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Kathy Wolfe

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Piracy Profiteers: Time to Walk the Plank

Posted: 01/17/12 08:37 AM ET

In 1985, I began a company that distributed films through a simple mail-order catalog. My vision was more than simply fulfilling orders; I wanted to connect the LGBT (lesbian, gay, bi and trans) community to meaningful images through film. I hoped that experiencing these films would foster a sense of pride and understanding in and for my community. Though my company distributes some studio produced films, I have been honored to work primarily with independent filmmakers -- helping them connect their films with their audience. Now, more than 25 years later, my dream has been realized. Every day I receive feedback that affirms our mission that these films have helped people and families all over the world navigate some of the most difficult questions about relationships and identity.

Though my team and I are consistently amazed with the speed at which our world has evolved, we have been disheartened to witness the rapid rise of online piracy. Not only has piracy negatively affected our bottom line, but more significantly, it has undermined the careers of many talented aspiring filmmakers.

Those who finance films generally don't view LGBT storylines as box office winners. As a result, filmmakers who want to tell these stories often turn to creative forms of financing. The process can be a long and brutal one. Filmmakers often risk their personal finances in the process. When online thieves undermine the market for their films these artists have no chance to compete. Once their film is posted illegally online, their investment can disappear in an instant. Suddenly these independent filmmakers are competing against FREE versions of their own films. Online strangers, whose only goal is to profit from theft, show no regard for the hard work, creativity, and financial sacrifices made by these filmmakers. The public generally supports security to prevent and stop theft in stores that sell DVDs. Why not support measures to stop this theft online?

As a distributor, I've been forced to devote resources to searching for and removing pirated copies of our films online (by sending DMCA notices). It is a time-consuming and expensive process. On one recent weekend, we removed over 300 links to a newly released title from a U.S. based cyber locker (each link can represent 1000s of downloads). The next day another 180 new links for the same film appeared on the same cyber locker. We found another 100 links to the film on a gay movie blog (a site which features free download links for more than 2,000 titles). This is just in the U.S., where sites are required under current law to take down links when they receive infringement notices. Multiplying that problem by a factor of 10 would not begin to cover the volume available via offshore sites, which are currently out of the reach of U.S. law.

To be clear, the Internet is essential to what I do as a business owner. I have readily embraced the changes in film distribution technology. As a company, Wolfe Video is constantly adding new and innovative online distribution avenues for our films to ensure their availability to eager audiences worldwide. Still, despite our best efforts, it's hard to compete with free. That is why I feel passionately about the need for legislation to protect this vital marketplace for companies like mine and for filmmakers who are the most vulnerable to bad actors in the space. The artists I work with and the films I have been privileged to be associated with have changed countless lives. Without a secure, fair and functioning online market, these stories of diversity will cease to be told and this "Freedom of Speech" will be compromised. American companies that are in the business of creating and distributing content shouldn't be sacrificed to protect large-scale pirate profiteers who knowingly and blatantly flout the law and common sense.

I was happy to see that Congress has recently taken up this issue. I'm not a policy expert, but I do recognize that this is a critical first step in addressing this serious and growing threat. I encourage all creative persons to become educated and involved in this fight. And, I challenge our friends in the "Tech" world to actively assist Congress in finding solutions to reduce online piracy and profiteering. Effective legislation will ensure my colleagues, our customers and my talented and creative business partners will succeed or fail based on the merits of our products and services, rather than the whims of digital thieves.

Kathy Wolfe is the founder and CEO of Wolfe Video and Wolfe Releasing. Established in 1985, it is the oldest and largest exclusive distributor of LGBT films in the world.

 
 
