NEWSFLASH: GLOBAL MUSIC PIRACY ON THE RISE

Urging governments to do more to aid enforcement in order to “stop the damage to cultures, economies and world trade,” the report paints a bleak picture of the illicit music trade for 2001, where traffic in pirated CDs and seizures by authorities both tripled, but seizures amounted to only one-tenth of the number of pirated copies.

The IFPI estimates that a total of 1.9 billion pirate recordings (including cassettes) were sold in 2001—up from 1.8 billion the year before. That means two out of every five records sold are bogus. That’s a whopping 40% of the worldwide market.

Pirate CD sales rose 48% from 640 million in 2000 to 950 million in 2001. Recordable CD copies (CD-R), the kind any kid can make on his home computer, made up 450 million of those pirate copies in 2001—three times the 2000 figure.

By contrast, enforcement authorities collared roughly 10 million illegal CD-R copies—again, three times the 2000 figure, but only a fraction of illegal production.

The IFPI report estimates the value of the worldwide pirated music market at $4.3 billion. While enforcement efforts and seizures have increased admirably, the report says, more help from international governments will be required to help curb the rapidly expanding illegal trade.

IFPI Chairman/CEO Jay Berman said, “Piracy is sometimes mistakenly called a victimless crime. It is not. The economic losses due to piracy are enormous and they are felt throughout the music value chain. Piracy also nurtures organised crime across the world, and it stunts investment, growth and jobs. The global recording industry is responding to this problem, but it critically needs help from governments.”

Sony Music International Rick Dobbis seconds that motion: “While piracy is a global issue that affects both artists and record companies, it's important to note that most of the real pain is felt locally by the economies of the individual countries where the pirate products are manufactured and sold. Tolerance of piracy fosters lawlessness and tax evasion. I join IFPI in asking local, regional and national governments from around the world to give their law enforcement agencies the resources and support they need to address this very serious issue.”