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While Net Music Piracy is Extensive, it is Dwarfed by the Impact of CD Piracy
IFPI Music Piracy Report 2001
By Jon Newton, p2pnet.net
(more articles from this author)
2001-06-18
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In the unlikely event that you have doubts about the sheer size of the international counterfeit CD industry, the IFPI (International Federation of the Phonographic Industry) Music Piracy Report 2001, just released, will dispel them.

As well as describing the Net as "a virtually 100% pirate medium," the report says the number of pirated music discs sold worldwide "soared by 25% last year", while the music industry, "responded aggressively to curb the spread of piracy on the internet".

Sales of illicit CDs and CD-R music discs rose from 510 million units in 1999 to an estimated 640 million units in 2000 with the increase being driven mainly by low-cost, illegal CD-R copying operations that caused piracy rates to rise in many key music markets, the report stated.

Around the world, the music pirate business, "much of it backed by organized crime", was worth some US$4.2 billion in 2000 - up by $US100 million on the previous year, the report said. A total of 1.8 billion pirate CDs and cassettes were estimated to be sold in the year, "meaning that one in every three recordings sold worldwide is an illegal copy".

Rupert Perry, senior VP of EMI Recorded Music and chairman of IFPI's European Regional Board, said: "The music business invests billions of dollars in new artists. We cannot compete with pirates who do not assume any of that risk and who do not compensate the artists who have created the music in the first place. That is why fighting piracy, both in the physical world and on the internet, remains a top priority for our industry".

According to the report, in brief:

* China, Russia, Mexico, Brazil and Italy are the top five countries in terms of domestic piracy. Countries in South East Asia and Eastern Europe, particularly Ukraine, top the list of manufacturers and exporters of pirate product. The report also says there's a close link between music piracy and organized crime, with examples ranging from a massive credit card fraud and counterfeit CD ring in the UK to criminal syndicates working between Hong Kong and Brazil.

* IFPI figures show sales of illegal music outnumber the legal music market in no fewer than 21 countries, up from 19 in 1999. Piracy rates have worsened in particular in Malaysia, Taiwan, Indonesia, Mexico, Spain, Holland, Greece, Czech Republic and Croatia, largely due to proliferating CD-R piracy. Pirate CD-R sales worldwide nearly tripled last year to 165 million units and now account more than a quarter of all disc piracy.

* The report says governments must modernize their laws - governing physical and internet distribution of music - and step up anti-piracy enforcement, which is increasingly inadequate given the scale of the problem. It says in many jurisdictions, intellectual property protection is inadequate; in countries with a large CD manufacturing capacity, particularly in South East Asian and Eastern Europe, CD plant regulations are needed; and in many high-piracy markets, fighting piracy needs to become a far greater priority for prosecutors and courts.

* The IFPI now has a global team of more than 50 anti-piracy cops and advisors working with, "enforcement and customs authorities worldwide. The operation has achieved a series of successes against the pirate traffic, but is not yet reversing it. Major enforcement successes in 2000 were at plant sites in South East Asia, where large volumes of pirate CDs have been exported to markets as far away as Latin America, the report states. Twenty illicit CD lines were shut down in 2000 and a further 27 in the first quarter of 2001 - with an annual production capacity of 100 million CDs. There has a also been a dramatic increase in seizures of pirate CD-Rs, particularly in the US and Latin America. Spain and Italy have also seen police actions against massive CD-R pirate operations.

* The IFPI has stepped up its fight against Net piracy while record companies have undertaken a, "massive investment in online streaming and download services in order to offer legitimate recordings on line". See the mp3 way for details.

You can download a .pdf version of the piracy report here

Linkography

EMI - www.emigroup.com
IFPI - www.ifpi.org

Related MusicDish e-Journal Articles:
» Bush Points a Gun at International Piracy. Is it a Waste of Time? (2001-05-09)
» Anti-Piracy Efforts Succeed on Multiple Fronts - But the War Continues Against a $4 Billion Gorilla (2001-02-08)
» The IFPI's Report On Music Piracy For 1999 (2000-06-28)
» China Steps Up The Pace In Its Fight Against Online Piracy (2000-03-29)

Related News from Mi2N:
» Music Disc Piracy Leapt 25% In 2000


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