The Organization for Economic Co-Operation and Development, made up of thirty democracies, focuses on issues facing the economy, the society, and the environment due to globalization. Their executive summary aims to identify the economic impact of counterfeiting and piracy. In 2005, they found that pirated and counterfeited products amount to $200 billion, ecxluding trade conducted through the Internet. To put this number into context, the report states that the amount is larger than the GDPs of 150 economies. They found that piracy operations are in large led by organized crime such as gangs and terrorist groups. Only groups with financial stability and vast distribution networks would be capable of controlling such a market. Even though certain target groups have been identified, it is still difficult to catch and combat these pirates.While piracy exists in all economics, it is most pronounced in developing countries. The report calls upon governments to strengthen law enforcement and regulation to diminish these networks.

While some counterfeit goods could potentially be harmful to ones health, such as counterfeit pharmaceutical drugs, other pirated goods such as movies serve to decrease economic growth and discourage creativity. Due to the Internet, new distributions outlets are available for pirated material. As the report emphasizes, the Internet provides an infinite market for products that can be sold through full anonymity. Not only does piracy effect copyright industries, it is also shown to effect areas of trade, the evironment, and employment as well.

The report finishes by suggesting methods to improve information on counterfeiting and piracy to better target such groups. By developing more information on the national and global level that is systematically collected, comparable, and comprehensive, there can be a uniform system for combating these illegal activties.

In my paper, I intend on identifying the challenges the movie industry faces. The data collected by the OECD provides significant insight into the nature of the groups disseminating pirated goods. In addition, their numerical figures will help me quantify the impact of their activities, economically and socially.