![]() Financial Daily from THE HINDU group of publications Thursday, Mar 27, 2003 |
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Marketing
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Piracy Piracy eating into music industry health Falling sales, high taxes and mafia add to the blues Our Bureau
CHENNAI, March 26 THE Indian Music Industry (IMI), stung by the substantial losses it has suffered over the past two years, has launched a multi pronged anti-piracy campaign to contain the damage. Mr J.F. Ribeiro, former Punjab Director General of Police and Head of the IMI's Anti-piracy operations, said that this campaign has been started because the music industry is going through a crisis with falling sales volumes, high indirect taxes, no major hits, falling prices of music cassettes and CDs, and increasing levels of piracy. Besides the music companies and the Government, the local culture and the artistes also suffer because of the piracy, he said. The campaign, "Sound of Silence", aims to create awareness that piracy is a criminal offence and its cultural impact on the Indian music scene. IMI has also organised a copyright workshop for city police officials. Both the State Government and the police have agreed to work in close co-operation with the IMI, he said. Pondicherry has emerged as a major hub for pirated audio and video CDs, he said. Tamil Nadu has high incidence of piracy and a number of raids have been conducted. In 2002, over 249 raids were conducted and the police seized 56,748 music cassettes, 55,401 CDs, and 86 computers and CD writers in Tamil Nadu. Speaking at the press conference, Mr V.Balachandran, head of the anti piracy operation in the southern and western regions, said that Chennai has been the gateway through which a large portion of illegal imported CDs enter the country. The IMI, which has affiliation with the International Federation of the Phonographic Industry (IFPI), has information that there is a developing nexus between those in the piracy business, the underworld and the terrorist organisations. Mr Balachandran said that a few years ago, the person dealing in pirated music was in the business to make a quick buck. But things have changed today. This business with its low cost, low-end technology and high returns has become the likely target of mafias and other undesirables. He said that there is information that in Far East the Chinese Triads are in this business in a big way. Another example was in Canada and the US, where the entire distribution of Tamil movies and music has been taken over by the LTTE, Mr Balachandran said. Mr Abhik Mitra, Managing Director, Saregama India Ltd, said the economic deterrent to stop buying or selling pirated music is required. At present, there is a fine of Rs 500 and a sentence till the rising of the court. Piracy should be treated on a more serious level, he said. Besides the problem of piracy, the music industry is faced with other problems. Mr Savio D'Souza, Secretary General, IMI, said the industry, especially for the payment of Sales Tax and VAT, has been seen as an electronic goods industry. The industry would like to reposition itself as an audio publishing industry, he said. Mr D'Souza said there was a need to bring in a law to monitor and regulate the operation of optical disc mastering and replication facilities. There should also be stricter licensing controls on the operation of optical media mastering and replication.
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