Mexican and UK courts lead the world in music piracy ... - IFPI
Mexican and UK courts lead the world in music piracy ... - IFPI
Mexican and UK courts lead the world in music piracy ... - IFPI
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July 2008<br />
<strong>Mexican</strong> <strong>and</strong> <strong>UK</strong> <strong>courts</strong> <strong>lead</strong> <strong>the</strong> <strong>world</strong><br />
<strong>in</strong> <strong>music</strong> <strong>piracy</strong> sentenc<strong>in</strong>g<br />
Courts <strong>in</strong> <strong>the</strong> <strong>UK</strong> <strong>and</strong> <strong>the</strong> Mexico have<br />
delivered some of harshest sentences ever<br />
h<strong>and</strong>ed down for <strong>music</strong> <strong>piracy</strong> <strong>in</strong> an<br />
exemplary show of no-tolerance for<br />
copyright crimes.<br />
<strong>IFPI</strong> Chairman <strong>and</strong> CEO John Kennedy said:<br />
“So often around <strong>the</strong> <strong>world</strong> we see judiciaries<br />
prepared to take a lenient view of copyright<br />
<strong>the</strong>ft, but here we have sentences that fully<br />
reflect <strong>the</strong> seriousness of copyright crime, <strong>the</strong><br />
role it plays <strong>in</strong> organised crime <strong>and</strong> <strong>the</strong> impact<br />
it has on society <strong>and</strong> its victims.”<br />
In Mexico, a Circuit Judge <strong>in</strong> <strong>the</strong> third district of<br />
Cuernavaca Morelos sentenced a <strong>music</strong> <strong>and</strong><br />
film pirate, who used <strong>the</strong> <strong>in</strong>ternet to sell physical<br />
counterfeit product, to an effective prison term<br />
of six years <strong>and</strong> six months <strong>and</strong> a f<strong>in</strong>e of<br />
US$41,000 for violat<strong>in</strong>g <strong>in</strong>tellectual property<br />
rights. The sentence, h<strong>and</strong>ed down <strong>in</strong> March,<br />
is thought to be <strong>the</strong> stiffest <strong>in</strong> Lat<strong>in</strong> American<br />
history for copyright <strong>in</strong>fr<strong>in</strong>gement.<br />
The case was <strong>in</strong>itiated <strong>in</strong> September 2007,<br />
when <strong>in</strong>dustry anti-<strong>piracy</strong> experts identified a<br />
website, known as joyseriestv.com, that offered<br />
pirate <strong>music</strong>, films <strong>and</strong> television programmes to<br />
Mexico <strong>and</strong> o<strong>the</strong>r markets. The experts<br />
assisted <strong>the</strong> <strong>Mexican</strong> Attorney General’s Office<br />
<strong>in</strong> its <strong>in</strong>vestigation which led to a search warrant<br />
be<strong>in</strong>g executed at <strong>the</strong> site operator’s home <strong>and</strong><br />
<strong>the</strong> seizure of extensive replicat<strong>in</strong>g equipment,<br />
pirate product <strong>and</strong> shipp<strong>in</strong>g records.<br />
In <strong>the</strong> <strong>UK</strong>, three traders that made a fortune by<br />
import<strong>in</strong>g pirate CDs <strong>in</strong>to <strong>the</strong> <strong>UK</strong> from <strong>the</strong> Czech<br />
Republic <strong>and</strong> sell<strong>in</strong>g <strong>the</strong>m <strong>in</strong> a large number of<br />
shops <strong>and</strong> stalls were given lengthy jail<br />
sentences <strong>in</strong> March.<br />
Farhat Nissa, 35, received a jail sentence of<br />
four years <strong>and</strong> six months. Her co-conspirators<br />
Wasim Mir, 37, <strong>and</strong> Naveed Shaikh, 38,<br />
received jail sentences of two years <strong>and</strong> six<br />
months <strong>and</strong> one year respectively.<br />
Nissa’s sentence is believed to be one of <strong>the</strong><br />
lengthiest ever h<strong>and</strong>ed down for commercial<br />
copyright <strong>the</strong>ft <strong>in</strong> British legal history.<br />
The case was brought by <strong>the</strong> Crown<br />
Prosecution Service after <strong>in</strong>dustry <strong>in</strong>vestigators<br />
from BPI, which represents <strong>the</strong> <strong>UK</strong> record<strong>in</strong>g<br />
<strong>in</strong>dustry, looked <strong>in</strong>to <strong>the</strong> supply <strong>and</strong> distribution<br />
of “mixtape” CDs <strong>in</strong> <strong>the</strong> country. “Mixtapes”<br />
are urban <strong>music</strong> compilations that are usually<br />
recorded <strong>and</strong> sold without <strong>the</strong> permission of,<br />
or payment to, <strong>the</strong> artists or labels that<br />
released <strong>the</strong> orig<strong>in</strong>al <strong>music</strong>.<br />
The pirate CDs were imported <strong>in</strong>to London<br />
from <strong>the</strong> Czech Republic <strong>and</strong> sold across <strong>the</strong><br />
south of Engl<strong>and</strong>. The “In Da Club” CDs<br />
compilation series ran to 15 editions, us<strong>in</strong>g<br />
tracks by artists such as Dest<strong>in</strong>y's Child <strong>and</strong><br />
50 Cent, to become well-known to urban<br />
<strong>music</strong> fans.<br />
The unlicensed CDs were of a high enough<br />
st<strong>and</strong>ard to conv<strong>in</strong>ce some legitimate retailers<br />
to stock <strong>the</strong>m. They were spotted on sale <strong>in</strong><br />
three London shops, Red Records <strong>and</strong> CD<br />
Bar <strong>in</strong> Brixton, <strong>and</strong> Disc & Dat <strong>in</strong> Walthamstow<br />
<strong>in</strong> 2005, <strong>and</strong> were withdrawn from sale after<br />
BPI <strong>in</strong>vestigations.<br />
Raids followed at Woolwich Market <strong>and</strong> an<br />
<strong>in</strong>dustrial unit at <strong>the</strong> Lea Valley Estate<br />
where <strong>the</strong> conspirators owned a storage<br />
unit. Fur<strong>the</strong>r unlicensed CDs were seized at<br />
private premises owned by <strong>the</strong> conspirators.<br />
BPI <strong>and</strong> <strong>in</strong>vestigators from <strong>IFPI</strong>, which<br />
represents <strong>the</strong> record<strong>in</strong>g <strong>in</strong>dustry <strong>world</strong>wide,<br />
used state-of-<strong>the</strong> art forensics to p<strong>in</strong>po<strong>in</strong>t <strong>the</strong><br />
source of <strong>the</strong> discs <strong>and</strong> trace <strong>the</strong>m back to a<br />
manufactur<strong>in</strong>g plant <strong>in</strong> <strong>the</strong> Czech Republic.<br />
The operators of <strong>the</strong> Czech plant helped<br />
to identify <strong>the</strong> four convicted <strong>UK</strong> traders.<br />
BPI estimates suggest that more than 400,000<br />
boxsets, which sold for around £12 a title,<br />
were imported dur<strong>in</strong>g <strong>the</strong> fraudulent operation.<br />
In this issue.<br />
_________________________________<br />
Page 3. <strong>IFPI</strong>’s new head of<br />
enforcement speaks.<br />
Len Hynds talks about<br />
his first six months <strong>in</strong><br />
<strong>the</strong> job.<br />
_________________________________<br />
Page 2. Polish Border Guards<br />
break-up organised crime<br />
syndicate.<br />
Police action netted pirated discs,<br />
smuggled firearms <strong>and</strong> contrab<strong>and</strong><br />
cigarettes.<br />
_________________________________<br />
Page 6. Australian round-up.<br />
Police run a huge campaign aga<strong>in</strong>st<br />
pirate CD sellers.<br />
Fake CDs were sold <strong>in</strong> market stalls across <strong>the</strong> <strong>UK</strong><br />
Pirate CD crime network smashed <strong>in</strong> Madrid<br />
Spanish police smashed an organised<br />
crim<strong>in</strong>al syndicate based <strong>in</strong> Madrid that was<br />
produc<strong>in</strong>g counterfeit CDs <strong>and</strong> DVDs on an<br />
<strong>in</strong>dustrial scale. The gang operated burners<br />
that could produce €600,000 worth of pirate<br />
CDs <strong>and</strong> DVDs each day.<br />
More than 50 officers were <strong>in</strong>volved when<br />
Spanish police smashed a Madrid-based<br />
organised crim<strong>in</strong>al syndicate that was produc<strong>in</strong>g<br />
counterfeit CDs <strong>and</strong> DVDs on an <strong>in</strong>dustrial<br />
scale. The gang operated burners that could<br />
produce €600,000 worth of pirate CDs <strong>and</strong><br />
DVDs each day, caus<strong>in</strong>g very significant<br />
damage to <strong>the</strong> local legitimate <strong>music</strong> <strong>in</strong>dustry.<br />
Raids <strong>in</strong> April on two warehouses <strong>and</strong> four<br />
homes <strong>in</strong> <strong>the</strong> Madrid area led to <strong>the</strong> arrest of 32<br />
members of <strong>the</strong> gang <strong>in</strong>volved <strong>in</strong> <strong>the</strong> production<br />
<strong>and</strong> distribution of <strong>the</strong>se counterfeit discs.<br />
The premises were be<strong>in</strong>g used to store vast<br />
numbers of blank CDs <strong>and</strong> DVDs, <strong>in</strong>dustrial<br />
photocopy<strong>in</strong>g mach<strong>in</strong>es, CD <strong>and</strong> DVD burners<br />
<strong>and</strong> o<strong>the</strong>r equipment.<br />
Police also seized over 460,000 blank discs <strong>and</strong><br />
over 300,000 recorded CDs <strong>and</strong> DVDs, as well<br />
as 506 burners dur<strong>in</strong>g <strong>the</strong> raids. Four vehicles<br />
used to deliver <strong>the</strong> pirate discs to <strong>the</strong> gang’s<br />
network of salespeople were also confiscated.<br />
Police discovered that <strong>the</strong> gang was also<br />
<strong>in</strong>volved <strong>in</strong> people traffick<strong>in</strong>g from Ch<strong>in</strong>a <strong>and</strong><br />
that its network of salespeople was bonded<br />
labour be<strong>in</strong>g kept <strong>in</strong> conditions of semi-slavery.<br />
CONTINUED ON PAGE 2.
