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On 27 June 1950, two days after the KPA invaded and three months before the Chinese entered the war, President Truman dispatched the United States Seventh Fleet to the Taiwan Strait, to prevent hostilities between the Nationalist Republic of China (Taiwan) and the People's Republic of China (PRC). On 4 August 1950, with the PRC invasion of Taiwan aborted, Mao Zedong reported to the Politburo that he would intervene in Korea when the People's Liberation Army's (PLA) Taiwan invasion force was reorganized into the PLA North East Frontier Force. China justified its entry into the war as a response to "American aggression in the guise of the UN". |
In a series of emergency meetings that lasted from 2–5 October, Chinese leaders debated whether to send Chinese troops into Korea. There was considerable resistance among many leaders, including senior military leaders, to confronting the U.S. in Korea. Mao strongly supported intervention, and Zhou was one of the few Chinese leaders who firmly supported him. After Lin Biao politely refused Mao's offer to command Chinese forces in Korea (citing his upcoming medical treatment), Mao decided that Peng Dehuai would be the commander of the Chinese forces in Korea after Peng agreed to support Mao's position. Mao then asked Peng to speak in favor of intervention to the rest of the Chinese leaders. After Peng made the case that if U.S. troops conquered Korea and reached the Yalu they might cross it and invade China the Politburo agreed to intervene in Korea. Later, the Chinese claimed that US bombers had violated PRC national airspace on three separate occasions and attacked Chinese targets before China intervened. On 8 October 1950, Mao Zedong redesignated the PLA North East Frontier Force as the Chinese People's Volunteer Army (PVA). |
In order to enlist Stalin's support, Zhou and a Chinese delegation left for Moscow on 8 October, arriving there on 10 October at which point they flew to Stalin's home at the Black Sea. There they conferred with the top Soviet leadership which included Joseph Stalin as well as Vyacheslav Molotov, Lavrentiy Beria and Georgi Malenkov. Stalin initially agreed to send military equipment and ammunition, but warned Zhou that the Soviet Union's air force would need two or three months to prepare any operations. In a subsequent meeting, Stalin told Zhou that he would only provide China with equipment on a credit basis, and that the Soviet air force would only operate over Chinese airspace, and only after an undisclosed period of time. Stalin did not agree to send either military equipment or air support until March 1951. Mao did not find Soviet air support especially useful, as the fighting was going to take place on the south side of the Yalu. Soviet shipments of matériel, when they did arrive, were limited to small quantities of trucks, grenades, machine guns, and the like. |
UN aerial reconnaissance had difficulty sighting PVA units in daytime, because their march and bivouac discipline minimized aerial detection. The PVA marched "dark-to-dark" (19:00–03:00), and aerial camouflage (concealing soldiers, pack animals, and equipment) was deployed by 05:30. Meanwhile, daylight advance parties scouted for the next bivouac site. During daylight activity or marching, soldiers were to remain motionless if an aircraft appeared, until it flew away; PVA officers were under order to shoot security violators. Such battlefield discipline allowed a three-division army to march the 286 miles (460 km) from An-tung, Manchuria, to the combat zone in some 19 days. Another division night-marched a circuitous mountain route, averaging 18 miles (29 km) daily for 18 days. |
Meanwhile, on 10 October 1950, the 89th Tank Battalion was attached to the 1st Cavalry Division, increasing the armor available for the Northern Offensive. On 15 October, after moderate KPA resistance, the 7th Cavalry Regiment and Charlie Company, 70th Tank Battalion captured Namchonjam city. On 17 October, they flanked rightwards, away from the principal road (to Pyongyang), to capture Hwangju. Two days later, the 1st Cavalry Division captured Pyongyang, the North's capital city, on 19 October 1950. Kim Il Sung and his government temporarily moved its capital to Sinuiju – although as UNC forces approached, the government again moved – this time to Kanggye. |
On 15 October 1950, President Truman and General MacArthur met at Wake Island in the mid-Pacific Ocean. This meeting was much publicized because of the General's discourteous refusal to meet the President on the continental United States. To President Truman, MacArthur speculated there was little risk of Chinese intervention in Korea, and that the PRC's opportunity for aiding the KPA had lapsed. He believed the PRC had some 300,000 soldiers in Manchuria, and some 100,000–125,000 soldiers at the Yalu River. He further concluded that, although half of those forces might cross south, "if the Chinese tried to get down to Pyongyang, there would be the greatest slaughter" without air force protection. |
After secretly crossing the Yalu River on 19 October, the PVA 13th Army Group launched the First Phase Offensive on 25 October, attacking the advancing UN forces near the Sino-Korean border. This military decision made solely by China changed the attitude of the Soviet Union. Twelve days after Chinese troops entered the war, Stalin allowed the Soviet Air Force to provide air cover, and supported more aid to China. After decimating the ROK II Corps at the Battle of Onjong, the first confrontation between Chinese and U.S. military occurred on 1 November 1950; deep in North Korea, thousands of soldiers from the PVA 39th Army encircled and attacked the U.S. 8th Cavalry Regiment with three-prong assaults—from the north, northwest, and west—and overran the defensive position flanks in the Battle of Unsan. The surprise assault resulted in the UN forces retreating back to the Ch'ongch'on River, while the Chinese unexpectedly disappeared into mountain hideouts following victory. It is unclear why the Chinese did not press the attack and follow up their victory. |
On 25 November at the Korean western front, the PVA 13th Army Group attacked and overran the ROK II Corps at the Battle of the Ch'ongch'on River, and then decimated the US 2nd Infantry Division on the UN forces' right flank. The UN Command retreated; the U.S. Eighth Army's retreat (the longest in US Army history) was made possible because of the Turkish Brigade's successful, but very costly, rear-guard delaying action near Kunuri that slowed the PVA attack for two days (27–29 November). On 27 November at the Korean eastern front, a U.S. 7th Infantry Division Regimental Combat Team (3,000 soldiers) and the U.S. 1st Marine Division (12,000–15,000 marines) were unprepared for the PVA 9th Army Group's three-pronged encirclement tactics at the Battle of Chosin Reservoir, but they managed to escape under Air Force and X Corps support fire—albeit with some 15,000 collective casualties. |
By 30 November, the PVA 13th Army Group managed to expel the U.S. Eighth Army from northwest Korea. Retreating from the north faster than they had counter-invaded, the Eighth Army crossed the 38th parallel border in mid December. UN morale hit rock bottom when commanding General Walton Walker of the U.S. Eighth Army was killed on 23 December 1950 in an automobile accident. In northeast Korea by 11 December, the U.S. X Corps managed to cripple the PVA 9th Army Group while establishing a defensive perimeter at the port city of Hungnam. The X Corps were forced to evacuate by 24 December in order to reinforce the badly depleted U.S. Eighth Army to the south. |
During the Hungnam evacuation, about 193 shiploads of UN Command forces and matériel (approximately 105,000 soldiers, 98,000 civilians, 17,500 vehicles, and 350,000 tons of supplies) were evacuated to Pusan. The SS Meredith Victory was noted for evacuating 14,000 refugees, the largest rescue operation by a single ship, even though it was designed to hold 12 passengers. Before escaping, the UN Command forces razed most of Hungnam city, especially the port facilities; and on 16 December 1950, President Truman declared a national emergency with Presidential Proclamation No. 2914, 3 C.F.R. 99 (1953), which remained in force until 14 September 1978.[b] The next day (17 December 1950) Kim Il-sung was deprived of the right of command of KPA by China. After that, the leading part of the war became the Chinese army. Following that, on 1 February 1951, United Nations General Assembly adopted a draft resolution condemning China as an aggressor in the Korean War. |
With Lieutenant-General Matthew Ridgway assuming the command of the U.S. Eighth Army on 26 December, the PVA and the KPA launched their Third Phase Offensive (also known as the "Chinese New Year's Offensive") on New Year's Eve of 1950. Utilizing night attacks in which UN Command fighting positions were encircled and then assaulted by numerically superior troops who had the element of surprise, the attacks were accompanied by loud trumpets and gongs, which fulfilled the double purpose of facilitating tactical communication and mentally disorienting the enemy. UN forces initially had no familiarity with this tactic, and as a result some soldiers panicked, abandoning their weapons and retreating to the south. The Chinese New Year's Offensive overwhelmed UN forces, allowing the PVA and KPA to conquer Seoul for the second time on 4 January 1951. |
