RIAA Files Report Today with USTR on Deficiencies in Copyright Protection in 64 Countries

Washington, DC - February 15, 2002 - The Recording Industry Association of America, (RIAA), in conjunction with its sister organizations representing the film, business and entertainment software, and book publishing industries, today filed a report with the Office of the US Trade Representative outlining issues affecting copyright protection in 64 countries.

Certain themes dominated today's filing--most notably concerns about growing CD-R replication, the involvement of organized criminal syndicates in the manufacture and international distribution of pirate CDs and other optical media, and internet piracy.

The RIAA urges the Administration to redouble its efforts to stop the theft of US copyrighted materials in foreign markets, including by imposing economic sanctions or withdrawing trade benefits where countries fail to take reasonable steps to afford adequate and effective protection. As Hilary Rosen testified to earlier this week in front of the US Senate Foreign Relations Committee, "The future of American competitiveness in Intellectual Property is wholly dependent upon achieving adequate and effective protection and enforcement for creative works in global markets. The Congress, together with the Administration, should communicate directly with world leaders about the importance that the United States government attaches to effective copyright protection—both on and off line."

"The US record industry is a critical part of the US economy, and is a cornerstone of US economic competitiveness in the 21st century. Today's Special 301 filing provides our recommendations to the US Government for their involvement in the protection of American copyrighted materials in foreign markets. We urge the US Government to use all available tools to achieve these goals," stated Neil Turkewitz, Executive Vice President of RIAA.

Turkewitz continued: "In addition we hope that today's report will help to ignite a passion for improved enforcement around the world, thereby fostering a new era of economic and cultural development and competitiveness. It is not only US works that are affected by piracy. A little bit of culture perishes each day that governments fail to extend effective copyright protection to the works of creators. Society bears the long term costs for these failures. "

Some highlights of the submission include: 1- A request to maintain Ukraine's designation as a Priority Foreign Country (PFC). Ukraine was designated as a PFC last year, and in 2001, USTR withdrew Ukraine's GSP benefits, and imposed $75 million in economic sanctions. Ukraine has taken some steps to address the problem of pirate CD production and export, but these have thus far failed to adequately resolve the situation. Until Ukraine has satisfactorily addressed this problem, we will continue to press the Administration to keep the sanctions in effect;

2-A request to elevate Brazil and Pakistan to the Priority Watch List (PWL), and to keep a number of other countries on the PWL, including Dominican Republic, Egypt, Indonesia, Lebanon, Philippines, Russia and Taiwan. Brazil continues to be one of the largest pirate marketplaces in the world, and has not responded to a piracy situation that is threatening the very existence of the record industry in that country. Pakistan, Indonesia, Philippines, Russia and Taiwan are home to large scale enterprises involved in the manufacture and global distribution of pirate CDs, and we call upon each of these countries to adopt legal and enforcement controls over the operations of these plants. The markets in Dominican Republic, Egypt and Lebanon are completely dominated by piracy, and we urge these governments to take immediate steps to bring order to the marketplace by taking aggressive and sustained actions against pirates;

3-A request for USTR to continue to monitor China's and Paraguay's compliance with IPR agreements reach ed with the United States. China has done a commendable job in addressing pirate production for export, but the internal market continues to be dominated by piracy. Paraguay too has taken certain actions, but it continues to be a hotbed of piracy and a source of infringing materials for Brazil and its other Mercosur partners. China and Paraguay must build on the past but improve their performance to achieve compliance with their bilateral obligations.

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The Recording Industry Association of America (RIAA) is the trade organization that supports and promotes the creative and financial vitality of the major music companies. Its members are the music labels that comprise the most vibrant record industry in the world. RIAA® members create, manufacture and/or distribute approximately 85% of all legitimate recorded music produced and sold in the United States.

In support of this mission, the RIAA works to protect the intellectual property and First Amendment rights of artists and music labels; conduct consumer, industry and technical research; and monitor and review state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi- Platinum™ and Diamond sales awards as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.