July 2008<br />
NEWS HEADLINES<br />
Polish border guards break up organised crime syndicate<br />
A successful Polish police action nett<strong>in</strong>g<br />
pirated discs <strong>and</strong> smuggled firearms <strong>and</strong><br />
cigarettes has sharply highlighted <strong>the</strong> l<strong>in</strong>ks<br />
between <strong>music</strong> <strong>piracy</strong> <strong>and</strong> <strong>in</strong>ternational<br />
organised crime.<br />
Polish border police arrested eight people<br />
<strong>in</strong>volved <strong>in</strong> <strong>the</strong> smuggl<strong>in</strong>g <strong>and</strong> manufacture of<br />
pirate CDs <strong>and</strong> DVDs <strong>in</strong> a raid carried out <strong>in</strong><br />
January. Officers also seized illegal firearms,<br />
<strong>in</strong>clud<strong>in</strong>g h<strong>and</strong>guns, a mach<strong>in</strong>e gun <strong>and</strong> a<br />
sawn-off shotgun; contrab<strong>and</strong> cigarettes<br />
<strong>and</strong> tobacco; as well as €50,000 <strong>in</strong> cash.<br />
It is thought <strong>the</strong> action has revealed only <strong>the</strong> tip of<br />
a big iceberg <strong>and</strong> that <strong>the</strong>re are o<strong>the</strong>r similar<br />
operations <strong>in</strong> Pol<strong>and</strong> that are tightly controlled by<br />
organised crim<strong>in</strong>al gangs with an <strong>in</strong>ternational reach.<br />
Border police from <strong>the</strong> region of Klodzko brokeup<br />
<strong>the</strong> organised gang who smuggled both<br />
<strong>music</strong> <strong>and</strong> films believed to be produced <strong>in</strong><br />
Russia <strong>and</strong> Ukra<strong>in</strong>e as well as produc<strong>in</strong>g <strong>the</strong>ir<br />
own counterfeit discs. The pirate CDs <strong>and</strong><br />
DVDs were dest<strong>in</strong>ed for <strong>the</strong> German market.<br />
Dur<strong>in</strong>g <strong>the</strong> raid some 65,000 CDs, DVDs,<br />
CD-Rs <strong>and</strong> DVD-Rs <strong>and</strong> 110,000 <strong>in</strong>lay cards<br />
were seized along with counterfeit <strong>in</strong>lays<br />
<strong>and</strong> packag<strong>in</strong>g.<br />
The discs conta<strong>in</strong>ed a mixture of German <strong>and</strong><br />
<strong>in</strong>ternational repertoire. Officers secured <strong>the</strong><br />
secret laboratory used for <strong>the</strong> unauthorised<br />
reproduction of discs which conta<strong>in</strong>ed<br />
computers, two tower burners <strong>and</strong> two<br />
high-quality pr<strong>in</strong>ters.<br />
Four of <strong>the</strong> eight suspects arrested, <strong>in</strong>clud<strong>in</strong>g<br />
one German citizen, were rem<strong>and</strong>ed <strong>in</strong> custody<br />
for three months. The o<strong>the</strong>r four suspects were<br />
released while <strong>the</strong> <strong>in</strong>vestigation cont<strong>in</strong>ued.<br />
The case highlights <strong>the</strong> value of a partnership<br />
approach between <strong>the</strong> public <strong>and</strong> private<br />
sector <strong>and</strong> <strong>the</strong> close <strong>and</strong> professional work<strong>in</strong>g<br />
relationship of <strong>the</strong> ZPAV, which represents<br />
<strong>the</strong> Polish record<strong>in</strong>g <strong>in</strong>dustry, <strong>and</strong> <strong>IFPI</strong>.<br />
A representative of FOTA, which represents <strong>the</strong><br />
film <strong>in</strong>dustry <strong>in</strong> Pol<strong>and</strong>, was also present dur<strong>in</strong>g<br />
<strong>the</strong> raid to determ<strong>in</strong>e <strong>the</strong> legitimacy of <strong>the</strong> seized<br />
discs. <strong>IFPI</strong> will be hop<strong>in</strong>g for significant deterrent<br />
sentences when <strong>the</strong> case comes to court.<br />
65,000 discs were seized<br />
Police seized guns <strong>and</strong> contrab<strong>and</strong><br />
Raids smash Spanish <strong>piracy</strong> r<strong>in</strong>g<br />
CONTINUED FROM PAGE 1.<br />
Fur<strong>the</strong>r <strong>in</strong>vestigations revealed this network of<br />
salespeople spread across n<strong>in</strong>e cities.<br />
The production capacity of <strong>the</strong> seized burners<br />
was estimated at 150,000 units daily <strong>and</strong> <strong>the</strong>y<br />
were operat<strong>in</strong>g on a 24-hour basis to produce<br />
counterfeit discs with a street value of<br />
€600,000 each day or <strong>the</strong> equivalent of<br />
€219 million per year.<br />
Antonio Guisasola, Head of Pro<strong>music</strong>ae, said:<br />
“This was a magnificent operation that <strong>in</strong>volved<br />
cooperation from several arms of Spanish law<br />
enforcement. They have managed to smash<br />
an organised crim<strong>in</strong>al gang that was mak<strong>in</strong>g<br />
millions of euro <strong>in</strong> profit while exploit<strong>in</strong>g some<br />
of <strong>the</strong> most vulnerable people <strong>in</strong> society.<br />
They were also hurt<strong>in</strong>g legitimate sales of <strong>music</strong><br />
<strong>and</strong> thus throttl<strong>in</strong>g <strong>the</strong> level of <strong>in</strong>vestment that<br />
can be ploughed back <strong>in</strong>to discover<strong>in</strong>g <strong>and</strong><br />
nurtur<strong>in</strong>g <strong>the</strong> next generation of artists.”<br />
These raids built on <strong>the</strong> success of Operation<br />
Ave, which took place <strong>in</strong> March, <strong>and</strong> saw<br />
Spanish police successfully tackle ano<strong>the</strong>r<br />
organised crim<strong>in</strong>al syndicate <strong>in</strong>volved <strong>in</strong><br />
produc<strong>in</strong>g <strong>and</strong> distribut<strong>in</strong>g counterfeit CDs <strong>and</strong><br />
DVDs. Follow<strong>in</strong>g those earlier raids <strong>the</strong><br />
Spanish m<strong>in</strong>isters for Culture <strong>and</strong> <strong>the</strong> Interior<br />
2<br />
wrote to <strong>the</strong> relevant rightsholders confirm<strong>in</strong>g<br />
<strong>the</strong> importance to <strong>the</strong>m of tackl<strong>in</strong>g organised<br />
counterfeit<strong>in</strong>g gangs.<br />
The raids <strong>in</strong>volved officers from <strong>the</strong> Grupo de<br />
Delitos contra la Propiedad Intelectual e<br />
Industrial de la UDEV-Central (Economic <strong>and</strong><br />
Violent Crime Unit of <strong>the</strong> Spanish National<br />
Police), <strong>the</strong> Grupo VI de la Brigada Central de<br />
Redes de Inmigración, de la Comisaría General<br />
de Extranjería y Documentación (Unit VI of <strong>the</strong><br />
Head of <strong>the</strong> Immigration Squad) <strong>and</strong> <strong>the</strong> Grupo<br />
XXIII de la Brigada Prov<strong>in</strong>cial de Policía Judicial<br />
de Madrid (Unit XXIII of <strong>the</strong> Madrid Local Squad<br />
Office of <strong>the</strong> Judicial Police). Police were<br />
assisted by anti-<strong>piracy</strong> experts from<br />
ProMusicae, which represents <strong>the</strong> record<strong>in</strong>g<br />
<strong>in</strong>dustry <strong>in</strong> Spa<strong>in</strong>, <strong>and</strong> <strong>IFPI</strong>, which represents<br />
<strong>the</strong> record<strong>in</strong>g <strong>in</strong>dustry <strong>world</strong>wide.<br />
Len Hynds, Head of Enforcement at <strong>IFPI</strong>, said:<br />
“Some people th<strong>in</strong>k that burn<strong>in</strong>g counterfeit CDs<br />
is a cottage <strong>in</strong>dustry, but this crim<strong>in</strong>al operation<br />
was runn<strong>in</strong>g an operation that required massive<br />
<strong>in</strong>vestment <strong>and</strong> was <strong>the</strong> equivalent of a fullyfunctional<br />
legitimate CD plant. This gang was<br />
mak<strong>in</strong>g €600,000 a day from its illegal activities,<br />
which shows why CD <strong>piracy</strong> is such an<br />
attractive option for organised crime.”<br />
Gang was mak<strong>in</strong>g €600,000 per day
July 2008<br />
FEATURE<br />
A 21st century approach to enforcement: Len Hynds<br />
My first six months <strong>in</strong> charge of <strong>the</strong> <strong>IFPI</strong><br />
Anti-Piracy Enforcement effort has quite<br />
literally flown by. The review of budgets<br />
that was <strong>in</strong> full sw<strong>in</strong>g when I jo<strong>in</strong>ed is<br />
now completed. Development of our<br />
strategy go<strong>in</strong>g forward is well underway.<br />
Just two weeks <strong>in</strong>to my new role <strong>in</strong> January I<br />
presented our vision for Enforcement to <strong>the</strong><br />
<strong>IFPI</strong> Ma<strong>in</strong> Board. The <strong>the</strong>mes: Deliver<strong>in</strong>g<br />
more for less, work<strong>in</strong>g <strong>in</strong> smarter ways for<br />
maximum impact <strong>and</strong> tailor<strong>in</strong>g tactics to<br />
meet <strong>the</strong> modern phenomenon. The Ma<strong>in</strong><br />
Board welcomed <strong>the</strong> new approach <strong>and</strong> after<br />
<strong>the</strong> first one hundred days, clear progress<br />
was charted.<br />
We have by no means embroiled solely <strong>in</strong><br />
<strong>the</strong> mechanics of bus<strong>in</strong>ess change, however.<br />
The pirates will not take “time out” to<br />
restructure <strong>and</strong> so nei<strong>the</strong>r can we. I am<br />
proud to report that <strong>IFPI</strong> Enforcement, <strong>in</strong><br />
league with <strong>the</strong> National Groups <strong>and</strong> its o<strong>the</strong>r<br />
partners, cont<strong>in</strong>ues to perform outst<strong>and</strong><strong>in</strong>gly:<br />
Enforcement Figures: 1st Quarter 2008<br />
No. of projects/operations 1,765<br />
No. of arrests 288<br />
Seized product<br />
(Pressed <strong>and</strong> Burnt) 24,568,927<br />
Seized burners 5,742<br />
Assets located <strong>and</strong>/or<br />
restra<strong>in</strong>ed (value) £9,700,000<br />
Today, more than ever, we have to adapt to<br />
change. The nature of <strong>piracy</strong> itself is chang<strong>in</strong>g.<br />
Driven both by evolv<strong>in</strong>g technologies <strong>and</strong><br />
enforcement <strong>in</strong>terdiction tactics, <strong>the</strong> <strong>music</strong><br />
pirates have steadily migrated from pressed<br />
disc to small <strong>and</strong> medium scale CD-R <strong>and</strong><br />
DVD-R burn<strong>in</strong>g facilities. For us, that means<br />
that tactical options focus<strong>in</strong>g on transhipment<br />
of counterfeit product have become less<br />
effective <strong>in</strong> consequence. We need a<br />
more holistic appreciation of <strong>the</strong> pirates’<br />
entrepreneurial behaviours <strong>and</strong> creation<br />
of <strong>in</strong>novative partnerships.<br />
Obviously, our greatest focus now has to be<br />
digital <strong>piracy</strong>. The exponential growth over <strong>the</strong><br />
past five to ten years <strong>in</strong> e-bus<strong>in</strong>ess models<br />
globally has meant that onl<strong>in</strong>e <strong>and</strong> physical<br />
<strong>world</strong> behaviours have converged. We need to<br />
adapt accord<strong>in</strong>gly. Over <strong>the</strong> years, <strong>IFPI</strong> has seen<br />
its physical <strong>and</strong> <strong>in</strong>ternet anti-<strong>piracy</strong> capability<br />
develop <strong>in</strong> silos. This should not be seen as a<br />
criticism – <strong>in</strong>deed both <strong>the</strong> physical <strong>and</strong> <strong>in</strong>ternet<br />
teams have had some outst<strong>and</strong><strong>in</strong>g successes.<br />
We need to build on <strong>the</strong>se successes now, us<strong>in</strong>g<br />
<strong>the</strong> full panoply of modern day <strong>in</strong>vestigative tools<br />
<strong>and</strong> techniques as we move forward.<br />
I hope to br<strong>in</strong>g extensive experience to this<br />
challenge. Law enforcement experts <strong>world</strong>wide<br />
have been build<strong>in</strong>g capacity to police <strong>the</strong> <strong>in</strong>ternet<br />
environment s<strong>in</strong>ce <strong>the</strong> late 1990s. This is based<br />
upon some simple premises: that <strong>the</strong> <strong>in</strong>ternet<br />
offers just one more platform for crim<strong>in</strong>als; that<br />
crime played out <strong>in</strong> <strong>the</strong> virtual <strong>world</strong> requires a<br />
physical <strong>world</strong> <strong>in</strong>vestigation, where core polic<strong>in</strong>g<br />
skills apply <strong>and</strong> should be tempered with<br />
specialist tra<strong>in</strong><strong>in</strong>g; <strong>and</strong> that private-public<br />
partnership is fundamental to our progress.<br />
The <strong>in</strong>ternet comprises a complex mesh of<br />
public-private <strong>in</strong>terests <strong>and</strong> if we are serious<br />
about neutralis<strong>in</strong>g <strong>the</strong> <strong>in</strong>vad<strong>in</strong>g pirates we must<br />
build <strong>in</strong>creas<strong>in</strong>gly diverse partnerships nationally<br />
<strong>and</strong> <strong>in</strong>ternationally.<br />
Successful development of an Anti-Piracy<br />
Resource that is fit for purpose <strong>in</strong> 2008 <strong>and</strong><br />
beyond <strong>the</strong>refore needs, amongst o<strong>the</strong>r th<strong>in</strong>gs,<br />
much closer <strong>in</strong>tegration of functionality with<strong>in</strong> our<br />
Enforcement <strong>and</strong> Internet Anti-Piracy teams.<br />
We will address <strong>the</strong> full range of pirate<br />
methodologies <strong>and</strong> operate both with<strong>in</strong> <strong>and</strong><br />
outside <strong>the</strong> <strong>in</strong>ternet space. I believe <strong>in</strong> <strong>the</strong><br />
