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But gains stall in following months and government is stuck in telecom-vs-media battle over fees

New Zealand, like many nations, is struggling with how to balance the rights of big media investors that claim their work is being incessantly stolen by the masses, with the public's rights to privacy and due process.  New Zealand contemplated a "three strikes" plan, which involved sending pirates two warnings, then severing their internet service.  But unlike the outcome in most other regions where similar contentious plans were struck down or modified, the New Zealand plan passed, largely unchanged.

I. No Progress, After Modest Initial Gains

With all eyes watching, media attack dog New Zealand Federation Against Copyright Theft (NZ FACT) has looked to track the bill's performance, in hopes of showing its efficacy.

The results were impressive -- for a month.  In one month, the top 200 movies were illegally viewed 110,000 times in August, but only 50,000 times in September, the month the law took effect.  But the group admits that in the months since there has been no "discernible progress" in terms of decreased piracy.

Kiwis (New Zealanders) have taken to referring to the laws as "the Skynet" bill.  The bill creates a Copyright Tribunal, which has the power to fine citizens up to $15,000 NZ ($11,870 USD).

You're out
After early gains, New Zealand's "Three Strikes" plan to ban copyright infringers has stalled, with 4 out of 10 citizens still regularly pirating. [Image Source: Ed Zurga/AP]

So far, fewer notices have been sent than some expected.  Aside from government officials double-guessing the passage of the bill, one obstacle to mailing notices has been the $25 NZ ($20 USD) reimbursement fee under the law which media companies must send telecoms to cover their processing costs.

II. Debate Over Notice Fees Rages

NZ FACT has not mailed any notices, but the Recording Industry Association of New Zealand (RIANZ) -- the sister organization to the Recording Industry Association of America (RIAA) -- has managed to send out 2,766 infringement notices between October and April.  Of those, only 58 were challenged.  And only two individuals won their challenges before the Copyright Tribunal.

The RIANZ is pushing for the fee to telecoms to be cut the review fee to a few cents.  Telecoms are upset about this, saying it will not cover the cost of warning and cutting off customers.  

The largest telecom in the nation Telecom New Zealand says it lost approximately $431.68 NZ ($342 USD) per user to verify and process the notices.  It sent 1,238 notices and thus lost approximately $400K USD complying with the ruling.  The carrier and internet service provider is pushing the government to raise the fee to $104 NZ ($82 USD) to come closer to covering the costs. 

Telecom New Zealand
Telecom New Zealand complains its lost hundreds of thousands of dollars
complying with the new law. [Image Source: TechDay]

New Zealand's Ministry of Economic Development is currently contemplating whether to cut the fee or raise it.

However, one thing is certain -- in recent months the bill is making little progress.  While the global average for citizens who commit at least one copyright egregious infringement per month is estimated at around 28 percent of the population, the RIANZ estimates that 41 percent -- or approximately 2 out of ever 5 Kiwis commit such an offense, as of Feb. 2012, despite the threat of the three strikes law.

Sources: Fairfax NZ News, Ministry of Economic Development

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RE: Ok, so you made some progress...sort of
By BillyBatson on 7/24/2012 3:19:25 AM , Rating: 2
I don't think he was saying that game prices are marked up too high but that no video game is actually worth $60~ period... And I agree, regardless of how much it cost to make, market, etc. That is a lot for a game. Single player games can be beaten within days if not earlier, all games depreciate almost instantly and very drastically, and the average person won't play a game for more than a few months and that's if it's multiplayer/online.
If a movie ticket is $12 then in my eyes the perceived value of any game is $36~. Sell me games at that price point and I would actually buy games. If game studios have to cut costs to reach that price point then do it, don't develop a game that has to be sold at $60

By Paj on 7/24/2012 9:39:17 AM , Rating: 2
I've been re-evaluating the way I think of games prices recently. Granted, games in the UK seem to be a lot cheaper than elsewhere - most new releases are priced at between £30-£39. Indie games can be half of this, and when steam sales are on you can pick up games for less than the price of a pint.

I often ask myself if the enjoyment I get from buying a game is equivalent to the same value of beer. If I can buy a game for £20 that will give me unlimited hours of entertainment (ie Civilization V, which plays differently every time), well thats basically a couple of rounds of drinks, worth a few hours entertainment and a hangover. Its easy to rationalise that way. If its some AAA single player title with about 4 hours of gameplay then the situation is very different.

By someguy123 on 7/24/2012 2:44:40 PM , Rating: 2
Single player games can be beaten within days if not earlier, all games depreciate almost instantly and very drastically, and the average person won't play a game for more than a few months and that's if it's multiplayer/online.

Really? You're complaining that a few months of gameplay online isn't worth $60 period?

What the do you do for entertainment anyway? You can't watch movies because they're too expensive, I mean it's only about an hour or two for about thirteen dollars on a regular night. Five dollars to swim in a private pool? That's a horrible price/performance ratio! Forget about paying for a club to go golfing.

I can understand short games not being worth the $60 tag, but to say every game isn't worth it just seems silly to me, especially when you're talking about how months of entertainment online is STILL too expensive.

"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates

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