Piracy

Characterizing the growing cost of making movies as a "huge, hairy beast slouching toward the future," Jack Valenti, president and CEO of the Motion Picture Assn. of America, announced here Tuesday that the average cost of producing and marketing a studio movie in 1995 soared to $54.1 million. Filmmaking costs have risen steadily, up from last year's average cost of $50 million, Valenti told the annual convention of the National Assn. of Theater Owners at the opening of NATO/ShoWest '96.

The White House is contemplating massive trade sanctions against Chinese exports to the United States to retaliate for China's failure to shut down its burgeoning business in pirated compact discs, movies, computer software and other products protected by U.S. patents and copyrights. Nearly a year after China agreed to close factories turning out pirated goods and punish those involved in the lucrative business, 28 or 29 plants are flourishing, U.S. officials say.

Three Southern California companies have agreed to pay a combined $235,000 to settle software piracy claims brought by a software industry trade group. Verteq Inc., a semiconductor manufacturer in Santa Ana, agreed to pay $150,000 to the Business Software Alliance, a Washington, D.C.-based organization that represents eight of the nation's largest software firms, including Microsoft.

When two warring electronics industry factions reached agreement last year on a single technical standard for the next-generation consumer electronics technology known as the digital videodisc, there were high hopes that the new machines would be the hottest product around this Christmas. DVD promised to challenge the videocassette recorder by offering disc-based movies with video and sound quality far superior to the VCR.

Business executives in the shipping, agriculture, textile and retail industries watched nervously Wednesday as the United States and China embarked on their latest round of trade-sanction brinkmanship. Although most expect this round to end like most of the others--with a face-saving compromise at the last minute-- they noted that billions of dollars in mutual access to two of the world's largest markets hang in the balance.

Don't tell Henry Fai the Chinese government isn't cracking down on piracy. His compact disc factory in this fast-rising south China boomtown had the highest-tech equipment in China, respectable state partners and impressive production credentials: It even pressed the video disc of the Russian Revolution that President Jiang Zemin recently presented to Russian President Boris N. Yeltsin. But in December, provincial authorities confiscated the factory's laser equipment and sealed its doors.

Saudi Arabia Issues Warning on Pirated Software: The kingdom has warned more than 200 private companies not to use pirated software in its latest crackdown to enforce copyright laws, industry sources said. The misuse of copyrights, trademarks and patents has become a crucial issue as Saudi Arabia has sought to join the World Trade Organization. The WTO is tentatively scheduled to meet in November and will discuss Saudi intellectual property rights enforcement and other issues.