UN forces retreated to Suwon in the west, Wonju in the center, and the territory north of Samcheok in the east, where the battlefront stabilized and held. The PVA had outrun its logistics capability and thus were unable to press on beyond Seoul as food, ammunition, and matériel were carried nightly, on foot and bicycle, from the border at the Yalu River to the three battle lines. In late January, upon finding that the PVA had abandoned their battle lines, General Ridgway ordered a reconnaissance-in-force, which became Operation Roundup (5 February 1951). A full-scale X Corps advance proceeded, which fully exploited the UN Command's air superiority, concluding with the UN reaching the Han River and recapturing Wonju. |
In early February, the South Korean 11th Division ran the operation to destroy the guerrillas and their sympathizer citizens in Southern Korea. During the operation, the division and police conducted the Geochang massacre and Sancheong-Hamyang massacre. In mid-February, the PVA counterattacked with the Fourth Phase Offensive and achieved initial victory at Hoengseong. But the offensive was soon blunted by the IX Corps positions at Chipyong-ni in the center. Units of the U.S. 2nd Infantry Division and the French Battalion fought a short but desperate battle that broke the attack's momentum. The battle is sometimes known as the Gettysburg of the Korean War. The battle saw 5,600 Korean, American and French troops defeat a numerically superior Chinese force. Surrounded on all sides, the U.S. 2nd Infantry Division Warrior Division's 23rd Regimental Combat Team with an attached French Battalion was hemmed in by more than 25,000 Chinese Communist forces. United Nations forces had previously retreated in the face of large Communist forces instead of getting cut off, but this time they stood and fought at odds of roughly 15 to 1. |
In the last two weeks of February 1951, Operation Roundup was followed by Operation Killer, carried out by the revitalized Eighth Army. It was a full-scale, battlefront-length attack staged for maximum exploitation of firepower to kill as many KPA and PVA troops as possible. Operation Killer concluded with I Corps re-occupying the territory south of the Han River, and IX Corps capturing Hoengseong. On 7 March 1951, the Eighth Army attacked with Operation Ripper, expelling the PVA and the KPA from Seoul on 14 March 1951. This was the city's fourth conquest in a years' time, leaving it a ruin; the 1.5 million pre-war population was down to 200,000, and people were suffering from severe food shortages. |
On 1 March 1951 Mao sent a cable to Stalin, in which he emphasized the difficulties faced by Chinese forces and the urgent need for air cover, especially over supply lines. Apparently impressed by the Chinese war effort, Stalin finally agreed to supply two air force divisions, three anti-aircraft divisions, and six thousand trucks. PVA troops in Korea continued to suffer severe logistical problems throughout the war. In late April Peng Dehuai sent his deputy, Hong Xuezhi, to brief Zhou Enlai in Beijing. What Chinese soldiers feared, Hong said, was not the enemy, but that they had nothing to eat, no bullets to shoot, and no trucks to transport them to the rear when they were wounded. Zhou attempted to respond to the PVA's logistical concerns by increasing Chinese production and improving methods of supply, but these efforts were never completely sufficient. At the same time, large-scale air defense training programs were carried out, and the Chinese Air Force began to participate in the war from September 1951 onward. |
On 11 April 1951, Commander-in-Chief Truman relieved the controversial General MacArthur, the Supreme Commander in Korea. There were several reasons for the dismissal. MacArthur had crossed the 38th parallel in the mistaken belief that the Chinese would not enter the war, leading to major allied losses. He believed that whether or not to use nuclear weapons should be his own decision, not the President's. MacArthur threatened to destroy China unless it surrendered. While MacArthur felt total victory was the only honorable outcome, Truman was more pessimistic about his chances once involved in a land war in Asia, and felt a truce and orderly withdrawal from Korea could be a valid solution. MacArthur was the subject of congressional hearings in May and June 1951, which determined that he had defied the orders of the President and thus had violated the U.S. Constitution. A popular criticism of MacArthur was that he never spent a night in Korea, and directed the war from the safety of Tokyo. |
General Ridgway was appointed Supreme Commander, Korea; he regrouped the UN forces for successful counterattacks, while General James Van Fleet assumed command of the U.S. Eighth Army. Further attacks slowly depleted the PVA and KPA forces; Operations Courageous (23–28 March 1951) and Tomahawk (23 March 1951) were a joint ground and airborne infilltration meant to trap Chinese forces between Kaesong and Seoul. UN forces advanced to "Line Kansas", north of the 38th parallel. The 187th Airborne Regimental Combat Team's ("Rakkasans") second of two combat jumps was on Easter Sunday, 1951, at Munsan-ni, South Korea, codenamed Operation Tomahawk. The mission was to get behind Chinese forces and block their movement north. The 60th Indian Parachute Field Ambulance provided the medical cover for the operations, dropping an ADS and a surgical team and treating over 400 battle casualties apart from the civilian casualties that formed the core of their objective as the unit was on a humanitarian mission. |
The Chinese counterattacked in April 1951, with the Fifth Phase Offensive, also known as the Chinese Spring Offensive, with three field armies (approximately 700,000 men). The offensive's first thrust fell upon I Corps, which fiercely resisted in the Battle of the Imjin River (22–25 April 1951) and the Battle of Kapyong (22–25 April 1951), blunting the impetus of the offensive, which was halted at the "No-name Line" north of Seoul. On 15 May 1951, the Chinese commenced the second impulse of the Spring Offensive and attacked the ROK Army and the U.S. X Corps in the east at the Soyang River. After initial success, they were halted by 20 May. At month's end, the U.S. Eighth Army counterattacked and regained "Line Kansas", just north of the 38th parallel. The UN's "Line Kansas" halt and subsequent offensive action stand-down began the stalemate that lasted until the armistice of 1953. |
For the remainder of the Korean War the UN Command and the PVA fought, but exchanged little territory; the stalemate held. Large-scale bombing of North Korea continued, and protracted armistice negotiations began 10 July 1951 at Kaesong. On the Chinese side, Zhou Enlai directed peace talks, and Li Kenong and Qiao Guanghua headed the negotiation team. Combat continued while the belligerents negotiated; the UN Command forces' goal was to recapture all of South Korea and to avoid losing territory. The PVA and the KPA attempted similar operations, and later effected military and psychological operations in order to test the UN Command's resolve to continue the war. |
The principal battles of the stalemate include the Battle of Bloody Ridge (18 August–15 September 1951), the Battle of the Punchbowl (31 August-21 September 1951), the Battle of Heartbreak Ridge (13 September–15 October 1951), the Battle of Old Baldy (26 June–4 August 1952), the Battle of White Horse (6–15 October 1952), the Battle of Triangle Hill (14 October–25 November 1952), the Battle of Hill Eerie (21 March–21 June 1952), the sieges of Outpost Harry (10–18 June 1953), the Battle of the Hook (28–29 May 1953), the Battle of Pork Chop Hill (23 March–16 July 1953), and the Battle of Kumsong (13–27 July 1953). |
Chinese troops suffered from deficient military equipment, serious logistical problems, overextended communication and supply lines, and the constant threat of UN bombers. All of these factors generally led to a rate of Chinese casualties that was far greater than the casualties suffered by UN troops. The situation became so serious that, on November 1951, Zhou Enlai called a conference in Shenyang to discuss the PVA's logistical problems. At the meeting it was decided to accelerate the construction of railways and airfields in the area, to increase the number of trucks available to the army, and to improve air defense by any means possible. These commitments did little to directly address the problems confronting PVA troops. |
In the months after the Shenyang conference Peng Dehuai went to Beijing several times to brief Mao and Zhou about the heavy casualties suffered by Chinese troops and the increasing difficulty of keeping the front lines supplied with basic necessities. Peng was convinced that the war would be protracted, and that neither side would be able to achieve victory in the near future. On 24 February 1952, the Military Commission, presided over by Zhou, discussed the PVA's logistical problems with members of various government agencies involved in the war effort. After the government representatives emphasized their inability to meet the demands of the war, Peng, in an angry outburst, shouted: "You have this and that problem... You should go to the front and see with your own eyes what food and clothing the soldiers have! Not to speak of the casualties! For what are they giving their lives? We have no aircraft. We have only a few guns. Transports are not protected. More and more soldiers are dying of starvation. Can't you overcome some of your difficulties?" The atmosphere became so tense that Zhou was forced to adjourn the conference. Zhou subsequently called a series of meetings, where it was agreed that the PVA would be divided into three groups, to be dispatched to Korea in shifts; to accelerate the training of Chinese pilots; to provide more anti-aircraft guns to the front lines; to purchase more military equipment and ammunition from the Soviet Union; to provide the army with more food and clothing; and, to transfer the responsibility of logistics to the central government. |
