UPDATE 20/11/2007: Note to foreign readers. This article is about Odex’s local copyright enforcement actions that took place in Singapore in mid 2007. This is not directly related to its latest international efforts. Please refer to here for discussions on the latest development.

Here is my summary of what I think of Odex’s grand scheme to dominate the local market in one daring move, and why I think they will fail terribly and spoil it for the rest of us. As some of you may or may not know, I met with Peter Go, director of Odex, twice before and had some discussions with him long before the start of the on-going fiasco (after he read my letter). At that time, I promised him that I would not reveal anything that was said during our private conversations, so I shall honour that promise. Not that I have a need to, now that Odex has shown its hand and everything has been made public. Anyway, just hoping to clear up some FUDs that have been making their rounds in every single forum thread on the topic.

Anti-Video Piracy Association of Singapore (AVPAS) is not affliated to the government.
Never was, never will be.

Odex is the sole active member of AVPAS.
Although Odex is inconspicuously in the middle of the member list of AVPAS, it is not too much a stretch to say that AVPAS is essentially Odex and not much more. Basically it’s like how music labels use RIAA to redirect the bad publicity away from their brand names, except that Odex is failing horribly at it because they were too lazy to create a letterhead for AVPAS and decided to use their own instead. Big mistake.

Odex is not, and has never been, the dominant proliferator of anime in Singapore.
They may be the one with all the licensing rights, but exponential growth of anime’s popularity seen locally was not their doing. Odex VCDs and DVDs have never received the level of acceptance and respect given to R1 DVDs by the American anime community. With or without BitTorrent.

Odex employees download fansubs.
According to various personal blogs belonging to related individuals. Or just common sense. I mean, the only reason why those people are working for Odex is because they are anime viewers. Where do almost all Singaporean fans get their anime fix from? Hint: it ain’t packaged in silver. Are their employees being issued similar letters?

Not all the AVPAS titles are licensed for local distribution.
Although Odex is the only active member of AVPAS, it does have the consent of the Japanese studios to act on behalf of them. Odex is empowered, through its own creation AVPAS, to defend the copyrights of these studios, whether or not the works in question are licensed for distribution by Odex. This can be said to be very unfair because many of the items are not legally available in Singapore except through expensive parallel importing and the actual damages done by illegal downloading to Odex’s business is therefore zero for these particular titles. Still, it appears that Odex does indeed have the right to represent the interest of those Japanese studios and thus it is within their abilities to sue for certain titles that they do not hold the distribution rights for.

The Japanese studios are not directly involved.
As far as I can tell, the Japanese studios did not initiate this. They probably do not care about what Odex does since Singapore is an insignificant market to them. From what little information is available, it appears that AVPAS was created initially to target commercial bootlegging, for example in 2004 they won a case against a local retail chain to raid their warehouse. This suggests that the Japanese studios authorized Odex to represent their interests so as to fight what they perceive to be commercial piracy. Whether or not this authorization is now being misused by Odex for their own agendas is highly questionable.

Odex did not send any warnings.
When a local blogger first mentioned in passing that Odex was going to take legal actions, they denied it and refused to comment on it. Then one day the letters started flying out of the blue and immediately started to demand money. This really makes one question Odex’s intention.

As a private entity, Odex cannot file a criminal suit.
Although they mentioned “fines of $10,000 per item and imprisonment of 5 years” in their letter, Odex can do nothing of that sort. They can launch a civil suit against you and if they win they can claim damages incurred. But they cannot force the relevant authorities to press criminal charges against you. That is up to the government to decide.

Neither can Odex prevent any criminal charges.
Even if you pay Odex their $3,000 or so, there is nothing to stop the government from pressing criminal charges against you. Copyright infringement is a criminal offence in Singapore. Odex can do nothing to interfere with that. In fact, even if they promise not to sue you themselves, there is nothing that legally prevents them from reporting you to the relevant authorities. In fact, it would be illegal for them to make such a promise.

Odex claims $3,000-$5,000 settlement is for legal and tracking fees.
With 1,000 subpoenaed IP addresses per ISP for SingNet, Starhub and PacNet, we end up with exactly 3,000 IP addresses being affected. Let’s very generously estimate that PacNet manages to appeal successfully and protect the identity of its subscribers and that 1/3 of the addresses are either duplicates (due to dynamic IP assignment) or otherwise unsuitable for Odex’s purpose (e.g. employees, friends and/or relatives). We are still left with about 1,300 or so targets. Let’s assume that everyone only has to pay, on average, $3,000. That is a total of 3.9 million dollars we are talking about, and that is the low end assumption. It can potentially be twice as much if you change a few variables.

