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Tuesday, October 09, 2001
IFPI signs anti-piracy agreement with Indonesian CD plant

IFPI has broken new ground in the fight against piracy in South East Asia by signing a 'good business practices' anti-piracy agreement with PT Dynamitra Tarra, the largest CD manufacturer in Indonesia. The agreement provides a model for the optical disc replication industry throughout the region, which has the highest levels of pirate optical disc production in the world.

Dynamitra Tarra has agreed to: implement the IRMA (International Recording Media Association) Anti-Piracy Compliance Program Standards & Procedures to help avoid intellectual property (IP) infringements; cooperate fully in all future IFPI anti-piracy investigations; and give full access to IFPI representatives in checking compliance with IP rights in the future. In addition, IFPI welcomes the fact that Dynamitra has also employed an international consulting agency to help develop security systems designed to reduce the risk of theft of their clients' proprietary information.

Dynamitra Tarra has also pledged its support for IFPI's proposals for regulation of optical disc plants in Indonesia and across Asia - which IFPI has been actively lobbying for. Such laws are already in place in the Hong Kong Special Administrative Region, Macau, and Malaysia. Similar initiatives are in progress in Taiwan, the Philippines and Thailand.

The agreement reflects IFPI's strategy of increasing cooperation with optical disc plants to help them avoid piracy. It demonstrates Dynamitra Tarra's commitment to conducting its business in a legal manner and avoiding music piracy, which is undermining the health of the optical disc industry as well as the recording industry.

Geoff Taylor, Deputy General Counsel of IFPI, said: "Optical disc plants can be part of the solution to music piracy in Asia, rather than part of the problem. As IFPI and other content industries up their anti-piracy enforcement, plants in Asia are increasingly being caught up in criminal and civil proceedings as a result of accepting orders from unscrupulous clients. Replicators that have entered into anti-piracy agreements of this nature will avoid these problems and have a distinct competitive advantage in attracting legitimate business."

IFPI is now inviting other plants in the region to seek similar agreements. In this way, plants can reduce the likelihood of infringing copyright and demonstrate to customers and investors their commitment to managing a successful and legal business in the long term. Irwan HL, Director of Dynamitra Tarra, said: "If a plant does not have procedures such as the IRMA Code and IFPI's Good Business Practice Guidelines in place, they are taking unacceptable business risks even if they believe they have sufficient protection procedures in place. We have always put great emphasis on observing IP rights and we fully support IFPI's anti-piracy activities, which we hope will ensure that the optical disc manufacturing industry develops in a way that will allow legitimate businesses like Dynamitra Tarra to flourish."

IFPI spearheads the recording industry's fight against music piracy, which is a global illegal business worth more than US$4 billion annually. Anti-piracy agreements such as this one are a key part of IFPI's strategy to commit the optical disc industry to legitimate manufacturing. There are more than 700 known CD plants worldwide.

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