The on-again, off-again armistice negotiations continued for two years, first at Kaesong, on the border between North and South Korea, and then at the neighbouring village of Panmunjom. A major, problematic negotiation point was prisoner of war (POW) repatriation. The PVA, KPA, and UN Command could not agree on a system of repatriation because many PVA and KPA soldiers refused to be repatriated back to the north, which was unacceptable to the Chinese and North Koreans. In the final armistice agreement, signed on 27 July 1953, a Neutral Nations Repatriation Commission, under the chairman Indian General K. S. Thimayya, was set up to handle the matter. |
In 1952, the United States elected a new president, and on 29 November 1952, the president-elect, Dwight D. Eisenhower, went to Korea to learn what might end the Korean War. With the United Nations' acceptance of India's proposed Korean War armistice, the KPA, the PVA, and the UN Command ceased fire with the battle line approximately at the 38th parallel. Upon agreeing to the armistice, the belligerents established the Korean Demilitarized Zone (DMZ), which has since been patrolled by the KPA and ROKA, United States, and Joint UN Commands. |
The Demilitarized Zone runs northeast of the 38th parallel; to the south, it travels west. The old Korean capital city of Kaesong, site of the armistice negotiations, originally was in pre-war South Korea, but now is part of North Korea. The United Nations Command, supported by the United States, the North Korean People's Army, and the Chinese People's Volunteers, signed the Armistice Agreement on 27 July 1953 to end the fighting. The Armistice also called upon the governments of South Korea, North Korea, China and the United States to participate in continued peace talks. The war is considered to have ended at this point, even though there was no peace treaty. North Korea nevertheless claims that it won the Korean War. |
After the war, Operation Glory was conducted from July to November 1954, to allow combatant countries to exchange their dead. The remains of 4,167 U.S. Army and U.S. Marine Corps dead were exchanged for 13,528 KPA and PVA dead, and 546 civilians dead in UN prisoner-of-war camps were delivered to the South Korean government. After Operation Glory, 416 Korean War unknown soldiers were buried in the National Memorial Cemetery of the Pacific (The Punchbowl), on the island of Oahu, Hawaii. Defense Prisoner of War/Missing Personnel Office (DPMO) records indicate that the PRC and the DPRK transmitted 1,394 names, of which 858 were correct. From 4,167 containers of returned remains, forensic examination identified 4,219 individuals. Of these, 2,944 were identified as American, and all but 416 were identified by name. From 1996 to 2006, the DPRK recovered 220 remains near the Sino-Korean border. |
After a new wave of UN sanctions, on 11 March 2013, North Korea claimed that it had invalidated the 1953 armistice. On 13 March 2013, North Korea confirmed it ended the 1953 Armistice and declared North Korea "is not restrained by the North-South declaration on non-aggression". On 30 March 2013, North Korea stated that it had entered a "state of war" with South Korea and declared that "The long-standing situation of the Korean peninsula being neither at peace nor at war is finally over". Speaking on 4 April 2013, the U.S. Secretary of Defense, Chuck Hagel, informed the press that Pyongyang had "formally informed" the Pentagon that it had "ratified" the potential usage of a nuclear weapon against South Korea, Japan and the United States of America, including Guam and Hawaii. Hagel also stated that the United States would deploy the Terminal High Altitude Area Defense anti-ballistic missile system to Guam, because of a credible and realistic nuclear threat from North Korea. |
The initial assault by North Korean KPA forces were aided by the use of Soviet T-34-85 tanks. A North Korean tank corps equipped with about 120 T-34s spearheaded the invasion. These drove against a ROK Army with few anti-tank weapons adequate to deal with the Soviet T-34s. Additional Soviet armor was added as the offensive progressed. The North Korean tanks had a good deal of early successes against South Korean infantry, elements of the 24th Infantry Division, and those United States built M24 Chaffee light tanks that they encountered. Interdiction by ground attack aircraft was the only means of slowing the advancing Korean armor. The tide turned in favour of the United Nations forces in August 1950 when the North Koreans suffered major tank losses during a series of battles in which the UN forces brought heavier equipment to bear, including M4A3 Sherman medium tanks backed by U.S. M26 heavy tanks, along with the British Centurion, Churchill, and Cromwell tanks. |
Because neither Korea had a significant navy, the Korean War featured few naval battles. A skirmish between North Korea and the UN Command occurred on 2 July 1950; the U.S. Navy cruiser USS Juneau, the Royal Navy cruiser HMS Jamaica, and the frigate HMS Black Swan fought four North Korean torpedo boats and two mortar gunboats, and sank them. USS Juneau later sank several ammunition ships that had been present. The last sea battle of the Korean War occurred at Inchon, days before the Battle of Incheon; the ROK ship PC-703 sank a North Korean mine layer in the Battle of Haeju Island, near Inchon. Three other supply ships were sunk by PC-703 two days later in the Yellow Sea. Thereafter, vessels from the UN nations held undisputed control of the sea about Korea. The gun ships were used in shore bombardment, while the aircraft carriers provided air support to the ground forces. |
During most of the war, the UN navies patrolled the west and east coasts of North Korea, sinking supply and ammunition ships and denying the North Koreans the ability to resupply from the sea. Aside from very occasional gunfire from North Korean shore batteries, the main threat to United States and UN navy ships was from magnetic mines. During the war, five U.S. Navy ships were lost to mines: two minesweepers, two minesweeper escorts, and one ocean tug. Mines and gunfire from North Korean coastal artillery damaged another 87 U.S. warships, resulting in slight to moderate damage. |
The Chinese intervention in late October 1950 bolstered the Korean People's Air Force (KPAF) of North Korea with the MiG-15, one of the world's most advanced jet fighters. The fast, heavily armed MiG outflew first-generation UN jets such as the F-80 (United States Air Force) and Gloster Meteors (Royal Australian Air Force), posing a real threat to B-29 Superfortress bombers even under fighter escort. Fearful of confronting the United States directly, the Soviet Union denied involvement of their personnel in anything other than an advisory role, but air combat quickly resulted in Soviet pilots dropping their code signals and speaking over the wireless in Russian. This known direct Soviet participation was a casus belli that the UN Command deliberately overlooked, lest the war for the Korean peninsula expand to include the Soviet Union, and potentially escalate into atomic warfare. |
The USAF countered the MiG-15 by sending over three squadrons of its most capable fighter, the F-86 Sabre. These arrived in December 1950. The MiG was designed as a bomber interceptor. It had a very high service ceiling—50,000 feet (15,000 m) and carried very heavy weaponry: one 37 mm cannon and two 23 mm cannons. They were fast enough to dive past the fighter escort of P-80 Shooting Stars and F9F Panthers and could reach and destroy the U.S. heavy bombers. B-29 losses could not be avoided, and the Air Force was forced to switch from a daylight bombing campaign to the necessarily less accurate nighttime bombing of targets. The MiGs were countered by the F-86 Sabres. They had a ceiling of 42,000 feet (13,000 m) and were armed with six .50 caliber (12.7 mm) machine guns, which were range adjusted by radar gunsights. If coming in at higher altitude the advantage of engaging or not went to the MiG. Once in a level flight dogfight, both swept-wing designs attained comparable maximum speeds of around 660 mph (1,100 km/h). The MiG climbed faster, but the Sabre turned and dived better. |
In February 1907, the Royal Dutch Shell Group was created through the amalgamation of two rival companies: the Royal Dutch Petroleum Company of the Netherlands and the "Shell" Transport and Trading Company Ltd of the United Kingdom. It was a move largely driven by the need to compete globally with Standard Oil. The Royal Dutch Petroleum Company was a Dutch company founded in 1890 to develop an oilfield in Sumatra, and initially led by August Kessler, Hugo Loudon, and Henri Deterding. The "Shell" Transport and Trading Company (the quotation marks were part of the legal name) was a British company, founded in 1897 by Marcus Samuel, 1st Viscount Bearsted, and his brother Samuel Samuel. Their father had owned an antique company in Houndsditch, London, which expanded in 1833 to import and sell sea-shells, after which the company "Shell" took its name. |