According to this The New Paper article, Odex enlisted the help of a US company in tracking BitTorrent downloads. It doesn’t take 3.9 million dollars to run a bunch of servers to auto-scrape at regular intervals every torrent file posted on AnimeSuki and TokyoTosho using their RSS feeds. As for legal fees, Odex mailed their letter using their own letterhead and, from the accounts of people who received the letter, there is no indication that a lawyer was present during their meetings with Odex representatives. Which means that Odex only had to pay for at most legal advices, if anything at all. Certainly not worth 3.9 million dollars.

All that money has to go somewhere. I wonder where…

Odex has already paid all the necessary fees.
At least, that seems to be a logical assumption, since people don’t work for free. In other words, Odex created this elaborate scheme to instil fear, uncertainty and doubt into fansub downloaders, but they don’t want to have to pay for it themselves. So now they are asking you to pay up. They want to have your cake and eat it too. Also, what happens when they have collected enough to make back their original investment? I doubt it was anything more than $100,000, unless people really do pay millions(!?) of dollars for someone to scrape torrent trackers, in which case I shall end my rant here because I have a company to start up. After making back their investment, will Odex cease this futile fear mongering or will they earn some profits while they are at it? Have they already earned back their investment? I think there are a lot of questions in this area that need answering.

Odex does not have a foolproof case in court.
There is little precedence to work with, but there are many holes in their argument. The only evidence they have of your infringement is the IP address, which may not be enough. Various people have also reported that they were turned away when they went to talk to Odex with a lawyer, which is an indication that Odex is uncertain about the validity of its claims. At least one person was advised by his lawyer to ignore the letter and delete all the things he downloaded. So far Odex has not taken any actions against him. If more people refuse to pay up, Odex may be forced to either sue someone to make an example of him or to give up on this whole endeavour. If they do sue, there is no guarantee of victory and it is very hard to guess how much damages the court will award even if they win. It may even be less than $3,000-$5,000.

You are not guilty until proven so in court.
You are not obligated to show anything to Odex just because they send you a letter. You do not have to admit to anything and you should not incriminate yourself. Ask them for all the evidence they have against you. Ask them to explain clearly how each piece of evidence proves their claims. Ask them for a breakdown of the payment and why the amount varies from person to person, especially since they claim that it is supposed to be for the fees they have incurred. Do not sign anything. Seek legal advice if possible.

Odex is attempting to launch a Video-On-Demand service.
Prevent people from downloading and then launch their own service. It seemed like the perfect plan. Unfortunately, it was delayed (perhaps indefinitely), leaving people with nothing but an empty “under construction” page. Also, consider the next point…

The Odex brand is permanently tainted.
Who is going to utilize a VOD service if Odex does manage to get it up eventually? The same teenage anime fans that are defacing pictures of Stephen Sing, the other director of Odex, on HWZ now? Somehow, I don’t think so. Mr. Peter Go also mentioned in the TNP article that Odex sales fell 50% in 2006. Well, who’s taking bets for 2007? In the unlikelihood that sales actually improve, it can only be attributed to market demands generated by certain pyrotechnic displays. Seriously, I have bought Odex VCDs before and now I won’t ever again. How exactly was this supposed to be a response to poor sales again?

My General Paper teacher read about this in the papers and he thinks that Odex is just being greedy.
This is the first time my teacher has heard of Odex. His opinion is that if Odex was really working for the public good, they should have given sufficient prior warnings. It’s very sad when such an unpleasant undertaking becomes your company’s sole source of publicity for most of the population who has, until now, been completely oblivious to your existence. Contrary to the popular old saying, there is such a thing as bad publicity, especially when you are trying to sell something.

Most other forms of downloading are not affected.
HTTP, FTP, IRC, video streaming sites and a whole lot more. BitTorrent just so happens to be easily monitored due to every torrent file having its own tracker and swarm. But no US company is going to be able to log your HTTP downloads without violating some much more serious laws. While P2P file-sharing networks are vulnerable, they are much less so than BitTorrent due to the different nature in file distribution. Ultimately, this crackdown will only serve to increase the popularity of crunchyroll and similar video streaming sites, which is indeed a terrible prospect for those of us who somewhat value video quality, but does nothing for Odex’s stated goal of fighting illegal downloads.

Well, that’s a lot of typing. Maybe I’ll update this when I think of more things.

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