers a viable option for accessing content.

Experimentation: Some individuals use piracy to preview content before deciding to subscribe to a streaming service.

Negative Impacts of Pirated Content

• Subscription Cancellations: People may cancel their streaming subscriptions if they can find the same content for free through piracy.
• Revenue Loss: The use of pirated content can directly impact the income of artists and content creators.
• Private Data Theft: Downloading pirated content from untrusted websites can expose users to the risk of data theft.
• Disrespect for Artists: The availability of pirated content can lead to a decline in subscriptions, which in turn reduces revenue and recognition for artists.
• Security Risks: Downloading pirated content from shady websites can expose users to computer viruses.

Suggested Countermeasures:

• Copyright Monitoring: Use copyright monitoring services to detect and address piracy.
• Digital Rights Management (DRM): Protect content with DRM to prevent unauthorized copying and distribution.
• Watermarking: Embed watermarks in content to track its distribution and identify sources of piracy.
• Education: Educate audiences about the consequences of piracy through short advertisements within content.
• Legal Action: Hire a lawyer and file lawsuits against individuals and organizations involved in piracy.

Given the increasing prevalence of piracy on OTT platforms, the government should implement guidelines for content creators to include explicit warnings in the beginning of every movie and web series. These warnings should clearly outline the legal consequences of pirating OTT content, aiming to deter viewers from engaging in such activities.

The widespread availability of internet and the growing popularity of OTT platforms have contributed to a rise in piracy rates in India. Many individuals are unaware of the risks associated with downloading content from pirated websites and apps, which often compromise their personal information and expose them to potential blackmail and fraud.

To address this issue, the government should impose stricter penalties on those involved in pirating OTT content. Additionally, educational campaigns should be conducted in schools and colleges to raise awareness about the legal ramifications of using pirated sites and apps. By understanding the potential consequences, individuals are more likely to refrain from engaging in these harmful practices.

Conclusion:

OTT piracy in India is a pressing issue with far-reaching consequences for the entertainment industry. To combat this threat effectively, India must prioritize stricter law enforcement, public education campaigns, and robust copyright protection measures. By addressing these issues, we can create a more sustainable and equitable environment for OTT platforms, content creators, and consumers alike.

1. DIGITAL TV RESEARCH. (n.d.). Digitaltvresearch. Retrieved October 9, 2024, from https://digitaltvresearch.com/
2. The Information Technology Act,2000. (n.d.). Eprocure. Retrieved October 9, 2024, from https://eprocure.gov.in/cppp/rulesandprocs/kbadqkdlcswfjdelrquehwuxcfmijmuixngudufgbuubgubfugbububjxcgfvsbdihbgfGhdfgFHytyhRtMjk4NzY=
3. Bhartiya Nyaya Sahitya. (n.d.). Ministry of Home Affairs. Retrieved October 9, 2024, from https://www.mha.gov.in/sites/default/files/250883_english_01042024.pdf
4. We drive the adoption of cutting-edge technology in all verticals of the Indian economy. (n.d.). NASSCOM. Retrieved October 8, 2024, from https://nasscom.in/