 
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01:02 PM on 01/19/2012
This Kathy Wolfe character is just as shady as the people giving it away for free. I had a film play at at gay fest and her company offered to distribute it. The contract I was offered was way beyond unfair and she personally called me to pressure me into taking the deal, which I did not. She then harassed me with multiple phone calls trying to guilt me into saying yes because they had already expected me to say yet and drew up contracts, started the process. . . blah blah and blah. That contract would have made her a ton of money for a project that I worked so hard to create. If the money went to a LGBT youth center or did some good in some way, then fine. . . but to give all the profit to this evil lying Dinah Shore looking fraud, imma have to go with Whitney on this one and say "Hell to the no!!!!" Just like Gaga, Wolfe Video scams the weakest of the community by saying that they are on their side, all the while squeezing what money they can out of them while running to the bank. Neither are a positive influence and neither represent me or my community in any positive way.
02:16 PM on 01/18/2012
As a German lesbian film freak I used to order Tapes and DVDs by Wolfe until they stopped delivering to Europe. If I want to watch american lesbian films I am dependent of the european film industry. THEY decide whether a film will be seen here or not. I can't let them have this power. Ordering at amazon.com I will have a big fee for transport; here I have to pay customs, which are added. Very expensive idea! So you want to blame me if friends in the US offer me to download and copy it for me? Do you think lgbtiq-people in Poland, Czech Republic, Slovenia, Hungary and so are able to pay such high fees? Where shall we buy your films - even if we wanted to???
01:56 AM on 01/21/2012
Wait, you are claiming they are preventing you from watching these films but in reality it's just because you don;t want to pay more for them. Sounds like, while it may be more difficult, but you have made the decision to pay or steal. Perhaps Wolfe stopped delivering to Europe because they couldn't make money....
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HUFFPOST SUPER USER
booksnmoreforyou
Progressive educator, activist for good government
03:00 AM on 01/18/2012
Good discussion below this line.

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HUFFPOST SUPER USER
booksnmoreforyou
Progressive educator, activist for good government
02:36 AM on 01/18/2012
What you fail to realize that one of your films viewed for free DOES NOT equal a lost sale.

We've seen these same arguments before during the heyday of Napster.

Back then, I took the opportunity to download - to rediscover - a lot of music from my childhood. Why?

Because it was free. I was a poor college student. If you think I would have, lest could have, ever forked out 99 cents per song, you're living in a dream world.

We see the same thing with, say, pirated broadcasts of football games. I am privy to the stories of kids who watch these games in that manner. They are poor kids whose parents can afford Internet access but not cable. And in most cases they are kids trying to stay out of trouble by becoming football players, not just fans.

With your LGBT films, many, many thousands of people may be interested enough in them to watch them for free. But force them to pay and all they do is walk away. How's that working out for your message?

All of these online piracy bills rest on the very self-same utterly false assumption: that a non-paying customer equals a lost customer. Empirically, that is just hogwash.

So the entire basis of
02:00 AM on 01/21/2012
So how can they keep making films that contain their message if there is no income? If their income is generated by SALES of the product and those SALES are greatly impacted, so is their income. Wait until you career and livelihood can be pirated and you will be whistling a different tune. Im sure you just want to keep getting stuff for free. Hey I'd love it to, but until my house is free, and my food is free, and that shiny new Ferrari is free, I need to be paid for my work.... What is empirically hogwash is that you believe the creative world hasnt been DRASTICALLY impacted by people like you who want something for nothing.
11:58 PM on 01/17/2012
I have a friend who really likes chess. He's the best I've known in a long time, and good competition to play. Before I met him, I hadn't played chess in years. He's really crazy about it, and wants to achieve grandmaster status one day. In any case, he's been collecting books on how to play and has a very large collection, and probably hasn't paid for half of the digital part at all. He wanted to give me the entire collection. I asked him a few questions, especially after he told me how much it was worth, giving me pause. He told me that he doesn't care about the whole not paying thing and that he probably will not ever be able to finish reading it all. He collects it for the sheer pleasure of collecting (like some people collect stamps or baseball cards).
If I was a complete punk, I'd turn him in and he'd probably lose his job, go to jail for some time, have less of a chance of working in the future, and be in debt (extravant debt, as people like you are not realistic in how much you charge thieves when you catch them).
Without him, I would never have taken the time to return to chess, would never have gone looking for these books (still will not). When he tells me which ones are good, I'll buy them.
10:58 PM on 01/17/2012
Your characterization of file sharers as pirates and profiteers is astounding. You say you've created innovative online distribution, but you don't even offer digital downloads. AND I don't see any of your films streaming on Netflix either. Who is really out of touch?
10:40 AM on 01/18/2012
You haven't looked very hard dude. All their films are on Netflix, Amazon, etc. and more. They have other online outlets that offer titles worldwide with subtitles too. Next time do your research before you write a post that is flat out wrong.
06:22 PM on 01/18/2012
Thanks, Willa. I just posted below about this as well. We send out bi-weekly updates about the many platforms that offer Wolfe movies via our QMovieBlog.com Newsletter if anyone wants to subscribe.
09:26 PM on 01/17/2012
I have friends who pirate films, one of them a lot and quite systematically. I don`t really approve of that. Being a retired librarian, I have a strong respect for the importance of copyright protection, so long as it is within reasonable limits. However, some of the truly Draconian measures being considered in the U.S. and in the Dominion of Canada to punish those who make pirated copies of films (and music, etc.) simply amount to cruelity, astronomical fines and long imprisonments. This kind of thing simply is unconscionable; one should impose judgments that will halt the copyright corsair`s illegal copying, but NOT BANKRUPT, ruin, or deprive him of his liberty for years on end.
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HUFFPOST COMMUNITY MODERATOR
lifeofthemind
12:09 AM on 01/18/2012
The Authors Guild is trying to shut down libraries, so they have that angle covered as well.
10:22 AM on 01/18/2012
All kinds of odd and pernicious things are going on in the U. S. of A. regarding libraries, e.g., spying on loan records of clients, closing down public and school libraries or severely limiting their hours in cash-strapped cities, probably eventually college and university libraries, too, as the economic crisis deepens, even shutting down and abandoning libraries altogether to rot and decay (with their collections inside), and so on. The worth of libraries is under severe assault.

