IFPI, US and Swedish ambassadors, Ukraine music sector call for urgent action to stop Ukraine CD piracy

Kiev, February 21, 2001 - IFPI and the Ukrainian music sector today joined the Ambassadors of the United States and of the Swedish Presidency of the European Union in a call for Ukraine to take urgent action to curb its production and exports of millions of pirate CDs.

US and Swedish Ambassadors to Ukraine, Carlos Pascual and H.E. Ake Peterson, supported the music industry's call for the Ukraine government to tackle a CD piracy problem that stunts the country's culture and economy and is seriously damaging its international reputation.

At a press conference in Kiev, IFPI today presented details of the damage being done by a flood of Ukraine-made pirate CD exports across European music markets. The event was supported by the Ukrainian Music Sector, represented by Victor Pavlenko, Director of Ukraine's largest music festival Tavria Games.

Leading Ukrainian artists have joined the call for tough action to stop the manufacturing of pirate CDs. Taras Petrynenko, Natalia Mohylevska and El Kravchuk said Ukraine could develop a thriving music culture if its artists were protected by proper anti-piracy laws and effective enforcement.

Ukraine is the number one piracy problem country in Europe. It has an estimated annual production capacity of around 70 million CDs - totally mismatched to a local legitimate demand of between 1 and 5 million CDs. This is fueling a pirate export business that is estimated to be costing more than $300 million to the international music industry.

At today's press conference IFPI revealed new details of how it uses forensic tests to trace millions of pirate CD exports back to CD manufacturing plants in Ukraine. All participants at today's press conference are urging the government to take concrete steps to fulfil the commitment it made in June 2000 to tackle its huge pirate CD manufacturing industry.

Stefan Krawczyk, Regional Director Eastern Europe of IFPI, said: "The Ukraine government agreed last June to take a series of steps to tackle CD piracy. Unfortunately we can see no progress to this goal whatever. We have found Ukrainian pirate CDs in over 30 countries around the world.

It is essential that action is taken now, to create the basis for a healthy Ukrainian music industry and to stop the damage being done in the recording industry's international markets."

Victor Pavlenko, Director of Tavria Games, Ukraine's largest music festival, said: "Ukraine's music sector needs to work with international artists and international investors. We can grow a thriving music sector in Ukraine, but first we have to take tough action to put an end to our pirate CD manufacturing. This is doing huge damage to our reputation, to our own music sector as well as internationally."

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For further information contact:
Adrian Strain, IFPI, Tel. +44 207 878 7900/39