In Russia alone the local pirated music market grew to $311 million last year, well above a legal music market of $257 million.
PRICEY FOR RUSSIANS
In a country where the average wage is still just $140 and roughly a quarter of households live below the poverty line, officials have little hope of selling copyright CDs which cost around $15. A pirated CD costs around $4.
But Jay Berman, global chairman of copyright watchdog IFPI, said he hoped Moscow would start clamping down on dozens of plants producing illegal CDs across Russia.
"I shall be back here in September and I expect to see an improvement," he said. "We've been promised action now."
Prime Minister Mikhail Kasyanov has ordered the creation of a special commission to defend intellectual property rights. The commission is to present a plan to fight piracy by September.
"When we see some sign of the government doing something about it we shall start investing here," EMI's Munns said.