Fortunately, little of this sort of thing is happening here in our Dominion of Canada, but watch out for Stephen Harper`s agenda. I`m glad that my career has ended and that I am retired. These are bad times for aspiring young librarians. My career took place in better times.
10:24 AM on 01/18/2012
Have you actually read the revised law. It would do no such thing. Of course Google has good reason to want you to believe that's the case. It's about protecting their profits.
10:41 AM on 01/18/2012
No, but I was not referring to that in my reply to another comments. I had more in mind the situation of American libraries, rather than of copyright more generally. The abuses are those of law enforcement and administration, not of this act in particular. Sorry if I was not clear about that.
02:03 AM on 01/21/2012
Google et al, make BILLIONS from ads directing people to pirated property. That is the TRUE reason they oppose legislation.
08:16 PM on 01/17/2012
I come at this from the Wikipedia issue. Basically if SOPA and PIPA go through the majority of WIki articles can be targeted as illegal. These laws are over kill. I have never downloaded movie, nor do I want to. If I really like something I will buy a copy of it. It might take me a few months to scrape the money together, but I will put it on my wish list until then. But if Kathy and Wolfe want to support laws that makes my blog on electrical engineering illegal because I might have a picture of something I am writing about (that has nothing to do with downloading her movies), I will stop buying anything from Wolfe or Kathy. I vote with my pocket book. I didn’t support the CD music companies when they tried to pull this, I am not going to support anyone that supports SOPA or PIPA.
10:26 AM on 01/18/2012
Not true. I suggest you read the revised version of the law. Don't buy the hype and misinformation that is sweeping the web (and promoted by those whose bottom line is threatened). I also suggest you look in to what company helps underwrite Wikipedia.

It's not going to make your blog illegal.
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Draekia
Open-minded thinker and traveller
08:28 PM on 01/18/2012
No, but it gives a company the unilateral authority to order your blog shut down if they so desire. Regardless of past/likely behavior, the potential is too great to allow the law to go through.
05:52 PM on 01/18/2012
D9W,
You say, "If I really like something I will buy a copy of it." Then, in the same paragraph, you suggest that you will rip off a photographer and post a photograph to enhance your blog (even if doing so might make your blog illegal) with no mention of buying a license.

Why would you not go to the legal photo licensing places, and pay a very reasonable fee (as little as $1.00) for a license to use a photograph to illustrate your electrical engineering points?

All photographers have copyrights, too, and many of them are being seriously hurt by the attitude that anything on the internet can be appropriated. Or ask. Some will surely give you permission in exchange for proper attribution and a link.
02:08 AM on 01/21/2012
What you have identified, Rowena, is a microcosm of what goole et al do on a large scale. Of course it would be easy to obtain permission but it is just SOOOOOOOOOO much easier to steal it. And people want the easiest route possible. Google makes BILLIONS and they could easily remove prate sites from their ads etc, they just chose not too because it is easier and would cost them money. Google removed MILLIONS of sites last year from their engines without cause or sue process....
03:07 PM on 01/17/2012
Just to clarify the discussion a bit:

When you talk about the "cyber lockers" that make multiple downloads available, you're talking about one site/server hosting your pirated work. Those are the "thieves" who presumably "profit"in some way from your work.

However, in my experience, the vast majority of users who download pirated media do it for one of two reasons:

1. They're stretched thin financially and just can't afford it.
2. They can't get it through legal means (i.e., DRM, DVD region code issues, overseas distribution issues, overseas streaming issues, etc.)

