NEW YORK (Reuters) - New York's attorney general proposed legislation on Monday that would set heavier penalties for people who record movies in theaters to illegally sell or distribute.

The legislation will make it a felony for people who repeatedly record movies for commercial purposes without permission.

The measure is designed in part to fight the economic harm caused by the selling of counterfeit DVDs of movies, which New York Attorney General Andrew Cuomo said costs 140,000 jobs annually.

U.S. film studios lost $6.1 billion in 2005 to piracy globally, according to a study commissioned by the Motion Pictures Association of America.

Movie counterfeiters often attend movies in theaters and surreptitiously record what's on screen with hidden video cameras.

"This is modern-day organized crime," Cuomo said, adding in a statement: "The wide distribution of pirated films originating from New York costs our state vital economic resources, including thousands of jobs and millions of dollars in tax revenue."

The Piracy Protection Act would make illegal recording a misdemeanor for first-time offenders, who would face up to one year in jail and a $1,000 fine. Repeat offenders would be charged with a felony, which carries higher penalties.

The illegal recording of films in movie theaters is now considered a misdemeanor, like a parking ticket, and not a felony, Cuomo said.

Regulators said the nationwide distribution of such movies is organized by crime syndicates.

Cuomo also said he would name a special assistant attorney general to coordinate the efforts of local and state police against film piracy.

General Electric's NBC Universal Chief Executive Jeff Zucker, who joined Cuomo at a news conference to announce the legislation on Monday, said, "Enhanced penalties and specialized, dedicated enforcement resources are key to fighting piracy and counterfeiting."

(Reporting by Kenneth Li; Editing by Brian Moss)

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