Coming DVD recorders will speed copying.(Film/International)

HOLLYW00D Hollywood's movie piracy problem is about to get worse. The Motion Picture Assn. of America estimates that the film biz looses $3.5 billion a year due to piracy. The MPAA estimates that 350,000-400,000 films are illegally swapped on the Internet each day. But the org doesn't distinguish which films are being downloaded in the U.S., Europe or Asia--or from what source in the Bahamas, Bermuda, Burbank or elsewhere.

"The numbers today aren't what matters," says Paul Kocher, founder, prexy and chief scientist of Cryptography Research. ...

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