There's another interesting article on Attack of the Clones piracy from Reuters:

Illegal copies of U.S. filmmaker George Lucas's latest Star Wars hit the streets of Malaysia's capital, Kuala Lumpur, last weekend. In Manila's crowded, rundown district of Quiapo, Ramon, a confident teen-ager offers not only Star Wars, but "Spider-Man" and other Hollywood blockbusters on video compact disc (VCD) for as little as 30 pesos (60 U.S. cents) each. Digital video discs (DVDs) go for just 100 pesos each.

The 18-year-old says he and his brother make several thousand pesos a day operating a stall in the mini-shopping complex. He has no qualms about operating an illegal business or facing regular police raids.

"We pay the police (off)...either in cash or in stock (discs)," he said, speaking while dexterously slipping VCD covers onto individual plastic cases.

After a raid, the stall is back in business within a day, fresh supplies coming from a clandestine replicating plant nearby, he said.

The brazen openness of video piracy in the Philippines and seeming powerlessness of the government to halt it has alarmed the United States, the country which is usually most affected.

The IIPA described the situation as dire, with an explosive rise in production as pirate syndicates fled neighboring parts of Asia to make their as other governments cracked down on the practice.

"Piracy losses and levels (in the Philippines) are among the highest in the (Southeast Asian) region for certain industry sectors," it said.

The government appeared "incapable of defeating such wide-scale problems whether due to lack of capacity, funding, government will, or a combination of the three," it said.

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