future we should not th<strong>in</strong>k about <strong>piracy</strong> <strong>in</strong><br />
terms of physical <strong>and</strong> <strong>in</strong>ternet, but more <strong>in</strong><br />
relation to <strong>the</strong> skills – technical <strong>and</strong><br />
<strong>in</strong>vestigative - we need to build solutions.<br />
Manag<strong>in</strong>g this process will not be for <strong>the</strong><br />
fa<strong>in</strong>t hearted. Success will be dependent<br />
upon clear <strong>lead</strong>ership <strong>and</strong> buy-<strong>in</strong> from all<br />
concerned. There must be a team effort<br />
where both support<strong>in</strong>g <strong>and</strong> <strong>lead</strong><strong>in</strong>g roles are<br />
acknowledged with equal prom<strong>in</strong>ence. This<br />
is key to build<strong>in</strong>g a productive <strong>and</strong> healthy<br />
attitude <strong>and</strong> will enable <strong>IFPI</strong> to create a<br />
<strong>world</strong>-class Anti-Piracy resource for 2008<br />
<strong>and</strong> <strong>the</strong> future.<br />
So times are chang<strong>in</strong>g. The revised<br />
structure for our Enforcement team marks a<br />
departure from <strong>the</strong> rigid regional comm<strong>and</strong>s<br />
towards centrally-based functional<br />
comm<strong>and</strong>s with Intelligence <strong>and</strong> Delivery at<br />
its heart. The revamp<strong>in</strong>g of this publication<br />
is one small example of <strong>the</strong> new approach<br />
that <strong>the</strong> team is adopt<strong>in</strong>g. In future<br />
publications we will feature some of <strong>the</strong><br />
ways that <strong>IFPI</strong> Enforcement, work<strong>in</strong>g with<br />
partners, is breath<strong>in</strong>g <strong>in</strong>novation <strong>in</strong>to<br />
traditional <strong>in</strong>vestigation <strong>and</strong> produc<strong>in</strong>g<br />
tangible <strong>and</strong> susta<strong>in</strong>able results. Along <strong>the</strong><br />
way, of course, <strong>the</strong> appetite for genu<strong>in</strong>e<br />
change will need to be tested with partners<br />
affected. The new model puts greater focus<br />
on central service so it follows <strong>the</strong>re will be<br />
<strong>in</strong>creased reliance upon National Groups to<br />
adopt <strong>the</strong> new solutions for local delivery.<br />
F<strong>in</strong>ally, I do not underestimate <strong>the</strong> scale of<br />
<strong>the</strong> challenge ahead, but equally I know our<br />
teams comprise people of exceptional skills<br />
<strong>and</strong> commitment. By <strong>the</strong> close of 2008 <strong>the</strong><br />
<strong>IFPI</strong> Anti-Piracy resource must amount to<br />
<strong>the</strong> right people, with <strong>the</strong> right skills <strong>and</strong><br />
tra<strong>in</strong><strong>in</strong>g deliver<strong>in</strong>g maximum impact<br />
aga<strong>in</strong>st <strong>the</strong> pirates.<br />
Len Hynds : Biography<br />
Len Hynds jo<strong>in</strong>ed <strong>IFPI</strong> after serv<strong>in</strong>g as Assistant Chief Constable <strong>and</strong> Deputy Director of <strong>the</strong> <strong>UK</strong>’s Serious Organised Crime Agency (SOCA).<br />
He has a background of more than three decades service <strong>in</strong> <strong>the</strong> police force, <strong>in</strong>clud<strong>in</strong>g several years as <strong>the</strong> first head of <strong>the</strong> <strong>UK</strong>’s<br />
National Hi-Tech Crime Unit. He played a key role <strong>in</strong> advis<strong>in</strong>g <strong>the</strong> British government on how to tackle hi-tech <strong>and</strong> cybercrime.<br />
Len Hynds also served as Chairman of <strong>the</strong> <strong>UK</strong> Internet Crime Forum <strong>and</strong> <strong>the</strong> Association of Chief Police Officers’ National Hi-Tech<br />
Crime Work<strong>in</strong>g Group.<br />
3
July 2008<br />
INTERVIEW<br />
90 seconds with David Wood, Director of Anti-Piracy, BPI<br />
90<br />
David Wood heads up a team of 13 people<br />
who work with law enforcement <strong>and</strong> o<strong>the</strong>rs<br />
to combat <strong>music</strong> <strong>piracy</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong>.<br />
Do you th<strong>in</strong>k <strong>the</strong> <strong>UK</strong> suffers from a high rate<br />
of physical <strong>music</strong> <strong>piracy</strong>?<br />
Compared to some EU countries such as Italy<br />
or Spa<strong>in</strong>, no, but an IPSOS study from 2006<br />
estimated that <strong>UK</strong> sales of illegal physical discs<br />
were <strong>in</strong> <strong>the</strong> region of 37m. Half of those directly<br />
substituted legitimate sales, or to put it ano<strong>the</strong>r<br />
way, it’s a £165m problem annually.<br />
The number of CD-R discs seized has decl<strong>in</strong>ed<br />
s<strong>in</strong>ce <strong>the</strong>n, but <strong>in</strong>creas<strong>in</strong>gly we’re seiz<strong>in</strong>g<br />
DVD-R discs that often have up to 50 albums<br />
on <strong>the</strong> one disc. These sometimes sell for as<br />
little as £2.<br />
Where do you focus your enforcement?<br />
There is some rov<strong>in</strong>g trade through word of<br />
mouth, where discs are sold <strong>in</strong> pubs, bars, <strong>and</strong><br />
<strong>the</strong> place of work: particularly large <strong>in</strong>dustrial<br />
units. But most sales to consumers take place<br />
at open air markets or car-boot sales.<br />
The recent Proceeds of Crime Act, means many<br />
markets now self-police, because <strong>the</strong> authorities<br />
can recover assets from crim<strong>in</strong>al ga<strong>in</strong><br />
far more effectively, which provides <strong>the</strong>m with<br />
an <strong>in</strong>centive to enforce. Us<strong>in</strong>g this legislation we<br />
successfully prosecuted a market organis<strong>in</strong>g<br />
company <strong>and</strong> its directors <strong>in</strong> 2006, <strong>and</strong> on <strong>the</strong><br />
back of <strong>the</strong> judgment we are rais<strong>in</strong>g awareness<br />
with market operators <strong>and</strong> we have already<br />
seen a significant reduction <strong>in</strong> counterfeit sales.<br />
Do you th<strong>in</strong>k <strong>the</strong>re is a relationship<br />
between organised crime <strong>and</strong> <strong>music</strong> <strong>piracy</strong>?<br />
Sell<strong>in</strong>g copied <strong>music</strong>, film, games <strong>and</strong> software<br />
on discs is a cash cow for organised gangs,<br />
<strong>and</strong> different gangs control supply <strong>and</strong><br />
distribution <strong>in</strong> different regions. Controll<strong>in</strong>g<br />
territory is lucrative.<br />
In 2006, a gang of ten received sentences<br />
collectively amount<strong>in</strong>g to eleven years. Though<br />
<strong>the</strong>y ran a highly organised network, <strong>the</strong>y <strong>in</strong> turn<br />
had to pay £1,000 protection per table to a<br />
<strong>lead</strong><strong>in</strong>g gangl<strong>and</strong> figure just to be allowed to<br />
trade. As proved <strong>in</strong> court, <strong>the</strong> sellers were<br />
mak<strong>in</strong>g a clear profit <strong>in</strong> excess of £3,000 per<br />
table so <strong>the</strong>y could afford it.<br />
What is BPI’s work<strong>in</strong>g relationship like with<br />
<strong>the</strong> law enforcement authorities <strong>in</strong><br />
<strong>the</strong> <strong>UK</strong>?<br />
Very close, <strong>and</strong> it has to be. As we don’t have<br />
<strong>the</strong> power to arrest, we collect evidence <strong>and</strong><br />
provide it to <strong>the</strong> police or trad<strong>in</strong>g st<strong>and</strong>ards to<br />
act. And while we can br<strong>in</strong>g private prosecutions<br />
<strong>the</strong> vast majority are brought by <strong>the</strong> authorities.<br />
Ow<strong>in</strong>g to <strong>the</strong>ir regional structure, enforcement<br />
can be complex <strong>and</strong> requires close cooperation.<br />
A recent operation saw twenty people<br />
prosecuted for controll<strong>in</strong>g <strong>the</strong> trade <strong>in</strong> Liverpool<br />
<strong>and</strong> <strong>the</strong> north West. We worked with two<br />
separate police forces, three Trad<strong>in</strong>g St<strong>and</strong>ards<br />
Authorities <strong>and</strong> <strong>the</strong> government department<br />
responsible for deal<strong>in</strong>g with benefit fraud.<br />
Toge<strong>the</strong>r, we proved that two organised gangs<br />
worked toge<strong>the</strong>r to run <strong>the</strong> markets, fix prices<br />
<strong>and</strong> defraud <strong>the</strong> benefits system.<br />
New alliances are formed all <strong>the</strong> time. We<br />
are currently develop<strong>in</strong>g l<strong>in</strong>ks with <strong>the</strong> Welsh<br />
Regional Intelligence Unit (RIU), a police<br />
resource that specialises <strong>in</strong> develop<strong>in</strong>g<br />
<strong>in</strong>telligence <strong>and</strong> works closely with <strong>the</strong> <strong>UK</strong><br />
Intellectual Property Office.<br />
We are now able to submit police enquiries for<br />
th<strong>in</strong>gs like mobile phone records <strong>and</strong> bank<br />
enquiries, <strong>and</strong> police can lawfully exchange this<br />
<strong>in</strong>formation with us to develop crim<strong>in</strong>al cases.<br />
And while we have excellent contacts <strong>in</strong> most<br />
regions, we can use <strong>the</strong> RIU if we lack a contact<br />
<strong>in</strong> a specific area.<br />
Are ‘traditional’ detective skills useful<br />
for combat<strong>in</strong>g onl<strong>in</strong>e <strong>piracy</strong>?<br />
File-shar<strong>in</strong>g is undertaken on P2P networks, but<br />
putt<strong>in</strong>g that to one side, digital <strong>piracy</strong> has<br />
blurred <strong>the</strong> l<strong>in</strong>es between “commercial pirate”<br />
<strong>and</strong> consumer. The operation aga<strong>in</strong>st OiNK was<br />
a case <strong>in</strong> po<strong>in</strong>t, a profitable crim<strong>in</strong>al enterprise,<br />
but also used by consumers.<br />
As a former detective, <strong>the</strong> traditional skills are<br />
essential. Whe<strong>the</strong>r it’s a physical or digital<br />
<strong>in</strong>vestigation, <strong>the</strong> premise is <strong>the</strong> same; we<br />
ga<strong>the</strong>r evidence of illegal activity <strong>and</strong> <strong>the</strong>n<br />
identify <strong>the</strong> persons beh<strong>in</strong>d it.<br />
Law enforcement officers need clear, watertight<br />
evidence that st<strong>and</strong>s up to court scrut<strong>in</strong>y,<br />
<strong>and</strong> for that detective skills <strong>and</strong> a deep<br />
underst<strong>and</strong><strong>in</strong>g of <strong>the</strong> legal system<br />
are essential.<br />
“<br />
Sell<strong>in</strong>g copied <strong>music</strong>,<br />
film, games <strong>and</strong><br />
software on discs<br />
is a cash cow for<br />
organised gangs.<br />
“<br />
4
July 2008<br />
DIGITAL PIRACY<br />
Digital <strong>and</strong> physical <strong>piracy</strong> converge: Jeremy Banks<br />
<strong>IFPI</strong>’s Internet Anti-Piracy Unit (IAPU) is a<br />
specialist department that works with<br />
member companies, <strong>IFPI</strong>’s national groups<br />
<strong>and</strong> law enforcement agencies around <strong>the</strong><br />
<strong>world</strong> to tackle problems such as pre-release<br />
<strong>piracy</strong> <strong>and</strong> <strong>the</strong> spread of copyright <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g<br />
<strong>music</strong> on file-shar<strong>in</strong>g networks.<br />
It also manages <strong>the</strong> <strong>in</strong>dustry’s high-volume<br />
notice/takedown programme under which<br />
hundreds of thous<strong>and</strong>s of warn<strong>in</strong>gs are issued<br />
each year, result<strong>in</strong>g <strong>in</strong> <strong>the</strong> shutdown of<br />
<strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g sites <strong>and</strong> operations <strong>and</strong> <strong>the</strong> removal<br />
of millions of <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g files from blogs,<br />
cyberlockers <strong>and</strong> o<strong>the</strong>r locations on <strong>the</strong> <strong>in</strong>ternet.<br />
It has a proven track record of gett<strong>in</strong>g ISPs, site<br />
operators <strong>and</strong> those post<strong>in</strong>g <strong>the</strong> <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g<br />
material to remove it. Additionally <strong>the</strong> IAPU<br />
provides <strong>the</strong> <strong>in</strong>frastructure that is core of <strong>the</strong><br />
record<strong>in</strong>g <strong>in</strong>dustry’s P2P end user <strong>and</strong><br />
graduated response programmes.<br />
It is sometimes wrongly assumed that onl<strong>in</strong>e<br />
anti-<strong>piracy</strong> work is doomed to fail s<strong>in</strong>ce<br />
offenders cannot be identified on <strong>the</strong> <strong>in</strong>ternet.<br />
This is a total misconception, as <strong>the</strong> IAPU has<br />
proved; by work<strong>in</strong>g with law enforcement <strong>and</strong>/or<br />
us<strong>in</strong>g <strong>the</strong> relevant civil procedures it is possible<br />
to identify <strong>and</strong> act aga<strong>in</strong>st <strong>in</strong>ternet users who<br />
seriously <strong>in</strong>fr<strong>in</strong>ge copyright laws by upload<strong>in</strong>g<br />
<strong>music</strong> without permission for millions of people<br />
to download.<br />
