In the entertainment industry, there is a problem that many movie studios, video game makers, and music artists face. This problem appears to be happening on a large scale, because of the attention given by the media. This problem, is piracy. It affects all parties involved, and ultimately even the end user.
When you buy the latest album from your favourite artist, go to the theatre to watch the latest movies, or buy the newest videogame on the market, a portion of the purchase price is compensation for the artist, called a royalty. Many artists rely on these royalties as their main source of income. No royalties are received, however, when their work is pirated.
Piracy can happen on both a large-scale, and a small-scale basis. Large-scale piracy operations usually do not happen in North America, as it would be easy for offenders to get caught. This is because most of the works that are pirated, originate from North America, which makes it easy for the creators to see if a person or group is distributing their work illegally. The majority of large-scale piracy occurs overseas, namely Malaysia, which had a 66% software piracy rate in 2000. ("Pirated") In Malaysia, you can find almost anything that is pirated at places such as Imbi Plaza and Low Yat Plaza in downtown Kuala Lumpur. At these places, a pirated copy of Microsoft Windows XP can be bought for as low as US$1.50. Pirated software, known as "warez" or movies can be bought for US$3.00. The vendors who are usually caught during raids do not stay off the streets for long; as the piracy laws are not strongly enforced. An industry watcher states that "Piracy is a tough nut to crack in Malaysia.The root of the problem is, and always will be, corruption." ("Pirated") Most of the pirated software is mass-produced. Since it is mass-produced, the CDs are pressed; just like any legitimate CD you would buy in a store. Also, labels are created for the CD, as well as covers, so they look legitimate to the unsuspecting (or willing) customer.