Luke has a new Father: Disney buys out Lucasfilm for $4 Billion

As a longtime Star Wars fan, this news to me was bigger than the invention of the wheel. Announced by Disney on October 30, 2012 The creator of the Star Wars universe and CEO/Executive Producer of Lucasfilm George Lucas has sold off the Star Wars universe and licensing to the Walt Disney Corporation.

In 2009 Disney purchased the Marvel universe for $3.96 billion allowing them to reap the benefits of anything ironman, Thor, Captain America, Avenger, and so on. Now Disney has purchased lucasfilm for $4.05 billion, and worth every penny. The purchase includes all that is under Lucasfilm including, the technologies that ILM and Skywalker sound has engineered over the years. 

Lucas stated he thought it was time for him to step down and try other things like philanthropy and some projects on his mind that are not Star Wars related.

The passing of the torch to Disney was a move to maintain and immortalize the Star Wars Universe in order to continuously deliver the Jedi fantasy to past- present- and future fans.

Disney will do a fine job keeping Marvel and Star Wars alive for fans to come, due to the example they have demonstrated for themselves. The Disney Brothers studio started in 1923 and well after Walt’s death, Disney has continued to prosper and dominate the entertainment industry. One of the big 5 media conglomerates, with a revenue of over $40 billion a year and a net income of over $4 billion a year “here you go Lucas, let me sacrifice a years profit for a massive future gain”(laughs his way to the bank).

What does this all mean; a lot of big changes, Kathleen Kennedy the current co-chair of Lucasfilm will now become the President of Lucasfilm reporting to the Chairman of The Walt Disney company Alan Horn. 

The Saga’s animation “Clone Wars” will probably now be aired on the Disney channel instead of Cartoon network, taking away from Turner Networks revenue, next Disneyland and Disney World will incorporate even more elaborate Star Wars themed rides and attractions. Also the merchandising will grow even more out of control than it is now. I can’t complain though, “I love my light saber chopsticks”.

But for even bigger news, Disney has announced that they will also expand on the Star Wars Saga and produce Episode VII, to be released 2015. When Disney acquired Marvel they kept the key elements concurrent but changed the stories a little to suit their audience and their own ideas. Disney will most likely keep most of the Lucasfilm elements the same, but for Episode seven give it more of a bounce hopefully not enrage any long time loyalist. 

Filmmakers Exempt in Copyright Law

According to copyright.gov The Digital Millennium copyright Act (DMCA), was originally made to limit the liability of Internet service providers in conjunction to their users engaged in media copyright infringement. The DMCA saved companies like Google’s YouTube from a Viacom lawsuit, where Viacom accused YouTube of allowing their users to illegally distribute their products along the video-sharing site.

Due to notions made by documentary filmmakers, the U.S copyright department has decided to make an exemption to the DMCA, allowing filmmakers use copyrighted media ripping content from DVD’s and streamed videos, but including Blu-Ray. [indiewire.com]

Documentary filmmakers have gotten the copyrights office to agree that this act is for the fair use of digital media in a documentary.

The exemption makes sense to me because DVD’s and streamed videos are a readily accessible resource, and how else are you suppose to show an authentic example without going over budget.

Filmmakers can make a documentary on NASA or space exploration and will be allowed to use scenes from Apollo 13 staring Tom Hanks, without fear of being reprimanded by Universal Pictures.

 The Blu-Ray not being part of the exemption, I would say doesn’t matter as long as the quality of what you are referencing is decent; the filmmaker is giving an example not reproducing a feature. The main reason I can see Blu-Ray not being part of the exemption is to deter those who would misuse the resource and have open-game with illegally distribution of a high quality format. DVD’s have always been easily rip-able but ever since Blu-Ray’s beginning, it has had a specific copy protection, utilizing multiple layer of Digital rights Management (DRM) designed to deter illegal copying, done mostly to maintain the value of the supposed future format of home entertainment.  

Even though DVD’s are rip-able and Blu-Ray’s can be ripped by the use of wide range of software available, it is still illegal for consumers to do so. 

Intellectual Property gets some extra muscle

The Motion Picture Association of America (MPAA) is the voice and advocate for the American motion pictures, home video, and television industries, with its members consisting of Disney, Paramount, Warner Bros, Sony, Universal, and Twentieth century fox.

That being said the MPAA was happy to hear that on October 3, 2012 the Department of Justice awarded more than $2.4 million dollars to 13 law enforcement agencies around the country in order to improve their ability to fight the war on Intellectual Property Rights; preventing, investigating, and prosecution against intellectual property infringement.

The agencies awarded the funding were all in association to PRO-IP which is Prioritizing Resources and Organization for Intellectual Property Act, enacted by congress and signed by President Bush in 2008, to protect creative property and jobs involved in creative the process, also suspecting that the bill will help leave Bush’s mark on history.

The IPR or Intellectual property rights centers employs a multi-layered approach to combat IP theft, involving the identification, disruption, prosecution, and dismantling of criminal organizations involved in the manufacturing and distribution of counterfeit products. When the IPR investigates IP theft it is in all aspects of business, but the MPAA appreciates the attention made due to the increase of piracy and intellectual theft in the motion picture industry, causing the industry to experience major declines in ticket sales, and mostly due to illegal distribution.  

 Michael O’Leary the Senior Executive Vice President for Global policy and External Affairs of the MPAA made a quote stating “These generous grants will support the ongoing efforts of local law enforcement working in the field to combat the theft of creative content. While we continue to work toward an Internet that works for everyone, we must also continue to protect the creative industries that contribute to national job growth and a stronger economy".

I believe that O’Leary is spot-on with the claim that the beefing up IP security will help create more jobs leading to a better economy. 

Think of a recording artist and all the people involved in the process of getting an album recorded then distributed, the main players who get the most profit will always be the producers whom invested their own money and resources in the talent, the following commission will go to the artist who is the foundation of the product. The artist or talent receives a good sum for their work but not enough to retire or become their own boss, maybe if they invest well; that isn’t the case most the time so the artist must continue to produce hit after hit to maintain a lifestyle; but the producers just needs the artist album to sell in general, it being a hit is just their bonus. 

Point being- without intellectual property rights there would be no point in wanting to become a recording artist because most your products would be given away free online or distributed by illegal parties that do not have the rights to your product, thus decreasing the revenue of the studio or producer and mainly the talent whom gets a percentage of what is left over.

Decreasing Artist salaries or even studio salaries decreases jobs needed to produce music or film, because less jobs means less dollars to pay anyone. 

                                              Respect the BIll!