The majority of those people would buy your work legally if they had the resources to do so. In fact, I (and many other people I know) buy iTunes or Amazon subscriptions to our favorite TV shows as they air, but also buy the DVD sets when they come out at the close of the season just to support the show.

I understand how tough it is to make it as a creative professional in this economy. The problem is, it's tough to make it in *any* profession in this economy. It may be time to evaluate your business model and look for innovative ways to reduce costs for your customers while still fairly compensating your producers.
04:55 PM on 01/17/2012
And there are those who do it because they can. They feel cooler downloading a free illegal copy vs paying for it. Wrongverb below is right, if more movies were available for streaming, on content that people were already paying for, there would be no need to pirate it. I'm tired of Netflix streaming because of all the old movies, so I also rent new movies from Vudu. But that involves paying per individual movies. A monthly package would prevent that, and elliminate the need for movie downloading.
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booksnmoreforyou
Progressive educator, activist for good government
03:07 AM on 01/18/2012
Ah, yes, the mythical person who does it just because they can.

Think about it:

While second-hand stores such as run by goodwill.org may occasionally have the apparent rich person in them trying to buy the nice close donated by their neighbors, look closer. In most cases, these are women going through a divorce, or who are in some other sort of transition that makes shopping in the normal retail stores financially problematic for them.

Goodwill second-hand stores have very few people in them doing it "just because they can." Same with the "pirated" sites. Both serve those who lack the means to be consumers from the "normal" channels.
12:01 AM on 01/18/2012
I agree with Amanda here.

I am one of those people who stream movies that are taped while sitting in a movie theatre. Half the movies I watch, I've paid to see already. Needless to say, movie tickets are expensive for watching a movie ONE TIME. Plus, we pay for Uverse (tons of movie channels) and Tivo (saves movies I haven't seen or want to see again), along with paying for Blockbuster every month (unlimited rentals). Now ask yourself. Am I wrong for streaming a movie online when I already pay for so much to already watch it at home when it hits rentals? If I really like the movie, I'll buy it. And buying it doesn't ensure you won't have to upgrade it (repurchase it in DVD b/c you had it in VHS). What does buying a movie get you? A scratched disc you can't return. An outdated source of technology. You're paying to watch a show whenever and wherever you, or anyone you know, wants to watch it. Who HASN'T watched movies at their own home with friends or family? What is the difference between watching a movie that someone else paid for?

My take on all of this is the fact that actors shouldn't get paid so much. Movie companies who charge $25.00 a DVD for something that takes $2.00 to make is considered stealing. The fact that you limit what people have access to based on their finances is wrong.
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booksnmoreforyou
Progressive educator, activist for good government
03:15 AM on 01/18/2012
Yea, there we go.

Let's make a great ordeal over poor people who watch a video for free that they otherwise could not pay for, but leave unmentioned that the actors in those films make more in one hour than most of those poor people will make in an entire lifetime.

How freaking perverted can this get???
05:59 PM on 01/18/2012
It's wrong to "steal" from anyone, but it is also wrong-headed to assume that the actors are the only people whose livelihoods are supported by movie-attendance, the sale of DVDs, and paid broadcasting on TV. Look at the credits at the end of a movie. Look at the hundreds of people who are not actors.... wardrobe people, carpenters, sound boom operators, extras.
01:46 PM on 01/17/2012
Kathy, I'm sympathetic to your aims. However, let me put it to you this way: I want to stream everything you have to offer, and I'm willing to pay for it. However, you are stuck with a business model of physical distribution and cable movie channel deals that keeps you from doing that. I don't want to own DVDs, and I have no desire to subscribe to HBO. I want to watch, what I want to watch, when I want to watch it, and in the form I want to watch it. And if it is available for streaming (I have Netflix and Amazon subscriptions), I'm happy and I do that. If it isn't available, well, as others will tell you, there are alternatives that hurt you, and hurt the artists.

This isn't about "free" vs. "not-free" for me. It's about the format I want to watch my movies in.
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mattrett
02:38 PM on 01/17/2012
Actually, it IS about free vs. not-free for you. If your desire to watch a movie the way you want to watch it makes you think you can steal it, then yeah, it is still about free vs. not-free. That said, I am sympathetic to your desire for things to be streamable. I just don't agree that it makes it okay to steal.
06:29 PM on 01/17/2012
First off, I never said I downloaded movies to watch. Only that there are alternatives to finding that which one wants to watch if it isn't offered on a site like Netflix or Amazon Prime.

