CD manufacturers ordered to pay largest ever music piracy damages in Latin America

A Brazilian court has ordered two Brazilian CD manufacturers to pay record companies over US$1m in South America’s largest ever damages ruling for music piracy.

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By  Marcus Webb Published  September 8, 2002

A Brazilian court has ordered two Brazilian CD manufacturers to pay record companies over US$1m in South America’s largest ever damages ruling for music piracy.

Novodisc Brasil Industria Ltda. manufactured pirate stampers (metal discs used in the manufacture of CDs) that were then used by Trace Disc Multimidia Ltda., to replicate tens of thousands of pirate CDs featuring music by major international artists. A civil court in São Paulo handed down the judgment last week after a three-year investigation by police and industry enforcement teams.

Police in Guarulhos, São Paulo, uncovered the mass copyright infringement in October 1999. Investigations showed that Trace Disc had produced some 150,000 pirate CDs from the Novodisc stampers, including music by well-known artists such as Donna Summer, The Bee Gees, Jimmy Hendrix and Tony Bennett.

The judgment sends a tough message to other copyright infringers in Brazil and around the region, according to the anti-piracy organisation Associação Protetora dos Direitos Intelectuais Fonográficos. APDIF brought the damages claim on behalf of the recording industry in Brazil, supported by IFPI on behalf of the industry worldwide.

“This case is a strong warning to anyone involved in CD piracy in Latin America. CD plants need to understand that if they produce pirate orders for third parties, they will pay a heavy price. It is their responsibility to check what they are manufacturing. IFPI is stepping up its enforcement activity in the region and will pursue anyone involved in piracy with the full force of the law,” says Geoff Taylor, IFPI’s deputy general counsel.

The Brazilian music market, worth $322 million in 2001, has dropped from the sixth to the twelfth largest music market in the world in the last five years.

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