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ExtraTorrent.cc > Articles > Russian Largest Internet Company Warned on Piracy

Russian Largest Internet Company Warned on Piracy

Russian Largest Internet Company Warned on Piracy

Added: Tuesday, May 10th, 2011
Category: Recent Headlines Involving File Sharing > Current Events
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, 2010, www.extrattorrent.com
The CEO of Mail.ru Group, the country’s largest online company, has mentioned that media corporations will face difficulties in charging for Internet content in Russia due to rampant piracy.

Mail.ru Group runs the largest e-mail service in the country, as well as quite popular instant messaging and social networking services. In addition, it has small investments in American companies Groupon and Zynga, along with 2.3% Facebook stake. The company has been listed on the London Stock Exchange since November, which added it $1bn, thus giving it a valuation of $5.7bn.

During his first interview outside the home country since the flotation, Mail.ru CEO Dmitry Grishin admitted that the digital world is now changing the way everything can be copied. Today users of social networks upload millions of pictures and videos every day, which makes it quite difficult to find out whom the rights to the content belong to. Actually, this task is close to impossible. The company knows it for sure – it has faced claims itself that Mail.ru uses and relies on illegal content. Mail.ru Group also faced many lawsuits over these concerns. Meanwhile, it warned in 2010 that it might face even more claims for piracy, since it owns 33% of InTouch (Vkontakte.ru), the most popular social network service in the country, which is also one of the biggest sources of piracy.

Recently, Russian president Dmitry Medvedev set up an Internet team in order to discuss the possibility of implementing the law similar to the Digital Millennium Copyright Act of the United States. Mr Grishin took part in the discussion and admitted that under such law copyright holders would report cases of infringement to the sites. In their turn, websites will have a limited period of time to take the infringing content offline before facing penalties.

Although Mr. Grishin supports the idea of the copyright law, he admits that Russian entertainment industry needs to find a new business model like advertising or micropayments, which would enable it to support content creation. The reason is clear: Russian online users were disinclined to pay for expensive content – the rate of piracy is huge because nobody would pay $40 per game: in fact, that’s a week salary for some people. Meanwhile, the industry has to develop a new model soon enough: currently, Internet use is booming in the country, which is already one of the biggest online countries in Europe, and still counting. Indeed, Deutsche Bank forecasts that the country’s Internet advertising market will grow 38% annually.

May 10th,2011

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Date:  Tuesday, May 10th, 2011

Comments (4) (please add your comment »)

posted by Blocked (2011-05-10 19:07:03)
No avatarNice read

posted by Blocked (2011-05-10 20:36:01)
No avatarKool thanks for the info sam!

posted by (2011-05-12 00:46:59)
C0ldFire avatarAgain big corporations influencing the way the internet works! P2P will never stop! There will always be newer and safer ways to share!

posted by Turtle (2011-05-12 18:12:31)
julio99 avatarI sure hope p2p always has a place on the internet. I myself have noticed the amount of good video has thinned out in the last couple of years. This has to be due to the amount of lawsuits filed against dlers and ulers. One can always hope!

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