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Otakon
U.S. Anime Industry
2004
In 2004, there's been a growing tide of anime industry talk against fansubbing, saying that distribution of fansubs over the Internet has led to damaging piracy in Asia. At Otakon, leaders of the U.S. anime industry had some stern warnings about coming action against fansubbers. "Do you worry about how heroin dealers feel," said Matt Greenfield of ADV Films in response to a question about the way fansubbers might react to legal moves against them. "Everyone of us works with Japanese companies, and the Japanese companies are pushing us hard to crack down on the fansubbers. Within the next couple of months, you're going to see some fansubbers hit hard... it's ugly." Greenfield, who appeared with representatives from Viz, Funimation and The Right Stuff, said that fansubs have wiped out a third of the anime market worldwide, and he noted that the lost sales have come in Asia.
"Fansubbing, when it started, was self limiting. It was done through VHS and you can not make a perfect copy, but you can rip a DVD and make a perfect copy.  I've talked to the Japanese producers and they say the American fans are pretty good about it. Others aren't." Fansubs downloaded from the Internet have been copied to DVD's and sold in Asia, all but eliminating Asian sales of those shows, said Greenfield. In response to that piracy, Greenfield said Japanese companies are going to start suing some fansubbers. The leading edge of that movement was seen at Anime Expo when Band filed civil suits against five businesses accused to selling bootlegs, and Greenfield said there will be more, similar suits. If Greenfield prediction is true, it could be something much like 1999's actions by Nintendo against the printers of counterfeit Pokemon merchandise, which led U.S. Customs raids in which truckloads of material were seized.
Why would Japanese companies make those moved in 2004? Because sales in the U.S. and Europe have increased, while Asian sales and profits have disappeared at the same time. Greenfield said the anime industry in the U.S. handles around $1 billion in annual sales, And the difference with these predicted legal moves is that they would be pushed by the Japanese originators of anime and not by the independent American importers. "In Japan, they're trying to set up a process where anything that goes on the Internet will be handled by the Japanese themselves. They're the rights holders, they have no restrictions at all."

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