Music piracy rises worldwide

NEW YORK (IFPI) - Global sales of pirated music compact discs rose almost 50% to an all-time high of 950 million units in 2001, according to a report.

The International Federation of the Phonographic Industry (IFPI) report showed illegal sales of recordable CDs tripled last year to 450 million units. The organisation said the total world music pirate market was estimated to be worth US$4.3bn (�2.9bn), a slight increase on the previous year. The rise was due to organised copying of music onto recordable compact discs, according to the report.

Global sales of legitimate music compact discs dropped in 2001 with many industry pundits pointing the finger at the proliferation of illegal copies.

'Economic losses'

Jay Berman, IFPI chairman and chief executive, said: "Piracy is sometimes and 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 chairman called on governments across the world to crack down on copyright theft with tougher laws.

The key findings of the report were:

A total of 1.9 billion pirate recordings was sold in 2001

Illegal music sales outnumber legal sales in 25 countries

The problem is worse in China, Russia, Brazil, Indonesia and Mexico

Rick Dobbis, president of Sony Music International, said piracy was a global issue that affected 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. Some of the hardest hit victims of this growing problem are local economies."
He added: "Owners of local record stores, CD plant workers, marketing, promotion and distribution people, and workers from every aspect of the complex business of making and distributing music are all affected."