Global report shows disc piracy 50% up despite sharp increase in enforcement actions
Governments urged to step up enforcement to stop the damage to cultures, economies and world trade
Washington DC, June 11, 2002
Global sales of pirate music discs rose nearly 50% to an all-time high of 950 million units in 2001. The total world music pirate market was estimated to be worth US$4.3 billion, a slight increase on the previous year.
Organised CD-R piracy is driving this proliferation in the traffic of illegal music. Pirate production is now roughly split between large-scale manufacturing plants and small-scale organised CD-R garages and laboratories. Commercial CD-R pirate sales tripled in 2001 to 450 million units.
Actions by enforcement authorities, assisted by the music industry, contained the spread of music piracy in 2001. There was a sharp increase in the number of discs seized and pirate lines de-commissioned, mainly in South East Asia and Latin America.
Commercial CD-R piracy spread in particular in Latin America, North America and Southern Europe in 2001. South East Asia, and, to a lesser extent Eastern Europe, are the predominant centres of large-scale factory-pressed pirate music CDs.
These are the findings of the annual review of global music piracy released today by IFPI, the organisation representing the recording industry worldwide.
Commenting on IFPI's Music Piracy Report 2002, Jay Berman, IFPI Chairman and CEO said: "Piracy is sometimes and mistakenly called a 'victimless crime'. It is not. The economic losses due to piracy are enormous and they are felt throughout the music value chain. Piracy also nurtures organised crime across the world, and it stunts investment, growth and jobs.
"The global recording industry is responding to this problem but it critically needs help from governments. We need proper laws and above all effective enforcement of those laws. It is time for governments to prove, with tough actions and not just words, that copyright piracy has no place in the development of modern economies."
Rick Dobbis, President of Sony Music International, said: "While piracy is a global issue that affects both artists and record companies, it's important to note that most of the real pain is felt locally by the economies of the individual countries where the pirate products are manufactured and sold.
"Tolerance of piracy fosters lawlessness and tax evasion. Some of the hardest hit victims of this growing problem are local economies. Owners of local record stores, CD plant workers, marketing, promotion and distribution people, and workers from every aspect of the complex business of making and distributing music are all affected. As their earning power is diminished, local governments are robbed of an important part of their tax base, and local economies are placed in jeopardy. I join IFPI in asking local, regional and national governments from around the world to give their law enforcement agencies the resources and support they need to address this very serious issue."
PIRACY REPORT 2002 - KEY FIGURES AND TRENDS
THE INDUSTRY RESPONSE
THE CALL TO GOVERNMENTS
The fight against piracy is critically dependent on support from governments, judiciaries and law enforcement authorities. Enforcement must treat intellectual property infringement for the serious crime it is; pirates who make a living by stealing other people's work must face deterrent penalties and if necessary go to jail. Governments must stop their countries becoming safe havens for pirates by effectively regulating their CD production plants.
The recording industry's four key priorities are:
For further information contact: Adrian Strain or Fiona Harley, IFPI, tel: + 44 20 7 878 7900 (or mobile: +44 (0)7879 480 689)