Shell was vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It has minor renewable energy activities in the form of biofuels and wind. It has operations in over 90 countries, produces around 3.1 million barrels of oil equivalent per day and has 44,000 service stations worldwide. Shell Oil Company, its subsidiary in the United States, is one of its largest businesses. |
For various reasons, the new firm operated as a dual-listed company, whereby the merging companies maintained their legal existence, but operated as a single-unit partnership for business purposes. The terms of the merger gave 60 percent ownership of the new group to the Dutch arm and 40 percent to the British. National patriotic sensibilities would not permit a full-scale merger or takeover of either of the two companies. The Dutch company, Koninklijke Nederlandsche Petroleum Maatschappij, was in charge at The Hague of production and manufacture. A British company was formed, called the Anglo-Saxon Petroleum Company, based in London, to direct the transport and storage of the products. |
In November 2004, following a period of turmoil caused by the revelation that Shell had been overstating its oil reserves, it was announced that the Shell Group would move to a single capital structure, creating a new parent company to be named Royal Dutch Shell plc, with its primary listing on the London Stock Exchange, a secondary listing on the Amsterdam Stock Exchange, its headquarters and tax residency in The Hague, Netherlands and its registered office in London. The unification was completed on 20 July 2005 and the original owners delisted their companies from the respective exchanges. On 20 July 2005, the Shell Transport & Trading Company plc was delisted from the LSE, where as, Royal Dutch Petroleum Company from NYSE on 18 November 2005. The shares of the company were issued at a 60/40 advantage for the shareholders of Royal Dutch in line with the original ownership of the Shell Group. |
In February 2010 Shell and Cosan formed a 50:50 joint-venture, Raízen, comprising all of Cosan's Brazilian ethanol, energy generation, fuel distribution and sugar activities, and all of Shell's Brazilian retail fuel and aviation distribution businesses. In March 2010, Shell announced the sale of some of its assets, including its liquid petroleum gas (LPG) business, to meet the cost of a planned $28bn capital spending programme. Shell invited buyers to submit indicative bids, due by 22 March, with a plan to raise $2–3bn from the sale. In June 2010, Royal Dutch Shell agreed to acquire all the business of East Resources for a cash consideration of $4.7 billion. The transaction included East Resources' tight gas fields. |
Over the course of 2013, the corporation began the sale of its US shale gas assets and cancelled a US$20 billion gas project that was to be constructed in the US state of Louisiana. A new CEO Ben van Beurden was appointed in January 2014, prior to the announcement that the corporation's overall performance in 2013 was 38 per cent lower than 2012—the value of Shell's shares fell by 3 per cent as a result. Following the sale of the majority of its Australian assets in February 2014, the corporation plans to sell a further US$15 billion worth of assets in the period leading up to 2015, with deals announced in Australia, Brazil and Italy. |
The presence of companies like Shell in the Niger-Delta has led to extreme environmental issues in the Niger Delta. Many pipelines in the Niger-Delta owned by Shell are old and corroded. Shell has acknowledged its responsibility for keeping the pipelines new but has also denied responsibility for environmental causes. This has led to mass protests from the Niger-Delta inhabitants and Amnesty International against Shell and Friends of the Earth Netherlands. It has also led to action plans to boycott Shell by environmental groups, and human rights groups. In January 2013, a Dutch court rejected four out of five allegations brought against the firm over oil pollution in the Niger Delta but found a subsidiary guilty of one case of pollution, ordering compensation to be paid to a Nigerian farmer. |
The name Shell is linked to The "Shell" Transport and Trading Company. In 1833, the founder's father, Marcus Samuel, founded an import business to sell seashells to London collectors. When collecting seashell specimens in the Caspian Sea area in 1892, the younger Samuel realised there was potential in exporting lamp oil from the region and commissioned the world's first purpose-built oil tanker, the Murex (Latin for a type of snail shell), to enter this market; by 1907 the company had a fleet. Although for several decades the company had a refinery at Shell Haven on the Thames, there is no evidence of this having provided the name. |
Shell's primary business is the management of a vertically integrated oil company. The development of technical and commercial expertise in all stages of this vertical integration, from the initial search for oil (exploration) through its harvesting (production), transportation, refining and finally trading and marketing established the core competencies on which the company was founded. Similar competencies were required for natural gas, which has become one of the most important businesses in which Shell is involved, and which contributes a significant proportion of the company's profits. While the vertically integrated business model provided significant economies of scale and barriers to entry, each business now seeks to be a self-supporting unit without subsidies from other parts of the company. |
Traditionally, Shell was a heavily decentralised business worldwide (especially in the downstream) with companies in over 100 countries, each of which operated with a high degree of independence. The upstream tended to be far more centralised with much of the technical and financial direction coming from the central offices in The Hague. Nevertheless, there were very large "exploration and production" companies in a few major oil and gas production centres such as the United Kingdom (Shell Expro, a Joint Venture with Exxon), Nigeria, Brunei, and Oman. |
Downstream operations, which now also includes the chemicals business, generates a third of Shell's profits worldwide and is known for its global network of more than 40,000 petrol stations and its 47 oil refineries. The downstream business, which in some countries also included oil refining, generally included a retail petrol station network, lubricants manufacture and marketing, industrial fuel and lubricants sales and a host of other product/market sectors such as LPG and bitumen. The practice in Shell was that these businesses were essentially local and that they were best managed by local "operating companies" – often with middle and senior management reinforced by expatriates. In the 1990s, this paradigm began to change, and the independence of operating companies around the world was gradually reduced. Today, virtually all of Shell's operations in various businesses are much more directly managed from London and The Hague. The autonomy of "operating companies" has been largely removed, as more "global businesses" have been created. |
In April 2010, Shell announced its intention to divest from downstream business of all African countries except South Africa and Egypt to Vitol and "Helios". In several countries such as Tunisia, protests and strikes broke out. Shell denied rumours of the sellout. Shell continues however upstream activities/extracting crude oil in the oil-rich Niger Delta as well as downstream/commercial activities in South Africa. In June 2013, the company announced a strategic review of its operations in Nigeria, hinting that assets could be divested. In August 2014, the company disclosed it was in the process of finalizing the sale of its interests in four Nigerian oil fields. |
On 27 August 2007, Royal Dutch Shell and Reitan Group, the owner of the 7-Eleven brand in Scandinavia, announced an agreement to re-brand some 269 service stations across Norway, Sweden, Finland and Denmark, subject to obtaining regulatory approvals under the different competition laws in each country. On April 2010 Shell announced that the corporation is in process of trying to find a potential buyer for all of its operations in Finland and is doing similar market research concerning Swedish operations. On October 2010 Shell's gas stations and the heavy vehicle fuel supply networks in Finland and Sweden, along with a refinery located in Gothenburg, Sweden were sold to St1, a Finnish energy company, more precisely to its major shareholding parent company Keele Oy. Shell branded gas stations will be rebranded within maximum of five years from the acquisition and the number of gas stations is likely to be reduced. Until then the stations will operate under Shell brand licence. |
Through most of Shell's early history, the Shell Oil Company business in the United States was substantially independent with its stock being traded on the NYSE and with little direct involvement from the group's central offices in the running of the American business. However, in 1984, Royal Dutch Shell made a bid to purchase those shares of Shell Oil Company it did not own (around 30%) and despite opposition from some minority shareholders, which led to a court case, Shell completed the buyout for a sum of $5.7 billion. |