Reflect<strong>in</strong>g <strong>the</strong> chang<strong>in</strong>g nature of <strong>the</strong> <strong>piracy</strong><br />
problem we are fight<strong>in</strong>g, <strong>the</strong> IAPU is today<br />
work<strong>in</strong>g <strong>in</strong> closer cooperation than ever before<br />
with our colleagues <strong>in</strong> <strong>the</strong> enforcement team.<br />
Digital <strong>and</strong> physical <strong>piracy</strong> used to be seen as<br />
very different beasts. Onl<strong>in</strong>e <strong>piracy</strong> would<br />
<strong>in</strong>volve technologically savvy people illegally<br />
upload<strong>in</strong>g <strong>music</strong> <strong>and</strong> shar<strong>in</strong>g it with new k<strong>in</strong>ds<br />
of software. Physical <strong>piracy</strong> ranged from a CD<br />
plant churn<strong>in</strong>g out fake discs a man on <strong>the</strong><br />
street corner sell<strong>in</strong>g counterfeit CDs. That<br />
dist<strong>in</strong>ction is now <strong>in</strong>creas<strong>in</strong>gly outdated.<br />
There are many examples of how <strong>the</strong> <strong>world</strong>s of<br />
physical <strong>and</strong> digital <strong>piracy</strong> <strong>in</strong>terlock. Despite <strong>the</strong><br />
advances <strong>in</strong> electronic distribution, most record<br />
companies still distribute promotional <strong>and</strong> demo<br />
material on physical media. Most of <strong>the</strong> onl<strong>in</strong>e<br />
pre-release leaks that we <strong>in</strong> <strong>the</strong> IAPU<br />
<strong>in</strong>vestigate orig<strong>in</strong>ate from someone obta<strong>in</strong><strong>in</strong>g<br />
(directly or <strong>in</strong>directly) a CD <strong>and</strong> illegally<br />
upload<strong>in</strong>g its content to <strong>the</strong> <strong>in</strong>ternet. Conversely,<br />
many of <strong>the</strong> counterfeit CDs on sale on street<br />
corners <strong>and</strong> <strong>in</strong> markets are burned from illegal<br />
onl<strong>in</strong>e content.<br />
In recent months our colleagues from <strong>the</strong> <strong>IFPI</strong><br />
Enforcement Team have supported ongo<strong>in</strong>g<br />
<strong>in</strong>vestigations <strong>in</strong>to <strong>the</strong> operators of websites that<br />
are be<strong>in</strong>g used to break copyright laws <strong>and</strong><br />
assisted <strong>in</strong> identify<strong>in</strong>g people who are leak<strong>in</strong>g<br />
pre-release albums. Additionally, where<br />
IAPU <strong>in</strong>vestigations have taken on a physical<br />
element, <strong>the</strong> two teams have worked closely to<br />
provide <strong>the</strong> service dem<strong>and</strong>ed by our members,<br />
national groups <strong>and</strong> law enforcement partners.<br />
Jeremy Banks is <strong>the</strong> head of <strong>IFPI</strong>’s Internet<br />
Anti-Piracy Unit<br />
“<br />
The IAPU is today<br />
work<strong>in</strong>g <strong>in</strong> closer<br />
cooperation than<br />
ever before with<br />
our colleagues <strong>in</strong> <strong>the</strong><br />
enforcement team.<br />
“<br />
Fake discs are burnt from illegal downloads<br />
Pre-release tracks onl<strong>in</strong>e are often sourced to CDs<br />
Czech Police shut down illegal server<br />
Tight cooperation between <strong>the</strong> Czech<br />
authorities <strong>and</strong> <strong>the</strong> record<strong>in</strong>g <strong>in</strong>dustry led to<br />
action aga<strong>in</strong>st a pre-release <strong>piracy</strong> operation<br />
that was us<strong>in</strong>g a powerful server at <strong>the</strong> Czech<br />
Republic’s Academy of Sciences <strong>in</strong> Prague.<br />
Czech police shut down <strong>the</strong> computer server<br />
which was be<strong>in</strong>g used to store <strong>and</strong> upload large<br />
amounts of copyright <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g <strong>music</strong> <strong>and</strong> film<br />
onto <strong>the</strong> <strong>in</strong>ternet. The server was hosted at <strong>the</strong><br />
Academy of Sciences of <strong>the</strong> Czech Republic <strong>in</strong><br />
Prague which, although owned by a private legal<br />
entity, was used to power <strong>the</strong> topsite ‘BA’ or ‘bl<strong>in</strong>d<br />
alley’. Topsites are websites used by groups of<br />
users known as “release groups” to leak prerelease<br />
<strong>music</strong> onto <strong>the</strong> <strong>in</strong>ternet. Police discovered<br />
<strong>the</strong> server conta<strong>in</strong>ed an estimated four terabytes<br />
of copyright <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g <strong>music</strong>, film, games <strong>and</strong><br />
software <strong>and</strong> was connected to <strong>the</strong> <strong>in</strong>ternet by a<br />
fast one gigabyte l<strong>in</strong>e to enable <strong>the</strong> material to be<br />
distributed quickly <strong>and</strong> efficiently. This makes it<br />
one of <strong>the</strong> most powerful servers ever closed <strong>in</strong><br />
police action. The topsite was used by several<br />
“release groups” <strong>in</strong>clud<strong>in</strong>g AG, CaF, DMU, FCR,<br />
iTWINS, NBP <strong>and</strong> SWE6RUS. The police raid <strong>in</strong><br />
April followed an <strong>in</strong>vestigation by local <strong>and</strong><br />
<strong>in</strong>ternational anti-<strong>piracy</strong> experts from <strong>IFPI</strong>.<br />
They ga<strong>the</strong>red evidence of <strong>the</strong> <strong>in</strong>fr<strong>in</strong>gement be<strong>in</strong>g<br />
facilitated by <strong>the</strong> server <strong>and</strong> made a crim<strong>in</strong>al<br />
compla<strong>in</strong>t. The police were able to verify <strong>the</strong><br />
evidence, acquire a warrant from <strong>the</strong> public<br />
prosecutor <strong>and</strong> conduct a raid with<strong>in</strong> 10 days.<br />
Jeremy Banks, Head of <strong>the</strong> <strong>IFPI</strong>’s Internet Anti-<br />
Piracy Unit, said: “Pre-release <strong>music</strong> <strong>piracy</strong> hurts<br />
artists, composers <strong>and</strong> producers who have spent<br />
months work<strong>in</strong>g to make an album. We are<br />
work<strong>in</strong>g to identify <strong>the</strong> “topsites” that are be<strong>in</strong>g<br />
used to post pre-release <strong>music</strong> illegally onto <strong>the</strong><br />
<strong>in</strong>ternet <strong>and</strong> secure <strong>the</strong> closure of <strong>the</strong> servers that<br />
power <strong>the</strong>m.<br />
5
July 2008<br />
REGIONAL NEWS<br />
Australia vows to re<strong>in</strong> <strong>in</strong> <strong>the</strong> rip offs<br />
Victoria Police raided <strong>music</strong> retailers <strong>in</strong><br />
Melbourne earlier this year seiz<strong>in</strong>g<br />
thous<strong>and</strong>s of allegedly pirate <strong>music</strong> CDs <strong>and</strong><br />
DVDs to mark <strong>the</strong> launch of a nationwide<br />
campaign “Operation Re<strong>in</strong> <strong>in</strong> <strong>the</strong> Rip Offs”.<br />
Dur<strong>in</strong>g <strong>the</strong> first raid a retailer specialis<strong>in</strong>g <strong>in</strong><br />
Arab <strong>music</strong> was forced to close its doors to <strong>the</strong><br />
public as police searched <strong>the</strong> premises <strong>and</strong><br />
removed 5,000 discs openly on sale <strong>and</strong><br />
extensive burn<strong>in</strong>g equipment that was housed<br />
<strong>in</strong> a back room. A second raid <strong>in</strong> Melbourne 24<br />
hours later saw police net thous<strong>and</strong>s of<br />
allegedly pirate Greek <strong>music</strong> discs from a shop<br />
on <strong>the</strong> same street.<br />
The nationwide operation is be<strong>in</strong>g spearheaded<br />
by Music Industry Piracy Investigations (MIPI)<br />
<strong>and</strong> will target unscrupulous retailers across<br />
Australia that are blatantly sell<strong>in</strong>g pirate <strong>music</strong><br />
discs <strong>and</strong> ripp<strong>in</strong>g off consumers, songwriters,<br />
artists <strong>and</strong> legitimate <strong>music</strong> retailers.<br />
Sabiene He<strong>in</strong>dl, General Manager of MIPI<br />
commended <strong>the</strong> Victorian Police on <strong>the</strong>ir<br />
commitment to tackl<strong>in</strong>g pirate activity <strong>in</strong> <strong>the</strong><br />
state <strong>and</strong> said: “These proactive raids by <strong>the</strong><br />
Victorian Police signal <strong>the</strong> start of a national<br />
campaign by <strong>the</strong> Australian <strong>music</strong> <strong>in</strong>dustry to<br />
crackdown on rogue traders that are damag<strong>in</strong>g<br />
<strong>the</strong> <strong>music</strong> <strong>in</strong>dustry <strong>and</strong> ripp<strong>in</strong>g off consumers by<br />
sell<strong>in</strong>g pirate <strong>music</strong>. No matter where <strong>the</strong>y are<br />
located, we will f<strong>in</strong>d illegal traders that are<br />
sell<strong>in</strong>g pirate <strong>music</strong> <strong>and</strong> take appropriate<br />
enforcement action.”<br />
Ian Harvey, Executive Director of <strong>the</strong> Australian<br />
Music Retailers Association (AMRA) added:<br />
“Many Australian <strong>music</strong> retailers are small family<br />
run bus<strong>in</strong>esses that simply cannot compete with<br />
pirates that are sell<strong>in</strong>g <strong>in</strong>ferior <strong>music</strong> product at<br />
lower prices. AMRA wholeheartedly supports<br />
actions by <strong>the</strong> Australian <strong>music</strong> <strong>in</strong>dustry <strong>and</strong> law<br />
enforcement to hold <strong>the</strong>se pirates accountable.”<br />
…more news from Australia<br />
The last few months have seen a lot more<br />
anti-<strong>piracy</strong> activity <strong>in</strong> Australia. Some of<br />
<strong>the</strong> o<strong>the</strong>r highlights <strong>in</strong>clude:<br />
• Police <strong>in</strong> Victoria raided three residential<br />
premises <strong>in</strong> Melbourne <strong>in</strong> January, seiz<strong>in</strong>g close<br />
to half a million pirate optical discs <strong>and</strong> 100<br />
optical disc burners. One of <strong>the</strong> premises was<br />
raided last year at which time 200,000 optical<br />
discs <strong>and</strong> over 70 burners were seized. The<br />
seizure of pirate Western <strong>and</strong> Asian films, <strong>music</strong><br />
<strong>and</strong> software represents <strong>the</strong> largest <strong>in</strong> Australia<br />
to date.<br />
• Magistrates <strong>in</strong> Ball<strong>in</strong>a convicted copyright<br />
bro<strong>the</strong>rs Stephen <strong>and</strong> Michael McCarthy of a<br />
number of copyright offences <strong>in</strong> February <strong>and</strong><br />
ordered <strong>the</strong>m to h<strong>and</strong> over thous<strong>and</strong>s of dollars<br />
worth of computer equipment, f<strong>in</strong><strong>in</strong>g <strong>the</strong>m<br />
A$9,000 plus court costs. The bro<strong>the</strong>rs had<br />
been runn<strong>in</strong>g a sophisticated DVD <strong>piracy</strong><br />
operation with a website that offered<br />
hundreds of film, <strong>music</strong> <strong>and</strong> software titles<br />
for sale nationwide.<br />
• A new licence for DJs to legally transfer <strong>music</strong><br />
onto <strong>the</strong>ir laptops was launched <strong>in</strong> March,<br />
leav<strong>in</strong>g DJs with no excuses for us<strong>in</strong>g illegal<br />
<strong>music</strong> at <strong>the</strong>ir gigs. The new Australian<br />
Record<strong>in</strong>g Industry Association (ARIA) DJ<br />
licence created a one-stop shop for DJs to get<br />
permission from most major record labels to<br />
format shift <strong>the</strong>ir <strong>music</strong> for use at gigs. A<br />
correspond<strong>in</strong>g licence is also offered for <strong>the</strong><br />
<strong>music</strong>al works by <strong>the</strong> <strong>music</strong> publishers<br />
through AMCOS.<br />
MIPI has re-launched its guide entitled “Music<br />
for DJs – Are You Do<strong>in</strong>g <strong>the</strong> Right Th<strong>in</strong>g?”<br />
(available at http://www.mipi.com.au) to<br />
<strong>in</strong>corporate <strong>the</strong> new DJ licence. Crim<strong>in</strong>al<br />
penalties for DJs <strong>in</strong>volved <strong>in</strong> <strong>music</strong> <strong>piracy</strong> are<br />
up to $60,500 <strong>and</strong> five years imprisonment per<br />
offence. On-<strong>the</strong>-spot f<strong>in</strong>es of $1,320 may also<br />
apply. Owners or operators of bars or<br />
nightclubs may also be held liable for<br />
authoris<strong>in</strong>g copyright <strong>in</strong>fr<strong>in</strong>gement at <strong>the</strong>ir<br />
premises by allow<strong>in</strong>g <strong>the</strong> DJ to use pirate<br />
discs or illegal MP3 files.<br />
• Police <strong>in</strong> Victoria successfully raided an illegal<br />
optical disc burner lab <strong>in</strong> Melbourne, <strong>in</strong> March,<br />
with <strong>the</strong> assistance of <strong>in</strong>vestigators from MIPI<br />
<strong>and</strong> Verifact Investigations. The raid netted<br />
close to 10,000 burnt DVDs <strong>and</strong> extensive<br />
burn<strong>in</strong>g equipment.<br />
Police raid stores sell<strong>in</strong>g counterfeits<br />
Burners <strong>and</strong> discs seized across Australia<br />
Eleven charged for evasion<br />
Eleven people were crim<strong>in</strong>ally charged for<br />
evasion of neighbour<strong>in</strong>g rights <strong>in</strong> April after<br />
police action <strong>in</strong> various parts of Italy.<br />
The arrests came after a three month campaign<br />
