If you want to produce pirated discs, Singapore will be the last place you will choose as a base — and a study proves that.

In fact, given its commitment to upholding intellectual property (IP) rights, even trying to distribute counterfeit discs here is a bad idea.

But, in the hands of movie pirates, Singapore's impeccable reputation and its status as a shipping hub have become lethal weapons.

The result: Singapore has become a "very major transhipment point" for pirated discs, according to Mr Mike Ellis, regional senior vice-president and director of the Motion Picture Association (MPA). At the same time, it's being used as a "cleansing" country for this tainted, pirated material, he added.

Said Mr Ellis: "The perception is that if the cargo comes from Singapore, it must be clean."

The pirates, then, adopt a deceptively simple but effective strategy. The tainted cargo is loaded onto the vessels that make their way to Singapore's port. It never enters Singapore and is merely loaded onto other ships docked here, from where it makes its way to other countries.

In the process, it acquires the Singapore stamp of respectability. And, in the buzz of activity at the Singapore port, which prides itself on its quick turnaround times, some point to the obvious dilemma: It would be virtually impossible — and extremely disruptive — for the authorities to go around examining every consignment that is being transhipped.

Said Mr Ellis: "The situation has improved. But as long as Singapore remains a major transhipment route for all goods, pirate syndicates will find a way to deliver their products through Singapore."

It is not difficult to see why.

A study by research consultancy firm Spire of some 40 global companies operating out of Asia concluded that when it came to producing pirated goods, Singapore was a distant last.

The International Chamber of Commerce had earlier given it high marks for protecting IP — ranking it ninth out of 82 countries.

But a reputation so sterling can quite easily be exploited. According to shipping documents, many pirated optical discs that were smuggled into other countries had passed through Singapore's ports, said Mr Ellis.

The pirates got in on the act some years back. In 2004, more than 300,000 pirated DVDs seized by British customs had come on ships from Singapore.

"These numbers ranked Singapore in the top three countries — with Malaysia and Pakistan — in terms of the number of pirated DVDs seized at points of entry (in the UK)," said Mr Ellis.

By 2005, Africa had overtaken Britain as the major importer of pirated optical discs. The Intellectual Property Rights Branch then managed to seize some 435,000 pirated VCDs here that were bound for that continent.

Nevertheless, last year, some 28,000 pirated optical discs seized in Africa had passed through Singapore's ports, said Mr Ellis.

His association has been working with the Singaporean authorities to weed out the problem.

"Clearly if we have intelligence and we can provide that to the Singapore authorities, I would like to think they will look at the problem," said Mr Ellis.

A Singapore Customs official confirmed as much. "When assistance is requested and it is within our legal jurisdiction, Singapore Customs will do its utmost to investigate and take actions against the offenders," said the spokesperson.

The customs authorities have the power to confiscate illicit cargo "provided that the goods are consigned to a person with a commercial or physical presence in Singapore".

An experienced shipping lawyer, however, pointed to the constraints. "The customs can't be going around checking every ship, but if they have reasons to suspect a ship is a security threat, I'm sure they would do something about it, whether or not the goods are linked to Singapore," said the lawyer.

"So, where do you draw the line between explosives and pirated DVDs?"

The United States-based MPA, meanwhile, has just wrapped up a two-month blitz across 12 countries in the Asia-Pacific, during which five million discs were seized and 870 people arrested.

The numbers for Singapore were not very large — with 5,181 pirated discs ferreted out of secret compartments from Malaysian and Singapore-registered vehicles.

Said Mr Ellis: "In Singapore, the problem has largely shifted to the Internet (through illegal downloading). We walk along the streets of Singapore, we don't see the physical products, although we still get door-to-door salesmen and office salesmen.

"Otherwise, you can call Johor Baru and get the discs delivered."

Piracy problem doesn't just stop with discs

Forget Louis Vuitton handbags. Copycats in Asia are turning to everyday products like shampoo and milk powder to make a fast buck – with more devastating consequences.

Based on customs seizures, some US$1.92 billion ($2.92 billion) of counterfeits were traded internationally last year. And according to a global survey by Spire, counterfeits account for up to a quarter of unit sales and cause manufacturers to lose up to 28 per cent of profit in Asia.

The survey showed that fast-moving consumer goods – including clothing, over-the-counter medication and skincare products – make up one in 10 of counterfeits produced in the region. While imitations of luxury goods, which make up 25 per cent of all counterfeits, continue to dominate the industry, fake over-the-counter medication and household items are raising concern.

The World Health Organization estimates that a fifth of the one million annual deaths from malaria could be prevented if the medicine supplied is genuine.

In 2004, more than 200 babies reportedly died from malnutrition after they were fed bogus milk powder.

Within the region, the automotive industry was hardest hit by counterfeits, which accounted for 28 per cent of lost profits. China remained the "overwhelming" leader as a source of counterfeits, followed at a distance by Hong Kong, Korea, Indonesia and Thailand, according to the survey. - TODAY/sh