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One in three music discs is illegal

Posted By Barry Ritholtz On June 28, 2005 @ 11:58 am In Music | Comments Disabled

While everyone is focusing on the Grokster decision, this IFPI report slipped by practically unnoticed — one in three music discs is illegal [1].

Recall that we had mentioned nearly identical IFPI statistics last year [2].

Here’s the overview of the report [3]:

One in three music discs sold worldwide is an illegal copy, creating a US$4.6
billion music pirate market that destroys jobs, kills investment and funds
organized crime.

A total of 1.2 billion pirate music discs were sold in 2004 – 34% of all
discs sold worldwide. But growth in disc piracy has slowed to its lowest level
in five years, partly thanks to stepped up enforcement efforts in countries
including Mexico, Brazil, Hong Kong, Paraguay and Spain.

Industry and government enforcement efforts are also reaping results. The
past year saw record levels of pirate production taken out of action, while
seizures of commercial CD burning equipment in 2004 were twice the levels of
2003.

Sales of pirate music exceed the legitimate market in a record 31 countries
in 2004 – including, for the first time, Chile, Czech Republic, Greece, India
and Turkey.
>

Global counterfeiting rates, by Country (IFPI’s Top 10 Priority List) :

Brazil (52% piracy rate): Counterfeit sales outnumber legitimate sales.

China (85% piracy rate): The world’s largest counterfeit pirate market, worth US$411 million, has seen a slight fall in the piracy level. Despite that, a lack of political will and absence of clear coordination between government agencies means there has been little substantial progress.

India (56% piracy rate) is one of IFPI’s priority countries for the first time due to the sharp rise in CD-R piracy and the availability of mp3 files online. Corruption and very slow court processes hamper prosecution.

Indonesia (80% piracy rate) has 15 optical disc plants, with pirate product exported into markets including Australia. Government action on plants has been weak.

Mexico (60% piracy rate), until recently among the world’s top 10 music markets, has been devastated by counterfeiting.

Pakistan (59% piracy rate) is one of the world’s biggest exporters of counterfeit pirate discs. There has been some enforcement at the customs level, and a recent series of raids on plants producing counterfeit discs.

Paraguay (99% piracy rate): The country is a major transit point for blank discs which fuel pirate markets, mainly in Brazil and Argentina.

Russia (66% piracy rate) is the world’s second largest counterfeit pirate market, with capacity far exceeding local demand. IFPI forensics has identified Russian-made pirate disc exports in over 27 countries.

Spain (24% piracy rate) was one of the world’s top legitimate markets, which has shrunk by a third in the past five years. CD-R street piracy is rampant. The government has stepped up enforcement in 2004 and proposed a comprehensive programme of anti-piracy actions.

Ukraine (68% piracy rate): Three years after trade sanctions were imposed by the US government, and despite encouraging signs from the new Yushenko administration, the country maintains a high level of counterfeit.

Sources:
2005 Commercial Piracy Report [3]
Key Figures Summary
IFPI, London and Madrid, June 23, 2005
http://www.ifpi.org/site-content/press/20050623a.html

One in three music discs is illegal [1]
IFPI, London and Madrid, June 23, 2005
http://www.ifpi.org/site-content/press/20050623.html


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URL to article: http://www.ritholtz.com/blog/2005/06/one-in-three-music-discs-is-illegal/

URLs in this post:

[1] one in three music discs is illegal: http://www.ifpi.org/site-content/press/20050623.html

[2] last year: http://bigpicture.typepad.com/comments/2004/07/35_of_all_cds_a.html

[3] report: http://www.ifpi.org/site-content/press/20050623a.html

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