aga<strong>in</strong>st <strong>the</strong> evasion of neighbour<strong>in</strong>g rights <strong>in</strong><br />
pubs, discos <strong>and</strong> dur<strong>in</strong>g sport events.<br />
The Italian Fiscal police, assisted by <strong>the</strong><br />
<strong>in</strong>dustry’s anti-<strong>piracy</strong> unit (FPM), carried out<br />
several raids <strong>in</strong> <strong>the</strong> Prov<strong>in</strong>ce of Bergamo <strong>and</strong> <strong>in</strong><br />
Florence. The raids uncovered widespread<br />
6<br />
violation of public performance rights, which is<br />
a crim<strong>in</strong>al offence under Italian copyright law.<br />
The suspects, mostly owners of pubs <strong>and</strong><br />
discos, were charged after <strong>the</strong> police raids,<br />
which also uncovered several violations of<br />
safety <strong>and</strong> labour legislation <strong>in</strong> addition to fiscal<br />
evasion. Dozens of computers <strong>and</strong> more than<br />
50,000 <strong>music</strong> files were seized dur<strong>in</strong>g <strong>the</strong> raids.<br />
More waves of enforcement actions have been<br />
planned for <strong>the</strong> future <strong>in</strong> several Italian regions.<br />
Dozens of computers were seized
July 2008<br />
REGIONAL NEWS<br />
Internet cafes are targeted<br />
Internet cafes are a major source of illegal<br />
<strong>music</strong> upload<strong>in</strong>g around <strong>the</strong> <strong>world</strong>. Two<br />
recent operations highlight <strong>the</strong> fact that law<br />
enforcement is wak<strong>in</strong>g up to <strong>the</strong> problem.<br />
Civil Police <strong>in</strong> <strong>the</strong> Brazilian state of Sao Paulo<br />
conducted more than 335 raids on <strong>in</strong>ternet<br />
cafes, known locally as Lan Houses, throughout<br />
<strong>the</strong> region <strong>in</strong> January. The jo<strong>in</strong>t <strong>IFPI</strong>/ MPA anti<strong>piracy</strong><br />
group Associacao Anti-pirateria de<br />
C<strong>in</strong>ema e Musica (APCM) provided significant<br />
<strong>in</strong>telligence to help make <strong>the</strong>se raids a<br />
successful operation.<br />
Independent market surveys have shown that<br />
over 20 per cent of illegal download<strong>in</strong>g <strong>and</strong><br />
burn<strong>in</strong>g <strong>in</strong> Brazil is tak<strong>in</strong>g place <strong>in</strong> <strong>in</strong>ternet<br />
cafes. It is estimated that Brazilians are illegally<br />
download<strong>in</strong>g more than 1.8 billion tracks<br />
annually. The cont<strong>in</strong>uation of <strong>the</strong>se raids is a<br />
key element <strong>in</strong> <strong>the</strong> general anti-<strong>piracy</strong> campaign<br />
<strong>and</strong> has resulted <strong>in</strong> <strong>the</strong> seizure of 2,339<br />
computers with more than a million illegal <strong>music</strong><br />
files. A total of 600 police officers from 93<br />
districts of <strong>the</strong> Special Operations division<br />
participated <strong>in</strong> <strong>the</strong> raids.<br />
Meanwhile <strong>in</strong> Australia, a major <strong>piracy</strong> racket<br />
allegedly operat<strong>in</strong>g out of a Sydney <strong>in</strong>ternet<br />
café was shut down <strong>in</strong> December after a raid by<br />
Moscow raid<br />
nets 500,000<br />
pirate discs<br />
Russian police raided a warehouse near<br />
Moscow <strong>and</strong> seized 500,000 copyright<br />
<strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g optical discs. The 9th Unit of<br />
<strong>the</strong> Moscow City Police’s Economic Crime<br />
Department undertook <strong>the</strong> raid act<strong>in</strong>g on<br />
<strong>in</strong>telligence of organised crim<strong>in</strong>al activity.<br />
The pirate discs have been transferred to<br />
“Informzashchita” storage facilities <strong>and</strong> <strong>the</strong><br />
police are follow<strong>in</strong>g up <strong>lead</strong>s about <strong>the</strong><br />
<strong>in</strong>volvement of <strong>the</strong> “Deymos” plant <strong>in</strong> Tver.<br />
Russia rema<strong>in</strong>s <strong>the</strong> second biggest market<br />
for counterfeit discs <strong>in</strong> <strong>the</strong> <strong>world</strong> after Ch<strong>in</strong>a.<br />
The record<strong>in</strong>g <strong>in</strong>dustry is call<strong>in</strong>g for <strong>the</strong> police<br />
to get <strong>the</strong> resources <strong>the</strong>y need to tackle <strong>the</strong><br />
organized gangs beh<strong>in</strong>d <strong>the</strong> trade <strong>and</strong> that<br />
<strong>the</strong> judiciary h<strong>and</strong> down deterrent sentenc<strong>in</strong>g<br />
to help tackle this problem.<br />
Australian Federal Police (AFP) <strong>in</strong> conjunction<br />
with <strong>music</strong> <strong>and</strong> film <strong>in</strong>dustry <strong>in</strong>vestigators.<br />
The popular <strong>in</strong>ternet café <strong>in</strong> <strong>the</strong> <strong>in</strong>ner city was<br />
allegedly offer<strong>in</strong>g unlimited access to pirated<br />
<strong>music</strong> <strong>and</strong> movies <strong>and</strong> charg<strong>in</strong>g customers an<br />
hourly rate to download <strong>the</strong> illegal files onto<br />
computer hard drives. It is alleged <strong>the</strong> brazen<br />
operation employed several people to load files<br />
from pirate websites onto three servers be<strong>in</strong>g<br />
accessed via more than 80 computers. AFP<br />
officers seized three computer servers<br />
conta<strong>in</strong><strong>in</strong>g eight terabytes of allegedly pirated<br />
<strong>music</strong> <strong>and</strong> movies <strong>and</strong> extensive computer<br />
equipment allegedly be<strong>in</strong>g used to support <strong>the</strong><br />
<strong>piracy</strong> racket.<br />
Internet cafes are used by illegal uploaders<br />
Fake IDs catch<br />
fake CDs<br />
Every legal US citizen has a social security<br />
number. These n<strong>in</strong>e numbers not only<br />
solidify citizenship, but also represent a<br />
personal identity. Your address, birthday,<br />
marital status or even your credit rat<strong>in</strong>g<br />
can all be determ<strong>in</strong>ed by a social security<br />
number. At a time when most Americans<br />
are paranoid that someone might steal<br />
<strong>the</strong>ir identity, officials <strong>in</strong> Oregon discovered<br />
a gang try<strong>in</strong>g to create <strong>the</strong>ir own.<br />
A raid was sparked after officials from <strong>the</strong><br />
Beaverton Police Department received<br />
counterfeit social security cards, along with<br />
permanent resident alien cards from a subject.<br />
In January, local police worked with Department<br />
of Homel<strong>and</strong> Security immigration officials to<br />
bust <strong>the</strong> counterfeit sell<strong>in</strong>g location.<br />
When officials entered <strong>the</strong> residence <strong>the</strong>y<br />
found much more than <strong>the</strong>y barga<strong>in</strong>ed for.<br />
The subject was runn<strong>in</strong>g a fully-fledged illegal<br />
traffick<strong>in</strong>g operation. Officers discovered 371<br />
pirated CDs, methamphetam<strong>in</strong>e, marijuana<br />
<strong>and</strong> a .22 calibre h<strong>and</strong>gun. The CDs <strong>and</strong> IDs<br />
may have been fakes, but unfortunately for<br />
<strong>the</strong> subject, <strong>the</strong> drugs <strong>and</strong> felony charges<br />
are all too real.<br />
Anti cross-border<br />
traffick<strong>in</strong>g campaign<br />
<strong>in</strong> Ch<strong>in</strong>a<br />
Law enforcement agencies <strong>and</strong> <strong>in</strong>dustry anti<strong>piracy</strong><br />
experts <strong>in</strong> <strong>the</strong> sou<strong>the</strong>rn Ch<strong>in</strong>ese<br />
prov<strong>in</strong>ce of Guang Dong are be<strong>in</strong>g kept busy<br />
by <strong>the</strong>ir campaign aga<strong>in</strong>st cross-border <strong>and</strong><br />
cross-prov<strong>in</strong>ce pirate disc traffick<strong>in</strong>g.<br />
The campaign is jo<strong>in</strong>tly organised <strong>in</strong> Guangzhou<br />
by <strong>the</strong> <strong>IFPI</strong> Asian Regional Office <strong>and</strong> its local<br />
counterpart <strong>the</strong> Guang Dong Chamber of Audio<br />
<strong>and</strong> Video Distribution (GDCAVD). Enforcement<br />
officers from local M<strong>in</strong>istry of Culture (MOC) <strong>and</strong><br />
Traffic Adm<strong>in</strong>istration were also <strong>in</strong> action aga<strong>in</strong>st<br />
<strong>the</strong> traffickers.<br />
Their efforts have so far resulted <strong>in</strong> total seizures<br />
of 25,000 counterfeit discs <strong>and</strong> two vehicles<br />
transport<strong>in</strong>g <strong>the</strong>m. The discs conta<strong>in</strong>ed<br />
<strong>in</strong>ternational titles <strong>and</strong> were only pr<strong>in</strong>ted <strong>in</strong><br />
English, suggest<strong>in</strong>g that <strong>the</strong>y were <strong>in</strong>tended<br />
for export.<br />
In March, as a result of <strong>in</strong>formation obta<strong>in</strong>ed<br />
dur<strong>in</strong>g <strong>the</strong> campaign, five rural locations <strong>in</strong><br />
Guangzhou suspected to be pack<strong>in</strong>g <strong>and</strong><br />
storage facilities for pirate syndicates were also<br />
<strong>in</strong>spected <strong>and</strong> raided by <strong>the</strong> local MOC officials.<br />
Two locations were confirmed to be pirate<br />
pack<strong>in</strong>g facilities. As <strong>the</strong> two locations were<br />
not <strong>in</strong> operation dur<strong>in</strong>g <strong>the</strong> raids, only 23,500<br />
counterfeit discs were seized, while <strong>the</strong><br />
operators were brought <strong>in</strong> for question<strong>in</strong>g.<br />
The size of <strong>the</strong> establishments <strong>and</strong> <strong>the</strong><br />
enormous amount of <strong>in</strong>lay cards of <strong>the</strong> latest<br />
<strong>music</strong> titles <strong>and</strong> empty jewel boxes that were<br />
discovered reveal <strong>the</strong> scope of <strong>the</strong> illegal activity<br />
<strong>and</strong> its ability to get large quantities of pirate<br />
product <strong>in</strong>to <strong>the</strong> retail cha<strong>in</strong> <strong>in</strong> very short order,<br />
<strong>and</strong> we hope that <strong>the</strong>se actions will cont<strong>in</strong>ue<br />
<strong>and</strong> be replicated throughout Ch<strong>in</strong>a<br />
so as to mean<strong>in</strong>gfully reduce <strong>the</strong> availability<br />
of pirate product.<br />
CD <strong>piracy</strong> is a huge problem <strong>in</strong> Ch<strong>in</strong>a<br />
7
July 2008<br />
REGIONAL NEWS<br />
US action nets<br />
drugs <strong>and</strong> discs<br />
Eleven people were crim<strong>in</strong>ally charged for<br />
evasion of neighbour<strong>in</strong>g rights <strong>in</strong> April after<br />
police action <strong>in</strong> various parts of Italy.<br />
It is not easy to spot someone who pirates CDs.<br />
People who burn crack pipes on <strong>the</strong> o<strong>the</strong>r h<strong>and</strong>..<br />
<strong>the</strong>ir physical traits st<strong>and</strong> out a little more. These<br />
characteristics may have helped Texas officials<br />
bust a subject for runn<strong>in</strong>g a CD burn<strong>in</strong>g operation.<br />
Drug Enforcement Agency (DEA) agents worked<br />
alongside officials from <strong>the</strong> Henderson Police<br />
Department to raid a Houston residence. On<br />
16th January, officers performed an undercover<br />
purchase of crack coca<strong>in</strong>e. A digital audio/video<br />
recorder was used to record <strong>the</strong> transaction.<br />
After contact<strong>in</strong>g <strong>the</strong> DEA, <strong>the</strong> Court authorized<br />
a “No Knock” entry <strong>in</strong>to <strong>the</strong> residence. No<br />
longer need<strong>in</strong>g permission to enter, officials<br />
made <strong>the</strong>ir move. On 22nd January, officers<br />
raided <strong>the</strong> residence <strong>and</strong> determ<strong>in</strong>ed <strong>the</strong><br />
subject was burn<strong>in</strong>g more than crack pipes<br />
when <strong>the</strong>y also uncovered a CD/DVD burner lab.<br />
After <strong>the</strong> drug <strong>in</strong>vestigation, officers were able<br />
to seize a total of three burners, 1,476 CD-Rs,<br />
1,332 DVDs <strong>and</strong> 100 jewel cases.<br />
Awards for Polish<br />
law enforcement<br />
In December 2007 <strong>the</strong> Anti-Piracy Coalition,<br />
founded by organisations represent<strong>in</strong>g <strong>the</strong><br />
Polish <strong>music</strong> <strong>in</strong>dustry (ZPAV), film <strong>in</strong>dustry<br />
(FOTA) <strong>and</strong> computer software companies<br />
(BSA), granted <strong>the</strong> “Golden Badge” Awards<br />
to police units which had excelled <strong>in</strong> anti<strong>piracy</strong><br />
enforcement <strong>in</strong> 2007.<br />
• The Regional Police Unit <strong>in</strong> Katowice <strong>and</strong><br />
Municipal Police Economic Crime Department<br />
<strong>in</strong> Warsaw received <strong>the</strong> awards for clos<strong>in</strong>g down<br />
an illegal distribution network of pirate computer<br />
software <strong>and</strong> films.<br />
• The Regional Police <strong>in</strong> Wroclaw received <strong>the</strong><br />
award for shutt<strong>in</strong>g down a computer server at<br />
<strong>the</strong> Technical University which was used to<br />
illegally post <strong>music</strong> onto <strong>the</strong> <strong>in</strong>ternet before its<br />
official release dates<br />
Tadeusz Budzik, Head of Polish Police,<br />
