2 October 2018 Christine Peterson Director for Intellectual Property and Innovation Office of the U.S

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2 October 2018 Christine Peterson Director for Intellectual Property and Innovation Office of the U.S. Trade Representative 600 lith Street, NW Washington, D.C. 20508

Submission by MBC Group in response to Request for Comments for 2018 Special 301 Out-of- Cycle Review of Notorious Markets (Docket No. USTR-2018-0027)

Dear Ms Peterson

MBC is a private media company based in Dubai, with offices all over the Middle East North Africa (MENA) Region employing over 2,000 employees (mainly Saudi Arabia, Egypt, Lebanon, Jordan) and a production house in Turkey. We engage in television production in local language (Arabic), acquisition and distribution and broadcast free to air across 23 countries the Middle East and North Africa where, as much as 80% of households do not pay for Tv. We also own and operate various digital platforms. We currently operate a total of 11 television channels which reach over 150 million viewers per day with further reach online as one of the top 10 biggest media companies an YouTube worldwide, and in the top 100 on Facebook and Instagram.

MBC owns exclusive rights to programming which we either produce in local language (Arabic) or acquire from cornpanies we work with, including the major US Studios (such as 20th Century Fox, NBC Universal, Paramount Pictures, Sony Pictures and Warner Brothers). Over the past 5 years, these rights continue to face infringement by various means.

Piracy within the MENA Region Since 2014, MBC has been working to maintain and track an extensive list of channels, websites, apps and social platforms, which infringe our IP rights by broadcasting or uploading our programming- whether on a broadcast level of infringement or peer to peer. We do this via a Coalition (http://rnenaapc.ord) which includes other broadcasters, satellite operators, Telcos and the MPAA who work together to combat piracy in our region.

During this time, the following have been recorded:

• Over 300 channels launched airing over 16,000 infringements of content owned by companies within the Coalition • Over 350 pirating websites launched since 2014, some with 25% reach amongst internet users

We see hope everywhere

MBC FZ LLC P.O.Box 72627, Dubai, LJAE t:+971 4 391 9999 f:+971 4 391 9900 mbc.net nib lc GROUP

• Over 350 pirating websites launched since 2014, some with 25% reach amongst internet users • Illegal network BeOutQ launched offering signals of various satellite channels {Free and Pay TV), online streaming and a custorn built app including access to the same services

Impact Infringement of our IP rights has impacted our business dramatically causing loss of viewership and, in turn revenues from advertising revenues and subscriptions, to our company.

Total estimated losses: • Over S50m per year to our core Free to Ai r business • $5m per year to our online streaming service s (www.shahid.net)

In addition we incur costs of $1m per year engaging in ant piracy activities

Action Through its work and cooperation, the Coalition has achieved the following since 2014: • Closure of 240 Free to Air channels • Take down of 165 websites • Removal of 2 million videos from social sites

We have done this by the following means: • Coordinating with partners of the Coalition to formalize a Take Down procedure with Satellite providers • Sending out infringements notices on behalf of our Coalition members whenever there is an infringement on a channel • Following up with the Service Disrupters to take down the infringement channel • Working with the IVIPAA to identify those channels/websites with the most infringements and assisting them with research to enable them to pursue Legal action in the relevant jurisdictions • Working with the Arabian Anti-Piracy Alliance ( ;I to lobby with government entities for assistance in taking down infringing websites • Employing independent companies to track and block infringing websites and links • Working internally with our digital team to remove content on YouTube, Facebook, App stores and other social media platforms.

Despite this success, new channels and websites appear constantly. Currently the following are operational and engaged in varying amounts of content infringement:

We see hope everywhere

MBC FZ LLC P.O.Box 72627, Dubai, UAE t:+971 4 391 9999 f:+971 4 391 9900 mbc.net inbc GROUP

Channels infringing rights of content Acquired from US Studios, as of September 2018

