Are You Breaking the Law? The Truth About Region Lock

Region lock is a Digital Rights Management (DRM) restriction placed on content or devices. It restricts their use to a specific geographical region. You might know that Netflix Japan has a different movie catalog than Netflix Indonesia. That’s the basic idea, but why?

Before we delve into discussion about the “why,” let’s first learn about the two types of region locking:

1. Content Locking
   This restricts access to digital content, like movies, games, or even streaming services, based on your location. For instance, a movie available on a streaming service in the US might be blocked for viewers in Indonesia due to licensing agreements.
2. Device Locking
   This restricts the functionality of a physical device, like a phone or game console, depending on the region it’s purchased in. For example, a phone bought from abroad might not be able to be used in Indonesia.

There are 5 (five) reasons why region locking exists:

1. Content Regulation
   Copyright laws and regulations that rule contents can vary worldwide. Region locking allows companies to control what content is available in each region, comply with local laws, and avoid any issues.A simple example is that content considered normal in one country will be sensitive if seen in another. Plus, the age limit of 13+ in one country may be 18+ in another. Therefore, creators tend to apply region lock to their work to limit responsibility to the public outside their jurisdiction.
2. Licensing Agreements
   Sometimes, companies sell the rights to distribute their products (like movies or games) to different companies in different regions. Region locking ensures that people use the product only in the region it’s licensed for.Because Licensing Agreements are a form of IP utilization, a leak from the distribution channel will cause losses for both parties. The licensor will lose potential buyers from other countries/regions, while the licensee will lose exclusivity in their region.
3. Price Discrimination
   This is another big problem. Because not all countries have the same purchasing power and Licensees are given the authority to determine prices according to the market, differences in selling prices are very likely to occur.
   For example, an iPhone might be much cheaper in one country compared to another. Region locking stops people from buying the cheaper version and using it or even selling it in the more expensive region.
4. Staged Releases
   Sometimes, companies might want to release a product in one region before another. Region locking can help them control when and where the product is available.This strategy is usually taken to determine the response from a specific market in a region so any improvements can be made before being released to the wider market. If there is a leak in this stagging release, the research data received will be biased, and the product may be disappointing when it is actually released to the wider market.
5. Technical Reasons
   In some cases, region locking might be used for technical reasons, like ensuring compatibility with local infrastructure or preventing lag in online games.A clear example is if an application requires a very fast connection, it will not be possible to release it in a country where the internet connection is far below average. If it is forced to be released or accessed outside the region, it will not give a good impression; it will actually bring a lot of complaints, which will make the product look bad in the eyes of the public.

That’s why the region locking can be frustrating for consumers, but it does serve some purposes for companies. So it would be best if you did not force yourself to break it because you might suffer losses such as the following:

1. For You
   • Warranty Voiding
     Tampering with region locks might be considered a violation of the device’s warranty terms, potentially voiding your warranty and leaving you without coverage for repairs.
     
   • Technical Issues
     Bypassing region locks often involves unofficial methods or software. These can be unstable and lead to unexpected glitches or malfunctions with your device or content.
   • Legal Issues
     Region locking often hinges on copyright or licensing agreements. Breaking these locks might be illegal depending on your location and the specific content or device.
2. For Your Device/Content
   
   • Limited Functionality
     Bypassing a lock might disable certain features intended for the original region. For example, a console game might lack online functionality if the region lock is broken.
   • Content Incompatibility
     Region locking can sometimes be tied to format or encoding differences. Bypassing the lock might lead to compatibility issues, such as the content not playing properly on your device.
     
3. Other Factors
   • Safety and Security
     Using unofficial methods to break region locks such as using a Virtual Private Network (VPN) can introduce security risks. Malicious software might be bundled with these tools, putting your device and data at risk.

In the end, it’s important to weigh the potential benefits against the risks before attempting to bypass region locking. Sometimes, waiting for a regional release from the official licensee in the region or considering alternatives like region-free versions might be a safer option.

If you require further information regarding the region lock issue, licensing problem, or want to protect your Intellectual Property in a broader market, please do not hesitate to contact us via email at [email protected].