China is a huge potential music market, but……

IFPI sees China's actions against pirate disc plants as "a promising step"

London, 29th March 2006

The international recording industry today welcomed reports of stepped up action against pirate CD and DVD plants by the Chinese government and called for a sustained campaign of anti-piracy enforcement to control unacceptably high levels of piracy in China.

Reports from Beijing indicate that six CD and DVD plants have been shut down and production halted at eight other facilities. This follows stepped up requests from the US Government for the Chinese authorities to take meaningful steps to address the country's severe shortcomings in intellectual property enforcement.

China is a huge potential music market but has among the highest piracy levels in the world which are stunting the development of the indigenous Chinese industry and investment by the international community.

IFPI Chairman and CEO John Kennedy said: "I hope that the recent activity represents a promising signal that China is finally taking seriously the need to take meaningful enforcement action against piracy. These reports of concrete actions against disc plants represent a step in the right direction. To make a real difference, this must be the start of a sustained campaign rather than a sporadic offensive. There needs to be a continuous, consistent programme of enforcement, including inspections and closure of plants and criminal prosecution and deterrent penalties for pirates".

Notes to Editors

1. China has grown to become the second biggest legal market in Asia, but its piracy level is still among the highest in the world: over 85% of the units sold in the market are pirate. Legitimate sales of sound recordings stood at US$212 million in 2004), while pirate sales of sound recordings are estimated to be worth over US$400 million. Pressing capacity in China doubled from 2.4 billion units to 4.9 billion units in one year from 2003 to 2004.

2. These problems remain despite the fact that China joined the WTO in December 2001, and in so doing agreed to effectively enforce intellectual property rights. China is failing to live up to its international commitments

3. IFPI is the organisation that promotes the interests of the international recording industry worldwide. Its membership comprises over 1400 major and independent companies in more than 70 countries. It also has affiliated industry national groups in 48 countries. IFPI's mission is to fight music piracy; promote fair market access and good copyright laws; help develop the legal conditions and the technologies for the recording industry to prosper in the digital era; and to promote the value of music.

(IFPI)