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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

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