On 20 May 2011, Royal Dutch Shell's final investment decision for the world's first floating liquefied natural gas (FLNG) facility was finalized following the discovery of the remote offshore Prelude field—located off Australia's northwestern coast and estimated to contain about 3 trillion cubic feet of natural gas equivalent reserves—in 2007. FLNG technology is based on liquefied natural gas (LNG) developments that were pioneered in the mid-20th century and facilitates the exploitation of untapped natural gas reserves located in remote areas, often too small to extract any other way. |
Shell sold 9.5% of its 23.1% stake in Woodside Petroleum in June 2014 and advised that it had reached an agreement for Woodside to buy back 9.5% of its shares at a later stage. Shell became a major shareholder in Woodside after a 2001 takeover attempt was blocked by then federal Treasurer Peter Costello and the corporation has been open about its intention to sell its stake in Woodside as part of its target to shed assets. At a general body meeting, held on 1 August 2014, 72 percent of shareholders voted to approve the buy-back, short of the 75 percent vote that was required for approval. A statement from Shell read: "Royal Dutch Shell acknowledges the outcome of Woodside Petroleum Limited's shareholders' negative vote on the selective buy-back proposal. Shell is reviewing its options in relation to its remaining 13.6 percent holding." |
Following the purchase of an offshore lease in 2005, Shell initiated its US$4.5 billion Arctic drilling program in 2006, after the corporation purchased the "Kulluk" oil rig and leased the Noble Discoverer drillship. At inception, the project was led by Pete Slaiby, a Shell executive who had previously worked in the North Sea. However, after the purchase of a second offshore lease in 2008, Shell only commenced drilling work in 2012, due to the refurbishment of rigs, permit delays from the relevant authorities and lawsuits. The plans to drill in the Arctic led to protests from environmental groups, particularly Greenpeace; furthermore, analysts in the energy field, as well as related industries, also expressed skepticism due to perceptions that drilling in the region is "too dangerous because of harsh conditions and remote locations". |
Further problems hampered the Arctic project after the commencement of drilling in 2012, as Shell dealt with a series of issues that involved air permits, Coast Guard certification of a marine vessel and severe damage to essential oil-spill equipment. Additionally, difficult weather conditions resulted in the delay of drilling during mid-2012 and the already dire situation was exacerbated by the "Kulluk" incident at the end of the year. Royal Dutch Shell had invested nearly US$5 billion by this stage of the project. |
As the Kulluk oil rig was being towed to the American state of Washington to be serviced in preparation for the 2013 drilling season, a winter storm on 27 December 2012 caused the towing crews, as well as the rescue service, to lose control of the situation. As of 1 January 2013, the Kulluk was grounded off the coast Sitkalidak Island, near the eastern end of Kodiak Island. Following the accident, a Fortune magazine contacted Larry McKinney, the executive director at the Harte Research Institute for Gulf of Mexico Studies at Texas A&M, and he explained that "A two-month delay in the Arctic is not a two-month delay ... A two-month delay could wipe out the entire drilling season." |
It was unclear if Shell would recommence drilling in mid-2013, following the "Kulluk" incident and, in February 2013, the corporation stated that it would "pause" its closely watched drilling project off the Alaskan coast in 2013, and will instead prepare for future exploration. In January 2014, the corporation announced the extension of the suspension of its drilling program in the Arctic, with chief executive van Beurden explaining that the project is "under review" due to both market and internal issues. |
In the 1990s, protesters criticised the company's environmental record, particularly the possible pollution caused by the proposed disposal of the Brent Spar platform into the North Sea. Despite support from the UK government, Shell reversed the decision under public pressure but maintained that sinking the platform would have been environmentally better. Shell subsequently published an unequivocal commitment to sustainable development, supported by executive speeches reinforcing this commitment. |
In the beginning of 1996, several human rights groups brought cases to hold Shell accountable for alleged human rights violations in Nigeria, including summary execution, crimes against humanity, torture, inhumane treatment and arbitrary arrest and detention. In particular, Shell stood accused of collaborating in the execution of Ken Saro-Wiwa and eight other leaders of the Ogoni tribe of southern Nigeria, who were hanged in 1995 by Nigeria's then military rulers. The lawsuits were brought against Royal Dutch Shell and Brian Anderson, the head of its Nigerian operation. In 2009, Shell agreed to pay $15.5m in a legal settlement. Shell has not accepted any liability over the allegations against it. |
In 2010, a leaked cable revealed that Shell claims to have inserted staff into all the main ministries of the Nigerian government and know "everything that was being done in those ministries", according to Shell's top executive in Nigeria. The same executive also boasted that the Nigerian government had forgotten about the extent of Shell's infiltration. Documents released in 2009 (but not used in the court case) reveal that Shell regularly made payments to the Nigerian military in order to prevent protests. |
On 16 March 2012, 52 Greenpeace activists from five different countries boarded Fennica and Nordica, multipurpose icebreakers chartered to support Shell's drilling rigs near Alaska. Around the same time period, a reporter for Fortune magazine spoke with Edward Itta, an Inupiat Eskimo leader and the former mayor of the North Slope Borough, who expressed that he was conflicted about Shell's plans in the Arctic, as he was very concerned that an oil spill could destroy the Inupiat Eskimo's hunting-and-fishing culture, but his borough also received major tax revenue from oil and gas production; additionally, further revenue from energy activity was considered crucial to the future of the living standard in Itta's community. |
In response, Shell filed lawsuits to seek injunctions from possible protests, and Benjamin Jealous of the NAACP and Radford argued that the legal action was "trampling American's rights." According to Greenpeace, Shell lodged a request with Google to ban video footage of a Greenpeace protest action that occurred at the Shell-sponsored Formula One (F1) Belgian Grand Prix on 25 August 2013, in which "SaveTheArctic.org" banners appear at the winners' podium ceremony. In the video, the banners rise up automatically—activists controlled their appearance with the use of four radio car antennas—revealing the website URL, alongside an image that consists of half of a polar bear's head and half of the Shell logo. |
Copyright infringement is the use of works protected by copyright law without permission, infringing certain exclusive rights granted to the copyright holder, such as the right to reproduce, distribute, display or perform the protected work, or to make derivative works. The copyright holder is typically the work's creator, or a publisher or other business to whom copyright has been assigned. Copyright holders routinely invoke legal and technological measures to prevent and penalize copyright infringement. |
Copyright infringement disputes are usually resolved through direct negotiation, a notice and take down process, or litigation in civil court. Egregious or large-scale commercial infringement, especially when it involves counterfeiting, is sometimes prosecuted via the criminal justice system. Shifting public expectations, advances in digital technology, and the increasing reach of the Internet have led to such widespread, anonymous infringement that copyright-dependent industries now focus less on pursuing individuals who seek and share copyright-protected content online, and more on expanding copyright law to recognize and penalize – as "indirect" infringers – the service providers and software distributors which are said to facilitate and encourage individual acts of infringement by others. |
The terms piracy and theft are often associated with copyright infringement. The original meaning of piracy is "robbery or illegal violence at sea", but the term has been in use for centuries as a synonym for acts of copyright infringement. Theft, meanwhile, emphasizes the potential commercial harm of infringement to copyright holders. However, copyright is a type of intellectual property, an area of law distinct from that which covers robbery or theft, offenses related only to tangible property. Not all copyright infringement results in commercial loss, and the U.S. Supreme Court ruled in 1985 that infringement does not easily equate with theft. |
