Report Outlines Cost Of Piracy To Los Angeles
February 27, 2007
A recent report entitled ‘False Bargain: The Los Angeles County Economic Consequences of Counterfeit Products’ was produced by the Los Angeles County Economic Development Corporation
It claims that counterfeit DVDs, CDs, prescription drugs and other merchandise such as handbags cost nine industries in LA County more than 100,000 jobs and about $5.2 billion in lost sales in 2005.
The study says the motion picture industry accounted for about half the losses ($2.7b), followed by the recording industry which sustained losses of $850m.
The figures are so high because many of the companies whose products are counterfeited are based in LA County.
The report estimated that piracy of all goods in Los Angeles siphoned $2 billion in sales from retailers in 2005, based on police and customs seizure data. In all, it cost state and local governments at least $483 million in lost tax revenue.
The Mayor of Los Angeles, Antonio Villaraigosa, said: "Every dollar lost to piracy represents wages lost for the hardworking families that make the Los Angeles entertainment industry the envy of the world."For more information please contact:
Alex Jacob, IFPI
Phone: +44 207 878 7900