Tamil Nadu's chief minister, Jayalalitha, has issued a statement promising to amend the Goondas Act in order to bring video piracy under the purview of act. This follows a one-day strike by the Tamil film industry designed to (i) highlight the need for action to curb such piracy, and (ii) seek tax concessions to guarantee its revival.

Video piracy is depleting box office revenues and poses a serious threat to the survival of the industry in the region. It has also had a knock-on effect in terms of public nuisance, with groups using the profits from such piracy to fund other anti-social activities. The Goondas Act (so named after the Hindi word 'goonda', which means gangster) was introduced to prevent piracy and protect the film industry.

The proposed amendments include the following:

• A 'video pirate' would be defined as anyone who infringes the copyright in a film, or any part of the soundtrack associated with that film.
• The Copyright Act would be more strictly enforced so as to deter piracy. The act provides for imprisonment of between six months and two years, and fines of between Rs50,000 and Rs200,000.
• Entertainment tax rates, which are currently 25% for new films and 20% for old films in urban areas, would be reduced to 15% and 10% respectively. A flat 10% entertainment tax would be levied in rural areas, irrespective of whether the film is new or old.
• Penalties would be increased in relation to the public screening of pirated films, particularly in relation to their use on buses. Penalties would rise to a maximum of two years' imprisonment with fines of between Rs100,00 and Rs500,000, with more severe punishment for repeat offenders. State Transport Corporation buses have already been instructed not to screen pirated video films.

Other possible changes include (i) exempting low-budget productions from having to pay the entertainment tax, and (ii) revising the rates for shooting films on location (eg, in places like colleges and wildlife sanctuaries).

Prerak Hora and Vivek Kathpalia, Nishith Desai Associates, Mumbai.