II 1 Kokky TV 11603 H Noorsat Eutelsat 7 West A Animation 2 New Alwan Cinema (C1 Action) 12562 V Noorsat Eutelsat 8 West B Western Movies 3 Scare TV 10873 V Noorsat Eutelsat 7 West A Western Movies 4 Hollywood Horror 12562 V Noorsat Eutelsat 8 West B Western Movies 5 Mickey Channel / Mickey TV 11526 H Noorsat Eutelsat 7 West A Animation 6 BABY Channel 10873 V Noorsat Eutelsat 7 West A Animation 7 Mody Kids 11603 H Noorsat Eutelsat 7 West A Animation

Channels infringing rights of Arabic owned/acquired content

Eutelsat 7 West 1 Panorama Film 11219 H Nilesat Active 1-41? A Eutelsat 7 West 2 Cairo Cinema 10777 H Nilesat Active A Eutelsat 7 West 3 1)4 1-4-4-0 Cinema Pro 10892 H Noorsat Inactive A Eutelsat 7 West 4 4554,3 Tok Tok Cima 11603 H Noorsat Inactive A Eutelsat 7 West 5 161.!-.,, L*14 iL-1,401 Al Bait Baitak Cinema 11258 H Noorsat inactive A

Eutelsat 7 West 6 1.41!_,.. zti..4,..- 7BESHA 11603 H Noorsat Inactive A Eutelsat 7 West 7 1-.314 L.4s,10-..,--, Cima Ali Baba 11603 H Noorsat Inactive A Eutelsat 8 West 8 4,-,,.9:9-1A7Y.-0 Cinema Tube 11179 H Noorsat Inactive

Eutelsat 8 West 9 L.- 1,919" t4.- -' Ci ma Tube 11179 H Noorsat Inactive

Eutelsat 8 West 10 r-15 Tatriv 1117911 -Nobrsat Inactive Eutelsat 7 West 11 Shanapoo Aflam (AlYoum 7man) 10873 V Noorsat Inactive (01-0.3 (.34. 4 l'il31 11 A Eutelsat 7 West 12 111.44,4jIlw Star Cinema 1 11526 H Noorsat Inactive A Eutelsat 7 West 13 2 ta-4.0.) b-,,, Star Cinema 2 11526 H Noorsat Inactive A

We see hope everywhere

MBC FZ LLC P.O.Box 72627, Dubai, UAE t:+971 4 391 9999 f:+971 4 391 9900 mbc.net tub c GROUP

Eutelsat 7 14 Al Masrawiya Aflam 11526 H Noorsat Inactive West A Eutelsat 8 15 21,0 2.10 Tok Tok Aflam 10892 H Noorsat Inactive . West B Eutelsat 7 16 Belody Aflam 11526 H Noorsat Inactive West A Uber Film / 4G Film / Eutelsat 8 17 11179 H Noorsat Inactive Apple Comedy West B Uber Cima / 4G Cima Eutelsat 8 18 11179 H Noorsat Inactive /Apple Cinema West B Uber Aflam / 4G Aflam / Eutelsat 8 19 11179 H Noorsat Inactive Apple Aflam West B

Uber Classic / 4G Classic / Eutelsat 8 11179 H Noorsat Inactive Apple Today West B

Eutelsat 8 21 Alostora 11179 H Noorsat Inactive West B Eutelsat 7 22 M Classic M Classic 10892 H Noorsat Inactive West A M / 144-, a-Ctu.) Darbaka Cinema / M Eutelsat 8 23 12562 V Noorsat Inactive Cinema Cinema West B Eutelsat 7 24 LTC LTC 11219 H Nilesat Inactive West A Eutelsat 7 25 1 LA-4.,. Cinema 1 10892 H Noorsat Inactive West A Eutelsat 7 26 Cinema 2 11258 H Noorsat Inactive West A Uber Cinema / 4G Cinema Eutelsat 8 27 11137 H Noorsat Inactive / Apple Drama West B Eutelsat 8 28 Gold TV / Apple Mosalslat 11179 H Noorsat Inactive West B Eutelsat 8 29 L.' WI AL SHASHA DRAMA 12562 V Noorsat Inactive West B Eutelsat 8 30 ar.t.,J1 AL Sa3a Cinema 12562 V Noorsat Inactive West B a-1-94 ) 11.2 5 Cairo Cinema (Moga Eutelsat 8 31 12563 V Noorsat Active (64-. Cinema) West B Eutelsat 8 32 Family Cinema 12563 V Noorsat Inactive West B Eutelsat 8 33 Family Hikayat 12563 V Noorsat Inactive West B Eutelsat 7 34 Family Classic 11258 H Noorsat Inactive West A Eutelsat 7 35 4.c.L.34 AL Sa3a Masra7 10873 V Noorsat Inactive West A Eutelsat 7 36 4.443.5 as. WI AL Sa3a Comedy 11603 H Noorsat Inactive West A Eutelsat 8 37 (Alia ac.L.J1 AL Sa3a Drama 12562 V Noorsat Inactive West B

