IFPI Press Release, March 9, 2000

Court Hands Out Biggest Ever CD Pirate Fine For Dutch Gang

March 9, 2000

IFPI today applauded a landmark court ruling in the Netherlands which forced a six-man CD pirate gang to repay half their illegal profits - a total of 1 million guilders (US$500,000) to the Dutch state. It is Holland's largest ever criminal fine for CD piracy and the first time the country's so-called "make them pay" legislation has been applied to a CD piracy case.

The judgement, under the 1993 Dutch Forfeiture of Proceeds of Crime Law, came on March 7 at the criminal court in Zwolle. The gang members, who had already been handed down prison sentences of up to six months, were responsible for the distribution of around 350,000 illegal pirate CDs.

The criminal investigation was carried out by the Special Investigation Department of Buma/Stemra which operates under the authority of the Public Prosecution, but is financed by industry, authors and performing artists through BREIN. BREIN is the anti-piracy foundation acting on behalf of rights-owners in the audio, video and interactive software industries. Its members include NVPI, the Dutch national group of IFPI.

Paul Solleveld, Managing Director of NVPI, said: "This is a landmark ruling which helps hit the pirates where it hurts - in their pockets."

The court determined in its verdict that the gang had made criminal profits of two million guilders. The two main suspects would have earned half a million each. They were ordered to pay half that amount. The remainder is to be paid by the other four gang members.

Organised CD crime is a serious problem in the Netherlands. Piracy costs artists and record companies an estimated US$36 million a year in lost revenues. Anti-piracy enforcement has been stepped up sharply in recent months. There were 507 cases operations executed in 1999 by BRIEN.

IFPI Director of Operations Mike Edwards said: "This is a good judgement which sets an example internationally. Prosecutors need to exploit national laws to the full if today's CD pirates are going to be deterred from their illegal activities."

For further information contact:
Adrian Strain, Director of Communications, IFPI: 44 171 878 7939