Last month many of you read about the blockbuster revelation by the MPAA that made national and international news and bolstered our legal effort to place anti-subsidy duties on trade distorting subsidized VFX. This was a case concerning dental braces and last week there was a ruling in the plaintiff’s favor that further helps our case: ITC Says Digital File Transfers Are Imports Under Tariff Act. You can read the ruling here where this key statement is highlighted.
I did an interview with Buzzfeed about the importance to this case where I explain the significance: How A Case About Invisible Dental Braces Could Change The Way Hollywood Does Business:
“If the MPAA is saying films are a tangible good, and those goods are heavily subsidized by a foreign government, the law allows us to put duties on that,” Lay said.
“The MPAA and the [International Trade Commission] have confirmed our position that digital products are goods, their electronic transmission are effectively imports, and the Tariff Act applies, which contains not only strong anti-piracy provisions, but strong anti-subsidy duty provisions too,” he said. “We have been working on the case, which we hope to submit in the coming months.”
The MPAA also had a charming response which I agree with:
“Congress has given the ITC broad authority to protect U.S. industries from unfair acts in importation, including copyright infringement,” Ducklo said in an email. “In order to fulfill that mandate to protect American business, the ITC must be allowed to tackle infringement where it most often occurs — online. Otherwise, American businesses lose an important protection, which puts them at a significant international disadvantage.”