The practice of labelling the infringement of exclusive rights in creative works as "piracy" predates statutory copyright law. Prior to the Statute of Anne in 1710, the Stationers' Company of London in 1557, received a Royal Charter giving the company a monopoly on publication and tasking it with enforcing the charter. Those who violated the charter were labelled pirates as early as 1603. The term "piracy" has been used to refer to the unauthorized copying, distribution and selling of works in copyright. Article 12 of the 1886 Berne Convention for the Protection of Literary and Artistic Works uses the term "piracy" in relation to copyright infringement, stating "Pirated works may be seized on importation into those countries of the Union where the original work enjoys legal protection." Article 61 of the 1994 Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) requires criminal procedures and penalties in cases of "willful trademark counterfeiting or copyright piracy on a commercial scale." Piracy traditionally refers to acts of copyright infringement intentionally committed for financial gain, though more recently, copyright holders have described online copyright infringement, particularly in relation to peer-to-peer file sharing networks, as "piracy." |
Copyright holders frequently refer to copyright infringement as theft. In copyright law, infringement does not refer to theft of physical objects that take away the owner's possession, but an instance where a person exercises one of the exclusive rights of the copyright holder without authorization. Courts have distinguished between copyright infringement and theft. For instance, the United States Supreme Court held in Dowling v. United States (1985) that bootleg phonorecords did not constitute stolen property. Instead, "interference with copyright does not easily equate with theft, conversion, or fraud. The Copyright Act even employs a separate term of art to define one who misappropriates a copyright: '[...] an infringer of the copyright.'" The court said that in the case of copyright infringement, the province guaranteed to the copyright holder by copyright law – certain exclusive rights – is invaded, but no control, physical or otherwise, is taken over the copyright, nor is the copyright holder wholly deprived of using the copyrighted work or exercising the exclusive rights held. |
Sometimes only partial compliance with license agreements is the cause. For example, in 2013, the US Army settled a lawsuit with Texas-based company Apptricity, which makes software that allows the army to track their soldiers in real time. In 2004, the US Army paid US$4.5 million for a license of 500 users, while allegedly installing the software for more than 9000 users; the case was settled for US$50 million. Major anti-piracy organizations, like the BSA, conduct software licensing audits regularly to ensure full compliance. |
Cara Cusumano, director of the Tribeca Film Festival, stated in April 2014: "Piracy is less about people not wanting to pay and more about just wanting the immediacy – people saying, 'I want to watch Spiderman right now' and downloading it". The statement occurred during the third year that the festival used the Internet to present its content, while it was the first year that it featured a showcase of content producers who work exclusively online. Cusumano further explained that downloading behavior is not merely conducted by people who merely want to obtain content for free: |
In response to Cusumano's perspective, Screen Producers Australia executive director Matt Deaner clarified the motivation of the film industry: "Distributors are usually wanting to encourage cinema-going as part of this process [monetizing through returns] and restrict the immediate access to online so as to encourage the maximum number of people to go to the cinema." Deaner further explained the matter in terms of the Australian film industry, stating: "there are currently restrictions on quantities of tax support that a film can receive unless the film has a traditional cinema release." |
In a study published in the Journal of Behavioural and Experimental Economics, and reported on in early May 2014, researchers from the University of Portsmouth in the UK discussed findings from examining the illegal downloading behavior of 6,000 Finnish people, aged seven to 84. The list of reasons for downloading given by the study respondents included money saving; the ability to access material not on general release, or before it was released; and assisting artists to avoid involvement with record companies and movie studios. |
According to the same study, even though digital piracy inflicts additional costs on the production side of media, it also offers the main access to media goods in developing countries. The strong tradeoffs that favor using digital piracy in developing economies dictate the current neglected law enforcements toward digital piracy. In China, the issue of digital infringement is not merely legal, but social – originating from the high demand for cheap and affordable goods as well as the governmental connections of the businesses which produce such goods. |
There have been instances where a country's government bans a movie, resulting in the spread of copied videos and DVDs. Romanian-born documentary maker Ilinca Calugareanu wrote a New York Times article telling the story of Irina Margareta Nistor, a narrator for state TV under Nicolae Ceauşescu's regime. A visitor from the west gave her bootlegged copies of American movies, which she dubbed for secret viewings through Romania. According to the article, she dubbed more than 3,000 movies and became the country's second-most famous voice after Ceauşescu, even though no one knew her name until many years later. |
In the U.S., copyright infringement is sometimes confronted via lawsuits in civil court, against alleged infringers directly, or against providers of services and software that support unauthorized copying. For example, major motion-picture corporation MGM Studios filed suit against P2P file-sharing services Grokster and Streamcast for their contributory role in copyright infringement. In 2005, the Supreme Court ruled in favor of MGM, holding that such services could be held liable for copyright infringement since they functioned and, indeed, willfully marketed themselves as venues for acquiring copyrighted movies. The MGM v. Grokster case did not overturn the earlier Sony decision, but rather clouded the legal waters; future designers of software capable of being used for copyright infringement were warned. |
In some jurisdictions, copyright or the right to enforce it can be contractually assigned to a third party which did not have a role in producing the work. When this outsourced litigator appears to have no intention of taking any copyright infringement cases to trial, but rather only takes them just far enough through the legal system to identify and exact settlements from suspected infringers, critics commonly refer to the party as a "copyright troll." Such practices have had mixed results in the U.S. |
The first criminal provision in U.S. copyright law was added in 1897, which established a misdemeanor penalty for "unlawful performances and representations of copyrighted dramatic and musical compositions" if the violation had been "willful and for profit." Criminal copyright infringement requires that the infringer acted "for the purpose of commercial advantage or private financial gain." 17 U.S.C. § 506. To establish criminal liability, the prosecutor must first show the basic elements of copyright infringement: ownership of a valid copyright, and the violation of one or more of the copyright holder's exclusive rights. The government must then establish that defendant willfully infringed or, in other words, possessed the necessary mens rea. Misdemeanor infringement has a very low threshold in terms of number of copies and the value of the infringed works. |
United States v. LaMacchia 871 F.Supp. 535 (1994) was a case decided by the United States District Court for the District of Massachusetts which ruled that, under the copyright and cybercrime laws effective at the time, committing copyright infringement for non-commercial motives could not be prosecuted under criminal copyright law. The ruling gave rise to what became known as the "LaMacchia Loophole," wherein criminal charges of fraud or copyright infringement would be dismissed under current legal standards, so long as there was no profit motive involved. |
The United States No Electronic Theft Act (NET Act), a federal law passed in 1997, in response to LaMacchia, provides for criminal prosecution of individuals who engage in copyright infringement under certain circumstances, even when there is no monetary profit or commercial benefit from the infringement. Maximum penalties can be five years in prison and up to $250,000 in fines. The NET Act also raised statutory damages by 50%. The court's ruling explicitly drew attention to the shortcomings of current law that allowed people to facilitate mass copyright infringement while being immune to prosecution under the Copyright Act. |
The personal copying exemption in the copyright law of EU member states stems from the EU Copyright Directive of 2001, which is generally devised to allow EU members to enact laws sanctioning making copies without authorization, as long as they are for personal, noncommerical use. The Copyright Directive was not intended to legitimize file-sharing, but rather the common practice of space shifting copyright-protected content from a legally purchased CD (for example) to certain kinds of devices and media, provided rights holders are compensated and no copy protection measures are circumvented. Rights-holder compensation takes various forms, depending on the country, but is generally either a levy on "recording" devices and media, or a tax on the content itself. In some countries, such as Canada, the applicability of such laws to copying onto general-purpose storage devices like computer hard drives, portable media players, and phones, for which no levies are collected, has been the subject of debate and further efforts to reform copyright law. |
