Copyright piracy continues to have a significant negative effect on the legitimate market for US and international copyright owners in Lebanon, the study said, with music, movie and television content companies all reporting that copyright-based revenues were down in 2007, while the publishing, business software, and entertainment software industries suffered increasing losses due to piracy.

Theft of intellectual property rights has been an issue for many years. Lebanon has copyright laws in place, enacted by the parliament in 2000, and reinforced by further regulations implemented in following years. However these laws are seen as being deficient in some key areas and are in need of reform as they are not compliant with some vital international codes. In addition, Lebanon is finding it difficult to implement the regulations it does have.

According to the IIPA, a private sector organisation that represents US copyright-based industries and works to improve international protection of copyrighted materials, losses due to piracy in Lebanon totalled $26.8m last year, up from $25.6m in 2006.

Of this, the vast majority, $24m, was lost due to pirated software used in businesses, a full 73% of such software sold in Lebanon last year. The music industry lost out on a further $2.8m, 60% of the total.

Figures for losses for copyright piracy of motion pictures and entertainment software and books were not available, though the first two categories traditionally feature high on IIPA lists. By comparison, trade losses for these two categories in the Asia Pacific region ran as high as 95% in some countries. In IIPA's 2004 report on Lebanon, the piracy levels for motion pictures and entertainment software were 80% and 75% respectively.

The report singled out the problem of cable piracy as one that needed to be addressed urgently, citing hundreds of small cable systems that retransmit broadcast programming without authorisation while charging customers for such services.

Although it said officials had taken some interest in the issue, the report maintained that, "despite being provided with a draft decree that would allow the minister [of posts and telecommunications] to regulate and legalise the cable market, no progress on the ground has been forthcoming in issuing the decree or shutting down pirate cable operators".

The Ministry of Telecommunications has drafted new legislation intended to regulate the cable industry, though the law, along with others aimed at bolstering the fight against piracy, has been mired in the ongoing political and parliamentary deadlock of the past 18 months.

Piracy of the airwaves has become big business in Lebanon. It is estimated that 80% of the Lebanese population have access to pirated programming supplied by between 600 to 700 cable operators, who generate revenue of some $7m monthly, money lost to legal broadcasters.

Another problem is the slow pace of pursuing cases of piracy through the courts, with the IIPA citing one instance where it took five years for a court to adjudicate on a suit against an illegal cable operator.

Though still a matter of concern, Lebanon is making some progress in the fight against piracy. The Cyber Crime and Intellectual Property Rights Bureau (CCIPRB) has been active in trying to crack down on copyright infringers, the IIPA acknowledged.

During 2007, the bureau conducted a series of operations against persons or companies retailing pirated material. The IIPA said other agencies should take their cue from the CCIPRB in their efforts to combat piracy. It has been suggested, however, that a larger task force may be needed as the CCIPRB counts only 33 officers.

Nonetheless, the IIPA recommended the country be removed from the US Trade Representative's Priority Watch List of worst case offenders and included on the Watch List, a ranking that still notes concerns but one that also acknowledges improvement. Lebanon has been on the Priority Watch List since 2001.

While Lebanon's 2007 report card was better than many others in the region, with the IIPA estimating piracy cost $50bn last year in the Arab world, copyright infringements are causing the country increasing difficulties. International investors may well be wary of transferring technology and capital to Lebanon for fear their investments will be undermined by copyright infringements.

Source: Oxford Business Group