IFPI steps up offensive against illegal CD production in Russia

Moscow, March 11, 2004

The international recording industry today announced the filing of compensation claims in excess of one million dollars against the Roff Technologies optical disc plant in Russia. It is alleged that the plant is behind the unauthorised manufacture of CDs containing international repertoire by artists including Christina Aguilera, Justin Timberlake and U2.

This is the second major set of claims filed against a Russian CD plant since IFPI announced its offensive at the end of last year, targeting plants in Russia believed to be supplying the country's lucrative trade in pirate discs.

Jay Berman, Chairman and CEO of IFPI said: "We are committed to an ongoing campaign to address the growing threat from plants in Russia that are manufacturing infringing product that appears on the international market. The Russian authorities have a responsibility to take firmer enforcement action to deal with this threat not only to Russia's talented but blighted music market, but also to halt its international distribution of pirate discs to other parts of the world."

IFPI has coordinated the claims on behalf of its member companies alleging that the plant, part of the Concord group of companies, manufactured counterfeit discs by artists Christina Aguilera, Bruce Springsteen, Daft Punk, David Bowie, Fun Lovin' Criminals, Justin Timberlake, Kelly Osbourne, Linkin Park, Missy Elliot, Mariah Carey, Moby, Nelly, TLC, Toploader, and U2 among others.

The plaintiff companies are claiming a combined indemnity of 40 million roubles, or US$1,400,000. They are also asking that Roff Technologies halts further production of the titles alleged to have been illegally manufactured, and for the confiscation of machinery and equipment used to produce them.

A preliminary hearing for one of the claims was held on March 3 and another has been set for March 15. The remaining six claims are currently with the Moscow City Appeal Court on a procedural issue, and preliminary hearings are expected to be set in due course.

In the coming months, IFPI plans to file further claims against CD plants in the Russian Federation that have engaged in the manufacture of illegal CDs.

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

Background for editors:

• IFPI represents the international recording industry, with more than 1,500 members in over 75 countries worldwide.
  
  
• Russia is one of IFPI's top three priority markets targeted in the fight against commercial piracy.
  
  
• The number of CD plants in Russia has more than doubled in the past three years, and production capacity has nearly tripled. At the same time growth in pirate sales has outstripped the growth in legitimate sales.
  
  
• IFPI's international anti-piracy team has helped trace exports of Russian pirate CDs to at least 26 countries, making Russia one of the key exporters of mass produced pirate product.
  
  
• IFPI recently urged the Duma to pass the necessary amendments to the Russian copyright act without further delay and called for law enforcement to take firm and immediate action against other CD plants, based on information supplied by IFPI.
  
  
• IFPI filed civil claims against the Russobit-Soft plant in December 2003. Russobit is denying the allegations.
  
  
• The IIPA (International Intellectual Property Alliance) recently filed its 301 report with the Office of the U.S. Trade Representative, which recommended the retention of Russia on its Priority Watch List. The report said that the problem of manufacture and global distribution of pirate CDs is particularly dire in Russia, and that the government has thus far proved lethargic in its response to the growing threat. The report calls for Russia to adopt or fully implement, legal and enforcement controls over the operation of its optical disc plants.