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Music CD distributors pay damages in anti-piracy settlements

London February 21, 2002 - IFPI today announced that it has concluded the latest in a series of anti-piracy settlements in Europe, obtaining damages of US$665,000 from CD distributors found to have distributed infringing recordings. The settlements highlight IFPI's continuing efforts against distributors of pirate music.

IFPI has recently pursued a well-documented policy of concentrating on the mastering and manufacturing of infringing CDs, and these settlements demonstrate that it has, and will continue to, investigate and bring civil and/or criminal actions against distributors of infringing sound recordings.

Under the most recent agreement, signed last week between IFPI and individuals and companies in Denmark and Luxembourg, IFPI will receive compensation of approximately US$90,000. The parties concerned have admitted liability relating to the distribution from Luxembourg of bootleg recordings by artists such as Bob Dylan, Bruce Springsteen, Jamiroquai, Madonna, Prince and the Rolling Stones over several years. The subjects have also given undertakings for the future and have announced that they will withdraw from the business of producing and distributing infringing sound recordings.

The agreement is the latest in a line of settlements with companies found to have distributed infringing recordings throughout Europe.

  • US$140,000 was paid by Intermusic SA, a Swiss company, in respect of the distribution of infringing Barry White CDs in 1999 and 2000. Intermusic also gave an undertaking not to infringe the rights in the relevant Barry White tracks in the future.

  • IMC Music Limited, a UK company also involved in distributing infringing Barry White recordings, agreed to pay UK£45,000 in damages to IFPI, delivered up stocks of infringing material and gave an undertaking in respect of its future conduct.

  • In separate agreements, two Swiss companies accepted responsibility for the manufacture and distribution of sound recordings licensed to them by Global Arts Productions, a US company that issued a number of fraudulent licenses to various European companies in the late 1990s for back catalogue repertoire including Frank Sinatra, Dean Martin, Simon & Garfunkel, Roy Orbison, Joe Cocker and Cat Stevens.

  • US$150,000 was paid to IFPI by Snake's Music, a Polish company that had also distributed sound recordings licensed to it by Global Arts Productions in the period 1997 to 1999.

  • A further agreement was signed with a Polish company in respect of the manufacture and distribution of product fraudulently licensed to it by Global Arts Productions.

Geoff Taylor, IFPI's Deputy General Counsel and Director of Litigation and Regulatory Affairs says: "Companies that distribute sound recordings have just as much responsibility as CD plants to ensure that they are dealing with legitimate product. If they do not do so, and are found to deal in infringing recordings, we will look to them for compensation for the damage suffered by our members, together with all other remedies available."

IFPI represents the international recording industry. It has over 1,400 members in more than 70 countries worldwide.

For further information please contact: Adrian Strain or Fiona Harley at IFPI Communications, tel: +44 (0)20 7878 7900