Physical CD piracy losses, according to the RIAA’s conservative estimates, are placed somewhere in the 300 million dollar range. With little more than a mediocre computer, a CD burner, blank media and some motivation, just about anyone can start their own physical music piracy outlet for less than $500.00.

With such a minimal investment and a realistic potential for high financial return, a growing number of small retail establishments, which may be anything from a bodega to a magazine stand, are getting into the physical CD piracy market - with a bit of a twist.

What the RIAA finds particularly concerning is a growing shift in physical CD piracy production. Many small retail outlets are not relying on the high volume "commercial" pirates that produce tens and hundreds of thousands of illicit CDs. Instead, the RIAA has discovered a new, more elusive trend. Many retailers are simply creating their own pirated CD products “in house.” Seemingly typical retailers are selling home grown pirated CDs along with other merchandise for quick cash. You could say pirate CD production is becoming decentralized.

Realizing the threat to their business model, the RIAA has adopted a new, more aggressive approach to deal with this development. The RIAA's new tactic will incorporate a "zero tolerance" policy. In the past, retailers caught selling illegal CDs would stop only when caught – many times getting away with just a warning. Under the new RIAA policy, it's "one strike and you're out."

“Making a quick and illegal buck on the backs of musicians, record labels and record stores is no the way to do business,” said Brad Buckles, Executive Vice President, Anti-Piracy, RIAA. “These retailers are in effect dealing in stolen property and we intend to hold them strictly accountable.”

The seven retailers sued today are a continuation of a larger enforcement action that took place recently. However, unlike most other retailers identified in the enforcement action, these seven "refused or ignored" multiple settlement offers.

"The lawsuits filed today in federal court specifically ask for an injunction and legal damages, based on the amount of pirated product being offered," the RIAA press release stated.

While the RIAA has claimed success in cities across the United States, such success is difficult to gauge in New York City. If there has been success in the Big Apple, its’ reflection is not yet evident as the sheer quantity of pirated CDs continues to literally spill on to the streets.

This story is filed in these Slyck News categories
Unauthorized Distribution :: Physical Piracy
Entertainment Industry :: RIAA

You can read the RIAA press release here

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