Pirated CD seizures fall 70 per cent

According to the latest statistics from European customs, seizures of pirate CDs, DVDs and video tapes have fell by 70 per cent last year compared to 2001. Entertainment is still second on the fake products list, just behind the humble cigarette.

A statement from the EC has revealed the figures from customs at the EU's external borders. "The numbers of CDs, DVDs and [video] cassettes seized were down significantly, from 40 million in 2001 to about 12 million in 2002," it said.

The annual report from the Commission's tax and customs authorities continued: "This fall can be put down to the scope for downloading off the internet but also to customs action against the traffic in blank CDs."

Even if seizures have fallen, CDs, DVDs and videos are still among the most common counterfeit goods turning up at European borders. In 2002, customs authorities confiscated nearly 12 million of them – around 14 per cent of their total haul, with cigarettes leading the way at 36.9 per cent.

The countries most often found to be 'exporting' counterfeit goods are in Asia – with Thailand and Malaysia each producing 22 per cent - but the third place goes to Belgium with 16 per cent. Brussels isn't giving out any details on the Belgium's counterfeiting operations but waxes lyrical about what it calls the "CD-Thai connection".

The report explained that customs are often led to discover many tens of thousands of pirated CDs in a single commercial consignment, very often packaged in the same way – around a hundred discs packed in rolls that weigh under two kilos.

From a profit point of view, the trade in fake CDs and DVDs is giving drug trafficking a run for its money. "One kilo of cannabis sold in Europe will bring in less than €2,000, a kilo of pirate or counterfeit CDs will bring in €3,000," the report said. The average value of a disc for a games console on the European market will vary between €55 and €60. The selling price for a counterfeited version of the same disc is around half a euro each, the report continued.

The tax authorities have also noted that the figures have shown up a significant rise in counterfeiting in the area of mobile phones. It's a key development, they believe, saying: "The figures show a rise of almost 503 per cent in the number of seizures in 2002, compared to 2000… This can be explained by the success of the mobile" – a theory borne out by the recent scare over exploding Nokia batteries.

IT hardware, on the other hand – PCs, monitors, printers and so on – represents "only" 0.1 per cent of the goods seized by customs in 2002.

Christophe Guillemin writes for ZDNet France.