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Mexican and UK courts lead the world in music piracy ... - IFPI

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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

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