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French Senate passes anti-piracy law; shortens movie release windows

July 13, 2009

The French Senate has passed a revised version of the 'three strikes' anti-piracy bill. Under the law, users found to be illegally downloading or sharing online media will initially be sent a written warning by a new independent administrative body (HADOPI). If the warning is ignored a second letter will be sent. If a user ignores both warnings HADOPI will refer the matter to a judge, who will be able to impose a range of sanctions:
  • Disconnection from the internet
  • A fine of up to EUR 300,000
  • A two-year jail sentence

The law also extends to broadband subscribers who allow their connection to be used by third parties to pirate online media. In this case the subscriber could receive a fine of EUR 1,500 and have their internet connection suspended for one month.

The bill will now be tabled before the National Assembly in coming weeks.

The Constitutional Council had objected to a prior version of the law which would have enabled HADOPI to disconnect users for up to a year without judicial oversight.

In addition to passing the anti-piracy bill the French government has restructured the country's windowing system for movie distribution, following negotiations with the media industry. The windows between a film's theatrical release and its availability on other platforms have been narrowed. Movies will be available through Video on Demand (VoD) outlets four months after theatrical, concurrent with DVD release. Under the old legislation the VoD window began 7.5 months after theatrical.

Pay TV operators and SVoD providers will be able to offer movies 10 months into their lifecycle (down from 12 months) and titles can be broadcast on free TV channels 22 months following initial cinema release (previously 24-36 months). Local media companies such as Canal Plus have welcomed the new windowing structure.

The requirement for all repeat offenders to be referred to a judge is likely to make the disconnection process more lengthy and laborious for HADOPI. Screen Digest maintains that, even if the law is finally approved by the National Assembly, implementation will be extremely difficult. Anonymous proxies and encrypted streams are just two of the methods which can be used by pirates to evade detection.

The reduction of release windows forms another part of the French government's strategy to encourage legal movie consumption and reduce piracy. By making movies available earlier through a variety of business models and platforms it is hoped that legal outlets will become a more attractive proposition to consumers. But the new windowing structure will probably not have a meaningful impact on illegal downloading in France. Pirated movie files are often circulated immediately after a title has been released on DVD in the US and as a result copies will continue to be widely available in France prior to their legal release on many platforms.

France is one of the few countries where movie release windows are dictated by regulation. Elsewhere release dates are typically determined by content owners, with windows varying from Studio to Studio and often from title to title. With France's regulation unlikely to impact online piracy it may be prudent to remove regulation entirely and allow Studios to experiment with windowing individually. In this way each Studio would be able to attempt to optimize windows to maximize revenue from each movie. For example, in the online environment it may sometimes be more lucrative to delay the VoD window in order to prevent cannibalization of digital retail (also called EST) sales. For other titles the introduction of a VoD option may not substantially affect the number of retail purchases but instead act as a predominantly additive revenue stream.

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Countries: France
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