Second, theft is a legal concept and I'm not offering a legal defense. I'm offering a free-market justification to show that the movie industry is losing profits and costing themselves the very jobs that they accuse pirates of costing them.
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booksnmoreforyou
Progressive educator, activist for good government
02:49 AM on 01/18/2012
Only things physical can be stolen. Think about it.
08:12 PM on 01/17/2012
Sometimes I find it inconvenient to wait in line for the cash register.. does that mean I should just walk out of the store with my merchandise so I can have it "how I want it, when I want it"?
11:12 PM on 01/17/2012
You aren't getting my point. I WANT to pay for it, but they aren't providing it.

This is like going to the store and being told that what you want isn't manufactured, then walking out the door and some guy says "here" and gives you just what you were looking for for free.
02:14 AM on 01/21/2012
Personally I find it inconvenient to pay for anything.... so from now on I will just take anything I want...... O_o
10:55 AM on 01/17/2012
Does the issue of pirated movies need to be addressed? Yes
Does the current proposed laws solve that problem? No, not in the least bit. I will still be able to go right to NYC's China Town area and get offered pirated movies at $5 a piece. Those are made by disk duplication. If the proposed laws were passed, can I still get pirated movies online? Yes. Blocking DNS does not solve that problem. It actually makes it harder for the good guys to track down the sites. Hiding a web site outside of DNS is even easier.

In your last paragraph you suggested the tech world work with Congress. Unfortunately it is clear that it is the least thing Congress did when writing SOPA. They want to swing the hammer of justice down without considering the consequences.

Freedom of expression and creativity is not something the movie industry owns, and can prevent others from expressing. An answer has to be found that doesn't oppress online creativity.

My thought is, since we are in a world that needs better online security from hackers, that the answer to both issues will soon come in the form of digital finger prints. We have to be able to track down who does what. But it has to be done with freedom of expression in mind.
01:36 PM on 01/17/2012
One should also ask why the tech industry is leading the charge against SOPA. Don't be fooled, For Google and company, this is about the bottom line and their profits. They've sold the "censorshi­p" meme, but if you take a moment to peek behind the curtain, you'll find the truth. It's about the money. Many of these "tech" companies have a lot to gain by maintainin­g the status quo. If you look at the law (along with revisions) you'll quickly realize it won't "oppress" creativity in the least.

Piracy today is about profits and you are right, technology could be used to effectively fight it. However, the only way the cyberlocker sites (ground zero for this black market business) will do anything is if laws are enacted to force their hand. Right now content theft provides them with a very lucrative income stream (thanks to Google and payment processors). Why mess with success?

Funny how folks say they are against piracy, yet aren't taking any action to work against it. Follow the money. It ain't that hard. I'm all for an "open" internet where creativity can flourish, but I also believe that such a place need not be a place where "lawlessness" can flourish as well.
01:51 PM on 01/17/2012
You got one thing right in your post. Piracy is about profits. Profits that the studios are costing you by not providing a subscription service by which their product can be downloaded for a small fee. I guarantee you, if every movie ever made was available for streaming on Netflix (even if Netflix tripled its monthly fee), the pirate sites would die (or at least their traffic would be reduced tremendously). You'd make millions.

But hey, keep defending that which is killing you. That's your prerogative.
04:21 PM on 01/17/2012
While this would cause today's tech companies money, they are also right in their statement that it would hinder new companies. If Google were just starting out today, and SOPA were in place, they would have a much tougher battle getting sponsors for their business, if they didn't have a method in place to censor websites. If Microsoft already had Bing available in that scenario, and saw Google coming up, how hard would it be for MS to squash google before they became a threat? Not that I am saying any company would take advantage of the law to squash competition, but...

As far as laws, I'm sure pirate sites in other countries are getting a good laugh at Washington trying to pass a censorship law. All they can do is blick DNS and American search engines. Doesn't fully stop anyone from getting to those sites though.

As the author of this article says, a solution MUST involve the tech industry. Washington could have easily contracted a tech company to create a method to search for and report on illegal sites. Instead they swing a heavy hammer not caring who it affects, or the impact on future development.
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booksnmoreforyou
Progressive educator, activist for good government
02:53 AM on 01/18/2012
I lived in a certain country where police, in uniform, frequented stores like you mention in China Town, where rentals of pirated videos were 50 cents per night.

Why did they do that?

Because, given their salaries, it was either that or not watch movies.

Moral of the story: A pirated movie consumed DOES NOT equal a lost sale.
08:10 AM on 01/18/2012
Well we are talking about the U.S. here. What happens in other countries is another topic all together, and not what this concerns. SOPA is a law for U.S. citizens.