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Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read New Mexico sheriff faces possible jail term over eBay sales 21 Jul 2011 Bomb rocks government offices in Oslo, two said dead | 11:35am EDT Explosion rocks central Oslo, Norway PM's office 9:47am EDT Customers angry, staff defiant at China's fake Apple Store 11:07am EDT Casey Anthony gets job offers, taxpayers get legal bill 21 Jul 2011 Discussed 198 Senate group offers $3.75 trillion deficit cuts 141 New plan offers hope for progress in debt talks 78 Debt showdown moving into crunch time Watched Korea's newest singing sensation Thu, Jul 21 2011 Pakistan Taliban releases video of mass execution Mon, Jul 18 2011 Frustration mounts in Chile over tsunami reconstruction Thu, Jul 21 2011 Spanish piracy law draws U.S. investments: minister Tweet Share this Email Print Related News Blogger sparks worldwide hunt for fake Apple stores 11:43am EDT Georgia executes man for killing parents and sister 10:25am EDT Insight: Fake Apple store cuts to core of China risk to brands 8:51am EDT UK lawmaker asks police to investigate Murdoch 7:55am EDT Exclusive: Access, Sony, Universal weigh EMI bids 7:29am EDT Analysis & Opinion Put a pause on China concept stocks Tech wrap: Amazon plans Android tablet Related Topics Technology » Media » By Tracy Rucinski and Iciar Reinlein MADRID | Fri Jul 22, 2011 10:22am EDT MADRID (Reuters) - Major U.S. and Spanish companies are preparing to invest in online music and movie services in Spain once a controversial new law to fight piracy takes effect next month, the country's culture minister said. Intellectual property watchdogs have targeted Spain as one of the world's largest copyright violators with a piracy rate of nearly 80 percent, and are closely watching the implementation of the new law. "There are Spanish companies developing large websites and U.S. companies that are seriously studying how to enter the European market," Angeles Gonzalez-Sinde told Reuters in an interview. "Until now U.S. companies were considering abandoning our country, closing their headquarters and even their delegations because it wasn't worth it," she said. The 46 year-old Sinde -- who was a screenwriter, director and president of Spain's film academy before taking on the role of culture minister two years ago -- is behind the new anti-piracy law that bears her name. The "Sinde Law" aims to shut down file-sharing web sites providing copyrighted material. The United States, home to companies that produce vast amounts of music and films, has welcomed it as a step to fight illegal downloads. DVD sales in Spain dropped 60 percent between 2006 and 2010, while sales of recorded music fell 21 percent in 2010 from the year before, according to trade association data. U.S. digital entertainment providers Netflix and UltraViolet, French retailer Carrefour and electronic goods chain Media Markt -- a unit of German retailer Metro AG -- want to offer sites for music, books, films and videogames in Spain once the law is enforced. "All of these stores are getting ready to launch a very potent, quality catalog of offerings," said Jose Manuel Tourne, manager of a Spanish anti-piracy federation that is a member of the U.S. Motion Picture Association. But first he said they want to be sure the law is effective. Meanwhile, Sinde tipped unlisted Spanish retailers Corte Ingles and FNAC as future players in the streaming video and music market, and said the new law would enable some widely visited illicit sites to go legal. This will help create jobs in a country that suffers the highest unemployment in the European Union, she said. Intellectual property-related businesses and services account for about 4 percent of Spain's gross domestic product, which is facing fragile growth as the country stutters out of a long recession. CONTROVERSIAL LAW However, the Sinde Law has been widely criticized by people on both sides of the piracy debate. Copyright owners, including some of Sinde's own film colleagues, say the law is too weak and does not provide ways of reaping the potential of the Internet, while internet companies claim it is too strict. Sinde's successor as head of Spain's film academy, director Alex de la Iglesia, resigned this year to protest against the law, saying the Internet is the film industry's "salvation." Spanish cinemas sell some 100 million movie tickets every year, while some 400 million films are downloaded illegally, according to data by copyright association EGEDA. The law won the backing of opposition parties after the government introduced safeguards to stem concerns that it would suppress freedom of expression. Two judges will rule on the recommendations by a government committee on intellectual property that a suspicious web site be closed. Sinde has also pledged to introduce stricter controls and oversight of copyright administrators after a corruption scandal at the copyrights agency made headlines this month. Police raided the country's main administrator of royalties on copyright material Sociedad General de Autores Espanoles (SGAE) for suspected embezzlement and money laundering. (Additional reporting by Teresa Larraz and Paul Day; Editing by David Holmes) Technology Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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