In some countries, the personal copying exemption explicitly requires that the content being copied was obtained legitimately – i.e., from authorized sources, not file-sharing networks. Other countries, such as the Netherlands, make no such distinction; the exemption there had been assumed, even by the government, to apply to any such copying, even from file-sharing networks. However, in April 2014, the Court of Justice of the European Union ruled that "national legislation which makes no distinction between private copies made from lawful sources and those made from counterfeited or pirated sources cannot be tolerated." Thus, in the Netherlands, for example, downloading from file-sharing networks is no longer legal. |
Title I of the U.S. DMCA, the WIPO Copyright and Performances and Phonograms Treaties Implementation Act has provisions that prevent persons from "circumvent[ing] a technological measure that effectively controls access to a work". Thus if a distributor of copyrighted works has some kind of software, dongle or password access device installed in instances of the work, any attempt to bypass such a copy protection scheme may be actionable – though the US Copyright Office is currently reviewing anticircumvention rulemaking under DMCA – anticircumvention exemptions that have been in place under the DMCA include those in software designed to filter websites that are generally seen to be inefficient (child safety and public library website filtering software) and the circumvention of copy protection mechanisms that have malfunctioned, have caused the instance of the work to become inoperable or which are no longer supported by their manufacturers. |
In addition, intermediaries are now also generally understood to include Internet portals, software and games providers, those providing virtual information such as interactive forums and comment facilities with or without a moderation system, aggregators of various kinds, such as news aggregators, universities, libraries and archives, web search engines, chat rooms, web blogs, mailing lists, and any website which provides access to third party content through, for example, hyperlinks, a crucial element of the World Wide Web. |
Early court cases focused on the liability of Internet service providers (ISPs) for hosting, transmitting or publishing user-supplied content that could be actioned under civil or criminal law, such as libel, defamation, or pornography. As different content was considered in different legal systems, and in the absence of common definitions for "ISPs," "bulletin boards" or "online publishers," early law on online intermediaries' liability varied widely from country to country. The first laws on online intermediaries' liability were passed from the mid-1990s onwards.[citation needed] |
The U.S. Digital Millennium Copyright Act (1998) and the European E-Commerce Directive (2000) provide online intermediaries with limited statutory immunity from liability for copyright infringement. Online intermediaries hosting content that infringes copyright are not liable, so long as they do not know about it and take actions once the infringing content is brought to their attention. In U.S. law this is characterized as "safe harbor" provisions. Under European law, the governing principles for Internet Service Providers are "mere conduit", meaning that they are neutral 'pipes' with no knowledge of what they are carrying; and 'no obligation to monitor' meaning that they cannot be given a general mandate by governments to monitor content. These two principles are a barrier for certain forms of online copyright enforcement and they were the reason behind an attempt to amend the European Telecoms Package in 2009 to support new measures against copyright infringement. |
These types of intermediaries do not host or transmit infringing content, themselves, but may be regarded in some courts as encouraging, enabling or facilitating infringement by users. These intermediaries may include the author, publishers and marketers of peer-to-peer networking software, and the websites that allow users to download such software. In the case of the BitTorrent protocol, intermediaries may include the torrent tracker and any websites or search engines which facilitate access to torrent files. Torrent files don't contain copyrighted content, but they may make reference to files that do, and they may point to trackers which coordinate the sharing of those files. Some torrent indexing and search sites, such as The Pirate Bay, now encourage the use of magnet links, instead of direct links to torrent files, creating another layer of indirection; using such links, torrent files are obtained from other peers, rather than from a particular website. |
Nevertheless, whether and to what degree any of these types of intermediaries have secondary liability is the subject of ongoing litigation. The decentralised structure of peer-to-peer networks, in particular, does not sit easily with existing laws on online intermediaries' liability. The BitTorrent protocol established an entirely decentralised network architecture in order to distribute large files effectively. Recent developments in peer-to-peer technology towards more complex network configurations are said to have been driven by a desire to avoid liability as intermediaries under existing laws. |
Article 10 of the Berne Convention mandates that national laws provide for limitations to copyright, so that copyright protection does not extend to certain kinds of uses that fall under what the treaty calls "fair practice," including but not limited to minimal quotations used in journalism and education. The laws implementing these limitations and exceptions for uses that would otherwise be infringing broadly fall into the categories of either fair use or fair dealing. In common law systems, these fair practice statutes typically enshrine principles underlying many earlier judicial precedents, and are considered essential to freedom of speech. |
Another example is the practice of compulsory licensing, which is where the law forbids copyright owners from denying a license for certain uses of certain kinds of works, such as compilations and live performances of music. Compulsory licensing laws generally say that for certain uses of certain works, no infringement occurs as long as a royalty, at a rate determined by law rather than private negotiation, is paid to the copyright owner or representative copyright collective. Some fair dealing laws, such as Canada's, include similar royalty requirements. |
In Europe, the copyright infringement case Public Relations Consultants Association Ltd v Newspaper Licensing Agency Ltd had two prongs; one concerned whether a news aggregator service infringed the copyright of the news generators; the other concerned whether the temporary web cache created by the web browser of a consumer of the aggregator's service, also infringed the copyright of the news generators. The first prong was decided in favor of the news generators; in June 2014 the second prong was decided by the Court of Justice of the European Union (CJEU), which ruled that the temporary web cache of consumers of the aggregator did not infringe the copyright of the news generators. |
In order to qualify for protection, a work must be an expression with a degree of originality, and it must be in a fixed medium, such as written down on paper or recorded digitally. The idea itself is not protected. That is, a copy of someone else's original idea is not infringing unless it copies that person's unique, tangible expression of the idea. Some of these limitations, especially regarding what qualifies as original, are embodied only in case law (judicial precedent), rather than in statutes. |
In the U.S., for example, copyright case law contains a substantial similarity requirement to determine whether the work was copied. Likewise, courts may require computer software to pass an Abstraction-Filtration-Comparison test (AFC Test) to determine if it is too abstract to qualify for protection, or too dissimilar to an original work to be considered infringing. Software-related case law has also clarified that the amount of R&D, effort and expense put into a work's creation doesn't affect copyright protection. |
Corporations and legislatures take different types of preventative measures to deter copyright infringement, with much of the focus since the early 1990s being on preventing or reducing digital methods of infringement. Strategies include education, civil & criminal legislation, and international agreements, as well as publicizing anti-piracy litigation successes and imposing forms of digital media copy protection, such as controversial DRM technology and anti-circumvention laws, which limit the amount of control consumers have over the use of products and content they have purchased. |
