Pirates’ Haven Counterfeit Industry Thrives In Turkey

It’s hard to resist the bargains. Thousands of video cassettes and software programs flank the walls of Turkish electronics stores, costing a fraction of what you’d pay in the United States.

But Turkey, operating in the shadow of more notorious intellectual property piraters to the East like China and Taiwan, hasn’t yet been targeted as a bastion of counterfeiting, even though it ranks sixth among the world’s violators and costs U.S. manufacturers millions of dollars each year.

Over the last few years, sales of pirated movies, video games, computer software and music have soared here. A copy of Walt Disney Co.’s “The Lion King” sells for $11, compared with $20 in the United States. The same goes for a Microprose computer game that sells for $3, less than a sixth of the American price.

To a large extent, American companies that have felt victimized by intellectual property pirates have focused their attention on Taiwan and China, which historically have been considered the worst violators.

China avoided a trade brawl with the United States last year by agreeing to curb counterfeit compact discs, electronics, garments and automobile parts. But knock-off goods in China are still common.

Turkey’s piracy practices are getting more serious, and U.S. manufacturers say they’re starting to feel it. The International Intellectual Property Alliance, a U.S. watchdog group, said they lost $200 million last year as a result.

Hundreds of private radio stations in Turkey broadcast recorded music without authorization. Wholesale photocopying, unauthorized translations and offset reprints of books are common practice.

In addition, pirated U.S. videos are key resources for 200 local private TV stations, hotels and cafes.

Turkish computer stores are known to load new PCs with pirated copies of popular U.S. software. As a result, pirated software has a 60 percent hold on the Turkish market, said Hakan Kaynaroglu, the Turkish manager for U.S.-based International Data Corp.

Moved by growing pressure, the Turkish government has said it will start cracking down on those companies participating in piracy.

“This whole issue is a matter of education. We have to explain that piracy amounts to stealing,” said Baha Ozyukseler, the general manager of the U.S. Motion Picture Association in Turkey.