1. London, October 30, 2007 Copyright and Online Piracy Copyright and Online Piracy Thomas Dillon Thomas Dillon VP & Deputy General Counsel EMEA VP & Deputy General Counsel EMEA Motion Picture Association Motion Picture Association

2. The MPA’s Members

3. Major Studio Income 2005 DVD (97%) (3%) VHS/VCD Pay TV 9.1% Television 28.0% Theatrical 15.7% Home Entertainment 47.1% 16% in Theatre 84% in “Home” Hollywood relies on a … Variety of ProgrammingVariety of Programming Variety of Distribution PathsVariety of Distribution Paths Variety of Distribution WindowsVariety of Distribution Windows Variety of Usage OffersVariety of Usage Offers Variety of Consumer EquipmentVariety of Consumer Equipment Movies typically cost $96.2M (TV episodes $500K - $1.75M)

4. Cost of Piracy: 2005 All film piracy: 18% Market loss Consumer spending loss: $18.186bnConsumer spending loss: $18.186bn Studio Revenue: $6.076bnStudio Revenue: $6.076bn Downloaded or Received copy of D/l Consumer spending loss: $7.114bnConsumer spending loss: $7.114bn Studio Revenue: $2.306bnStudio Revenue: $2.306bn

5. How?

6. Sources of new pirated content First appearance

7. Internet piracy pyramid Release groups Top sites IRC/Usenet P2P/Web sites Facilitators

8. Internet piracy pyramid Hard Goods MarketsMarkets VendorsVendors AuctionsAuctions Web sitesWeb sites Release groups Top sites IRC/Usenet P2P/Web sites Facilitators

9. Different approaches to liability in: Denmark TDC Tele2 Netherlands BREIN v…

10. Effect of action: Iceland

11. London, October 30, 2007 Fin Fin Thomas Dillon Thomas Dillon VP & Deputy General Counsel EMEA VP & Deputy General Counsel EMEA Motion Picture Association Motion Picture Association