RIAA, MPAA Provide Copyright Use and Security Guide To Fortune 1000 Companies

Washington, DC - February 13, 2003 - The major trade associations representing the motion picture and recording industries today announced the publication and distribution of a brief guide to assist U.S. companies in preventing copyright abuse on their computers and networks. The guide, titled "A Corporate Policy Guide to Copyright Use and Security on the Internet," requests that companies take steps to ensure that their computer and Internet systems are not being utilized for film and music piracy. It will be delivered to many of the largest companies in America -- the Fortune 1000 -- this week.

The Recording Industry Association of America (RIAA) and the Motion Picture Association of America (MPAA) issued the guide to raise awareness at the corporate level of illegal activities that may be taking place on company networks in the United States. IFPI, the trade body representing the recording industry worldwide, drafted the brochure for top European companies and is spearheading the effort overseas. The guide requests that companies advise employees against copyright abuse on computer systems in the workplace, in particular copying and uploading copyright material to the Internet without permission from the rights owner. Such unauthorized copying of music, movies and other copyright material is illegal and can tarnish corporate reputations, increase security risks for computer systems
and put organizations at risk of legal liability.

The guide also outlines the benefits to companies of cracking down on such abuse of their networks, including:

• Avoiding potential legal risks such as injunctions, damages, costs
  and possible criminal sanctions or financial penalties against the companies and their directors where corporate systems are used for copyright theft.
• Lowering the security risks -- from viruses and firewall breaches --
  to which the illegal copying and transmission of copyright material exposes corporate computer networks.
• Preserving systems resources and employee time.

Research has shown that numerous corporate computer systems are presently hosting databases of music, film and other unauthorized copies of copyright material, or transmitting copyright material on peer-to-peer services.

Companies could face substantial penalties if convicted of this kind of copyright infringement. In April 2002, Arizona-based Integrated Information Systems Inc paid a $1 million settlement after employees were found to be accessing and distributing thousands of infringing music files on the company server.

The new brochure follows an October 2002 letter, also to the Fortune 1000 companies from the MPAA, RIAA, National Music Publishers Association (NMPA) and the Songwriters Guild. That October letter informed America's top business leaders about the problem of peer-to-peer piracy and that this kind of illegal activity may be happening on corporate computer networks. This brochure takes the next step and proposes some sample "good business practices," such as a memo to employees and a copyright theft policy.

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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.