The key devastating factor music piracy does to record companies, specifically outside of the U.S. and U.K., is that it is allowing unit capacity to outweigh demand. This is bad for record execs, but the conflict that arises from this is whether it is morally wrong.
It is estimated that illegal music piracy in the U.S. cost the music industry 4.6 billion U.S. dollars in 2004, equaling a third of the CDs sold world wide (Kennedy, 2005). This accounts for an estimated 1.5 billion units lost in this conflict. The estimated value for the world pirate market is said to equate to the entire legitimate recording industry markets of the U.K., Netherlands and Spain combined (Kennedy, 2005). China is estimated as having the world's largest piracy market.
Simple piracy - the packaging of the pirate copies is different from the original. They are often compilations, such as the "greatest hits" of a specific artist, or a collection of a specific genre, such as dance tracks.
Counterfeits - the packaging of the pirate copies resembles the original as closely as possible. the record companies' trade marks are reproduced in order to mislead the consumer into believing that they are buying an original product.
An Italian Police officer, coordinator of a unit involved in a major anti-piracy operation, was shot at in Naples in November 2004Forensic police specialists confirmed the attack was intended to kill. It is believed the attempt is related to the recent anti-piracy operation which uncovered an extensive organization involved in counterfeit music and movies, and liked to a well-known Camorra mafia gang. (Kennedy, 2005)
The Camorra gang was found to be a significant contributor to the jail population sentenced to jail for piracy convictions. They made up 213 of the 1,800 people who were sentenced (Kennedy, 2005). As technologies enhance, corporations and law enforcement are finding it harder to stay up tempo with the change in times.
A new trend in music piracy is the use of the CD-R format. This is the illegal procurement and sharing of copy-written audio or video material solely through the use of the internet. It is proving to be much easier, and faster than previous piracy methods, at a cheaper cost to the culprit. Some of the industrial burning machines can burn up to 60 CD-Rs and hour (Kennedy, 2005). Individual PCs are able to crank out these burnt copies at a faster rate as well. The pirates who tend to use CD-R are also said to download smaller more locally known artist than the internationally known ones. This places even more stress on struggling artists. The CD-Rs that contain mp3 files are capable of holding more than five full-length albums. The advent of DVD-R is now allowing pirates hold six times the CD-R amount (Kennedy, 2005). The shifts in popular piracy methods can be seen in figure 2 below.
Fig2 (Kennedy, 2005)
Here it can be seen that CD-R use is gradually taking over the piracy market. It should be noted, as previously mentioned, that each CD-R burned can equate to the value of more than five CDs. This does not mean that all