Brazil's endemic piracy problem: New report

June 30, 2004

Piracy in Brazil is a billion-dollar industry involving politicians, judges, civil servants, police and thousands of others, according to a long-awaited Congress report.

Piracy is heavily controlled by organised crime and impacts on nearly every sector of the Brazilian economy, says the comprehensive 250-page document, commissioned from the specially-formed Congressional Investigatory Commission on Piracy (CPI) to investigate the trade in counterfeit and pirate goods in the country.

The report calls for an investigation into, or indictment of, at least 100 people, some of them identified as heads of criminal organisations specialising in piracy. This includes the alleged piracy Kingpin, Law Kin Chong, already in jail charged with allegedly attempting to bribe the chairman of the Commission.

The report also highlights Taiwan's role as a leading manufacturing source of pirate CDs and the role of Paranagua port in Parana state and Santos port in São Paulo State which are key conduits into the rest of the country.

The report made a number of recommendations to the government including:

The disbandment of the Inter-ministerial Committee to Fight Piracy, created in 2001, which did not produce the desired results.
The immediate creation of a national plan to fight piracy, including the setting up of a new public organisation to centralise information, investigations and intelligence about pirate operations. This would coordinate the activities of State and Federal Police, Public Attorneys and other federal administration departments and help direct police action against piracy, counterfeiting, smuggling and tax evasion.
That the Treaties signed with Paraguay for the use of ports of Santos and Parangua are reconsidered.
Increasing criminal penalties for Intellectual Property Rights crimes to a minimum of 2 years and 2 months

The international recording industry, and its Brazilian affiliate APBD, welcomed the report and urged the government to act decisively on its recommendations.

Brazil's culture and music industry has been devastated by music piracy. Six of every ten music discs or cassettes sold in the country are pirate or counterfeit copies.

Paolo Rosa, Director of APBD said: "The Brazilian Congress has played a crucial role in the fight against piracy in our country. Now it is up to the federal administration to take the Congress recommendations seriously and to implement action immediately. It is also essential that the investigative work initiated by the CPI be followed up by public authorities with further investigations and criminal procedures. As representatives of the music industry, APBD and local anti-piracy unit APDIF are proud to have participated in and supported this important initiative by the Congress."

Along with music, there is a wide range of goods counterfeited in the country including cigarettes, beverages, books, laptop computers, pharmaceuticals, toys and clothes.

Music Piracy in Brazil

Brazil was listed as one of IFPI's Top Ten Priority countries in 2002/3 and is set to remain in the listing for 2003/2004

As reported in IFPI's 2003 Commercial Piracy Report:

Brazil's level of domestic music piracy was 53% in 2002/2003, translating to approximately 114 million pirate units.
The pirate market had an estimated value (at pirate prices) of US$166 million
Legitimate music sales in Brazil totalled 80 million in units

IFPI represents the international recording industry with over 1,500 members in more than 70 countries and National Group affiliates in 46 countries.

For further information please contact: Press Office at IFPI Communications on tel: +44 (0)7878 7900 or APBD in Brazil on tel +55 21 2512 9908