The term piracy is generally used to describe the deliberate infringement of copyright on a commercial scale.

The problem of piracy has arisen with the rapid advance of technology. New techniques of printing, recording and fixation of broadcast or recorded programmes have emerged, making it easy for the pirates to carry on their illegal activities. Piracy is an illegal and criminal activity.

Cassettes sales of pirate recordings in 1997 were estimated at 174 million units with a value of some 83 million Dollars making India the World's third largest pirate market in volume and sixth in value. Pirate sales in India account for nearly 30% of total unit sales. There has been substantial improvement compared to the eighties when piracy levels were over 80%. Nevertheless, it is still quite high and calls for effective enforcement measures. Piracy of Compact Discs is also becoming a problem.

Music Piracy basically refers to three kinds of illegal Activities:
1. Counterfieting
2. Pirate Recordings
3. Bootlegging

1. Counterfeiting : This is the unauthorised copying of the sound as well as artwork, trademark, label and packaging of the original recording. The aim is to mislead the consumer into thinking that they are buying the genuine product.

2. Pirate Recordings : These are unauthorised duplications of music from legitimate recordings for commercial gain. Pirated CDs or music cassettes may be compilations such as 'Top Ten', 'Bollywood Hits' or a combination of hit titles of different music companies. The packing and presentation of a pirate copy does not usually resemble a legitimate commercial release.

3. Bootlegging : This is recording, duplication and sale of a performance such as a live concert or broadcast without the permission of the artist or the Record Company which may be entitled to control the recording rights of the artists performances.

Piracy - Who suffers?
Piracy costs the Music Industry and the Government millions of rupees each year. It is estimated that out of nearly 580 million cassettes sold in the year 1997, 175 million were illegally manufactured and sold by pirates. Apart from adding nothing to the creative process, the pirates evade payment of royalty, excise duty, sales tax and the promotion and publicity costs.

CONSUMERS suffer when they discover that they have bought a poor quality product, and supported theft of intellectual property.

ARTISTS and other right holders suffer since pirate recordings do not earn them any royalties. When revenue from top selling hits is lost to piracy, companies cannot afford to invest in specialist areas and offer consumers a wider selection of music.

GOVERNMENT suffers as pirates do not pay taxes. It is estimated that piracy results in loss to the exchequer to the tune of some Rs. 190 millions in Sales Tax, Excise duty and Income Tax, in 1997.

PIRATES alone gain. When a pirated copy is sold, money goes to criminals -- not to the artists, other right owners, Music Companies or the Government.

Piracy seriously undermines the legitimate industry's capacity to sustain itself and to contribute to the growth of musical culture.

Source : IMI

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