We see hope everywhere

MBC FZ LLC P.O.Box 72627, Dubai, UAE t:+971 4 391 9999 f:+971 4 391 9900 mbc.net illb C GRJLJ

Eutelsat 7 38 ptelLJ1 AL Sa3a Aflam 11526 H Noorsat Inactive West A Eutelsat 7 39 tLJl AL Sa3a Cinema 11603 Fl Noorsat Inactive West A Eutelsat 8 40 (L64,0 ,p11_9.5 Dolly Cinema (D Cinema) 1117911 Noorsat Inactive West B Alkabeer Aflam (Alyoum Eutelsat 7 41 f:1-1-11 11258 F1 Noorsat Inactive Drama) West A Eutelsat 7 42 (101,—. 0)1413.— Moga Cinema (M Cinema) 11526 Fl Noorsat Inactive West A Eutelsat 8 43 FIEKAYA TV 11179 H Noorsat Inactive 4 kt5,--- West B Eutelsat 7 44 Oscar TV 11488 H Nilesat Inactive West A

Websites infringing rights of UsjArabic content

1 cimaclub.corn 1,135 Yes Yes No 80% 2 4helal.tv 6,297 No No No 78% 3 egybest.co 4,692 Yes No No 69% 4 weziwezi.com 7,725 No No No 66% 5 alarab.net 1,709 No No Yes 61% 6 shahicilive.co 9,259 No No No 58% 7 egy.best 2,421 No No No 57% 8 movizland.com 3,759 Yes Yes No 54% 9 masrawy.com 1,863 No No No 53% 10 cima4u.tv 5,352 Yes Yes No 50% 11 e171.tv 5,799 No No No 49% 12 myegy.tv 788 No No Yes 47% 13 elmstba.com 9,276 No N6 No 43% 14 masralarabia.corn 1,809 No No No 41% 15 filmey.tv 7,724 Yes Yes No 40% 16 mazika2day.com 3,996 Yes Yes No 30% 17 tvfun.ma 9,624 Yes Yes Yes 17% 18 panet.co.i1 1,629 No No Yes 15%

We see hope everywhere

MBC FZ LLC P.O.Box 72627, Dubai, UAE t:+971 4 391 9999 f:+971 4 391 9900 mbc.net mbc

Conclusion and next steps

We trust the above clearly sets out the circumstances in the MENA region, which we believe is an example of the type of market the USTR aims to combat. By including these channels/websites in the Notorious Markets report, USTR would be supporting an ongoing battle, which we take very seriously.

Specifically, we are hopeful of the following achievements:

• Encourage US IP owners to increase efforts - during the 5 year period mentioned above M BC has been forced to adjust its commercial position, reducing its commitments and the license fees it pays to US Studios by over SlOm per year in an effort to cover the losses and absorb the costs of anti-piracy activity

• Discourage further activity — with new channels and websites appearing all the time, we are hopeful that the inclusion of our comments will assist in educating and deterring others from entering into infringement activity

• We would also encourage USTR to share with us best practices on fighting piracy and raising awareness

• Push for better engagement from local authorities to help expedite the process of blockage once we find an infringing website

• Consider better regulation of cloud (Amazon, Google) infrastructures where more and more pirated content is hosted with URLs being passed peer to peer making it extremely difficult to trace and takedown

Yours sincereiy

Sam Barnett CEO

iee hope everywhere

MBC FZ LLC P.O.Box 72627, Dubai, UAE t:+971 4 391 999:4 f:+971 4 391 990L mbc.net,