emphasised that <strong>the</strong> police will cont<strong>in</strong>ue<br />
<strong>the</strong>ir efforts to curb <strong>in</strong>tellectual property crimes<br />
<strong>and</strong> to protect <strong>the</strong> rights of authors, artists<br />
<strong>and</strong> producers.<br />
Malaysian authorities keep up pressure<br />
The M<strong>in</strong>istry of Domestic Trade <strong>and</strong><br />
Consumer Affairs (MTDCA) <strong>in</strong> Malaysia has<br />
rema<strong>in</strong>ed <strong>in</strong> <strong>the</strong> forefront of <strong>the</strong> battle<br />
aga<strong>in</strong>st <strong>music</strong> <strong>piracy</strong>.<br />
In December, <strong>the</strong> MDTCA acted on <strong>in</strong>formation<br />
from <strong>in</strong>dustry anti-<strong>piracy</strong> experts to obta<strong>in</strong><br />
search warrants for a suspected pirate storage<br />
<strong>and</strong> distribution centre <strong>in</strong> Kuala Lumpur.<br />
On entry some 13,000 <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g <strong>music</strong> titles<br />
were recovered, <strong>the</strong> significance of which<br />
only became clear when exam<strong>in</strong><strong>in</strong>g <strong>the</strong><br />
titles which disclosed that <strong>the</strong> majority of<br />
<strong>the</strong> discs were product of <strong>the</strong> notorious<br />
Red Dragon/Vig<strong>in</strong> syndicate.<br />
The New Year saw <strong>the</strong> MDTCA act<strong>in</strong>g on<br />
ano<strong>the</strong>r <strong>in</strong>dustry tip-off <strong>and</strong> it raided a fur<strong>the</strong>r<br />
build<strong>in</strong>g <strong>in</strong> Kuala Lumpur on suspicion that an<br />
illegal master<strong>in</strong>g facility was housed <strong>the</strong>re.<br />
Entry was delayed until <strong>the</strong> officers began<br />
to force <strong>the</strong>ir way <strong>in</strong>, prompt<strong>in</strong>g a woman to<br />
unlock <strong>the</strong> ma<strong>in</strong> door.<br />
A thorough search of <strong>the</strong> premises identified<br />
all <strong>the</strong> elements of <strong>the</strong> downstream master<strong>in</strong>g<br />
process <strong>and</strong> gave <strong>in</strong>dications that <strong>the</strong> plant had<br />
been <strong>in</strong> operation immediately prior to entry.<br />
Although <strong>the</strong> Laser Beam Record<strong>in</strong>g mach<strong>in</strong>e<br />
was not located, officers seized several<br />
computers <strong>and</strong> sealed <strong>the</strong> plant for<br />
fur<strong>the</strong>r <strong>in</strong>vestigation.<br />
The MDTCA was back <strong>in</strong> action <strong>in</strong> early<br />
February, respond<strong>in</strong>g to <strong>in</strong>dustry experts who<br />
had identified a large burner operation <strong>in</strong><br />
Selangor prov<strong>in</strong>ce.<br />
The result<strong>in</strong>g search warrant was executed at a<br />
residential home by us<strong>in</strong>g forced entry. The raid<br />
disclosed a facility of 12 computers serv<strong>in</strong>g 152<br />
burner trays. An estimated 200 suspected 'master'<br />
copies of domestic <strong>and</strong> <strong>in</strong>ternational <strong>music</strong> titles<br />
were recovered along with 44,000 recorded<br />
CD-Rs. The resident of <strong>the</strong> premises was arrested<br />
<strong>and</strong> faces charges of copyright <strong>in</strong>fr<strong>in</strong>gement.<br />
Spanish action<br />
aga<strong>in</strong>st CD pirates<br />
Six gang members supply<strong>in</strong>g street sellers <strong>in</strong><br />
various prov<strong>in</strong>ces of Spa<strong>in</strong> with counterfeit<br />
discs were arrested by agents from <strong>the</strong><br />
Comisaría General de Policía Judicial. It is<br />
estimated <strong>the</strong> six were earn<strong>in</strong>g up to €240,000<br />
per day <strong>and</strong> were believed to be responsible<br />
for burn<strong>in</strong>g up to 80,000 discs per day.<br />
The M<strong>in</strong>ister for Culture, César Antonio Mol<strong>in</strong>a,<br />
commented on <strong>the</strong> case, say<strong>in</strong>g that <strong>the</strong> "breach<br />
of <strong>the</strong> rights of <strong>the</strong> creators destroys employment<br />
<strong>and</strong> <strong>the</strong> value of a sector which provides four<br />
percent of national <strong>in</strong>come.”<br />
The <strong>in</strong>vestigation began <strong>in</strong> December 2007 <strong>in</strong> a<br />
suburb of Madrid. Agents from <strong>the</strong> Intellectual <strong>and</strong><br />
Industrial Property Crime Group discovered that<br />
<strong>the</strong> gang was us<strong>in</strong>g a van to deliver <strong>the</strong> product <strong>in</strong><br />
bags <strong>and</strong> were <strong>in</strong> turn receiv<strong>in</strong>g payments <strong>in</strong> cash.<br />
It became apparent that <strong>the</strong> gang had a catalogue<br />
of <strong>in</strong>lay cards which <strong>the</strong> client marked with <strong>the</strong><br />
quantity of discs required. The discs ordered were<br />
<strong>the</strong>n copied <strong>and</strong> delivered <strong>the</strong> follow<strong>in</strong>g day.<br />
The organisation distributed two types of film; <strong>the</strong><br />
majority be<strong>in</strong>g copies of orig<strong>in</strong>al titles already on<br />
sale but also titles which had been directly<br />
recorded <strong>in</strong> c<strong>in</strong>emas <strong>and</strong> some which were yet to<br />
be released by <strong>the</strong> studios. Music compilations<br />
were also found <strong>and</strong> it was clear that <strong>the</strong>se had<br />
been downloaded from <strong>the</strong> <strong>in</strong>ternet.<br />
The police located different warehouses that <strong>the</strong><br />
gang were us<strong>in</strong>g <strong>in</strong> Madrid <strong>and</strong> a duplication<br />
centre hous<strong>in</strong>g <strong>the</strong> largest cl<strong>and</strong>est<strong>in</strong>e factory yet<br />
dismantled by <strong>the</strong> police <strong>in</strong> Spa<strong>in</strong>. Three of <strong>the</strong>se<br />
warehouses situated <strong>in</strong> Madrid were used to store<br />
<strong>the</strong> CD-Rs <strong>and</strong> blank DVD-Rs, <strong>in</strong>dustrial<br />
photocopiers, burners, papers <strong>and</strong> o<strong>the</strong>r effects.<br />
The duplication site was discovered <strong>in</strong> a house <strong>in</strong><br />
Arg<strong>and</strong>a del Rey.<br />
Dur<strong>in</strong>g <strong>the</strong> raids 40,000 DVDs with videos <strong>and</strong><br />
films, ano<strong>the</strong>r 40,000 with <strong>music</strong>, 60,000 blank<br />
DVD-Rs, 15,000 blank CD-Rs, 5,816 sticky labels<br />
for CDs <strong>and</strong> DVDs plus 161,700 plastic sleeves<br />
were seized. The scale of <strong>the</strong>se seizures illustrates<br />
<strong>the</strong> nature <strong>and</strong> extent of <strong>the</strong> bus<strong>in</strong>ess. The officers<br />
<strong>in</strong>volved <strong>in</strong> <strong>the</strong> <strong>in</strong>vestigation were congratulated by<br />
<strong>the</strong> Secretary of State for Security, Antonio<br />
Camacho, for <strong>the</strong>ir "good work".<br />
Police seized discs, computers <strong>and</strong> burners<br />
Police raided warehouses<br />
8
July 2008<br />
REGIONAL NEWS<br />
DirectConnect hub<br />
shut down<br />
False licens<strong>in</strong>g r<strong>in</strong>g<br />
busted <strong>in</strong> Chile<br />
Belgian topsite<br />
felled after raid<br />
A DirectConnect Hub, identified as<br />
"Sunnydale", which aided large-scale onl<strong>in</strong>e<br />
file-shar<strong>in</strong>g of copyright <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g content<br />
such as <strong>music</strong>, comics <strong>and</strong> videogames was<br />
shut down by <strong>the</strong> authorities <strong>in</strong> Mexico <strong>in</strong><br />
July. A hub is a computer server primarily<br />
dedicated to facilitat<strong>in</strong>g <strong>the</strong> exchange<br />
of copyright <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g content by<br />
<strong>in</strong>dex<strong>in</strong>g <strong>the</strong> files available on network<br />
participants’ computers.<br />
The <strong>Mexican</strong> Attorney Generals’ Office (PGR)<br />
acted on <strong>in</strong>formation supplied by <strong>the</strong> local<br />
<strong>in</strong>dustry anti-<strong>piracy</strong> group (APCM Mexico).<br />
The <strong>in</strong>formation, which was available to anyone<br />
who searched <strong>the</strong> <strong>in</strong>ternet, identified <strong>the</strong><br />
adm<strong>in</strong>istrator enabl<strong>in</strong>g <strong>the</strong> PGR to take<br />
enforcement action. The PGR asked <strong>the</strong><br />
responsible <strong>in</strong>ternet service provider to shut<br />
down <strong>the</strong> hub’s onl<strong>in</strong>e connection. The hub has<br />
shown no sign of activity s<strong>in</strong>ce 3rd July <strong>and</strong> is<br />
currently offl<strong>in</strong>e <strong>and</strong> unavailable to its users.<br />
The Sunnydale Hub had more than 1.5<br />
terabytes of illegal content, <strong>in</strong>clud<strong>in</strong>g local <strong>and</strong><br />
<strong>in</strong>ternational <strong>music</strong> repertoire. Users had to<br />
supply a m<strong>in</strong>imum of two gigabytes of content<br />
to be connected to <strong>the</strong> service.<br />
The enforcement action forms part of <strong>IFPI</strong> Lat<strong>in</strong><br />
America’s regional strategy to shut down all<br />
hubs <strong>in</strong> <strong>the</strong> region.<br />
Major jukebox raid <strong>in</strong> Brazil<br />
Brazilian Federal Police raided a major<br />
jukebox plant <strong>and</strong> distributor <strong>in</strong> <strong>the</strong> state of<br />
Santa Catar<strong>in</strong>a on 2nd July. They seized a<br />
total of 12 mach<strong>in</strong>es at <strong>the</strong> plant <strong>and</strong> ano<strong>the</strong>r<br />
26 unlicensed mach<strong>in</strong>es at nearby<br />
commercial establishments.<br />
The plant is suspected of supply<strong>in</strong>g at least 250<br />
jukeboxes throughout <strong>the</strong> state. Each mach<strong>in</strong>e<br />
has approximately 10,000 illegal <strong>music</strong> tracks.<br />
The owner of <strong>the</strong> plant was arrested <strong>in</strong> <strong>the</strong><br />
process of assembl<strong>in</strong>g ano<strong>the</strong>r mach<strong>in</strong>e.<br />
Intelligence for <strong>the</strong> operation was provided by<br />
APCM, <strong>the</strong> jo<strong>in</strong>t anti-<strong>piracy</strong> operation funded by<br />
MPA, which represents <strong>the</strong> movie <strong>in</strong>dustry<br />
<strong>world</strong>wide, <strong>and</strong> <strong>IFPI</strong>, which represents <strong>the</strong><br />
record<strong>in</strong>g <strong>in</strong>dustry <strong>world</strong>wide.<br />
The Jukebox enforcement programme is an<br />
important part of <strong>IFPI</strong> Lat<strong>in</strong> America's regional<br />
strategy. The objective is to engage national<br />
enforcement units to support <strong>the</strong> local collect<strong>in</strong>g<br />
societies’ licens<strong>in</strong>g programmes.<br />
The authorities <strong>in</strong> Chile raided an office <strong>and</strong><br />
store belong<strong>in</strong>g to a small record label that<br />
had purchased allegedly counterfeit licenses<br />
to distribute <strong>music</strong>. The raids, which took<br />
place <strong>in</strong> July, were <strong>the</strong> culm<strong>in</strong>ation of a twoyear<br />
<strong>in</strong>vestigation, undertaken <strong>in</strong> conjunction<br />
with local <strong>in</strong>dustry anti-<strong>piracy</strong> groups <strong>IFPI</strong><br />
Chile <strong>and</strong> Apdif Chile. The operation used<br />
evidence received from a major enforcement<br />
operation <strong>in</strong> Spa<strong>in</strong>.<br />
The raids led to <strong>the</strong> seizure of four computers<br />
with 53 burners, 8,000 pirate CDs <strong>and</strong> 15,000<br />
<strong>in</strong>lay cards. The titles seized <strong>in</strong>cluded albums by<br />
artists such as Eric Clapton, The Carpenters,<br />
Barry White, Ana Gabriel <strong>and</strong> Antonio Aguilar. In<br />
addition, <strong>the</strong> authorities found around 40 suspect<br />
licenses for products by well-known artists such<br />
as Vicente Fern<strong>and</strong>ez <strong>and</strong> Marco Antonio Solis.<br />
The owner of <strong>the</strong> record label was arrested<br />
follow<strong>in</strong>g <strong>the</strong> raid.<br />
The Chilean prosecutor requested <strong>the</strong> arrest of one<br />
of <strong>the</strong> ma<strong>in</strong> targets of <strong>the</strong> Spanish <strong>in</strong>vestigation<br />
who allegedly provided <strong>the</strong> suspect licenses sold to<br />
<strong>the</strong> Chilean label. The case is ongo<strong>in</strong>g with fur<strong>the</strong>r<br />
arrests <strong>and</strong> seizures expected.<br />
Emilio Garcia of <strong>IFPI</strong> Lat<strong>in</strong> America said: “This<br />
case was <strong>the</strong> result of a coord<strong>in</strong>ated team effort<br />
<strong>in</strong>volv<strong>in</strong>g law enforcement agencies, two <strong>IFPI</strong><br />
regional teams <strong>and</strong> three national group offices<br />
all focused on dismantl<strong>in</strong>g this <strong>in</strong>ternational r<strong>in</strong>g<br />
that had been operat<strong>in</strong>g with almost total<br />
impunity for years.”<br />
At <strong>the</strong> moment, <strong>the</strong> national enforcement<br />
