CD piracy 'crippling the industry'

Despite the focus of Hollywood and the music industry on the copyright dangers of file swapping on the internet, the real threat is CD piracy, according to a new report.

The International Federation of the Phonographic Industry (IFPI) said that sales of pirate music discs rose nearly 50 per cent to an all-time high in 2001 of 950 million units.

The new recordable CD format, known as CD-R, has enabled pirates to proliferate, while moves to purge them from traditional piracy hotbeds, such as the countries of the former Eastern Bloc, has merely driven them elsewhere to countries with more relaxed laws, such as Paraguay or Indonesia, the group said.

IFPI chief executive Jay Berman 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."

Berman urged government action globally to stamp out the menace. "We need proper laws and above all effective enforcement of those laws," he insisted.

"It is time for governments to prove, with tough actions and not just words, that copyright piracy has no place in the development of modern economies."