Music and Piracy - Activity 1 :
Structure and presentation

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When we hear the words ‘piracy’ and ‘music’ in the same sentence, we think about individuals illegally downloading music from the Internet or using peer-to-peer software. That’s what we hear about in the news .

with you today is another form of music piracy, and this form has nothing to do with individuals ‘sharing’ music. This is about the sale of illegal copies of CDs and cassettes for profit. And it’s a global business worth billions of dollars.

, a few figures of the dimensions of the problem. the International Federation of Phonogram and Videogram Producers - IFPI - in 2004, 1.5 billion units were sold. They estimated the total value of these products at $4.6 billion. That’s the equivalent of the entire music markets of the UK, the Netherlands and Spain combined. And for discs, IFPI says that one in three discs sold worldwide is a pirated copy.

The here the changes in the technology used to pirate music. In 2000, 65% of pirated music was still in the form of cassettes. Copying CDs required a big investment in equipment. It took the equivalent of a factory production line to copy traditional CDs which, , only a quarter of illegal sales.

But the CD-R appeared in 2000, and by 2001, cassettes had dropped to 49% of the market while CD-Rs jumped to 24%. CD-R replication equipment became available everywhere, and high-speed burners were cheap. A commercial pirate operation could be located almost anywhere - in an apartment or a garage. And if the authorities got too close, it was easy to change locations.

. And in 2004, CD-Rs and CDs three-fourths of the market. , cassettes have not disappeared completely. 25% of sales and will probably be around for a while. In many developing countries, the cassette boom box is still the most readily available player.

that the DVD made its appearance in 2004. It's share that year war only 1%. However, with its huge capacity, the DVD will probably have a giant impact on music piracy in the years to come.

My today is a graph showing the illegal sales of discs from 1997 to 2004. the years, and the axis shows sales in millions of units. , this graph is for discs only. is that in only seven years, sales tripled - from slightly under 400 million units in 1997 to nearly 1.2 billion units in 2004. The impact of the CD-R is also clear. Once it was put on the market in 2000 and prices for equipment began to fall, sales of illegal CDs soared. Disc piracy leveled off somewhat in 2003 and 2004. , unless measures are taken, we expect sales to continue to grow.

to this short presentation, three things that we must keep in mind. , music piracy is big business. , technology is making it easier and cheaper to pirate music. , the potential for growth is enormous.

for your attention. five minutes for any questions or comments .

- John?
- Is this activity concentrated in any one geographical area?
- it’s much more widespread than we think. We tend to immediately point to parts of Asia, but there is tremendous growth today in some Latin American countries. And the activity is much greater than we imagine in North America and Europe. So it is a global problem.

- Yes, you sir.
- You barely mention downloading music from the Internet or peer-to-peer exchanges. Why? Isn’t that a problem?
- , to be on the sale of illegal music for profit. And that isn’t really a component of downloading or P2P.
- But it is illegal.
- Not always. Just think of the number of sites like iTunes that sell music today. But this is perhaps not the . put it on the agenda for one of our future meetings.

- John?
- any information on what’s being done to stop piracy?
- that a section devoted to efforts by both the private and public sectors to prevent illegal copies or to enforce copyright laws around the world. The question comes up in trade and tariff negotiations, in diplomatic talks, in manufacturing techniques, and so on. I think you’ll find the section very interesting.

- Any more questions or comments? Well, thank you again.