units have been provid<strong>in</strong>g <strong>in</strong>telligence <strong>and</strong><br />
raid execution support <strong>in</strong> three ma<strong>in</strong> areas:<br />
licens<strong>in</strong>g of jukeboxes, disco<strong>the</strong>ques <strong>and</strong><br />
o<strong>the</strong>r <strong>music</strong> providers.<br />
Jukeboxes conta<strong>in</strong>ed 10,000 illegal tracks<br />
Simultaneous law enforcement operations <strong>in</strong><br />
Belgium <strong>and</strong> <strong>the</strong> Ne<strong>the</strong>rl<strong>and</strong>s <strong>in</strong> June led to<br />
<strong>the</strong> seizure of a powerful computer server<br />
that was be<strong>in</strong>g used to upload copyright<br />
<strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g <strong>music</strong>, games <strong>and</strong> films onto<br />
<strong>the</strong> <strong>in</strong>ternet.<br />
Belgian federal judicial police are now<br />
<strong>in</strong>vestigat<strong>in</strong>g <strong>the</strong> server's l<strong>in</strong>ks to a university<br />
<strong>in</strong> Leuven <strong>and</strong> a school <strong>in</strong> Brussels.<br />
They have confiscated <strong>the</strong> server, which<br />
had a huge capacity of 4.5 terabytes,<br />
for forensic <strong>in</strong>vestigation.<br />
Such fast <strong>and</strong> powerful servers are used to<br />
susta<strong>in</strong> 'topsites', which are <strong>the</strong> primary source<br />
of copyright <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g <strong>music</strong>, games <strong>and</strong> films<br />
onl<strong>in</strong>e. The files illegally uploaded on <strong>the</strong>se<br />
'topsites' <strong>the</strong>n spread across <strong>the</strong> <strong>in</strong>ternet<br />
through peer-to-peer networks, blogs, forums<br />
<strong>and</strong> website l<strong>in</strong>ks.<br />
The widespread availability of copyright<br />
<strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g <strong>music</strong> onl<strong>in</strong>e has led to a situation<br />
where <strong>the</strong>re are 20 illegal downloads for every<br />
legal digital <strong>music</strong> track sold. This has reduced<br />
<strong>in</strong>come to record companies that typically <strong>in</strong>vest<br />
up to 20 per cent of <strong>the</strong>ir revenues <strong>in</strong><br />
discover<strong>in</strong>g <strong>and</strong> nurtur<strong>in</strong>g new <strong>music</strong>al talent.<br />
The operation came out of <strong>in</strong>vestigations by<br />
<strong>IFPI</strong>’s Internet Anti-Piracy Unit. Their attention<br />
had been drawn to <strong>the</strong> server after <strong>the</strong>y traced<br />
it as <strong>the</strong> source of large volume of illegal<br />
downloads of <strong>music</strong>, games <strong>and</strong> films<br />
amount<strong>in</strong>g to approximately 300 gigabytes<br />
a day.<br />
<strong>IFPI</strong> alerted <strong>the</strong> Belgian Enterta<strong>in</strong>ment<br />
Association (BEA) to <strong>the</strong> problem s<strong>in</strong>ce <strong>the</strong><br />
range of IP addresses of <strong>the</strong> server was located<br />
<strong>in</strong> Belgium. BEA alerted <strong>the</strong> Belgian authorities<br />
to <strong>the</strong> problem <strong>in</strong> February 2008. The Brussels<br />
Computer Crime Unit subsequently traced <strong>the</strong><br />
server to a datacentre <strong>in</strong> <strong>the</strong> Ne<strong>the</strong>rl<strong>and</strong>s <strong>and</strong><br />
alerted Dutch law enforcement to its presence.<br />
9
July 2008<br />
REGIONAL NEWS<br />
12 arrested <strong>in</strong> Italy<br />
Rome Fiscal Police arrested 12 members of<br />
a gang <strong>in</strong>volved <strong>in</strong> <strong>the</strong> distribution of pirate<br />
CDs <strong>and</strong> DVDs. The arrests, which took place<br />
<strong>in</strong> May <strong>in</strong> Naples <strong>and</strong> Milan, followed several<br />
months of <strong>in</strong>vestigation by <strong>the</strong> police.<br />
A series of raids uncovered six pirate factories,<br />
five <strong>in</strong> Naples <strong>and</strong> one <strong>in</strong> Milan, which conta<strong>in</strong>ed<br />
350 burners. More than 70,000 CDs <strong>and</strong> DVDs<br />
were seized dur<strong>in</strong>g <strong>the</strong> raids, alongside more<br />
than 100,000 counterfeit <strong>in</strong>lay cards.<br />
The gang members have been charged with<br />
cons<strong>piracy</strong> <strong>and</strong> copyright <strong>in</strong>fr<strong>in</strong>gement <strong>and</strong> now<br />
face jail sentences of up to six years. The Italian<br />
authors' society SIAE provided technical<br />
assistance to <strong>the</strong> Fiscal Police.<br />
Raids <strong>in</strong> Hungary<br />
Hungarian police took action <strong>in</strong> March<br />
aga<strong>in</strong>st two ‘topsites’ specialis<strong>in</strong>g <strong>in</strong> <strong>the</strong><br />
illegal distribution of <strong>music</strong> on <strong>the</strong> <strong>in</strong>ternet<br />
before it is legitimately available for<br />
sale onl<strong>in</strong>e.<br />
The topsites are clusters of high-speed<br />
computer servers on which copyright <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g<br />
<strong>music</strong> is uploaded for users <strong>in</strong>volved <strong>in</strong> “release<br />
groups” to distribute fur<strong>the</strong>r over <strong>the</strong> <strong>in</strong>ternet.<br />
The clusters of servers seized by <strong>the</strong> police were<br />
called XXS <strong>and</strong> Z <strong>and</strong> conta<strong>in</strong>ed a total of eight<br />
terabytes of copyright <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g content that was<br />
distributed by several release groups, notably<br />
XXL <strong>and</strong> RAGEMP3. The servers were<br />
all hosted by a Hungarian company<br />
called Sigmanet.<br />
All topsites operate under high security but <strong>the</strong><br />
Hungarian authorities were provided with <strong>the</strong><br />
evidence <strong>the</strong>y required to take action,,<br />
assisted by ProArt, <strong>the</strong> Hungarian anti-<strong>piracy</strong><br />
organisation, <strong>and</strong> technical experts from<br />
<strong>IFPI</strong>.who were able to ga<strong>the</strong>r proof of<br />
<strong>in</strong>fr<strong>in</strong>gement. Jeremy Banks,<br />
Head of <strong>IFPI</strong>’s Internet Anti-Piracy Unit, said:<br />
“These raids are an excellent example of how<br />
<strong>the</strong> record<strong>in</strong>g <strong>in</strong>dustry can work with law<br />
enforcement authorities to combat cybercrime.<br />
“A new album sells <strong>the</strong> bulk of its copies <strong>in</strong> <strong>the</strong><br />
first few weeks after its release. If <strong>the</strong> <strong>music</strong> it<br />
conta<strong>in</strong>s is leaked onto <strong>the</strong> <strong>in</strong>ternet prior to that it<br />
can have a devastat<strong>in</strong>g impact on sales. This is<br />
not a victimless crime – it can ru<strong>in</strong> an artist’s<br />
career <strong>and</strong> it reduces <strong>the</strong> money available to<br />
<strong>in</strong>vest <strong>in</strong> <strong>the</strong> next generation of talent.”<br />
10<br />
Labs dismantled<br />
<strong>in</strong> Brazil<br />
Brazilian police conducted a major raid <strong>in</strong><br />
<strong>the</strong> town of Presidente Prudente <strong>in</strong> April<br />
which led to <strong>the</strong> dismantl<strong>in</strong>g of a network<br />
of illegal replicat<strong>in</strong>g facilities <strong>in</strong> a city<br />
regarded as a major distribution po<strong>in</strong>t for<br />
pirate CDs <strong>and</strong> DVDs.<br />
The Regional Organized Crime Unit of <strong>the</strong><br />
Military Police (GAECO) <strong>in</strong> <strong>the</strong> State of Sao<br />
Paulo conducted <strong>the</strong> operation <strong>in</strong> <strong>the</strong> town,<br />
some 300 miles from city of Sao Paulo.<br />
The operation was directed at 11 major po<strong>in</strong>ts<br />
of sale throughout <strong>the</strong> town <strong>and</strong> three separate<br />
replicat<strong>in</strong>g laboratories. A total of almost<br />
200 burners <strong>and</strong> 40,000 discs conta<strong>in</strong><strong>in</strong>g<br />
counterfeit <strong>music</strong> <strong>and</strong> movies were seized.<br />
One laboratory alone had 104 burners that<br />
produced approximately 12,500 pirate discs<br />
daily. More than 50 police officers were<br />
deployed <strong>in</strong> <strong>the</strong> operation.<br />
The local anti-<strong>piracy</strong> unit, APCM Brazil, a jo<strong>in</strong>t<br />
venture between <strong>the</strong> film <strong>and</strong> <strong>music</strong> <strong>in</strong>dustries,<br />
provided logistical <strong>and</strong> technical support to<br />
<strong>the</strong> operation.<br />
Italian BitTorrent<br />
site closed<br />
Colombo-BT.org, <strong>the</strong> largest BitTorrent<br />
tracker site <strong>in</strong> Italy, was closed follow<strong>in</strong>g<br />
police action <strong>in</strong> July. BitTorrent trackers help<br />
users f<strong>in</strong>d <strong>and</strong> exchange <strong>the</strong> computer files<br />
<strong>the</strong>y want on certa<strong>in</strong> peer-to-peer networks,<br />
enabl<strong>in</strong>g <strong>the</strong>m to distribute uploaded<br />
copyright <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g material.<br />
The police undertook <strong>the</strong> action <strong>in</strong> cooperation<br />
with FPM, <strong>the</strong> Italian anti-<strong>music</strong> <strong>piracy</strong> group<br />
affiliated with <strong>IFPI</strong>, which represents <strong>the</strong><br />
record<strong>in</strong>g <strong>in</strong>dustry <strong>world</strong>wide.<br />
Colombo-BT.org was run by three Italian men<br />
who have now been charged by <strong>the</strong> police with<br />
<strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g copyright law <strong>and</strong> face potential prison<br />
terms of up to three years <strong>and</strong> heavy f<strong>in</strong>ancial<br />
penalties through adm<strong>in</strong>istrative sanctions. The<br />
operators were mak<strong>in</strong>g money by accept<strong>in</strong>g<br />
onl<strong>in</strong>e donations from users.<br />
Police <strong>in</strong>vestigations revealed <strong>the</strong> three men had<br />
tried to conceal <strong>the</strong>ir activities by us<strong>in</strong>g <strong>the</strong> name<br />
of ano<strong>the</strong>r <strong>in</strong>dividual who loaned his identity for<br />
all <strong>the</strong> adm<strong>in</strong>istrative procedures required by <strong>the</strong><br />
site’s Czech-based service provider <strong>and</strong> for all<br />
onl<strong>in</strong>e payment transactions.<br />
The police closed <strong>the</strong> service, seiz<strong>in</strong>g several<br />
computers <strong>and</strong> freez<strong>in</strong>g two bank accounts.<br />
Beatles pirate jailed<br />
The owner of a website <strong>in</strong> Brazil that sold pirate<br />
copies of <strong>music</strong> from The Beatles was sentenced<br />
to more than 18 months <strong>in</strong> prison <strong>in</strong> February.<br />
The case followed five months of <strong>in</strong>vestigations<br />
by <strong>IFPI</strong>'s Brazilian Anti-Piracy Unit.<br />
The counterfeit compilations of <strong>music</strong> from The<br />
Beatles were compacted <strong>in</strong>to .mp3 format without<br />
authorisation from <strong>the</strong> copyright holders <strong>and</strong> sold<br />
for an average price of R$15 (approximately<br />
US$7). Buyers could complete <strong>the</strong> transaction<br />
through a direct bank deposit, after which <strong>the</strong><br />
counterfeit compilations were mailed to <strong>the</strong><br />
buyers anywhere with<strong>in</strong> Brazil.<br />
Follow<strong>in</strong>g <strong>the</strong> <strong>in</strong>vestigation, <strong>the</strong> case was presented<br />
to <strong>the</strong> specialist cybercrime police division <strong>in</strong> São<br />
Paulo. A search <strong>and</strong> seizure raid was conducted<br />
<strong>and</strong> <strong>the</strong> police seized computers belong<strong>in</strong>g to <strong>the</strong><br />
website adm<strong>in</strong>istrator, as well as a CD burner <strong>and</strong><br />
pirate CDs. The equipment was sent for a forensic<br />
exam<strong>in</strong>ation which concluded that it had been used<br />
to persistently violate copyright.<br />
The 18th Crim<strong>in</strong>al Court of São Paulo sentenced<br />
<strong>the</strong> pirate website operator to one year <strong>and</strong> eight<br />
months imprisonment. The court recognised <strong>the</strong><br />
crime had been perpetrated more than 140 times<br />
under similar conditions <strong>and</strong> this factor <strong>in</strong>creased<br />
<strong>the</strong> length of <strong>the</strong> prison sentence by two-thirds.<br />
Equipment seized<br />
<strong>in</strong> Israel<br />
Two successful raids were undertaken <strong>in</strong><br />
February by enforcement agencies aga<strong>in</strong>st<br />
pirate CD-R burn<strong>in</strong>g labs <strong>in</strong> Israel. Both were<br />
carried out with <strong>the</strong> assistance of <strong>IFPI</strong> Israel.<br />
On 2nd February <strong>in</strong> <strong>the</strong> town of Nahariya, four<br />
burn<strong>in</strong>g towers, each conta<strong>in</strong><strong>in</strong>g 10 burners,<br />
were seized as well as a colour copy<strong>in</strong>g<br />
mach<strong>in</strong>e, cutt<strong>in</strong>g <strong>and</strong> pack<strong>in</strong>g mach<strong>in</strong>e, blank<br />
discs <strong>and</strong> thous<strong>and</strong>s of CD covers. The suspect<br />
