Russian Pirates Rule the CDs

Pirated-music lovers who weep at the thought of a Napster-free world might soon have reason to dry their eyes. The Russian Mafia, the swashbuckling cowboys of global CD and DVD piracy, are slowly moving their wares online. Intellectual property experts say the Web is becoming an increasingly attractive bootleg distribution channel for pirated music originating in many of the former Soviet satellites and states, from Bulgaria to Ukraine. And, they warn, stopping the thieves will not be easy. Indeed, one could say that the Russian Mafia owns the Russian music industry. As much as 95 percent of all music sold in Russia is illegal, said Eric Schwartz of the International Intellectual Property Alliance, which represents copyright holders. "There's a whole lot of money to be made for them, and nobody's giving them any good reason to stop," Schwartz said. He said the main reason pirates do so well is because of Russia's lax law-enforcement procedures. According to the International Federation of the Phonographic Industry, a global recording-industry trade group, Russian pirates accounted for $310 million in U.S. losses, more than in any other country. Add to this the lost revenues for other media, Schwartz said, and the number approaches $1 billion.