Legislatures have reduced infringement by narrowing the scope of what is considered infringing. Aside from upholding international copyright treaty obligations to provide general limitations and exceptions, nations have enacted compulsory licensing laws applying specifically to digital works and uses. For example, in the U.S., the DMCA, an implementation of the 1996 WIPO Copyright Treaty, considers digital transmissions of audio recordings to be licensed as long as a designated copyright collective's royalty and reporting requirements are met. The DMCA also provides safe harbor for digital service providers whose users are suspected of copyright infringement, thus reducing the likelihood that the providers themselves will be considered directly infringing. |
Some copyright owners voluntarily reduce the scope of what is considered infringement by employing relatively permissive, "open" licensing strategies: rather than privately negotiating license terms with individual users who must first seek out the copyright owner and ask for permission, the copyright owner publishes and distributes the work with a prepared license that anyone can use, as long as they adhere to certain conditions. This has the effect of reducing infringement – and the burden on courts – by simply permitting certain types of uses under terms that the copyright owner considers reasonable. Examples include free software licenses, like the GNU General Public License (GPL), and the Creative Commons licenses, which are predominantly applied to visual and literary works. |
To prevent piracy of films, the standard drill of film distribution is to have a movie first released through movie theaters (theatrical window), on average approximately 16 and a half weeks, before having it released to Blu-Ray and DVD (entering its video window). During the theatrical window, digital versions of films are often transported in data storage devices by couriers rather than by data transmission. The data can be encrypted, with the key being made to work only at specific times in order to prevent leakage between screens. Coded Anti-Piracy marks can be added to films to identify the source of illegal copies and shut them down. As a result of these measures, the only versions of films available for piracy during the theatrical window are usually "cams" made by video recordings of the movie screens, which are of inferior quality compared to the original film version. |
The U.S. GAO's 2010 findings regarding the great difficulty of accurately gauging the economic impact of copyright infringement was reinforced within the same report by the body's research into three commonly cited estimates that had previously been provided to U.S. agencies. The GAO report explained that the sources – a Federal Bureau of Investigation (FBI) estimate, a Customs and Border Protection (CBP) press release and a Motor and Equipment Manufacturers Association estimate – "cannot be substantiated or traced back to an underlying data source or methodology." |
According to a 2007 BSA and International Data Corporation (IDC) study, the five countries with the highest rates of software piracy were: 1. Armenia (93%); 2. Bangladesh (92%); 3. Azerbaijan (92%); 4. Moldova (92%); and 5. Zimbabwe (91%). According to the study's results, the five countries with the lowest piracy rates were: 1. U.S. (20%); 2. Luxembourg (21%); 3. New Zealand (22%); 4. Japan (23%); and 5. Austria (25%). The 2007 report showed that the Asia-Pacific region was associated with the highest amount of loss, in terms of U.S. dollars, with $14,090,000, followed by the European Union, with a loss of $12,383,000; the lowest amount of U.S. dollars was lost in the Middle East/Africa region, where $2,446,000 was documented. |
In its 2011 report, conducted in partnership with IDC and Ipsos Public Affairs, the BSA stated: "Over half of the world's personal computer users – 57 percent – admit to pirating software." The ninth annual "BSA Global Software Piracy Study" claims that the "commercial value of this shadow market of pirated software" was worth US$63.4 billion in 2011, with the highest commercial value of pirated PC software existent in the U.S. during that time period (US$9,773,000). According to the 2011 study, Zimbabwe was the nation with the highest piracy rate, at 92%, while the lowest piracy rate was present in the U.S., at 19%. |
In 2007, the Institute for Policy Innovation (IPI) reported that music piracy took $12.5 billion from the U.S. economy. According to the study, musicians and those involved in the recording industry are not the only ones who experience losses attributed to music piracy. Retailers have lost over a billion dollars, while piracy has resulted in 46,000 fewer production-level jobs and almost 25,000 retail jobs. The U.S. government was also reported to suffer from music piracy, losing $422 million in tax revenue. |
Professor Aram Sinnreich, in his book The Piracy Crusade, states that the connection between declining music sails and the creation of peer to peer file sharing sites such as Napster is tenuous, based on correlation rather than causation. He argues that the industry at the time was undergoing artificial expansion, what he describes as a "'perfect bubble'—a confluence of economic, political, and technological forces that drove the aggregate value of music sales to unprecedented heights at the end of the twentieth century". |
The 2011 Business Software Alliance Piracy Study Standard, estimates the total commercial value of illegally copied software to be at $59 billion in 2010, with emerging markets accounting for $31.9 billion, over half of the total. Furthermore, mature markets for the first time received less PC shipments than emerging economies in 2010, making emerging markets now responsible for more than half of all computers in use worldwide. In addition with software infringement rates of 68 percent comparing to 24 percent of mature markets, emerging markets thus possess the majority of the global increase in the commercial value of counterfeit software. China continues to have the highest commercial value of such software at $8.9 billion among developing countries and second in the world behind the US at $9.7 billion in 2011. In 2011, the Business Software Alliance announced that 83 percent of software deployed on PCs in Africa has been pirated (excluding South Africa). |
Greece is strategically located at the crossroads of Europe, Asia, and Africa. Situated on the southern tip of the Balkan peninsula, it shares land borders with Albania to the northwest, the Republic of Macedonia and Bulgaria to the north and Turkey to the northeast. Greece consists of nine geographic regions: Macedonia, Central Greece, the Peloponnese, Thessaly, Epirus, the Aegean Islands (including the Dodecanese and Cyclades), Thrace, Crete, and the Ionian Islands. The Aegean Sea lies to the east of the mainland, the Ionian Sea to the west, and the Mediterranean Sea to the south. Greece has the longest coastline on the Mediterranean Basin and the 11th longest coastline in the world at 13,676 km (8,498 mi) in length, featuring a vast number of islands, of which 227 are inhabited. Eighty percent of Greece is mountainous, with Mount Olympus being the highest peak at 2,918 metres (9,573 ft). |
Greece has one of the longest histories of any country, and is considered the cradle of Western civilization, and as such, is the birthplace of democracy, Western philosophy, the Olympic Games, Western literature, historiography, political science, major scientific and mathematical principles, and Western drama, including both tragedy and comedy. Greece was first unified under Philip of Macedon in the fourth century BC. His son Alexander the Great rapidly conquered much of the ancient world, spreading Greek culture and science from the eastern Mediterranean to the Indus River. Annexed by Rome in the second century BC, Greece became an integral part of the Roman Empire and its successor, the Byzantine Empire. The first century AD saw the establishment of the Greek Orthodox Church, which shaped the modern Greek identity and transmitted Greek traditions to the wider Orthodox World. Falling under Ottoman dominion in the mid-15th century, the modern nation state of Greece emerged in 1830 following the war of independence. Greece's rich historical legacy is reflected in large part by its 17 UNESCO World Heritage Sites, among the most in Europe and the world. |
Greece is a democratic and developed country with an advanced high-income economy, a high quality of life and a very high standard of living. A founding member of the United Nations, Greece was the tenth member to join the European Communities (precursor to the European Union) and has been part of the Eurozone since 2001. It is also a member of numerous other international institutions, including the Council of Europe, NATO,[a] OECD, OIF, OSCE and the WTO. Greece, which is one of the world's largest shipping powers, middle powers and top tourist destinations, has the largest economy in the Balkans, where it is an important regional investor. |
The names for the nation of Greece and the Greek people differ from the names used in other languages, locations and cultures. Although the Greeks call the country Hellas or Ellada (Greek: Ἑλλάς or Ελλάδα) and its official name is the Hellenic Republic, in English it is referred to as Greece, which comes from the Latin term Graecia as used by the Romans, which literally means 'the land of the Greeks', and derives from the Greek name Γραικός. However, the name Hellas is sometimes used in English as well. |
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