One-in-three CDs are counterfit

Global sales of pirate CDs have more than doubled in the last three years to exceed one billion units for the first time - meaning that one-in-three of all CDs sold worldwide is a fake, according to a new report published by the international recording industry today.

Sales of pirate CDs are estimated to have risen by 14%, while the total value of the pirate music market, including cassettes, was $4.6 billion, up 7% on the previous year, according to the International Federation of the Phonographic Industry (IFPI).

The figures mean that the global pirate music market, at $4.6 billion, is of greater value than the legitimate music market of every country in the world, except the USA and Japan.

Much of the proceeds from music piracy are funding organised crime syndicates, and the legitimate music industry in several of the worst-hit countries is threatened with collapse, says the report on Commercial Music Piracy 2003.

Top of the list in terms of its piracy rate is China, where more than 90% of all recordings are pirate, worth over US$530 million, despite the country's accession to the World Trade Organisation.

The report points to the huge losses piracy causes to investment, economies, cultures and tax revenues and calls for government reforms in three key areas: stronger copyright and enforcement rules; regulation of CD plants; and more aggressive prosecution of copyright crimes.

IFPI Chairman and CEO, Jay Berman, said: "Commercial piracy proliferated in many countries in 2002, and we have named 10 priority countries where action is most needed. Our industry invests substantial resources in fighting piracy, but our self-help strategies critically depend on help from governments.

"First, we need modern copyright laws and proper enforcement; second, the huge overcapacity of CD plants needs to be reined in by Optical Disc plant regulations; and third, we need deterrence - music piracy is serious organised crime that can only be tackled when courts deliver serious deterrent penalties."

(GMcG)