Executive Summary
2. A 9 month ban on the parallel importation of films from their international release date is currently provided for under section 35(3) of the Copyright Act 1994. The section will cease to operate in October 2008.
3. There is a liberal parallel importing regime in place with regards to the book, sound recording and computer programme industries.
4. In 2007, The Ministry of Economic Development ("MED") contracted the Law and Economics Consulting Group Ltd ("LECG") to analyse the impact of the parallel importing regime on the creative industries ("the 2007 review"). The 2007 review built on a similar review conducted in 2005 ("the 2005 review") with the addition of the motion picture film industry. Four key creative industries were assessed, namely those producing:
- books;
- sound recordings;
- computer software; and
- motion pictures.
5. The 2007 review indicated that there have not been, nor are there expected to be significant detrimental effects of the parallel importation regime on the book, sound recording and computer software industries.
6. Combined analysis of the LECG Report and stakeholder input indicates that maintaining the 9 month ban on parallel importing films is the most appropriate means of encouraging investment in and promotion of the film production, distribution and exhibition industries.
7. I therefore recommend maintaining the 9 month ban on the parallel importation of films from their international release date. I also propose that the ban be reviewed in 5 years from the date of implementation. In the other creative industries, I recommend maintaining the current parallel importing policy.
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