was arrested <strong>and</strong> rem<strong>and</strong>ed <strong>in</strong> police custody.<br />
In a second action on 17th February, <strong>in</strong> <strong>the</strong> town<br />
of Holon, four burn<strong>in</strong>g towers, three conta<strong>in</strong><strong>in</strong>g<br />
eight burners <strong>and</strong> one 12 burners, were seized<br />
as well as a copy<strong>in</strong>g mach<strong>in</strong>e, CD covers <strong>and</strong><br />
blank discs. The suspect was known to <strong>the</strong><br />
police from previous counterfeit<strong>in</strong>g activities.<br />
Police seized product <strong>in</strong> Israel
July 2008<br />
NEWS IN BRIEF<br />
Street pharmacist<br />
busted sell<strong>in</strong>g CDs<br />
In January, officials from <strong>the</strong> Broward County<br />
Sheriff’s Office executed a narcotics search<br />
warrant. Dur<strong>in</strong>g <strong>the</strong> search, officials discovered<br />
<strong>the</strong> street pharmacist was push<strong>in</strong>g more than<br />
just weight. The subject was also “slang<strong>in</strong>”<br />
illegal CDs <strong>and</strong> DVDs. A total of six CDs<br />
<strong>and</strong> 438 DVDs were seized along with<br />
173 grams of drugs.<br />
Drugs seized <strong>in</strong> raid<br />
Preloaded <strong>piracy</strong> <strong>in</strong><br />
<strong>the</strong> Philipp<strong>in</strong>es<br />
Anti-<strong>piracy</strong> experts from <strong>IFPI</strong> <strong>and</strong> PARI, <strong>the</strong><br />
Philipp<strong>in</strong>e record<strong>in</strong>g association, <strong>in</strong>vestigated<br />
staff at retail outlets <strong>in</strong> Manila who distributed<br />
<strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g <strong>music</strong> by load<strong>in</strong>g tracks onto newly<br />
purchased devices. The Intellectual Property<br />
Department of <strong>the</strong> Philipp<strong>in</strong>e National Bureau of<br />
Investigation executed six simultaneous raids on<br />
outlets <strong>and</strong> recovered computers used by staff.<br />
Prelim<strong>in</strong>ary exam<strong>in</strong>ation of <strong>the</strong> computers<br />
suggested many thous<strong>and</strong>s of tracks were<br />
ma<strong>in</strong>ta<strong>in</strong>ed on <strong>the</strong>m <strong>and</strong> made available<br />
for download.<br />
Anti <strong>piracy</strong> raids<br />
cont<strong>in</strong>ue <strong>in</strong> Mexico<br />
<strong>Mexican</strong> police raided <strong>the</strong> pirate market “La<br />
Cuchilla” <strong>in</strong> <strong>the</strong> State of Puebla <strong>in</strong> July. The raid<br />
was part of <strong>the</strong> campaign that is target<strong>in</strong>g major<br />
distribution centres <strong>and</strong> is <strong>the</strong> third action aga<strong>in</strong>st<br />
<strong>the</strong> same market this year. Based on a compla<strong>in</strong>t<br />
filed by <strong>the</strong> <strong>in</strong>dustry <strong>in</strong>vestigators from APCM<br />
Mexico, a total of 100 commercial<br />
establishments <strong>and</strong> two active laboratories<br />
dedicated to <strong>the</strong> distribution <strong>and</strong> replication of<br />
illegal <strong>music</strong> <strong>and</strong> films have been closed down.<br />
300 police officers participated <strong>in</strong> <strong>the</strong> operation,<br />
along with experts from <strong>the</strong> Attorney General's<br />
office (PGR), <strong>the</strong> Investigation Agency (AFIS)<br />
<strong>and</strong> <strong>the</strong> Federal Preventive Police (PFP).<br />
63 burners<br />
seized <strong>in</strong> Sicily<br />
Fiscal Police from Catania seized 63 high-speed<br />
CD burners <strong>in</strong> March as part of an operation<br />
aga<strong>in</strong>st an organisation <strong>in</strong>volved <strong>in</strong> <strong>the</strong><br />
production <strong>and</strong> distribution of pirate CDs <strong>and</strong><br />
DVDs <strong>in</strong> <strong>the</strong> area of eastern Sicily. Officers also<br />
seized more than 15,000 illegal CDs <strong>and</strong> DVDs<br />
<strong>in</strong> addition to seven professional pr<strong>in</strong>ters.<br />
Two people were arrested dur<strong>in</strong>g <strong>the</strong> raid.<br />
Sex sells..literally<br />
There is a famous say<strong>in</strong>g <strong>in</strong> advertis<strong>in</strong>g: sex<br />
sells. For a store <strong>in</strong> South Carol<strong>in</strong>a sell<strong>in</strong>g illegal<br />
CDs, <strong>the</strong> idea of sell<strong>in</strong>g sex took on a literal<br />
mean<strong>in</strong>g. Anti-<strong>piracy</strong> Investigators were<br />
contacted after members of <strong>the</strong> Chester County<br />
Sheriff’s Department busted a store that was not<br />
only sell<strong>in</strong>g pirated <strong>music</strong> <strong>and</strong> movies, but also<br />
runn<strong>in</strong>g an illegal escort service for prostitution.<br />
Investigators were able to help seize 165 pirated<br />
CD-Rs along with 610 DVDs.<br />
Crackdown<br />
<strong>in</strong> Cordoba<br />
Police <strong>in</strong> <strong>the</strong> Argent<strong>in</strong>e city of Cordoba netted<br />
more than 185,000 counterfeit discs conta<strong>in</strong><strong>in</strong>g<br />
<strong>music</strong> <strong>and</strong> films dur<strong>in</strong>g a series of ten raids over<br />
<strong>the</strong> course of Christmas <strong>and</strong> New Year. Several<br />
suspects were identified for subsequent<br />
question<strong>in</strong>g. Police sources <strong>in</strong>dicated that quite<br />
apart from sales to <strong>the</strong> public many of <strong>the</strong> sites<br />
were also used as centres for wider distribution<br />
of wholesale quantities of discs.<br />
Police netted 185,000 discs<br />
Raids <strong>in</strong> Indonesia<br />
West Java Police act<strong>in</strong>g on a compliant from<br />
GAPERINDO, an Indonesian composers <strong>and</strong><br />
<strong>music</strong> producers association, raided an optical<br />
disc facility <strong>in</strong> April. The factory, which had<br />
previously been subject to police raids <strong>and</strong><br />
adm<strong>in</strong>istrative closure by <strong>the</strong> authorities, was<br />
searched <strong>and</strong> 159,000 suspected <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g<br />
<strong>music</strong> titles <strong>in</strong> CD <strong>and</strong> VCD format were<br />
recovered. The plant owner was arrested<br />
<strong>and</strong> taken <strong>in</strong>to custody.<br />
Two days earlier, Krimsuss, <strong>the</strong> Special<br />
Economic Crimes unit of <strong>the</strong> Jakarta Metro<br />
Police, conducted an enforcement action at <strong>the</strong><br />
notorious Ratu Plaza mall <strong>in</strong> South Jakarta. The<br />
traders, concentrated on <strong>the</strong> third floor of <strong>the</strong><br />
premises, had all <strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g product seized by<br />
police, who estimated <strong>the</strong> haul at approximately<br />
100,000 discs. Twenty two stalls were closed<br />
down as a result of <strong>the</strong> action.<br />
Illegal facilities were closed<br />
Police shut Italian<br />
file-shar<strong>in</strong>g forum<br />
Police shut down Downrevolution.net, a<br />
copyright-<strong>in</strong>fr<strong>in</strong>g<strong>in</strong>g <strong>music</strong> forum that provided<br />
l<strong>in</strong>ks which 30,000 registered subscribers used<br />
to swap <strong>music</strong> <strong>and</strong> films. The four alleged<br />
operators of <strong>the</strong> site, which was founded <strong>in</strong> 2007<br />
<strong>and</strong> was earn<strong>in</strong>g revenues from banner<br />
advertis<strong>in</strong>g, are be<strong>in</strong>g prosecuted for violat<strong>in</strong>g<br />
Italian copyright law. They face potential<br />
imprisonment for up to three years, a f<strong>in</strong>e of<br />
€15,000 <strong>and</strong> adm<strong>in</strong>istrative sanctions runn<strong>in</strong>g<br />
<strong>in</strong>to hundreds of thous<strong>and</strong>s of euro.<br />
Illegal operators face jail<br />
11
July 2008<br />
THE LAST WORD<br />
Second Interpol<br />
<strong>in</strong>tellectual property course<br />
Build<strong>in</strong>g on <strong>the</strong> success of <strong>the</strong> first course<br />
held <strong>in</strong> November 2007, INTERPOL held <strong>the</strong>ir<br />
second Intellectual Property (IP) Crime<br />
course at <strong>the</strong> Guardia di F<strong>in</strong>anza (GdF),<br />
Scuola Polizia Tributaria <strong>in</strong> Ostia, Rome.<br />
The course was attended by 38 officers from<br />
around <strong>the</strong> <strong>world</strong> <strong>in</strong>clud<strong>in</strong>g <strong>the</strong> Americas, Africa,<br />
Australasia, Asia <strong>and</strong> Eastern Europe who<br />
heard lectures from rights owners <strong>and</strong> o<strong>the</strong>r law<br />
enforcement officers, experts <strong>in</strong> <strong>the</strong><br />
<strong>in</strong>vestigation of <strong>in</strong>tellectual property crime<br />
offences. The students also were required to<br />
give an overview of <strong>the</strong> IPR problems <strong>the</strong>y<br />
faced <strong>in</strong> <strong>the</strong>ir respective countries <strong>and</strong> how<br />
<strong>the</strong>se offences were dealt with both dur<strong>in</strong>g <strong>the</strong><br />
<strong>in</strong>vestigation <strong>and</strong> prosecution.<br />
<strong>IFPI</strong> was <strong>in</strong>vited to attend <strong>and</strong> gave an overview<br />
of <strong>the</strong> <strong>in</strong>vestigation of <strong>music</strong> <strong>piracy</strong> offences<br />
<strong>in</strong>clud<strong>in</strong>g those <strong>in</strong> <strong>the</strong> onl<strong>in</strong>e environment.<br />
Dur<strong>in</strong>g a later session <strong>IFPI</strong> aga<strong>in</strong> participated <strong>in</strong><br />
<strong>the</strong> practical group exercises which were<br />
designed to enable <strong>the</strong> students to discuss <strong>and</strong><br />
evaluate IPR offences <strong>in</strong> a classroom<br />
environment <strong>and</strong> tease out best practices.<br />
Tips for parents<br />
Work<strong>in</strong>g with partners from across <strong>the</strong><br />
<strong>music</strong> <strong>in</strong>dustry <strong>and</strong> <strong>in</strong>ternet children’s<br />
charity Childnet International, <strong>IFPI</strong> launched<br />
a new guide to expla<strong>in</strong> to parents <strong>and</strong><br />
teachers about how to keep children safe<br />
<strong>and</strong> legal when enjoy<strong>in</strong>g <strong>music</strong> onl<strong>in</strong>e.<br />
The guide provides useful tips <strong>and</strong> offers<br />
simple advice on <strong>the</strong> do’s <strong>and</strong> don’ts of<br />
download<strong>in</strong>g <strong>music</strong>.<br />
It expla<strong>in</strong>s that while<br />
digital <strong>music</strong> offers<br />
huge advantages<br />
to young people,<br />
<strong>the</strong>re are security<br />
<strong>and</strong> legal issues<br />
that need to be<br />
taken <strong>in</strong>to<br />
consideration.<br />
PDFs of <strong>the</strong><br />
guide can be<br />
downloaded from<br />
www.pro-<strong>music</strong>.org<br />
<strong>and</strong> hard copies<br />
can be obta<strong>in</strong>ed<br />
by email<strong>in</strong>g<br />
parents@pro-<strong>music</strong>.org<br />
Cover of new guide<br />
As on <strong>the</strong> previous occasion those attend<strong>in</strong>g <strong>the</strong><br />
course are charged with develop<strong>in</strong>g a tra<strong>in</strong><strong>in</strong>g<br />
course <strong>in</strong> <strong>the</strong>ir respective countries on <strong>the</strong>ir<br />
return home with back-up from <strong>the</strong> <strong>in</strong>structors<br />
<strong>and</strong> <strong>in</strong>dustry representatives.<br />
The excellent facilities of <strong>the</strong> GdF have aga<strong>in</strong><br />
been offered for a fur<strong>the</strong>r INTERPOL course<br />
scheduled to be held <strong>in</strong> <strong>the</strong> autumn of 2008.<br />
Course follows on from <strong>in</strong>itial success<br />
New Pro-Music site<br />
<strong>IFPI</strong> <strong>and</strong> its partners from across <strong>the</strong> <strong>music</strong><br />
<strong>in</strong>dustry have recently relaunched <strong>the</strong><br />
www.pro-<strong>music</strong>.org website.<br />
It is an educational resource that aims to<br />
expla<strong>in</strong> all people need know about <strong>music</strong><br />
onl<strong>in</strong>e. The website describes how you can<br />
legally obta<strong>in</strong> <strong>music</strong> onl<strong>in</strong>e <strong>and</strong> features a<br />
wealth of <strong>in</strong>formation about <strong>the</strong> <strong>music</strong> <strong>in</strong>dustry.<br />
New look pro-<strong>music</strong>.org<br />
At a glance.<br />
_________________________________<br />
People. Arrivals.<br />
Helen Saunders<br />
_________________________________<br />
People. Departures.<br />
Kenny Wright<br />
Vitor Robalo<br />
Alex Kotlyarevsky<br />
Willem van Adrichem<br />
Alej<strong>and</strong>ro Cam<strong>in</strong>o<br />
Allan Deaves<br />
Nick Roberts<br />
_________________________________<br />
Diary. 2008.<br />
21st August Tra<strong>in</strong><strong>in</strong>g at Swedish<br />
Patent Office<br />
15 - 19th Sept UNESCO Regional<br />
Tra<strong>in</strong><strong>in</strong>g sem<strong>in</strong>ar<br />
Mid October WIPO Regional<br />
Tra<strong>in</strong><strong>in</strong>g event Croatia<br />
_________________________________<br />
Produced by:<br />
Edited by Graham Hagger.<br />
Fax: 0207 8787 7950<br />
Email: graham.hagger@ifpi.org