January 27, 2000
The international recording industry today hailed a major
crackdown by UK police against an organized criminal ring importing pirate CDs
from Russia. The operation, involving six arrests and seizures of thousands of
CDs, false credit cards and counterfeiting equipment, emphatically confirms
that international organized crime is behind the traffic of pirate CDs.
Six Russians were arrested following raids today at a number of addresses
across London by the City of London Police Cheque & Credit Card Unit. IFPI,
representing the international recording industry, had assisted in tracking
the CD pirate trade routes between the UK and Russia.
CD piracy is a massive global problem for the international recording
industry, and links are increasingly being uncovered between the pirate trade
and sophisticated organized crime. The total global music pirate trade amounts
to about US$4.5 billion worldwide, according to IFPI's estimates.
Russia and Ukraine are among the biggest CD pirate producing territories,
exporting millions of illegal discs, carrying most of the top-selling
international hits - around Europe.
IFPI Chairman and CEO Jay Berman said: "Today's action is a great success
against the pirates, for which we are extremely grateful to the City of London
police. But it is also a very worrying development, because it shows that
music piracy is not just robbing artists and musicians but it's also helping
to finance more serious forms of international organized crime."
IFPI established a global anti-piracy structure in 1998, with offices around
the world, as a response to the dramatic proliferation of the illegal CD
trade. IFPI's Head of Enforcement lain Grant said: "Today's action shows the
critical nature of the problem and the critical need for international
cooperation among all the players who are trying to fight it."
Dave Martin, Head of Anti-Piracy for the British Phonographic Industry,
representing the UK record industry said: "We are dedicated to fight piracy to
protect British music and British jobs. Piracy from eastern Europe and farther
afield is directly threatening the health of one of Britain's most successful
industries."